Sometimes it seems people spend more time researching what smartphone to buy than how to strategize Social Security in retirement. Many don't realize that starting Social Security benefits too early or too late can cost you considerably.

How do people approach Social Security strategy?

Nearly one third of people claim Social Security benefits as soon as they turn 62, according to the Congressional Research Service. When they do that, they permanently reduce the dollar amount of their Social Security checks by 30%.

On the surface, this seems short-sighted. After all, a few years of being patient can get you the entire benefit you're entitled to, and if you wait a few years beyond that, you can even increase your checks by 8% for every year you wait until you turn 70.

While it's definitely true that you leave Social Security money on the table each month when you claim early, sometimes there are extenuating circumstances that make it a sensible decision.

Involuntary retirement is all too common. A person in their late 50s or early 60s, working a good job and on track for their retirement savings goal, suddenly loses their job. Paychecks stop, and finding comparable employment at that age is undeniably difficult.

In cases like that, people often need to claim Social Security early for financial survival.

Other reasons to file early include receiving a serious diagnosis that may cut your life short; if you're unlikely to live for 20 more years, it might make more sense to start benefits now so you can begin using that money immediately.

On the other end of the spectrum, about 10% of people wait until age 70 to claim Social Security, gaining them an additional 8% in their checks for each of the three years they delayed their benefits.

That's a tempting proposition. After all, where else can you get a guaranteed 8% boost in today's market? That's potentially a large amount of additional money you will collect, especially if you live into your 90s.

Market conditions can also influence early claiming. If the market drops 40% right as you retire, your $500,000 nest egg is suddenly reduced to $300,000. That can understandably cause you to panic and jump at the quickest way to make up for that lost money.

However, in doing so, you risk the market recovering before you actually need to tap into Social Security to survive. If the market recovers a few days after it falls, but you've already activated Social Security, the extra income you'd planned on by delaying benefits will be permanently inaccessible.

How should you strategize your Social Security benefits?

Many people think Social Security decisions are just about simple timing: Start benefits early and risk getting less lifetime money, or start them late and risk passing away before the extra income makes up for the money you didn't get while you were delaying benefits.

This is known as the "break-even analysis." How long do you need to live to make the shorter collection of larger checks net you more money than the longer collection of smaller checks? That analysis needs to consider much more than just the simple math of lifetime benefit calculation.

For example, every year, Social Security adjusts its benefit checks to account for inflation in what's called the Cost of Living Adjustment (COLA). If you get $1,400 a month in 2026 after starting benefits at age 62 and the COLA for 2026 is 3%, you will get $1,442 a month next year. If you delayed benefits until 70, you'd be making $2,480 a month in 2026, and the 3% COLA would increase that to $2,554 a month.

Those increases cause your benefits to compound dramatically over decades of retirement.

You also need to take taxation into account. Retirement accounts such as IRAs have required minimum distributions (RMDs). The government requires you to take a certain percentage of your retirement account as income each year after you turn 73. That income is taxable, which means the larger your RMD, the larger your tax bill will be.

In some cases, you can reduce your lifetime taxation by delaying Social Security benefits and living on your retirement accounts until you turn 70, as this means your RMDs will be smaller.

Seek professional guidance

This article is just a small taste of the often bewildering complexity of properly strategizing Social Security. Making this decision on your own is risky and could cost you lifetime benefit amounts, unnecessary taxation or both. It's important to work with a financial adviser to help chart the best path forward for your unique situation.

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• Five Reasons You Should Take Social Security At 62 (and Five Reasons You Should Wait)
• Should You Claim Social Security Early or Late? A Financial Adviser Weighs In
• Four Social Security Myths Debunked
• 4 Steps to Take if You Lose Your Job Near Retirement

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

It's been billed as the greatest financial windfall in history, a tidal wave of wealth washing from the richest generation ever onto their heirs. But the reality is far more complicated.

Aptly named the great wealth transfer, it's the handoff that research firm Cerulli Associates projects will total $124 trillion through 2048, with $105 trillion flowing to heirs and $18 trillion donated to charity. That wealth is flowing from the aging silent generation and baby boomers down to their children and grandchildren.

Once you account for a few other factors, though, "great" may be better described as "just OK." Visa Business and Economic Insights argues the spendable transfer is actually closer to $36 trillion from boomers over 20 years, once you deduct things such as debt, taxes and retirement spending.

Whatever the true figure turns out to be, the $60-trillion-plus gap between the two estimates shows how slippery this forecast really is. And it points to a bigger truth: Not everyone stands to catch the same share of this falling wealth.

Here's a sharper picture of who actually benefits — or doesn't — and how your own situation compares.

To those who already have much, much will be given

If you come from a wealthy family, chances are you'll be among the biggest beneficiaries of the Great Wealth Transfer. Cerulli estimates that households worth $10 million or more — about 2% of all households — account for roughly half the entire transfer.

The averages reflect that skew. While the average U.S. inheritance is about $46,200, according to Federal Reserve data, the median is far lower, because a handful of enormous transfers pull the average up. The bottom half of recipients average around $9,700; the top 1% average about $719,000.

Ultimately, most people get nothing at all, as only about one in three Americans ever receives an inheritance. So, if you're not expecting one, then — congrats, I guess? — you're in the majority.

Millennials stand to get a greater share, but may have to wait

If you came of age watching Dawson's Creek or Buffy the Vampire Slayer, there's a good chance you're set for a larger slice of the transfer.

That's because Cerulli's research projects that millennials will inherit the most of any generation over 25 years — around $46 trillion. But it's those who grew up with MTV, Gen X, that will inherit the most in the next 10 years, with $14 trillion versus millennials' $8 trillion.

Those hoping for a windfall to cover a home down payment or help start a family may have to wait. Federal Reserve analysis finds inheritance receipt peaks around age 60 — a natural result of a typical lifespan near 80 and a roughly 20-year gap between parent and child.

However, the growing recognition that heirs often get the money when they least need it is nudging some families to pass wealth on sooner. More than four-in-five parents (82%) said they have given their adult children financial help since age 18, according to a new survey by Morning Consult commissioned by Kiplinger for our Trillion Dollar Talk campaign.

Popularized by figures like Bill Perkins, author of Die With Zero, the idea is to help while children still need it, rather than when they're nearing retirement themselves.

The transfer won't touch the racial wealth gap

If any single factor sorts the winners from everyone else, it's this one. As with nearly every measure of pay and net worth, there's a stark racial disparity here.

White households are about 2.8 times more likely than Black households to receive any inheritance at all. And when they do, they inherit roughly 5.3 times as much as Black households and 6.4 times as much as Hispanic households, according to Penn Wharton estimates. Around a third of white families ever inherit, versus roughly one in 10 Black families, according to a 2023 study by the Boston Fed.

The gap holds even among those expecting something. An Urban Institute analysis finds the median Black renter who anticipates an inheritance estimates it at about $48,000, compared with $200,000 for the median white renter.

The Federal Reserve Bank of Boston study found that lifetime earnings and pension assets — not bequests — explain most of the racial wealth gap, which is a big reason the coming transfer is unlikely to close it.

Women benefit from the transfer before the transfer

When it comes to which sex comes out ahead, it's women who are positioned to receive more than men. But there's a key caveat.

The first handoff is often horizontal, not generational. Cerulli projects that some $54 trillion will move between spouses before it ever reaches a younger generation, with nearly $40 trillion of that going to widowed women in the boomer and older cohorts, who tend to outlive their husbands.

For many women, then, the wealth transfer is less a true inheritance than a stretch of sole control over a shared nest egg, frequently while absorbing the very late-life costs that shrink what's left to pass on.

Not all the wealth is inheritable, or at least, easily inheritable

An important distinction rarely makes the headlines: Not everything older generations have accumulated can actually be passed down.

A traditional defined-benefit pension typically pays income for life and then stops at death, or continues at a reduced rate to a surviving spouse. It generally leaves no lump sum for the kids. A 401(k) or IRA, by contrast, is an asset heirs can inherit outright.

As a result, two retirees with identical incomes can leave very different estates. The one living comfortably on a generous pension may pass on little, while the one who saved that same income in a 401(k) leaves behind a balance. Through 1980, nearly 40% of Americans had a traditional pension. The long shift toward 401(k)s and IRAs since then has, paradoxically, made retirement wealth more inheritable.

Parents on the older edge of the boomer cohort or in the silent generation more often spent full careers under traditional pensions that leave nothing behind, while those on the younger edge came up saving in 401(k)s. So, whether there's a balance to inherit at all can hinge partly on where your parents fall within their own generation.

A large share of boomer wealth isn't liquid, either. It's home equity. Realtor.com found boomers hold about $19 trillion in real estate, and for many families the house is the single biggest asset. Unlike a brokerage account, which heirs can sell and split in a day, a house is a single, illiquid asset that usually can't be divided without selling it.

Some states will tax you more

Where you and your parents live shapes what heirs keep. Thirty-three states levy no estate or inheritance tax at all. Twelve states plus Washington, D.C., impose an estate tax (paid by the estate), and a handful — Kentucky, Nebraska, New Jersey, Pennsylvania and Maryland, which has both — levy an inheritance tax (paid by the person who receives the money).

The catch is the exemption. The federal estate-tax exemption sits at a lofty $15 million per person in 2026, but several states start far lower — $1 million in Oregon, $2 million in Massachusetts — low enough that an ordinary home plus retirement savings can trigger a bill. It's part of why Florida, Texas and Nevada, which levy neither tax, are such popular landing spots for retirees.

To the original savers may go the spoils

Ultimately, the ones who benefit most from all this wealth just might be the ones who saved and invested it in the first place.

Many boomers intend to spend it themselves. In a Charles Schwab survey of affluent boomers, 45% said they'd rather enjoy their money while they're alive than preserve it as an inheritance.

Longevity is the main driver, with healthcare acting as much the culprit as hedonism. Fidelity estimates the average 65-year-old will spend about $185,000 on healthcare in retirement before long-term care even enters the picture. Money once earmarked for the kids becomes money spent on aging.

And boomers are increasingly aging in place. One survey even found 68% live in homes at least three decades old, many overdue for renovation, and most in no rush to downsize. That points to wealth that's more likely to be used up than passed on — put toward renovations or drained by late-life care.

Whether you're a clear winner or loser or something in between, it might be best to treat any inheritance as a bonus rather than a foundation. And have the awkward family conversation, because nearly 30% of American parents have no formal estate plan, including a will, the Kiplinger/Morning Consult survey found. In the end, the winners won't necessarily be the ones who receive the most. They'll be the ones who planned ahead.

More Trillion Dollar Talk

• The Great Wealth Transfer Is Creating a New Generation of Family CFOs
• Could You Handle a Sudden Windfall?
• Manage an Inheritance Like a Pro in Just 7 Steps
• How to Organize Your Financial Paperwork for Your Heirs

It's a question that comes up often among new parents and there's surprisingly little information out there to answer it. With the exorbitant cost of daycare, would you be crazy for even considering having one parent quit their job to stay home with the baby?

The idea of willingly giving up an entire second income can feel scary. How do you know whether you're considering all the right factors to feel confident in your decision one way or the other?

"People run the numbers, get an answer they could genuinely live with and still can't decide," David Fisher, Founder and CEO of Summit Income Planning Group, tells Kiplinger. "Because they are waiting for a version of the choice with no downside. That version doesn't exist. Every real option carries a cost."

How can you accurately estimate the costs and benefits of transitioning to a single income and make the move as seamless as possible if you do decide it's the right one? Here are seven financial moves to make that can help you make the best decision for your family.

1. Figure out the real change in income and spending

The first step in deciding whether a single income is feasible is getting a realistic estimate of how much your actual take home pay will be and exactly how your expenses will change. The real change in your household income and spending is not simply the second income minus childcare costs.

"It's the income minus the costs of things like childcare, commute, meals, and clothes," Fisher says. "The second income is also typically taxed at a higher tax bracket if the household income is high enough."

In other words, you're not just saving on daycare. The income of the parent who continues working will also be taxed less, as your household income will likely fall into a lower tax bracket and you'll be adding a new dependent.

Meanwhile, some expenses will go up. If you're putting the entire family on the working partner's health insurance, for example, expect a higher deduction for that from future paychecks.

Some additional ways you might be able to save by having one parent stay home include:

• Getting rid of the second car if there's a practical way for you to share one car when there's only one commuting parent.
• Canceling or scaling back on a professional cleaning service if you currently pay for one.
• Reduced fuel and maintenance expenses now that only one parent is commuting.
• Reduced spending on dining out if you tended to buy lunch outside while working.

Beyond changing health insurance costs, additional expenses and opportunity costs to consider when giving up one job include:

• The loss of any contributions the non-working partner was making to a 401k or other retirement account.
• The lost 401k matching contributions if the non-working partner was getting those.
• The impact on social security benefits of having fewer earning years in the stay-at-home partner's work history.

Doing the math on the whole picture can help you make a more informed decision and plan ahead for any long-term impacts this decision will have on your finances.

2. Get your life insurance in order now

When moving to a single income, your household no longer has a "backup earner" so getting life insurance to replace that income if anything were to happen becomes more important than ever.

But it's not just the working partner that needs coverage. "Insure the parent who's at home, too," Fisher advises. "People often feel it's unnecessary because there is no income but there absolutely is a cost to replace full-time childcare and household management."

Since you'll need coverage for both, rather than take out two separate policies, you can look into something called survivorship life insurance. Sometimes more bluntly referred to as "first to die" life insurance, this is a single policy that will provide a payout to either spouse in the event that the other passes.

3. Make any moves that require a credit application before the second income is lost

If you're starting a family, you might also be looking to buy your first home or move into a larger one. If not a home purchase, you might be looking into upgrading to a more family-friendly car.

Fisher recommends that couples "do anything that requires a credit application while both incomes are still on the paperwork." The higher household income will help you lock in better rates than you would qualify for on half the income.

4. Do a trial run of your single income budget

"For a few months before anyone resigns, operate the household on the single income and save 100% of the other," Fisher advises. "You'll learn more doing that than any projection."

This means living on the realistic budget you came up with in step one. Although, there will be some differences. For example, if getting rid of a car is part of your plan, you won't be able to eliminate that extra expense just yet. Meanwhile, if you're expecting a new baby, you won't be spending on diapers, clothes and other newborn expenses just yet either.

But try to get as close as you realistically can to the budget you sketched out for a few months before you actually need to make the decision.

Not only will this help you figure out if you can really make it work, but you can also make adjustments based on real world experiences during the trial period.

Even better, you can stack the cash from the second income in savings during the trial period. These savings can help you achieve step five below in a matter of months.

5. Double your emergency fund

The standard recommendation is to save three to six months of income in an emergency fund. When you're relying on a single earner, however, you want a more generous cushion because you won't have a backup income to rely on in the event of a job loss.

Instead of three to six months, aim for six to 12. As mentioned earlier, doing a trial run of your single-income budget while both spouses are still working can help you achieve this new number quickly.

To make it grow even faster, stash those extra savings in a high-yield savings account. You can use the tool below, powered by Bankrate, to find the best rates available right now:

Your goal can be to commit to the trial run for as many months as it will take to double your emergency fund. After that, you can decide whether that budget is sustainable long term.

If you decide it is, you've now got the emergency fund needed to take the leap. If you decide it isn't, you've got a generous chunk of extra savings you can use to offset future childcare costs or put toward other financial goals.

6. Make a "return to work" plan if you want that option

Sometimes, a couple might decide to make the transition temporary. One parent will stay at home during the early childhood years to avoid the daycare costs, but plan to return to work once the child is old enough to go to school.

If the plan is to ultimately return to work later, the stay-at-home partner should be planning for that return before they resign. The best way to do that is to transition to part-time or freelance work during the stay at home period.

"A resume with a reduced hours period reads completely differently than one with a five year blank," Fisher explains. When it comes time to job hunt again, the stay-at-home parent will have an easier time explaining those reduced hours rather than an extended gap.

The cash flow from that freelance or part-time work can also help pad the household budget.

If working reduced hours isn't feasible, at least make sure to maintain any certifications or make time for continuing education and networking during the stay at home period if you want to keep the door open for returning to work later.

7. Talk frankly about the shift in power dynamics that will happen

This isn't purely a financial decision. It will also have an impact on your relationship as one partner becomes fully financially dependent on the working partner.

To avoid the potential for that shift to create tension and conflict in the relationship, you should discuss how money and household work is going to be handled now and put the tools in place to make it feel fair.

For example, the non-working parent shouldn't be expected to be solely responsible for all household labor around the clock. Find ways to make sure that both parents are getting time to rest and relax throughout the week. Moreover, financial decisions should continue to be made as a couple, even though only one person is bringing in the income.

Talk openly now about how you're both going to make sure that happens instead of waiting for imbalances and conflicts to emerge later.

Thinking about giving up a second income?

Before making the change, consider talking with a financial adviser. They can help you model different scenarios, identify financial gaps and build a plan for living on one income without losing sight of your long-term goals.

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

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My wife and I don't take the same vitamins. We don't follow the same workout plan. We don't have the same diet. (The last one is on me. I should eat healthier food.) Think of retirement planning for women and men as a daily vitamin. They should be different by design.

This can apply to both accumulation for retirement and retirement income planning. For today's purposes, we are going to focus on retirement income planning, where our practice, Exit 59 Advisory (I'm the president), is focused.

Below are four areas where planning for women and men should vary and a few things you can do to prepare.

Longevity planning

The obvious fact that women live longer than men is the first domino that falls and creates many of the less obvious dominos falling in its wake.

If you're going to live a longer life, lifetime income sources are more valuable. Receiving $10,000 per month is more valuable if you receive that amount for 30 years instead of 25. (Duh.) So, what can you do about it?

• Consider delaying claiming Social Security or, if you're married, having your spouse delay claiming. That 8% delayed retirement credit you get paid to wait becomes more valuable the longer you collect the benefit.
• Pension options should be considered in the context of a longer life expectancy: Pension formulas are typically based on unisex mortality tables, so your pension benefit does not change because you're a woman. This makes lump sums less valuable typically than lifetime income streams. And single life annuities, all else being equal, are more advisable than joint options that may make more sense for men.
• Consider other lifetime income sources: A private annuity will factor in the fact that you are a woman. However, if you're married, it may make sense to consider joint income annuities. If you just find comfort in knowing you'll have basic expenses covered for a long life, it's worth getting a quote from an insurance agent.

Asset allocation vs asset purpose

Because women live longer, they should have more of their assets in equities as a hedge. However, this increases sequence of returns risk — the risk that the market drops significantly as you start withdrawing.

It also requires riding an investment roller coaster that is twice as scary when you don't have a paycheck.

The concept of asset purpose is similar to a bucketing strategy in that it will allow you to take more risk with buckets of money that you won't need for a long time. You can carve out a portion of your assets for end-of-life and long-term care. Those funds can be aggressively invested, and likely the risk endured, because you probably won't need them for a longer number of years.

Things like travel funds, an expense that spikes early in retirement, would be more conservative. Expenses needed within two years in this strategy would be kept in cash to account for the possibility of a significant market downturn.

In the aggregate, you would end up with a higher equity allocation over time as you spend down the more conservative buckets early in retirement.

Long-term care

I always used to joke in the continuing education sessions I taught on this topic that men who go into a nursing home hate it and then die. Women go in, make friends and live forever. I was only sort of kidding.

Women are not only more likely to need long-term care, since they don't receive the reciprocal care from their husband who has already died, but they tend to need care for about twice as long as their male counterparts. Not fair, I know.

When we build out financial plans, the long-term care expense we stress-test is about twice as high for women as it is for men.

If you don't have a plan, or want to stress-test it yourself, you can access a free version of the planning software we use.

Estate planning that actually matters for you

It is notoriously difficult to get male clients to tackle estate planning. I suspect that's because it's something solely for the benefit of someone else.

If you are a married woman, you should feel more confident that you are doing estate planning for you — and if you don't, things are going to get messy.

I typically encourage our clients to review beneficiary designations annually and a written estate plan (wills, trusts, etc.) every five years or if something material has changed.

This will almost never feel like a priority until something bad has happened. It pays to spray for weeds before they take over your lawn. Trust me: I know.

I really am just scratching the surface on this topic and plan to come back to it in future columns.

Notably not mentioned is the impact of being a caregiver and the outsized impact and obligation this comes with for women.

In this context, it can take you away from your peak earning years. That impacts Social Security, pensions and investment accumulation, not to mention the reality that mental and physical strain can make it easy to take your eye off the ball (your own finances). The former is hard to prevent; the latter is also difficult, but preventable.

This all seems very unfair to women.

Here's the silver lining and forgive the generalization: Women are also better planners.

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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.

A family vacation home isn't just an asset on a balance sheet. It's where holidays happen, where grandchildren learn to fish or ski, and where family traditions and values get passed down almost as much as the property itself.

That is exactly why a vacation home deserves its own planning conversation — one that is fully integrated into the rest of your estate plan. Without a plan, a home that was meant to bring a family together can end up doing the opposite.

Why a vacation home is different from other assets

A primary residence often has a relatively straightforward path: It's sold or one person inherits. A vacation home can be more complicated because several family members may expect to share it. And "sharing" a single piece of property among siblings, cousins or in-laws is rarely simple once the original owners are gone.

A few things make vacation homes uniquely tricky to plan for:

• Shared but unequal use. One sibling may visit every summer; another may live across the country and rarely use it. Yet costs and decisions are often expected to be split evenly.
• Ongoing expenses. Property taxes, insurance, maintenance and repairs don't pause when the owners pass away, and often the children were not aware of how much it cost to maintain the property. Someone has to keep paying, and disagreements over who pays what — and how much — can quickly become a source of family conflict. Sharing actual numbers related to expenses is essential to helping the next generation make sound decisions.
• Out-of-state or out-of-country property. A vacation home located in a different state or country from the owner's primary residence can create additional estate administration, probate or tax considerations, depending on the jurisdiction and how the property is owned.
• Sentimental value vs financial value. Family members don't always agree on whether the goal should be to keep the property in the family at almost any cost or to treat it as another asset that can be divided or sold.

What can go wrong without a plan

Families that don't address the vacation home specifically tend to run into the same handful of issues:

• Co-owners disagree about selling, renting or remodeling, with no mechanism to break a tie
• One branch of the family uses the property heavily while another resents paying a portion of the upkeep
• Ownership becomes diluted over generations as the property passes to more heirs, each owning a smaller fractional share, until decision-making becomes unworkable
• One child is left managing the property and bearing the costs, without authority to make important decisions or sell the home if necessary

The common thread is that simply deciding who gets the house isn't enough. A good plan also needs to address how the house will be owned, used, paid for and, eventually, sold or transferred.

Planning tools families can consider

There is no single "right" answer. The appropriate structure depends on your family's goals, the number of heirs involved and how long you hope to keep the property in the family. That said, a few tools come up often in this kind of planning:

• A trust. Placing the property in a revocable living trust can help it pass to heirs without going through probate and allows the original owners to set clear terms for how the property should be used, maintained or eventually sold.
• An LLC or family entity. Some families place the vacation home into a limited liability company or family limited partnership, with each heir holding a membership share rather than a direct deed interest. A manager can be appointed with primary decision-making authority. This can make it easier to set rules around usage and buyouts, and can simplify what happens if one heir later wants to sell their share.
• A co-ownership or usage agreement. Whether or not a trust or LLC is used, a written agreement spelling out how the home will be used and paid for is one of the most practical tools available. It can address a usage schedule, how expenses are split, what happens if someone wants out and who has final say on big decisions, such as major repairs or a sale.
• Gifting strategies. Depending on the value of the property and the family's broader estate plan, gifting an interest in the home during the owners' lifetime may be worth considering. For some families with significant estate tax exposure, more specialized strategies, such as a qualified personal residence trust (QPRT), may also be appropriate. These strategies can have meaningful estate, gift and income tax consequences, so they should be evaluated with your financial adviser, tax professional and estate planning attorney.
• An honest conversation about selling. Not every family will decide to keep the vacation home. Sometimes the most practical plan is to sell the property and divide the proceeds, especially if heirs live far away, have different financial situations, have challenging relationships with each other or simply don't have the same attachment to the property as the original owners.

Before deciding on your approach, there is a more basic question to answer: Does the next generation actually want the house?

Parents sometimes spend considerable time and money creating a structure designed to keep a vacation home in the family without first asking whether their children even want to own it together. One child may treasure the idea while another would prefer to receive other assets. Knowing your children’s preferences in advance can shape the entire plan.

Planning is more than paperwork

Legal documents matter, but they aren't the whole solution. Some of the most effective planning and conversations happen around the kitchen table, not in an attorney's office.

• Talk to the next generation before drafting anything. Find out who actually wants to keep the property. Some heirs may prefer receiving a like amount of assets instead of a portion of the family home.
• Put usage and expense expectations in writing. Even within a formal ownership structure, clear expectations give family members something concrete to point back to when questions arise. Some families even use an app or shared calendar to reserve times and track usage.
• Name a decision-maker or manager. Whether it is one heir, a rotating role or an outside property manager, someone should have clear authority to handle day-to-day issues.
• Revisit the plan periodically. Family circumstances change. Children marry, move or have children of their own, financial situations evolve and the property itself may become more expensive to maintain. A plan that made sense 10 years ago may not fit the family today.

The takeaway

A vacation home can carry sentimental meaning that a typical asset does not, which is exactly why it deserves a deliberate plan rather than an assumption that "the kids will work it out."

The right legal structure — whether a trust, an LLC, a usage agreement or some combination — depends on the family's specific goals. What matters most is starting the conversation early.

Begin by talking with the people who may eventually inherit the home. Ask whether they want it, how they envision using it and whether they're prepared to share the tangible responsibilities and realistic costs that come with ownership.

From there, you can build a plan around what the family actually wants rather than what you assume it will want. That conversation may ultimately do as much to preserve the family vacation home — and the relationships surrounding it — as any legal document.

Related Content

• Should You Buy a Beach House? The Truth About Vacation Homes, From a Financial Planner
• Selling Your Vacation Home? Watch Out for These Tax Surprises
• Your Flawless Estate Plan Might Be Setting Your Kids Up for Conflict: What to Do
• Your Estate Plan Isn't 'Done' Until You've Completed These Five Steps, From an Estate Planning Attorney
• An Attorney's Guide to Your Evolving Estate Plan: Set-It-and-Forget-It Won't Work

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.

Inheriting an investment portfolio can feel like receiving a windfall. The tricky part is that the dollar value you see on the account statement isn't necessarily the amount you'll get to keep.

"A million dollars of inherited assets is not necessarily a million dollars of equivalent economic value," says David Simkowitz, founder and CEO of SimkowitzCo. "The type of account, tax basis, embedded tax liability and future income taxation all matter."

Taxes can take a bite out of sale proceeds. Inherited retirement accounts may come with distribution requirements that incur penalties if they're missed. The investments themselves may carry high fees or risks that don't make sense for your situation. And sorting it all out may require paying for tax, legal or financial advice.

Understanding these hidden costs of inheriting an investment portfolio before you start making changes can go a long way toward preserving more of the wealth you've received.

The tax bill may come later

Inheriting property generally isn't a taxable event, but that doesn't mean it's tax-free forever.

"For most individuals, it's not the inheritance that triggers a tax bill but the sale or distribution" of the assets you inherited, says Erin Wood, senior vice president of advanced planning at AssetMark.

There's plenty of confusion around that distinction. A 2026 Morning Consult survey, commissioned by Kiplinger, found that one-third of adult children are unsure if they'd owe taxes on an inheritance.

The actual tax consequences will depend on what you inherited and the type of account it was held in. Many taxable investments receive a step-up in cost basis to the fair market value on the date of death. The cost basis is the starting value the IRS uses to determine your gain or loss when you sell an asset.

With a stepped-up basis, "any unrealized capital gains accumulated during the decedent's lifetime are generally wiped away," says Tara Thompson Popernik, executive vice president of wealth planning at LPL Financial.

But make sure the correct basis is reflected in your brokerage account records before you sell. Popernik recalls one beneficiary who failed to correct the cost properly before selling and received a tax form reflecting significant gains that required help from a CPA to correct.

Income-producing investments can create other surprises. For example, interest earned on taxable bonds you inherit is generally taxable income. So if you previously only earned W-2 income, you "may now need to make estimated tax payments to cover the earnings from an inherited portfolio," Popernik says.

Other assets present their own tax wrinkles. Wood points to non-qualified annuities, where accumulated income may pass directly to the beneficiary rather than disappearing through a stepped-up basis. She also notes that state inheritance taxes can apply.

Retirement accounts can carry costly deadlines

Inherited retirement accounts are a different animal entirely. Traditional IRAs, for example, can contain money that hasn't yet been taxed. Many nonspouse beneficiaries are required to fully distribute an inherited IRA within 10 years of inheriting. And along the way, required minimum distributions (RMDs) may also apply.

"Missing an RMD on an inherited IRA is sometimes the biggest surprise, particularly because of the associated penalty," says Justyn Volesko, partner and co-head of the Cerity Partners Family Office.

You could face a 25% excise tax on the amount that should have been withdrawn, although that can drop to 10% if the shortfall is corrected promptly enough.

The moral of the story isn't that you should race to empty all inherited retirement accounts. Rather, you want to be aware of which rules and deadlines apply so you can act accordingly.

Fees and professional costs can add up

Unfortunately, taxes and penalties aren't the only expenses that can quietly eat into your inheritance. The investments themselves may also be expensive.

"I have seen inherited portfolios in mutual funds with high expense ratios that are easy to miss," Volesko says. The adviser managing the portfolio may also be charging a fee.

Then there are the costs of sorting out the inheritance itself. You may end up paying for legal or tax advice, investment management or even estate valuation work. Those bills can sting, but trying to avoid every professional fee can also backfire.

"I would distinguish between a professional cost and a professional value," Simkowitz says. "Paying for coordinated tax, legal and financial advice can sometimes prevent a beneficiary from making a much more expensive mistake."

Just make sure the professionals you work with aren't operating in isolation. "An inheritance should be treated as a coordinated planning event, not simply an asset-transfer event," Simkowitz says.

Doing nothing can cost you, too

This last hidden cost may be the sneakiest of them all: The cost of holding onto a portfolio that was designed for someone else.

There can be an inclination to keep an inherited portfolio intact to honor the person who bequeathed it to you, "but keeping a portfolio unchanged is itself an investment decision," Simkowitz says.

The person you're inheriting from may have had a different timeline, risk tolerance or financial goals. "A portfolio designed for an older investor who prioritized income may not be appropriate for a younger beneficiary focused on long-term growth," Popernik says.

The portfolio may also have concentrated stock positions, especially if your benefactor spent decades building a business or accumulating shares of a single company. "What represented wealth creation for one generation can represent unnecessary concentration risk for the next," Simkowitz says.

This doesn't mean you need to sell Grandma's favorite stock on day one, but each holding should be evaluated based on its own merits.

"I would encourage beneficiaries not to ask only, 'What did I inherit?' but also, 'Why do I still own it?'" Simkowitz says.

More Trillion Dollar Talk

• The Best Stocks to Gift Your Grandchildren
• Critical Questions to Ask a Financial Adviser About an Inherited Stock Portfolio
• I'm a Retirement Editor, But My Parents' Estate Tripped Me Up with a Snake, a Gun and a Mystery Box

For decades, the 60/40 portfolio has been one of the most familiar approaches to investing: Roughly 60% in stocks for growth and 40% in bonds for income and stability.

There's a reason that framework has lasted. Stocks and bonds remain important building blocks for many investors.

But today, investors have more choices than they did a generation ago.

High-net-worth investors, family offices and advisers increasingly have access to private credit, real estate, private equity, infrastructure and direct energy investments that can provide exposure to assets and economic drivers outside the traditional public markets.

That doesn't mean the 60/40 portfolio has stopped working.

It means investors now have the opportunity to ask a broader question: What other assets may complement it?

Diversification: What drives the investment?

Owning multiple funds doesn't always mean a portfolio is truly diversified.

Stocks and bonds can respond to many of the same forces, including interest rates, inflation, economic expectations and broader market sentiment. In 2022, for example, investors were reminded that stocks and bonds can decline at the same time.

That's why I believe diversification should be viewed not simply in terms of how many investments someone owns, but in terms of what actually drives their value.

Alternative investments can introduce different sources of potential return.

Real estate may be driven by rents and property values. Private credit may be driven by contractual interest payments. Infrastructure may benefit from long-term demand for essential services.

Direct oil and gas investments can be tied to something different again: The development, production and sale of energy.

Where direct oil and gas can fit

I've spent most of my career in oil and gas, and one of the things I believe investors should understand is how different direct energy ownership can be from simply purchasing shares of a publicly traded energy company.

A public oil and gas stock is still a stock. Its price can be influenced by the broader market, investor sentiment, analyst expectations, interest rates and company-specific events.

A direct oil and gas investment can provide exposure much closer to the underlying assets themselves.

Depending on the structure, investor capital may be used to acquire acreage, drill and complete wells, bring production online and develop reserves.

That distinction matters.

When an operator deploys capital into drilling, the goal is to turn dollars invested today into producing energy assets tomorrow.

A successful well can potentially create several layers of value, including current or future oil and natural gas production, potential monthly cash flow, additional proved or undeveloped reserves, potential value from continued development and potential value if producing assets are ultimately sold or otherwise monetized.

That's one reason I believe direct energy deserves a place in the broader diversification conversation.

Instead of investing solely in financial instruments, investors can potentially participate in the development of tangible assets producing commodities the global economy uses every day.

Capital goes to work in the ground

This is an important distinction in the way I think about oil and gas investing.

When we raise capital for a drilling program, the objective is not simply to hold acreage and hope it appreciates.

The capital has a job. It can be deployed to drill wells, complete wells and move assets from undeveloped potential toward production. Each stage can potentially add information and value to the asset.

Before a well is drilled, much of its value may be based on geology, engineering and nearby production. Once it is drilled and completed, the operator has additional data. Once it begins producing, there is another layer of information: Actual production performance.

That production history can help engineers evaluate reserves and can give lenders, potential buyers and other market participants more information with which to assess the asset. In other words, drilling can be a value-creation process, not simply an expense.

That's the model I find particularly compelling: Putting capital to work with the objective of creating producing assets and building value through development.

Energy demand isn't theoretical

There's also a fundamental reason oil and gas remains relevant. The world continues to require enormous amounts of energy.

Transportation, manufacturing, agriculture, petrochemicals, electricity generation, data centers and countless parts of the modern economy depend on reliable energy supplies.

At the same time, oil and gas production is naturally depleting. Existing wells decline, which means new capital and new drilling are continually required simply to replace lost production. That creates an interesting dynamic for investors.

Energy is both an essential commodity and a capital-intensive business. The industry needs investment to find, develop and produce the resources the economy continues to consume.

For investors who understand the risks and have the appropriate time horizon, participating directly in that development can provide exposure to a very different part of the economy than a traditional stock-and-bond portfolio.

The tax treatment can be meaningful

Direct oil and gas can also offer potential tax characteristics that are different from many traditional investments.

Depending on the structure of the investment and an investor's individual tax circumstances, certain drilling and development expenses may qualify for deductions, including potential intangible drilling cost deductions.

Producing oil and gas properties may also qualify for depletion deductions over time. For certain high-income investors, these potential tax benefits can materially affect the overall economics of an investment.

I don't believe anyone should make an investment solely for a tax deduction. The underlying assets, operator, development plan and economics must make sense first.

But when a fundamentally attractive investment also offers potential tax advantages, those benefits can become an important part of the overall investment consideration.

Because the rules can be complex and investor circumstances vary, individuals should always consult their own tax professionals regarding how those provisions may apply.

Start with the asset

When evaluating an oil and gas opportunity, I've always preferred to start with the asset rather than the spreadsheet.

Projections matter, but they're only as good as the assumptions behind them.

I want to know what exists in the ground and what we know about the surrounding area. I ask if there is existing production, if nearby wells have successfully produced from the same formations, what the geology tells us, what the development plan looks like, and what the capital will be used for. I also want to know how experienced the operator is at drilling, producing and selling oil and gas.

These types of questions tell me far more than an attractive projected return by itself.

In our business, the objective is to acquire and develop assets where we believe operational execution can create additional value.

That means deploying capital into drilling and development, gathering real production data, building reserves and continually evaluating the best way to maximize the value of those assets.

The operator matters

Oil and gas isn't a passive business from the operator's perspective. Execution, drilling decisions, completion design, cost control, land and title work, production operations, commodity marketing and timing: These all matter.

That's why I believe investors evaluating direct energy should spend as much time evaluating the operator as they do evaluating the projected economics.

An experienced operator should be able to explain where investor capital is going, what milestones are expected, what can create additional value and how the assets may ultimately be monetized.

The investment isn't just in a commodity. It's also an investment in the operator's ability to execute a development strategy.

Private investments require patient capital

Direct oil and gas investments are generally private investments, which means they should be viewed differently from publicly traded securities.

An investor may not be able to sell an interest with the click of a button. Timing and patience are important.

Patient capital can allow an operator to execute a multi-stage development strategy: Acquire the asset, drill wells, establish production, build reserves and pursue opportunities to create additional value over time.

For investors who have sufficient liquidity elsewhere in their portfolios, that longer-term approach may fit well alongside more liquid public-market investments.

Is 60/40 enough?

For many investors, it may be.

There's nothing inherently wrong with keeping a portfolio simple.

But for investors with significant assets, longer investment horizons and the ability to accept the risks and illiquidity associated with private investments, alternatives can broaden the opportunity set.

I don't view direct oil and gas as a replacement for stocks or bonds. I view it as something fundamentally different. Stocks provide ownership in companies. Bonds provide contractual debt exposure.

Direct oil and gas can provide qualified investors with the opportunity to participate in the acquisition, drilling, development and production of real energy assets.

That is an important distinction.

The question shouldn't be whether every investor needs alternatives.

The better question is whether adding assets driven by different fundamentals can make sense within the investor's overall strategy.

For the right investor, I believe direct energy deserves to be part of that conversation. At the end of the day, diversification isn't about making a portfolio more complicated.

It's about putting capital into assets that have a clear purpose, a clear economic rationale and the potential to create value in different ways.

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• Earth Day Thoughts: The Clean Energy Transition Hits Warp Speed Amid Geopolitical Unrest
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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.

This story began with a phone call from brother and sister "Lisa" and "Michael," who are both in their mid-40s. Their call was like no other I have received in all my decades of law practice.

"Mr. Beaver," Lisa began, "we have read your column for years and need your help. What can we do to prevent our mother from going forward with plans that will wind up killing our father?"

I, of course, asked them to please be specific. What plans? What's going on?

A matter of Mom's self-image

"Dad has been a beloved pediatrician his entire career in our town," Michael explained. "Mom's self-image has always been as 'Dr. Y's wife,' which, in her mind, gave her social status and made her feel important, a somebody. She always refers to herself as 'Dr. Y's wife.' That is her identity. Recently, Dad was diagnosed with Alzheimer's, and over her protests and denial ('Those neurologists don't know a thing! Dad is fine!' she insists), he had to close his medical practice.

"It was as if someone turned off a switch for her. In her mind, Mom no longer has the celebrity status of being married to a physician beloved by his patients and their families. Instead, she told people that Dad had embarrassed her! It was so upsetting, Mr. Beaver!

"Mom told us, 'I can't face people. We have to leave town.' She made a down payment on a house hundreds of miles away, where they do not know anyone, and she plans to move there with Dad. This will cut him off from all his friends, people who would want to help them in any way possible. He does not want to move but has always been passive in their marriage."

Lisa added, "This move will isolate him and impair his mental and physical health at a time when he needs support from the many people in town who care. We need direct, actionable advice from someone who has experience with these issues, a road map to follow on things we could do that might alter her desire to move away."

Listen before taking action and lead with empathy

Data on migration patterns shows that roughly 22% of people move to a different county following a dementia diagnosis — a rate significantly higher than for other major health events.

To get some advice to help Lisa and Michael, I spoke with Boca Raton, Florida-based Jill Poser, founder of Life Care Concierge of South Florida, a nurse-led care advocacy practice. Recognized as an expert in aging life care management, private duty home care and life care planning, she holds the Certified Dementia Care Partner (CDCP) designation provided through the Alzheimer's Foundation of America.

Poser began our Zoom interview by pointing out, "A diagnosis of Alzheimer's or another form of dementia severely impacts a couple's relationship, often causing a deep loss of identity."

She offered these four recommendations to consider, focusing on addressing Lisa and Michael's mom's grief and identity, continuing care for their father and legal issues.

1. Focus on Mom's grief and her identity fears

Listen to Mom and ask her what she fears. What is the basis of those fears?

View her behavior as an expression of grief and belief that she is losing her identity as "Mrs. Dr. Y."

Approach her from a position of empathy rather than accusation.

For example, don't say, "You are so wrapped up in yourself! Moving away where he has no one will shorten his life."

Instead, show compassion and avoid using "you must" statements: "We know how much you love Dad. How can we support you?"

2. Explore aspects of identity that will strengthen her public role as Dr. Y's wife

Suggest she get involved in social activities, philanthropy, clubs or sports.

Say: "You both loved tennis, and Dad is an excellent pianist, so create sports and music scholarships in both your names for students at our local college. This way, both of you will be so appreciated for giving back to our town."

3. Preserve routine and familiarity for Dad where possible

The siblings should stress the importance of stability and how a familiar environment is crucial for someone with cognitive decline. Routines, longtime friends and known surroundings reduce disorientation and the risk of behavioral decline or wandering.

Point out that in town Mom has a support system that is already in place, but moving away would be a major disruption and could accelerate Dad's functional decline. The responsibility of caring for Dad would be entirely on her shoulders.

Be strategic about this. For example, try something like, "Mom, let's assume that you decide to remain in town. Tell us about the support you would like and think about who you already lean on in times of stress. These are good reasons to remain here. We know the burden will be significant, and you can count on us to be here to help in any way we can."

4. Discuss care management and seek professional support

"A dementia diagnosis is one of the heaviest, world-altering moments (for couples)," Poser says. "It often triggers a fight-or-flight response — the urge to run away, to leave town to escape the reality of the situation. That's a common human reaction to fear and grief."

She adds, "For that reason, among many others, these adult children should suggest hiring a care manager or appropriate professionals to evaluate their father's home-care needs, provide ongoing counseling for their mother and help facilitate difficult family discussions. And be ready to act as a neutral mediator in family discussions."

The key to preventing the move

My advice? Lisa and Michael need to immediately consult with an elder law attorney/conservator who, in most states, could try to obtain a court order that would prevent their mother from isolating their father.

At a hearing, a judge can consider why the move is proposed and whether it is in their father's best interest. Dad's opinion can also be considered, if he is able to express it.

Poser concluded our interview with this observation that should apply to all of us who were raised by loving parents: "Growing up, our parents protect us. Growing older, we protect them."

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.

For most of my career, I've watched Americans think about life insurance the same way. It's something you buy to protect your family if something happens to you. That's still true, but it's no longer the whole story.

Not only are people living longer, but roughly 11,000 Americans reach retirement age every day, according to the Alliance for Lifetime Income by LIMRA, and trillions of dollars are beginning to move from one generation to the next.

As a result, families are asking harder questions about retirement planning, how to make their savings last and how to leave something behind. Life insurance, when used well, can help answer all three of these questions.

Most insurers are now focused on developing products that solve real protection and long-term financial needs, with products that are less market-sensitive and more capital-efficient for the people who own them.

Consumers should view life insurance through the same lens. Before you buy a policy, here are five questions worth asking.

1. What do I want this policy to do?

Term life insurance is built to protect your family during your working years. It's affordable, straightforward and often the right first step. Permanent policies, including indexed universal life insurance, can do more. They build cash value over time that you may be able to access later in life.

It's important to be clear on what you want the policy to do. If you need coverage only for a set period, term may be the right answer. If you want a policy that can not only provide financial protection for loved ones, but also transfer wealth to the next generation, you are likely looking at a permanent product.

2. How does the cash value grow, and what happens when markets drop?

If you're considering permanent life insurance, ask how the cash value grows and what protects it when markets turn. Some products tie growth to a market index with a floor that limits losses in down years. Others carry more direct market exposure.

There is no single right answer. What matters is that you understand how your policy performs in both a good year and a bad one, how much risk you're comfortable taking and how that fits with the rest of your savings.

3. How can I use this policy during my lifetime?

A life insurance policy is not only for after you're gone. Many permanent policies let you access the cash value through loans or withdrawals while you're living. That flexibility can be useful as your financial needs change over time.

Also ask about riders, as some policies let you access part of the death benefit early if you face a chronic or serious illness. Those benefits can matter as much as the payout itself.

If you're working with a financial professional, ask them to explain how using a policy's living benefits could affect the death benefit.

4. How does this policy fit with everything else I'm planning?

Life insurance works best when it's part of a comprehensive plan. As part of your retirement planning, for example, assess your 401(k), your IRAs, your Social Security timing and all other assets together.

A financial professional can help you see how a policy supports the rest of the plan, including how it can:

• Protect a spouse
• Cover taxes on an inheritance
• Give you flexibility if one part of the plan doesn't perform as expected
• Help replace income that could be lost when a spouse passes away, including income sources for Social Security benefits

5. What do I want to pass on?

Life insurance has long been one of the most efficient ways to transfer wealth. In most cases, the death benefit is income-tax-free to your beneficiaries It can arrive at a time when families need it most, helping to replace lost income and provide financial stability during a difficult transition.

Think about what you want to leave behind and then ask whether your policy is built for that specific outcome.

Making life insurance part of your comprehensive financial plan is all about finding the right policy that can do real work for you over a long life, while helping to protect the people you care about most. Start with what you want and let the product follow.

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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.

We've all made at least one financial mistake we wish we could undo. For some, it's an over-reliance on credit cards. Others may wish they'd set more money aside for emergencies.

According to a report from the TIAA Institute, 76% of current retirees say they regret not starting to save earlier in their lives and 71% wish they'd saved more.

Whatever the case may be, we all experience financial setbacks. The key to getting back on track depends on how we approach the recovery.

1. What just happened?

Financial recovery starts with an honest look in the mirror. And it's easier said than done. Confronting debt, savings setbacks or feeling like you've missed important financial milestones is uncomfortable. But pretending the situation doesn't exist isn't going to solve it.

Take time to evaluate what's happened. What triggered the financial changes? An unexpected emergency expense? A sudden job loss? Spending habits that gradually spun out of control?

Understanding what caused things to take a turn can make it easier to figure out what needs to change moving forward. Identifying the problem allows you to begin finding the solution.

2. Start small

As you're working to turn things around, it can be easy to feel like you have to solve everything overnight. Remember: These problems weren't created overnight, so start small.

Setting up automatic transfers to a savings account, paying off one debt at a time or reducing a few monthly expenses are all great places to start. These changes may seem minor, but consistency is key.

Building better habits creates momentum, making larger goals feel more achievable. As time passes, the plan can be changed to keep up with the different phases of your life.

3. Adapt and adjust

When it comes to financial recovery, many people believe they can simply make a plan, set it and forget it. But life is constantly evolving and your plan should be able to adapt. Unexpected expenses, income changes and new priorities all happen more than once.

Instead of seeing these moments as failures, view them as opportunities to make changes and move forward. It's not about following the original plan exactly — it's about remaining consistent in pursuing your long-term goals even when the route changes course.

Financial plans aren't meant to be rigid. They're meant to grow alongside your life. The next time something comes along and alters your circumstances, identify what's changed, understand how it's impacted your goals and make the adjustments needed to bounce back.

4. Don't dwell on the past

Recovering from a financial setback isn't easy. But it doesn't have to happen overnight and you aren't expected to do it alone. If you're not sure how to adjust your plan or choose your next steps, work with a trusted expert to get professional guidance and accountability.

As you go through the process, don't dwell on past mistakes. What's important is taking action to get back on track.

Alex Duffy has been in the customer service and financial services industry since 1999. His expertise spans loans, debt consolidation and comprehensive financial planning, emphasizing smart money management and family protection.

Adam Coarts is the owner and senior agent at Goldfinch Financial Group in Des Moines, Iowa. He formed Goldfinch Financial Group to better serve clients as an independent financial professional.

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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.

What happens to the money in your savings accounts when you pass on? Making sure those funds go where you intend is an important part of estate planning, yet savings accounts can be easy to overlook.

Without the right designations, your savings could end up going through probate, potentially delaying when your heirs can access the money. That could leave your family paying out of pocket for expenses you intended those savings to cover, such as final expenses.

A new survey conducted by Morning Consult on behalf of Kiplinger found that just 36% of parents have designated beneficiaries on retirement accounts or life insurance policies, highlighting how easy this relatively simple estate-planning step can be to overlook.

Here's how to avoid these common pitfalls, streamline the transfer and protect your financial legacy.

What happens if you don't name a beneficiary?

If you die without naming a beneficiary on an individually owned savings account, the money might become part of your estate and have to go through probate. Once the bank learns of your death, it could restrict access to the account until the person legally authorized to handle your estate can take control of the funds.

Who ultimately inherits the money will depend on your estate plan and state law. If you have a will, the funds generally become part of the estate distributed according to its terms. If you die without a will, known as dying intestate, state law determines which relatives inherit your assets.

Read more: Probate: The Terrible, Horrible, No Good, Very Bad Side of Estate Planning

If you already have a trust as part of your estate plan, naming the trust as the beneficiary might be one option. Danny Beckwith, a certified financial planner and financial adviser at First Financial Consulting, told Kiplinger, "Name the trust as your beneficiary. It will make it a lot easier to work with the banks."

Even if you've already named beneficiaries, it's important to review your designations periodically, particularly after major life changes such as a marriage, divorce, birth or death. Beckwith suggests reviewing beneficiaries every other year.

"You wouldn't believe how many mistakes happen, and by clarifying, you're providing peace of mind that your legacy will go on as you intended," he says.

But you don't necessarily need a trust to help your savings account avoid probate. Another option is to name a payable-on-death beneficiary.

How to designate someone as a payable-on-death beneficiary

Another option is to add a payable-on-death (POD) beneficiary to your savings account. After you die, the funds generally pass directly to the named beneficiary without going through probate.

The beneficiary will need to contact the bank and provide the documentation it requires, typically including identification and a certified copy of the death certificate.

To add a POD beneficiary to your savings account:

• Contact your bank and ask how to add a payable-on-death beneficiary.
• Provide the beneficiary information the bank requires, which might include their full legal name, date of birth, address and Social Security number.
• If you're naming multiple beneficiaries, specify how you want the funds divided among them, often using percentages.
• Complete and submit the required paperwork. Depending on the bank, some documents might need to be notarized.

Keep in mind that avoiding probate doesn't necessarily eliminate potential tax considerations. Depending on where you live and the size of your estate, state estate or inheritance taxes could still apply.

What your family should know

The most helpful gift you can leave your heirs is clarity. Beckwith recommends, "I am a huge fan of parents letting their children know where everything is and what they will receive. Where we see the biggest problems is that the kids don't know what they're inheriting; it can be daunting to find where everything is."

Clear communication ensures your legacy reflects your values while also preventing sibling conflicts. Yet many families aren't having those conversations. The Trillion Dollar Talk survey found that two in five families have never discussed inheritance.

While you don't have to discuss exact dollar amounts, giving heirs a window into what they're receiving can help them plan now, so they don't have to contend with that when the time comes.

It also prevents them from having to hunt for accounts or legal documents they'll need during an already stressful time. Knowing where to turn can give them peace of mind while honoring your legacy.

A checklist for heirs

Create a document that serves as the roadmap for your beneficiaries. Keep this document in an accessible location known to your heirs and include these essentials:

• A list of all financial institutions where you hold accounts.
• Specific account numbers and the type of each account (e.g., savings, checking, brokerage).
• Updated contact information for your financial planners, advisers, or attorneys who can assist with the transfer.

Ultimately, you’ve worked hard to build your savings, and a little planning now can make things easier for your loved ones later.

Contact your bank to review your beneficiary designations and make sure they still reflect your wishes. It’s also a good time to create or update a roadmap showing your heirs where your accounts and other important financial information can be found.

Taking these steps now can help ensure your money goes where you intend and give your family one less thing to sort out during an already difficult time.

If you're an heir trying to make sense of an inheritance, or you want help preparing your own finances for the next generation, a financial adviser can help you understand your options and build a plan that fits your goals.

Use the tool below to connect with a vetted financial professional who can help:

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For many retirees, few acronyms generate more anxiety than IRMAA.

Countless articles, videos and financial discussions warn retirees to stay below the next Medicare premium threshold. But what if avoiding an IRMAA surcharge causes you to pay more over the course of retirement?

In many cases, that's what can happen when annual tax planning takes priority over lifetime tax planning.

The income-related monthly adjustment amount (IRMAA) is the Medicare surcharge higher-income beneficiaries might pay for Medicare Part B and Part D coverage.

Because IRMAA is based on your modified adjusted gross income (MAGI) from two years earlier, many retirees become intensely focused on staying below the next surcharge threshold.

That focus is understandable — but it can also be expensive.

Many retirees reject Roth conversion strategies or other tax-planning opportunities solely because they might temporarily increase Medicare premiums. In some cases, avoiding an IRMAA surcharge can ultimately result in paying significantly more in lifetime taxes.

• The better question isn't: "How can I avoid IRMAA this year?"
• Instead, ask: "How can I minimize the total taxes and costs my family is likely to pay over the course of retirement?"

Those are two very different objectives.

Think beyond this year's tax return

Traditional tax planning often centers on reducing this year's tax liability.

Lifetime tax planning takes a broader view by evaluating how today's decisions affect taxes, retirement income and wealth in the next 20 to 30 years.

That distinction matters because strategies that intentionally increase taxable income today — such as Roth conversions — can sometimes reduce taxes substantially later.

Depending on the circumstances, converting part of a traditional IRA to a Roth IRA could:

• Reduce future required minimum distributions (RMDs)
• Lower taxable income later in retirement
• Reduce the taxation of Social Security benefits
• Provide additional tax-free assets for future spending
• Improve tax flexibility throughout retirement
• Reduce taxes for a surviving spouse
• Leave heirs with more tax-efficient inheritances

None of those benefits can be evaluated by looking at only one tax year.

Focus on the right goal

Key takeaway: IRMAA is an important planning variable — but it should rarely outweigh a well-supported strategy that meaningfully reduces lifetime taxes.

Understanding the tax valley

Many retirees experience a period after they stop working but before claiming Social Security and before required minimum distributions begin.

During these years, taxable income might be temporarily lower than it will be later in retirement.

Financial planners often refer to this as a tax valley — a window that might present an opportunity to recognize income at relatively favorable tax rates.

Consider a hypothetical married couple, both age 63, with $2 million in traditional IRAs.

Because they recently retired, they temporarily find themselves in the 24% federal income tax bracket. Their retirement income plan projects substantially higher taxable income once Social Security benefits begin and required minimum distributions become mandatory.

Suppose they convert $150,000 per year to Roth IRAs over several years. The conversions increase their taxable income enough to trigger higher Medicare premiums through IRMAA.

At first glance, paying higher Medicare premiums seems undesirable.

However, those same Roth conversions might significantly reduce future required minimum distributions, lower future taxable income, reduce taxes for a surviving spouse, create greater tax flexibility later in retirement and leave heirs with more tax-efficient assets.

If a temporary Medicare surcharge of several thousand dollars helps reduce projected lifetime taxes by six figures, many retirees would likely consider that an attractive trade-off.

The numbers — not the premium increase alone — should drive the decision.

IRMAA is one variable — not the objective

Retirement planning requires balancing many competing financial factors:

• Federal income taxes
• State income taxes
• Social Security taxation
• Required minimum distributions
• Medicare premiums
• Estate planning
• Legacy goals

Each deserves consideration, but the mistake is allowing any one of those to dominate the entire planning process.

IRMAA should be viewed the same way investors evaluate transaction costs or capital gains taxes. It is a legitimate expense to consider — but not necessarily a reason to abandon an otherwise beneficial strategy.

Waiting can be expensive

Many retirees assume paying less tax today automatically leads to paying less tax overall.

Unfortunately, that assumption often proves incorrect.

Traditional IRAs continue growing tax deferred. Larger account balances frequently produce larger required minimum distributions, which could:

• Push retirees into higher tax brackets.
• Increase the taxable portion of Social Security benefits.
• Trigger higher Medicare premiums later in retirement.
• Increase tax burdens after the death of a spouse, when the surviving spouse begins filing as a single taxpayer.
• Leave beneficiaries inheriting taxable retirement accounts that generally must be distributed within 10 years under current law.

Ironically, retirees who spend years trying to avoid modest IRMAA surcharges today might pay larger Medicare surcharges later because their required minimum distributions have become substantially larger.

Every recommendation should begin with a projection

No two retirees have identical circumstances.

The appropriate Roth conversion strategy depends on numerous variables, including expected investment returns, future tax rates, longevity, charitable giving goals, pension income, state taxes, estate-planning objectives and anticipated spending needs.

For that reason, sophisticated retirement planning relies on long-term projections rather than general rules.

Stopping a Roth conversion because it crosses an IRMAA threshold might feel prudent, but without a lifetime analysis, it's impossible to know whether that decision improves a retiree's long-term financial outcome.

The goal isn't to win this year's tax return

The Internal Revenue Service calculates your taxes one year at a time — your retirement plan shouldn't.

The objective of retirement tax planning isn't minimizing taxes this year — nor is it minimizing Medicare premiums this year.

The objective is maximizing after-tax wealth throughout retirement while preserving flexibility for future spending, charitable giving and legacy planning.

Sometimes that means staying below an IRMAA threshold.

Other times, the math clearly supports accepting a temporary Medicare surcharge because doing so produces substantially larger long-term tax savings.

The answer depends on the analysis — not the acronym.

The Centers for Medicare & Medicaid Services (CMS) establishes IRMAA as an income-based adjustment to Medicare premiums, while IRS rules govern the taxation of Roth conversions in the year they occur.

Neither rule suggests retirees should automatically avoid Roth conversions because of a temporary increase in Medicare premiums. Instead, both reinforce the importance of evaluating tax decisions within the context of an overall retirement income strategy.

The most ideal retirement tax plans rarely optimize a single year — they optimize a lifetime.

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• How to Help Prevent Taxes From Taking a Massive Bite Out of a Special Needs Trust
• The Illinois 'Cliff Tax': A Single Dollar Could Cost Families Hundreds of Thousands

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

Dear Wealth Wise: How can I put my RMDs and cash savings back to work so I can leave a tax-free inheritance for my adult kids? — None For Uncle Sam

Dear None for Uncle Sam: In the coming years, the Great Wealth Transfer is expected to produce trillions of dollars in inheritance. But that doesn’t mean all wealth holders are planning for that transition mindfully.

Here, our reader wants to know how they can leave their children an inheritance the IRS won’t take a piece of. While leaving a 100% tax-free inheritance might be challenging, people in this situation can still use several strategies. Here’s what the experts suggest.

Do a Roth conversion

If you have the bulk of your assets in a traditional IRA, passing that account to your heirs could put them in a tricky spot.

As Eric Croak, CFP and president of Croak Capital, explains, when you have grown children who inherit a traditional IRA, they only get 10 years to empty the account. But adult children often end up withdrawing those funds during their peak earning years, subjecting themselves to high tax rates.

"This seems like an unappealing tax consequence, especially during their highest earning years as the 32% tax bracket begins at $201,775 for a single filer," Croak says.

That’s why Croak recommends Roth conversions, which you can do even if you’re already on the hook for required minimum distributions (RMDs). If your children inherit a Roth IRA, they’ll still be subject to the 10-year rule. But there are a few key differences.

First, says Croak, "no distributions are mandatory during those 10 years," whereas with a traditional IRA, your adult children generally must take RMDs annually if you, the account holder, are old enough to be subject to them.

Perhaps the biggest benefit of inheriting a Roth IRA is receiving all distributions tax-free, Croak explains.

If you’re going to do a Roth conversion, it’s important to get your timing right, Croak says.

"First, take the RMD for the year since an RMD itself cannot be converted," he explains. "Then convert additional amounts of pre-tax savings and pay taxes now."

Use your RMDs to buy permanent life insurance

If you’re on the hook for RMDs, Croak says another option is to use that money to purchase a permanent life insurance policy on which your adult children are designated as beneficiaries.

"The RMD will be subject to tax when distributed as always, but the after-tax dollars can purchase a death benefit that will be generally income-tax-free to the beneficiary," Croak explains.

However, he cautions, this strategy "makes sense only if you are insurable at a reasonable cost."

Lean on a taxable brokerage account

It’s common for retirees to favor tax-advantaged accounts such as IRAs in the course of building and holding their wealth. But if you’re focused on leaving an inheritance, Croak says, then it pays to lean on a taxable brokerage account in addition to or instead of a permanent life policy. As you take your RMDs, reinvest them strategically.

"Any cash beyond the premiums should reside in a brokerage account rather than a savings account since appreciated stock can receive a stepped-up basis at death, while the interest income on cash would be subject to tax at your highest marginal tax rate," Croak says.

Consider cash gifts

If you'd like to start gifting while you're alive, one simple option is an annual gift. The annual gift tax exclusion in 2026 is $19,000 per recipient (couples can double this to $38,000 per recipient).

Before you give your kids the money while you are still alive, ask yourself three key questions: Do they really need the money now? Can you afford it? Will this be a gift to one child or all your heirs?

Be strategic with who inherits which accounts

Leaving a Roth IRA as an inheritance is a true gift. But if your balance is large, doing a full Roth conversion might not make sense from a tax perspective.

In the course of sparing your kids a tax bill, you don’t want to drive yourself into an unreasonably high tax bracket. Large Roth conversions could also push you into IRMAA territory, resulting in exorbitant Medicare premium costs.

Given all that, Will Allen, founder and financial adviser at Sentara Capital, says that your tax bracket coupled with your children’s tax brackets should drive a lot of the math.

"A $600,000 IRA drained over 10 years on top of a 55-year-old's salary can come out at 32% plus state tax," Allen says. "Converting at 24% now to avoid that is a wise move."

That said, if you’re expecting to pass away relatively soon and your children, based on their incomes, might not creep into higher tax brackets for quite some time, a Roth conversion might not make sense at all. If your children can empty a traditional IRA in 10 years and do so at a 12% or 22% tax rate, it doesn’t pay for you to convert at 24%.

You’ll need to look at the math from every angle before making Roth conversions a core part of your inheritance strategy. If you only do a partial conversion, Allen says, "Split the beneficiary designations by bracket instead of leaving everything equally. Roth and taxable to the high earner, traditional IRA to the lowest earner."

Know which accounts not to leave

If your goal is to leave a tax-free inheritance, there’s one account you should steer clear of — a health savings account, or HSA, says Jordan Smyth, CFA, president and senior wealth adviser at Glassy Mountain Advisors.

Although HSAs are often touted for their triple tax advantage, that benefit effectively disappears when an adult child inherits one.

"Don’t leave an HSA to your children," Smyth says. "The inherited balance would be taxable to any non-spouse heir in the first year. Spend that money, and leave them a Roth IRA instead."

State taxes and capital gains could still apply

These are tried-and-true ways to avoid income tax. However, state inheritance taxes or federal estate taxes could apply, depending on the estate's size and the state in which you live.

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

Read More

• We Asked 5,000 Americans About Inheritance and the Great Wealth Transfer. Here's What We Learned
• How to Talk to Your Adult Kids About Their Inheritance
• Why So Many Families Are Unprepared for the Great Wealth Transfer — and What You Can Do About It
• Should We Bankroll Our Son's $180K Law School Tuition Even Though We're Retired?
• 'Subsidized Adulting': Can You Afford to Help Your Children Financially?

As an estate planning and elder law attorney for more than three decades, I can tell you that many people believe they've protected their assets by signing a revocable living trust.

They haven't.

Every year, I meet intelligent, financially successful families who have done almost everything right. They've accumulated retirement savings, worked with financial advisers, signed comprehensive estate planning documents and funded a revocable living trust.

Then one spouse develops Alzheimer's disease, Parkinson's disease or another chronic illness requiring years of home care, assisted living, memory care and eventually nursing-home care.

That's when they discover that their perfectly drafted trust is of no help, because it was designed to solve a different problem.

The ultimate question is not whether you have a trust. It's whether you have the right trust for the problem you need to solve.

A revocable living trust (often abbreviated as an RLT) is one of the best estate planning tools available. Unlike a will, an RLT trust protects your assets from probate and provides many other benefits, making it one of the most popular estate planning tools in the country.

But an RLT does not protect your assets from lawsuits or the potentially catastrophic expenses of long-term care.

Why doesn't an RLT protect assets?

The answer is simple.

An RLT works because you effectively remain the owner of all trust assets, and you retain complete control of those assets, including the ability to remove any or all assets from the trust at any time.

Because the assets remain yours, they remain available to pay any bills you owe, including long-term care bills. The assets in your RLT are treated as if they still belong to you and remain available to creditors, including the biggest creditor most people face in their lifetimes — a nursing home.

People often spend thousands creating and funding an RLT believing they've solved both the probate and the long-term care problem, when they've solved only the probate problem.

Unfortunately, many estate planning attorneys never explain this distinction because most don't practice in the area of Medicaid planning. They never discuss the irrevocable Medicaid Asset Protection Trust (MAPT) as an option.

As a result, many families discover the difference only after a health crisis, when planning options are limited.

What an RLT does well

None of this diminishes the value of an RLT.

I regularly recommend revocable living trusts to clients. My firm has prepared thousands of revocable living trusts.

A properly drafted and funded revocable living trust:

• Avoids probate
• Provides continuity if you become incapacitated
• Controls how and when beneficiaries receive an inheritance
• Keeps your affairs more private than a probate estate
• Can protect young or financially inexperienced beneficiaries from receiving large distributions outright
• Can provide ongoing asset protection to trust beneficiaries through the creation of spendthrift trusts, sometimes called dynasty trusts or beneficiary asset protection subtrusts

These are all important benefits. But none of them matter if you die broke because you spent all your money paying for long-term care.

As good as the revocable living trust is, in the past 15 years, my firm has prepared more MAPTs than revocable living trusts because once older clients understand the distinction, many choose a trust that not only avoids probate but also helps protect assets from long-term care costs.

We call our version the Living Trust Plus®. It's a proprietary MAPT system that we license to attorneys throughout the country to offer this type of planning to their own clients.

But most estate planning attorneys don't offer this type of trust planning. Helping clients protect their assets from long-term care costs is not on the radar of many estate planning attorneys.

Medicare won't pay the bill

Another common misconception is that Medicare will pay for long-term care. It won't.

Medicare doesn't pay a penny for long-term care. Families must rely on their own income and assets, long-term care insurance, certain veterans benefits or Medicaid, which is the biggest payor of nursing home expenses in the country.

What makes a Medicaid Asset Protection Trust different?

A MAPT is designed to solve not only the probate issue, but two additional problems. I call my version of the MAPT the Living Trust Plus because it protects your assets from probate plus lawsuits plus long-term care expenses.

Instead of retaining ownership of trust assets, you give up ownership and the ability to reclaim the protected assets. That creates the protection.

However, despite giving up ownership, you can retain a high degree of control of assets in the trust.

You can be the trustee of your own trust, meaning you can control how the assets are invested, whether your home gets sold and when assets get distributed to a trust beneficiary. You can even change the beneficiaries of the trust.

If you, as trustee, decide to distribute assets to a trust beneficiary, such as an adult child, that child can use the distributed money however they see fit, and you can't control what the child does with that money or have any type of agreement on how they use their money.

The child can spend the money for themselves, or they can, if they wish, spend the money for your benefit.

Planning using a MAPT must begin years before nursing home care is needed. The five-year Medicaid lookback period means waiting until a nursing-home admission or after a stroke could eliminate this planning opportunity.

Readers interested in learning more about Medicaid Asset Protection Trusts and other planning tools can find additional educational resources in our Elder Law Learning Hub.

For readers who want a more comprehensive discussion of probate avoidance, Medicaid Asset Protection Trusts and long-term care planning strategies, my bestselling book, Protecting Your Assets from Probate and Long-Term Care (Second Edition): Don't Let the System Bankrupt You and Your Loved Ones, explores these issues in greater detail.

Related Content

• Who Needs a Trust and Who Doesn't? A Financial Planner Explains
• Is Your Estate at Risk? The 5 Trusts You Need to Understand
• Revocable vs Irrevocable Trusts: It Comes Down to Control vs Protection
• What Assets Should Not Be Placed in a Revocable Trust?
• What You Need to Know About Long-Term Care Before You Need It

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

Financial advice has never been more accessible. However, it also has never been more overwhelming.

A scroll through social media delivers budgeting tips, stock recommendations, tax strategies and conflicting opinions from influencers, friends and self-proclaimed financial experts.

While having access to more information can be empowering, it can also make it difficult to determine what advice is credible, relevant and worth acting on.

The reality is that building a financial plan doesn't require following every trend or implementing every strategy you encounter online. It requires understanding your own goals, evaluating information carefully and focusing on the decisions that will have the greatest impact on your financial future.

Before taking your next piece of financial advice, consider these four principles to help separate meaningful guidance from background noise.

1. Start with your goals, not someone else's

One of the biggest mistakes people make is looking for financial advice before taking inventory of their own situation. It's easy to become excited about investment strategies, tax-saving techniques or the latest market opportunity, but those decisions should come after you've identified what you're trying to accomplish.

A financial plan should begin with a clear understanding of where you are today and where you want to go. Are you focused on:

• Paying down student loans?
• Saving for a home?
• Building an emergency fund?
• Preparing for retirement?
• Supporting aging parents?

Your priorities should dictate your strategy, not someone else's timeline.

Consider two recent college graduates who are both beginning their independent financial lives.

One graduates debt-free, while the other enters the workforce with significant student loan debt. The first might be able to begin building an emergency fund and saving for retirement relatively quickly, while the second might need to prioritize paying down debt and establishing emergency savings before pursuing other financial goals.

Following the exact same financial advice might make sense for one person and very little sense for the other.

Financial planning isn't about keeping pace with your peers. It's about making decisions that align with your unique circumstances and long-term goals.

Once you establish that foundation, it becomes much easier to evaluate whether a particular piece of advice fits your unique situation.

2. Be selective about who you listen to

The internet has made financial education more widely available than ever before, but it has also made it easier for misinformation to spread. Social media platforms are designed to reward content that captures attention, not necessarily content that is accurate or personalized.

Before acting on financial advice, ask yourself a few simple questions:

• Who provides this information?
• What experience or credentials do they have?
• Are they offering objective guidance, or are they trying to sell a product or generate engagement?

The same level of skepticism should apply to advice from friends, family members and coworkers. A successful investment or tax strategy for someone else doesn't automatically make it appropriate for you.

Personal finance is exactly that. Your personal income, tax situation, family responsibilities, risk tolerance and goals all influence which strategies are most appropriate.

This doesn't mean you should ignore financial conversations altogether. Instead, use them as opportunities to learn what questions to ask rather than assuming every answer applies to your own situation.

3. Remember that financial planning is about more than investing

When many people hear the phrase "financial planning," they immediately think about investing or retirement accounts. While investments play an important role, they're only one piece of a much larger picture.

Investments aren't a replacement for inadequate insurance coverage, poor cash flow management or an unexpected tax bill. Likewise, focusing exclusively on retirement savings while ignoring other financial priorities can leave important gaps in your overall plan.

For some people, the most impactful financial decision is paying off high-interest credit card debt. For others, it might be building an emergency fund, reviewing insurance coverage, minimizing taxes or creating an estate plan.

A comprehensive financial plan considers how each of these pieces works together. Financial planning should evolve as your life changes. The strategies that make sense early in your career can look very different from the decisions you'll make as retirement approaches.

Rather than viewing your plan as a one-time project, think of it as an ongoing process that adapts alongside your goals and circumstances.

4. Learn the difference between news and noise

Financial headlines are designed to grab attention. Every week seems to bring a new "can't miss" investment, market prediction or economic warning that promises to change everything.

Some of these developments genuinely deserve your attention. Changes to IRS contribution limits, tax legislation, retirement account rules or other regulatory updates might warrant adjustments to your financial plan because they directly affect your available planning opportunities.

Many headlines, however, are simply attempts to create urgency. A trending stock, viral investing strategy or sensational market prediction rarely requires immediate action.

If a piece of financial advice makes you feel as if you need to act immediately or risk missing out, it's often worth slowing down instead.

Long-term financial success is built through consistent decision-making, not constant reaction. Filtering out distractions allows you to focus on the information that supports your financial goals.

The abundance of financial information available today is both a blessing and a challenge. While there are more resources than ever to help people make informed decisions, there is also more noise competing for their attention.

A thoughtful financial plan isn't built by following every piece of advice that crosses your screen. It's built by understanding your goals, seeking guidance from credible sources, considering every aspect of your financial life, not just your investments, and recognizing the difference between meaningful developments and passing trends.

When your decisions are grounded in your own circumstances instead of someone else's timeline, financial planning becomes less overwhelming and far more effective.

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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.

A parent leaves the family home to you and your siblings. It might sound straightforward, but inheriting a house together can quickly raise financial, legal and emotional questions. Unlike cash, a home isn't easily divided. One sibling might want to sell, while another hopes to keep the property in the family.

What happens next can depend on the estate plan, how the property was titled and state law.

For many families, the home could be one of the biggest assets about which they'll have to make those decisions. A Morning Consult survey commissioned by Kiplinger for our Trillion Dollar Talk campaign found that 33% of parents say real estate, including their home, will make up the greatest share of their children's inheritance. Yet just 24% of adult children expect real estate to account for the largest share of what they inherit.

That gap is one reason it can help to talk through expectations before an inheritance becomes an immediate decision.

If you inherit a home with siblings or other family members, understanding your ownership rights, costs and options can help you decide what to do with the property, and hopefully avoid unnecessary conflict along the way.

What does it mean to inherit a house with someone else?

If a home is left to multiple beneficiaries, you aren't necessarily inheriting your own physical portion of the property. Instead, you might each receive an ownership interest in the home.

For example, if a parent leaves a home equally to three children, each child might inherit a one-third ownership interest in the property. The exact ownership arrangement will depend on the estate plan, deed and applicable state law.

You also might not be able to take control of the property immediately. If the home is part of an estate that must go through probate, the executor or personal representative may need to handle the property while the estate is being administered. A home transferred through a trust or certain other arrangements could be handled differently.

Before deciding what to do with the house, find out exactly what you're inheriting and what comes with it. That includes determining whether there's an outstanding mortgage, property tax bill, lien or other obligation connected to the home.

The estate's executor or attorney can help clarify who owns the property, when beneficiaries receive control and whether any debts or other issues need to be resolved first.

Your first decision: Keep, sell or buy someone out

Once ownership is clear, the heirs generally need to decide what they want to do with the property. There are three common options:

1. Sell the home: If everyone agrees, the heirs can sell the property and divide the net proceeds based on their respective ownership interests. This might be the simplest option if no one wants the house or when beneficiaries would rather receive cash.
2. Have one heir keep it: Perhaps one sibling wants to live in the home or has a stronger attachment to it. That person could potentially buy out the other beneficiaries' ownership interests. Getting an independent appraisal can establish a fair value for the property, and the heir keeping the house might need cash or financing to complete the buyout and potentially refinance an existing mortgage.
3. Keep the property together: You could also continue owning the home jointly. Some families keep an inherited house as a vacation property, rental or shared family home. If you go this route, consider creating a written agreement covering how the property can be used, how expenses will be divided and what happens if someone eventually wants out.

The situation becomes more complicated when the heirs don't agree. One co-owner can't simply sell the entire property without the involvement of the others. However, depending on state law and the ownership structure, a co-owner might be able to ask a court for a partition.

Depending on state law and the circumstances, a partition proceeding can result in a court-ordered sale of the property, with the proceeds divided among the owners according to their ownership interests.

Because a court proceeding can add time, expense and tension, it's usually worth exploring a voluntary sale, buyout or another negotiated solution first.

Decide who's paying for the house in the meantime

Even if you eventually decide to sell, you could own the house for months while the estate is settled, belongings are removed, repairs are completed and the property is listed.

During that time, the bills don't disappear. Depending on the property, heirs might have to account for:

• Property taxes
• Homeowners insurance
• Mortgage payments
• Utilities
• Repairs and routine maintenance
• Necessary improvements or preparation before selling the home

Try to decide early who'll pay each expense and keep good records. If one sibling pays $5,000 for necessary repairs, for example, the heirs should agree on whether that person will be reimbursed from the sale proceeds before the remaining money is divided.

It's also important to discuss what happens if one heir lives in the home. Will that person pay rent to the other owners? Will they cover the utilities or a larger percentage of the mortgage, taxes and maintenance instead?

There's no single arrangement that works for every family, but putting your agreement in writing can reduce misunderstandings later.

Understand the tax implications before you sell

Simply receiving an inheritance generally doesn't mean you'll owe federal income tax on the value of what you inherit. However, selling inherited property can have tax consequences.

One important concept to understand is the stepped-up basis. In most cases, the tax basis of inherited property is adjusted to its fair market value as of the date of the owner's death.

Suppose a parent purchased a home for $150,000, and it's worth $400,000 when they die. The heirs' tax basis would generally be $400,000, rather than the parent's original $150,000 purchase price. If the heirs later sell the home for more than their adjusted basis, they could owe capital gains tax on the difference.

That distinction can make a major difference in the tax bill, and it's one reason getting a reliable valuation of the property can be important.

When several people inherit the property, each person's ownership interest also matters when determining their portion of the proceeds and potential gain. State estate or inheritance taxes might create additional considerations, depending on where the deceased person lived and other circumstances.

That potential tax bill is also an area in which parents and their children might have different expectations. The survey found that 34% of adult children expect to pay taxes on an inheritance, compared with just 20% of parents who expect their children to owe taxes. Understanding how inherited property is taxed can help heirs avoid surprises when they eventually decide what to do with the home.

Because rules vary based on the estate and how the property is eventually handled, consider talking with a tax professional before completing a buyout or sale.

What if you and the other heirs can't agree?

A house can be one of the most emotionally complicated assets to inherit. To one sibling, it's a valuable property that could provide money for a down payment, retirement or other financial goals. To another, it's the childhood home where the family spent decades making memories. Those feelings can make it difficult to reach a decision based solely on dollars and cents.

Those competing priorities can also create tension between siblings. According to Kiplinger's Trillion Dollar Talk survey, 33% of adult children with siblings think an inheritance is likely to cause conflict between them and their siblings.

Different expectations about what constitutes a fair inheritance can add to that tension. While 71% of parents with multiple children intend to divide their estate equally, only 47% of adult children expect their parents to divide their assets equally.

If you're trying to decide what to do with a home, start by getting an independent appraisal. Having a neutral estimate of the property's value gives everyone the same number to work from, whether you're considering a sale or a sibling buyout.

It can also help to separate sentimental value from financial value. Wanting to preserve a family home is understandable, but the person who wants to keep it still needs to consider whether they can afford the mortgage, taxes, insurance, upkeep and potentially buying out the other heirs.

If conversations stall, consider bringing in an estate attorney, mediator or financial professional who can help everyone evaluate the options without being as emotionally connected to the property.

Court action might be an option of last resort. Depending on state law, an owner might be able to pursue a partition action to end the co-ownership, which can lead to a court-ordered sale if the property can't reasonably be divided. But litigation can be expensive and potentially damage family relationships long after the house is gone.

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

Before you make a decision about an inherited home

There's no universal right answer for what to do with an inherited house. Selling could make sense for one family, while another may be perfectly comfortable keeping the property together for years.

Before making a decision:

1. Find out exactly who owns what percentage of the property.
2. Get an independent appraisal.
3. Determine whether there's a mortgage, lien or other debt attached to the home.
4. Calculate the ongoing cost of taxes, insurance, maintenance and other expenses.
5. Discuss what each heir wants to do with the property.
6. Put agreements about expenses and use of the home in writing.
7. Talk with an estate attorney and/or tax professional before completing a buyout or sale.

Ideally, some of these conversations can happen before there's a house to inherit. The Trillion Dollar Talk survey suggests that many adult children are looking for more clarity about their parents' plans: When asked what they would most like to know about their inheritance, 11% specifically wanted to know how it would be divided or who would get what.

A conversation today won't eliminate every decision that heirs will eventually have to make. But knowing whether a parent plans to leave a house to one child, several children or sell it through the estate can give everyone more time to understand what that inheritance could mean.

More Trillion Dollar Talk

• Before You Leave Your Home to Your Children, Ask These Questions
• Manage an Inheritance Like a Pro in Just 7 Steps
• How Your Inheritance Actually Gets Taxed: From Stepped-Up Basis to IRA Rules

One of the most important retirement planning questions is also one of the hardest to answer: How much can you withdraw from your portfolio each year without running out of money?

A commonly cited starting point is the 4% rule. It suggests withdrawing about 4% of a portfolio in the first year, then increasing that dollar amount for inflation.

Using this guideline:

• A $1 million portfolio might initially support about $40,000 in annual withdrawals
• A $1.5 million portfolio might support about $60,000
• A $2 million portfolio might support about $80,000

These figures are illustrations, not guarantees. A sustainable strategy depends on retirement length, returns, inflation, taxes, healthcare costs, other income, spending flexibility and legacy goals.

A financial adviser can help determine how these factors work together and how the strategy should change over time.

The 4% rule is only a starting point

The 4% rule is appealing because it is simple. Retirement is not. Markets fluctuate, healthcare expenses rise, tax laws evolve and spending changes.

An adviser can help determine whether 4% is reasonable for a particular household or whether a higher or lower starting amount may be more appropriate.

Why the right withdrawal rate is different for everyone

No single withdrawal rate works for every retiree.

Retirement length and investment allocation. Someone retiring at 60 may need a portfolio to last 35 or 40 years. The portfolio must also balance stability and growth. Investing too conservatively may make it difficult to keep pace with inflation, while investing too aggressively may create large losses at the wrong time. An adviser can model longevity assumptions and build an allocation suited to the retiree's needs.

Inflation and taxes. Inflation gradually reduces purchasing power. Taxes also affect how much of a withdrawal is available to spend. Traditional retirement account withdrawals are generally taxable, qualified Roth withdrawals may be tax-free, and taxable accounts may produce interest, dividends and capital gains.

The order in which accounts are used can affect tax brackets, Medicare premiums, Social Security taxation and required minimum distributions. An adviser can help coordinate withdrawals across account types and work with a tax professional when appropriate.

Other income, spending and legacy goals. Social Security, pensions, rental income and annuity payments can reduce the amount required from investments. Retirees who can reduce discretionary spending during difficult markets may have more flexibility.

Some retirees want to spend most of their assets; others want to preserve wealth for family or charities. An adviser can coordinate income and balance lifestyle needs with long-term security and legacy goals.

Why average returns don't tell the whole story

Even when these factors are considered, the timing of market returns can significantly affect retirement outcomes.

A calculator may assume a portfolio earns a steady average return each year. Real markets don't behave that way. Two retirees can earn the same average return over 20 years and still have very different results depending on when gains and losses occur.

The importance of sequence of returns risk

This timing risk is known as sequence of returns risk.

Consider two retirees with the same starting portfolio, withdrawals and average return. One experiences strong returns early. The other experiences a major decline shortly after retiring and stronger returns later.

The second retiree may end up with far less money because withdrawals during a downturn require selling more shares at depressed prices. Those shares are no longer available to participate in a recovery.

Assume a retiree begins with $1 million and plans to withdraw $40,000 annually. If the portfolio declines 20% before the withdrawal, its value falls to $800,000. After taking $40,000, about $760,000 remains. The portfolio would then need to gain more than 31% to return to $1 million.

This is why a withdrawal plan shouldn't operate independently from the investment strategy.

How an adviser can help manage retirement income risk

Sequence risk can't be eliminated, but it can be managed.

Maintain an appropriate cash reserve. Cash for near-term expenses may reduce the need to sell stocks during a downturn. An adviser can help determine how much to hold without weakening long-term growth.

Create flexible spending rules. A retiree may temporarily delay a major purchase, reduce travel or pause inflation increases. Establishing guidelines in advance can make these decisions easier.

Rebalance systematically. An adviser can restore the portfolio to its intended allocation and help prevent short-term headlines from driving investment decisions.

Coordinate Social Security and pensions. Delaying Social Security may increase future guaranteed income but require larger portfolio withdrawals in the near term. An adviser can compare the trade-offs involving taxes, longevity and survivor benefits.

Use a dynamic withdrawal strategy. A fixed withdrawal may not remain appropriate throughout retirement. Guardrails can allow spending to rise after strong performance and decline when the portfolio falls below predetermined levels.

Why ongoing advice matters

A retirement plan shouldn't be treated as a one-time calculation. Markets, spending, tax laws, health and family circumstances change.

An adviser can review withdrawal rates, rebalance investments, update projections, coordinate tax-sensitive distributions and provide an objective perspective during volatile markets.

The value of advice is not predicting every market move. It is helping retirees make disciplined decisions based on a coordinated plan rather than short-term emotion.

The bottom line

The 4% rule can be a useful starting point, but it isn't a personalized retirement income plan.

A sustainable strategy must account for retirement length, investment allocation, inflation, taxes, healthcare costs, other income, spending flexibility, legacy goals and sequence of returns risk.

A financial adviser can bring these issues together and help adjust the strategy as circumstances change. The goal isn't simply to withdraw the maximum amount possible today. It is to balance enjoying retirement now with maintaining financial security for the years ahead.

This article is intended for general educational purposes and does not constitute individualized investment, tax, legal or retirement advice.

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• I'm a Financial Planner: These 4 Spending Mistakes Can Derail Your Retirement Plan
• A Retirement Plan Isn't Just a Number: Strategic Withdrawals Can Make a Huge Difference
• I'm a Retirement Consultant: This Is the Single Most Important Planning Step I Learned After I Retired
• The Truth About Annuities: The Question Isn't 'Are They Good or Bad?' It's 'Are They Appropriate for You?'

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 my mother turned 90, it was clear she needed to move to assisted living. Her home was truly beautiful; as a talented artist, she had covered the walls with her bright paintings, collected antiques, and thoughtfully refined every corner of the house over her 54 years there. But as my sibling and I got ready to sell, we realized the house was more Grey Gardens than Grey Poupon.

What saved the process for us? A fabulous real estate agent and a realization that we couldn't DIY the process.

Though we sold the house seven years ago, our agent still talks about the sale because it was, to put it mildly, strange. If you find yourself in a similar position — whether you're selling a parent's house or getting your own house ready for market — here are a few surprises I encountered and lessons I learned along the way, as part of Kiplinger's Trillion Dollar Talk campaign.

Lesson 1: Expect the unexpected (even snakes)

We never saw snakes in our suburban garden and never had them as pets, so it was a surprise when our agent, Cheryl Leahy of Compass Homes, found a 5-foot-long black snake emerging from the recesses of the living room couch.

"That's among the top three craziest things that have ever happened to me over 25 years of selling real estate; I was sitting on that couch every day [as we prepped the house]," Leahy recalled.

When you are emptying a house that has been lived in for half a century, you'll find things that shock you. Work with an agent who can roll with surprises.

Lesson 2: Firearms are a pretty common surprise

The closing was a rushed affair, so while we were in the lawyers' office signing documents, our agent, Leahy, was tying up loose ends at the house. Imagine my surprise when she called to say that she had found a gun at the back of a drawer.

I froze, my pen pausing over the document I was signing; then I burst out laughing. My parents had a play readers' group and used a prop gun for one of their noir productions.

Leahy was unperturbed. "I find a lot of guns, and they're usually tucked away somewhere that nobody even remembers. ... We find a lot of rifles in attics."

Lesson 3: Your agent's network is gold

The home had a dial-lock safe sunk into the basement's concrete floor. To close on a house sale, all fixed safes must be open and empty, but even with the combination, I couldn't open it. I called a locksmith, who peeked in with a flashlight and cried, "I see so much gold!" He claimed he needed more time and $350 more to get it out.

I wasn't falling for his scam, so our agent called her own locksmith, who opened it quickly for a fraction of the cost. Instead of gold, it contained silverware and documents and ... a can of Campbell's soup.

As Leahy notes, an effective agent must have a reliable network of trusted local contractors, including painters, haulers, cleaners, landscapers and estate sale experts ... and locksmiths.

Lesson 4: Know the market

A good agent will advise you against making major aesthetic renovations without consulting them first, preventing you from overspending on updates that won't increase the home's market value.

I interviewed several agents before the sale, most of whom recommended ripping out bushes in the front yard and putting in a lawn to attract families with children. I hired Leahy partly because she insisted it was unnecessary. Sure enough, our buyers said that they loved having no front lawn to maintain.

The same holds for any presale renovation. "It's really important to not put more money than you're going to get back out," Leahy urges. She also said buyers are looking for older homes that still have their original charm, which last-minute renovations could ruin.

Lesson 5: Hire a 'wedding planner' for the move

If there's one cardinal rule for getting a parent's house ready for sale, it is this: Don't do it alone.

Jami Shapiro, a senior move manager and member of the National Association of Senior Move Managers (NASMM), says that the biggest mistake well-meaning adult children make is trying to handle the transition on their own.

"The adult child should be the last person that goes through this process with a parent," she advises. "It's emotional for both people. A parent doesn't want to take on the role of parentified adult. ... They've been the parent; let them continue to be the parent."

Instead, Shapiro recommends hiring a senior move manager, whom she describes as a "wedding planner for a move." These professionals can stage the house and get it ready for the market. Furthermore, they often vet real estate agents, protecting families from aggressive realtors who might put the transaction ahead of the emotional transition.

Leahy echoes this sentiment, noting that elderly clients are often far more receptive to advice from a professional, neutral third party than they are to suggestions from their own children.

Ultimately, when you are dealing with the emotional weight of the family home, remember to give everyone a little grace. By outsourcing the heavy lifting to the right professionals, you can command a good price — and preserve your sanity.

More Trillion Dollar Talk

• Before You Leave Your Home to Your Children, Ask These Questions
• What Happens With Taxes When You Inherit a House
• How Real Families Are Handling The Great Wealth Transfer
• Could You Handle a Sudden Windfall?

One of the perks of retirement is having more flexibility to travel outside the busy summer vacation season. Instead of squeezing a trip into a limited window, you may be able to wait until crowds thin out, temperatures cool and the pace at popular destinations becomes a little more manageable.

That makes fall an especially appealing time to get away. Depending on where you go, you can catch colorful foliage, enjoy seasonal festivals or simply spend more time outdoors without the intense heat of summer.

The best trips don't have to involve rushing from one attraction to the next, either. These five destinations offer a mix of scenery, food, history and culture, along with plenty of opportunities to slow down and enjoy the experience.

1. Vermont for classic New England fall scenery

Few places capture the feeling of fall quite like Vermont. Brilliant red, orange and yellow leaves transform the landscape, while small towns, mountain roads and covered bridges give travelers plenty to see without requiring an action-packed itinerary.

Burlington can make a convenient starting point. Spend time exploring the shops and restaurants around Church Street, enjoy views of Lake Champlain and then take a day trip into the mountains.

The DoubleTree by Hilton is within two miles of Lake Champlain and Church Street Marketplace and offers complimentary parking, making it a practical base if you plan to rent a car and explore the region.

From Burlington, consider making the roughly 40-mile trip to Stowe, where the mountains become the main attraction. You don't necessarily need to tackle a strenuous hike to appreciate the scenery. Stowe Mountain Resort's Gondola SkyRide carries passengers toward the top of Mount Mansfield, Vermont's highest peak, offering a lower-impact way to take in the foliage.

Give yourself time for scenic drives, leisurely lunches and stops in the small towns along the way. That's part of the appeal of Vermont in autumn: The drive itself can be one of the highlights rather than simply a way to get to your next attraction.

2. Park City, Utah, for a quieter mountain escape

Park City may be best known as a winter ski destination, but fall brings a different experience. The hillsides turn shades of yellow, orange and red, and the town settles into a calmer rhythm before ski season begins. Visit Park City describes fall as a time for cool weather, open spaces and everything from strolling Historic Main Street to enjoying spa and wellness experiences.

That makes it a good choice if you like the idea of a mountain vacation but don't want your trip to revolve around strenuous outdoor activities.

Start with Historic Main Street, where you can browse independent shops and galleries, stop for coffee and choose from dozens of restaurants. There are also opportunities to explore the area's mining and Olympic history.

For a more relaxing stay, consider building extra downtime into your hotel plans. The Canopy by Hilton Deer Valley offers mountain views, on-site dining, a sauna and steam room and access to the Jordanelle Express Gondola.

One consideration is timing. Fall can be relatively brief at this elevation, with foliage changing quickly. Visit Park City notes that fall colors generally begin appearing in mid- to late September and can be fully transformed by the second or third week of October.

3. Asheville, North Carolina, for mountains, food and culture

Asheville offers a little of everything: Blue Ridge Mountain scenery, a thriving restaurant scene, arts and culture and one of America's most recognizable historic homes.

Fall color gradually moves through the mountains based on elevation, giving visitors a relatively broad window to see the changing leaves. The Blue Ridge Parkway is one of the area's signature drives, although travelers should check current National Park Service road conditions before heading out because weather, construction and other events can temporarily close sections of the parkway.

You could devote another day almost entirely to Biltmore Estate. The 8,000-acre property includes Biltmore House, gardens and grounds, Antler Hill Village and a winery. Biltmore recommends setting aside at least one full day for a visit, which makes it an easy anchor for a relaxed itinerary rather than trying to squeeze several attractions into one day.

For 2026, Biltmore expects its fall floral displays to peak around mid-October, followed by additional foliage color later in the month.

Staying downtown can make it easier to alternate sightseeing with downtime. The Foundry Hotel Asheville is about a five-minute walk from downtown shops, restaurants and entertainment and roughly 2.5 miles from Biltmore Estate. The historic property has another interesting connection to the city: It occupies a former foundry that produced steel used for the Biltmore Estate.

Asheville can also work particularly well for couples who don't vacation the same way. One person can spend more time outdoors while the other browses galleries and shops, visits Biltmore or settles in for a long meal.

4. Boston, Massachusetts, for history without the summer heat

If your ideal fall vacation involves history, museums and memorable meals rather than mountain trails, Boston deserves a spot on the list. Much of the city's history is concentrated in walkable neighborhoods, allowing you to see quite a bit without renting a car.

The Freedom Trail stretches 2.5 miles and connects 16 historic sites, including Boston Common, Faneuil Hall, the Paul Revere House and Old North Church. You don't have to walk the entire trail at once, either. Visitors can choose individual sites, take a guided tour or explore portions independently.

Break up the walking with a museum visit, lunch in the North End, time in Boston Common and the Public Garden or a harbor cruise. Location can also make a significant difference in a city where many attractions are within walking distance. Hilton Boston Park Plaza sits in Back Bay near Boston Common and the Public Garden, with Beacon Hill, the Theater District and the Freedom Trail less than a mile away. Arlington MBTA station is also nearby for days when you'd rather use public transportation.

If you have an extra day, Salem is an easy addition to a Boston trip. September may be particularly attractive to travelers hoping to experience some of Salem's fall atmosphere before the biggest Halloween crowds arrive. Destination Salem says attractions and restaurants generally have more availability in September, particularly during the week.

5. New Orleans, Louisiana, for a slower taste of the South

New Orleans has plenty of famous attractions, but you don't need to create a long sightseeing checklist to have a memorable trip. In fact, this may be one of the best destinations on the list for letting food, music and atmosphere become the itinerary.

Fall brings cooler conditions and a busy calendar of music, food and cultural events. The city's tourism organization highlights outdoor dining, festivals and live music as some of the reasons to visit during the season.

Rather than spending all your time around Bourbon Street, slow down and explore more of the city's architecture and neighborhoods. Ride the St. Charles Avenue streetcar past historic homes and oak-lined streets, visit the Garden District or spend an afternoon around City Park.

The streetcar system connects visitors with areas including the French Quarter, Garden District, Mid-City and riverfront, making it possible to see more without constantly getting in and out of a car.

A centrally located hotel can make that slower approach even easier. The Roosevelt New Orleans, A Waldorf Astoria Hotel is one block from the French Quarter and has on-site restaurants, a rooftop pool and a spa, giving travelers options when they want a break from exploring. Leave room in the schedule for a jazz performance, a long dinner or simply sitting with coffee and beignets. New Orleans rewards travelers who aren't in a hurry.

Make your fall getaway easier

Wherever your fall travels take you, simplifying the logistics can leave more time for actually enjoying the destination. Booking directly through Hilton or the Hilton Honors app can make managing your trip easier. Hilton Honors members can earn points on eligible stays and receive member benefits, with additional perks available depending on status.

Direct bookings may also qualify for Hilton's Price Match Guarantee. If you find a lower qualifying price elsewhere and your claim is approved, Hilton will match the lower price and take an additional 25% off the matched room rate, subject to the program's terms.

When booking a fall getaway, compare cancellation policies as well as prices. A flexible rate could be worth considering if changing weather affects your sightseeing or travel plans.

Related Content:

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Living longer creates the opportunity for more — more experiences, more time with loved ones and more chances to pursue what matters most.

Unfortunately, there is often a disconnect between the life people hope to enjoy and how prepared they feel to support it. While most expect to age well, many are still working to build the foundation needed to turn their vision into reality.

Closing that gap starts with an understanding of what lies ahead and planning accordingly, allowing you to approach those added years with greater clarity and confidence.

Redefining aging

According to Guardian's 2026 Mind, Body, and Wallet® report, people are focused not only on living longer, but on maintaining independence, purpose and stability along the way.

Working Americans have a clear picture of what they want that future to look like. Sixty percent anticipate having more free time, 55% look forward to traveling, and 52% want to spend more time with friends and family, reflecting a desire for a more active, connected and fulfilling stage of life.

Retirement itself is evolving, as well. Two-thirds of Americans expect to continue working in some capacity, whether for income, personal fulfillment or social connection.

Where preparedness often falls short

Despite these evolving expectations, many Americans aren't fully prepared for the realities of a longer life.

Guardian found that Americans' financial wellness is at its lowest point in 15 years, with just three in 10 individuals reporting "excellent" or "very good" financial health.

Many people continue to face challenges managing day-to-day finances, with only 32% saying they do so very well, and more than half reporting difficulty living within their means.

Looking further ahead, long-term readiness is also limited. Just 13% feel on track to achieve their desired retirement lifestyle, and planning for key aspects of aging, such as housing or care needs, often remains incomplete.

Broader well-being trends add another layer of complexity. Just 31% of working Americans say they get enough exercise, and only 34% report being good at taking care of their mental health, both of which can influence independence and quality of life over time.

Taken together, these patterns point to a growing disconnect: As lifespans increase, the need for thoughtful preparation grows as well, yet many are still figuring out how to plan effectively for what's ahead.

Building financial confidence for the future

Preparing for a longer life isn't about reaching a single milestone, but rather building habits and a strategy that can evolve over time. Starting early can create more flexibility down the road — yet progress at any stage can make a meaningful difference.

Ultimately, these steps help support the financial confidence needed to enjoy later life as intended.

A few core priorities can help you keep that effort on track:

Start early and build a strong financial foundation. Establishing good financial habits early, such as building emergency reserves, saving consistently, investing for long-term growth and participating in workplace retirement plans can create flexibility.

When invested, even modest contributions can compound, helping reduce pressure later in life and providing a buffer against unexpected events.

Strengthen and protect as life evolves. As income and responsibilities grow, financial strategies should expand, as well. Increasing retirement contributions, managing debt and ensuring appropriate protection such as life and disability coverage can help safeguard progress and reduce the risk of setbacks that could derail long-term goals.

Plan for income, not just accumulation. A longer retirement shifts the focus from how much is saved to how those savings will be used.

Creating sustainable income, addressing longevity risk and preparing for healthcare and caregiving costs are essential to maintaining independence and financial stability over decades.

Stay flexible and adapt over time. Longevity introduces uncertainty, making flexibility critical. Financial plans should be revisited regularly to reflect changing goals, market conditions and life circumstances.

Staying engaged, even in retirement, can help ensure that strategies remain aligned with both lifestyle needs and long-term security.

Finding support along the way

Preparing financially for a long, fulfilling life is more complex than ever. However, it's not a journey you need to navigate alone. More than six in 10 Americans who report high financial wellness also work with a financial adviser, highlighting just how valuable it can be to have a trusted partner each step of the way.

Whether retirement is on the horizon or still decades away, an adviser can provide personalized guidance tailored to your needs and goals. Through regular check-ins, you can gain clearer insight into your financial picture, track progress toward your goals and adjust your approach as circumstances evolve, all within a relationship that strengthens over years and even decades.

Planning for longevity with confidence

Living longer changes the financial equation, but what we know for certain is that the quality of later years is shaped by decisions made much earlier. Building strong financial habits, protecting against risk and planning for reliable income, especially when backed by the expertise of a financial adviser, can be the difference between simply living longer and living with confidence.

By focusing on income, protection and adaptability, you can be better positioned to turn longevity into a source of stability and opportunity.

Related Content

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• 9 Habits for a Happy Retirement
• I'm a Retirement Consultant: This Is the Single Most Important Planning Step I Learned After I Retired
• Aging Well: 10 Things You Should Know
• The 5 Pillars of a Fulfilling Retirement (and They Don't Include Savings, Healthcare Costs or Social Security)

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

It's not easy to get parents and teenagers to agree about anything. But when it comes to investing early, they're on the same page.

Schwab recently conducted a study that found 70% of teenagers ages 13-17 say they are very or extremely interested in investing, and nearly three-quarters of parents (73%) say it's very important for teens to learn about it.

Now here's something that may surprise you. Teens in the study cited their parents more than any other source for trusted investing advice, ahead of friends, social media or anyone else.

In other words, this isn't an area where finding the balance between independence and control inevitably becomes a point of friction. Rather, it's an opportunity for guided learning, and it's one that most families are more ready for than they may realize.

In my role leading Schwab's Branch Network, I've seen firsthand how many parents want to help their children build healthy financial habits but aren't always sure where to begin. The encouraging news is that teens are often more interested in these conversations than we assume.

It's also an amazing time to begin investing. Teens have more access to information, tools and choices than any generation before them.

But with that comes more exposure to speculative trends, hype and "get rich quick" content. That's what makes this moment so pivotal. We have a genuine chance to give our kids a head start on building wealth, but if they start down the wrong path early, it can be hard to undo.

More than building wealth, investing teaches patience, discipline, decision-making and how to think about the future. Those lessons can benefit teens long before they see their first meaningful investment gains.

So, it's critical that parents help their teens get off on the right foot. Here are seven ways to do it.

1. Talk about your own experience … including the mistakes

Being open about financial decisions you'd make differently is often more impactful than presenting a polished track record.

When teens hear a parent say, "Here's what I wish I'd done at your age," they listen.

It's more relatable than a lesson, and it makes the whole conversation feel less like a lecture and more like a shared experience.

2. Connect investing to actual goals

Our survey found that teens want to invest for concrete reasons:

• Getting started building money as early as possible (45%)
• Paying for college (34%)
• Saving for something big like a car (30%)

Anchoring the conversation in what your teen actually wants to accomplish makes investing feel purposeful rather than abstract.

3. Start with something that already interests them

Fractional shares have lowered the barrier to entry significantly. A teen who's a fan of a particular brand no longer needs $1,000 to buy a single share. They can invest $20 or $40 into it.

That turns an abstract concept into something personal and provides an ideal prompt to talk about what makes a company worth owning in the first place.

It's also a natural opportunity to introduce the idea that successful investing rarely depends on a single company or trend, but on building a diversified portfolio over time.

4. Let them practice before the stakes are real

Mock trading and stock market simulators give teens a sandbox to experience real gains and losses without real consequences.

It's often the first time they grapple with managing risk directly, which builds confidence for when the money is actually theirs.

5. Make a plan for risk, especially around social media

Separating what's genuinely relevant from what's just noise is challenging for investors of all ages, not just teens.

A practical rule to consider is a 24-hour pause before acting on anything your teen sees or hears online. If your teen can't clearly explain why an investment might be valuable beyond what they saw online, that's often a sign it's worth slowing down and learning more before making a decision.

6. Consider the right account for your family

Custodial accounts keep parents in control until teens become adults.

Joint accounts, like the Schwab Teen Investor account, give teens ownership and the ability to move money in and out starting at age 13, while parents stay involved.

The decision comes down to how much control you want your teen to have early on.

7. Take advantage of educational resources

You don't have to have all the answers. There are tools designed specifically for this moment, including content from Schwab, which covers investing fundamentals built for teens.

Working through a video or article side by side signals that this is a shared project, not a solo assignment. And it takes the pressure off parents to be the sole source of expertise.

The good news is that today's teens are already getting an earlier start than their parents did. Most parents (68%) in our study say they didn't become aware of investing until they were young adults or older, and half (51%) wish they'd started sooner.

Today's teenagers are well ahead of that curve. Most say they became aware of investing as preteens or in their early teen years. That head start matters because time is the greatest advantage young investors have.

The teens who start now, even with modest amounts, have decades of compounding ahead of them.

But the goal isn't simply to help your teen make their first investment — it's to help them develop the knowledge, judgment and confidence they'll rely on throughout their lives.

Related Content

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

The Great Wealth Transfer is underway in the United States. Between 2024 and 2048, an estimated $124 trillion in assets is expected to be transferred from baby boomers and the Silent Generation primarily to Generation X, millennials, Generation Z and charity.

This massive transfer of wealth will have major financial implications for families, many of whom have not discussed plans for either how much money will be passed down or what heirs will do with that money once they receive it.

According to a Morning Consult survey commissioned by Kiplinger, roughly two in five families have not discussed an inheritance strategy. Part of this, of course, is that money is considered a taboo subject. But also, the subject of inheritance requires people to acknowledge mortality.

Indeed, roughly a quarter of parents and children surveyed by Morning Consult for Kiplinger's Trillion Dollar Talk campaign said they are somewhat uncomfortable or very uncomfortable talking about money — and inheritance is one of the most difficult topics for them to discuss.

"I couldn't find it in my heart to ask," said one respondent when asked about talking through inheritance plans with their parents.

But talking about inheritance — whether you're giving one or receiving one — is of the utmost importance and allows families to manage expectations, prevent disagreements and create a financial plan.

"Be sure each child understands both the logic for your decisions and the responsibilities they will encounter upon your death," wrote Warren Buffett in November 2024 (PDF). "If any have questions or suggestions, listen carefully and adopt those found sensible. You don't want your children asking 'Why?' in respect to testamentary decisions when you are no longer able to respond."

This is just one lesson the famed investor imparts on inheritance. Below, we'll see what else Buffett and several other influential figures have to say about passing on wealth.

Warren Buffett

According to Cerulli Associates, roughly 15% of the $124 trillion expected to change hands during the Great Wealth Transfer will go to charity.

"The easiest deed in the world is to give away money that will never be of any real use to you or your family," wrote Warren Buffett in a 2021 letter to Berkshire Hathaway shareholders (PDF). "The giving is painless and may well lead to a better life for both you and your children."

In 2006, Buffett committed to distributing all of his Berkshire Hathaway shares to philanthropy. This equates to more than 99% of his net worth.

Buffett added that society has a use for his money; he doesn't.

The former CEO and current chairman of the holding company believes leaving his immense fortune to his three children does them a disservice. "Leave the children enough so that they can do anything but not enough that they can do nothing."

Instead, Buffett and his three children established charitable foundations to which he will distribute his Berkshire Hathaway shares.

Shaquille O'Neal

NBA legend Shaquille O'Neal is another influential figure who does not believe in automatically handing over his estimated $500 million in wealth to his six children. Instead, he's taking a carrot-and-stick approach.

"In order to get my cheese, you have to present me with two degrees," Shaq said in a 2022 interview. In other words, his children need to get bachelor's and master's degrees to inherit his wealth.

"I just keep them motivated," Shaq told 7NEWS Australia. "I'm teaching them about generational wealth right now. I tell them all the time, we don't need another NBA player in the house. If you want to play, I can help you get there, but I would rather see a doctor, dentist, a veterinarian, a world traveler, or a hedge fund guy."

Beyoncé and Jay-Z

Creating generational wealth is key for power couple Jay-Z and Beyoncé. The two have amassed a fortune of nearly $4 billion, thanks in part to their successful music careers, Beyoncé's Parkwood Entertainment production company and Jay-Z's Roc Nation management and entertainment agency.

The two don't typically talk about estate planning or inheritance, but a deep dive into their music provides clues to how they approach the topic. And it appears they plan to use their money to create lasting wealth for their family.

"Daddy, what's a will?"asks Blue Ivy Carter, the pair's firstborn child, in Jay-Z's 2017 song "Legacy."

"Take those moneys and spread 'cross families," Jay-Z answers, saying his sisters, nephews and cousins should get a piece of the pie too. "Generational wealth, that's the key," he goes on to say. "My mom took her money, she bought me bonds. That was the sweetest thing of all time, uh."

And Beyoncé made a reference to generational wealth in her and Jay-Z's 2018 collaborative song "BOSS," saying, "My great-great-grandchildren already rich."

Dave Ramsey

Roughly half of parents surveyed by Morning Consult said they expect to leave a meaningful inheritance to their children. Financial adviser and radio personality Dave Ramsey is here to remind them that they are not obligated to leave their kids any money.

"At the same time," says Ramsey, "I think it's wrong to assume that leaving them your money will damage them in some way. Wealth always magnifies the character of the person holding it."

But if parents are passing down their wealth, it's also their responsibility to teach good money management. "Too many families pass down dollars without ever passing down discipline," explains Ramsey. "And without wisdom, that money disappears in just a generation or two... So don't just leave your family wealth. Leave them the wisdom to build their own."

And for children who are inheriting wealth, Ramsey believes it is their job to "manage that money for the legacy of the person who left it to" them. "That's how you honor their gift."

Suze Orman

In the Morning Consult survey commissioned by Kiplinger, participants said that stocks, bonds, mutual funds and exchange-traded funds make up a small part (8%) of what they will leave their children. At the same time, 15% of heirs want to use their inheritance to grow their own wealth through investing.

But Suze Orman, financial guru and The New York Times best-selling author of The Ultimate Retirement Guide for 50+, says children should not hold onto investments they inherit for sentimental reasons.

In a 2019 podcast, Orman says that she's noticed "when you get an inheritance from somebody you love, specifically a parent, you tend to hold on to whatever it is that you inherited, thinking that your parents are that item or that investment that they left you."

But just because an asset was a good investment when your parent owned it doesn't mean it's a good asset now.

"You cannot keep your family alive by keeping the investments they left you," Orman explains. "You can honor them, however, and you can honor them and all of their hard work by paying attention to the money that they left you via these investments, and making wise decisions with them as to what those investments are doing right here and right now."

If you inherited something that has to do with money, says Orman, "please don't keep the memories alive by keeping a bad investment. Enhance the memories of what you were left by making more out of less money. By making it grow, making it grow in their memory. Making it grow in their past efforts. But not just keeping it."

More Trillion Dollar Talk

• Trillions of Dollars Will Be Passed Down in the Next 20 Years and Many Families Are Totally Unprepared: What to Know and What to Do
• The Most Tax-Efficient Ways to Leave Investments to Your Children
• Before You Leave Your Home to Your Children, Ask These Questions
• We Know You'd Rather Talk to Your Kids About Politics Than Inheritance. Here's the Right Way to Have That Conversation Anyway.

Welcome to Kiplinger's My First $1 Million series, in which we hear from people who have made $1 million. They're sharing how they did it and what they're doing with it.

This time, we hear from a 75-year-old married and retired chief operating officer of a logistics company in Northwest Arkansas. He grew up in Louisiana and reports his salary when he retired was $125,000.

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

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

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

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

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

The Basics

How did you make your first $1 million?

My first $1 million was a real slog. It took 25 years to reach this milestone. It took a lot of saving, discipline and sacrifice.

I started in the 1970s. This was before the internet and things we take for granted now.

Back then, it took a minimum of $25,000 to $50,000 to even open a brokerage account.

So for the longest time, investing was a matter of shopping interest rates and looking for the best deals on CDs and such.

But more importantly, it took getting the buy-in from family (and spouse). It is hard to deny yourself and family something you want when the money is there to have it, to convince them and myself that the sacrifice is worth it in the long run.

At times, this caused a lot of friction. I had often told them that they could have anything they want, just not now or all at once.

Overall, we did it through investments in real estate, the stock market and businesses that I had an equity interest in.

What are you doing with the money?

We are continuing to invest it. In the 25 years after making the first $1 million, we have added many more millions to it.

In hindsight, I don't think there is anything that we denied ourselves that we did not obtain.

The Fun Stuff

Did you do anything to celebrate?

No. Just took pleasure in its accomplishment. Gave us a feeling of freedom that when hard choices have to be made, we could make the choice and withstand any consequences.

What is the best part of making $1 million?

Financial freedom.

Did your life change?

Only in confirming that the assumptions we made in building this wealth were validated. We still live the same lifestyle we have always lived. We want for nothing.

Does anyone know you're a millionaire?

No, not specifically. I am sure our children know we are well-off, but not specific amounts. We are private people and see no need to advertise our success.

Even writing this feels like an invasion of our privacy that we would normally not indulge.

However, we feel it is important that people know that this level of financial success can be achieved by anyone, regardless of present circumstances.

By all appearances, no one would think that we have the net worth we do. We live in a normal middle-class house, drive modest automobiles, buy clothes off the rack.

Did you retire early?

Retired at 52. That was my last "job." Since then, we have devoted our time and effort to travel and building our own net worth.

We have done more for ourselves than if we had stayed employed. Our employer could not have compensated us enough to build the financial resources we have now. Nor would we have had the time and attention to devote to personal wealth building.

Looking Back

Anything you would do differently?

No.

What advice would you give to your younger self?

Going through life, I would have more closely aligned our goals with our values. In chasing our goals, we sometimes lost sight of the things that mattered to us the most. I spent most of my time and effort chasing career milestones and neglected personal objectives. I thought these career goals were the most important.

However, obtaining these objectives was at the sacrifice of the personal values I held high, those being time with family and friends and travel.

I read a book by Charles Givens entitled Super Self. In this book, he has a chapter dedicated to aligning your goals with your values. If not aligned, the result would be frustration and conflict, and your accomplishments would not produce the satisfaction you desired.

This book had an impact in that there came a time when an important decision was made easy. After many years, I was offered a promotion to the presidency of the company. This would require more time away from home and less time for family, friends and travel.

This did not align with what I valued at the time. Not only did I not take the position, but I retired the next day.

In the long run, this was one of the best decisions I made. I/we still prospered greatly without sacrifice and were happy with the decision.

Having already made my first million made this decision easier.

However, you should make sure your values and goals are aligned in the pursuit of your objectives.

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

We have read many of them — too numerous to mention.

Did you work with a financial adviser?

No. I have always been a DIY guy. There was an occasion that we used an investment adviser and asset manager. This was only for a short period of time. We found that our own strategies and methods outperformed theirs.

I am an avid reader. Most of what we have achieved was accomplished by research and investigation on our own.

In this day and time, virtually anything you want to find out about or learn how to do can be found out very quickly.

Did anyone help you early on?

Yes, family, friends and business associates. But mostly in the negative. I noticed that it did not matter how much money they made, how many promotions they got, how big their bonuses were or any windfalls they got, they were always in financial crisis.

Any money, promotion, bonuses, etc., they got was always spent immediately. Lived paycheck-to-paycheck. Most never had any financial reserves to carry them in case of misfortune. Any adverse development put them in crisis mode.

Seeing others experience the agony of financial crisis solidified our belief that we were on the right path.

Looking Ahead

Plans for your next $1 million?

We have no specific plans except to continue investing and growing our net worth. We have no plans for any big purchases or additions.

My wife and I have become acutely aware of the legacy we will possibly be leaving. We are both from large families with six siblings each. We were two young people who started life together with literally nothing.

To be able to leave our children and grandchildren with the means we could only dream of when young amazes us.

We have set up irrevocable trusts for our grandchildren to provide them with resources they can use for start-up capital for their lives. These are equivalent to a down payment on a house.

Also, we have set up a fund sufficient to cover the post-high-school costs of skills development or college tuition costs. This represents an investment in our grandchildren of approximately $500,000.

These funds have been given and are not part of our current net worth. This still leaves a substantial amount of wealth for our adult children.

We are hoping this will not stop them from continuing their lives in a productive way. Our concern is that this windfall might encourage them to do nothing.

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

The first goal you should seek is to have what is currently called an emergency fund. This is money you can put your hands on to handle unexpected or emergency needs that come up. These are resources you can access without upsetting your plans or altering your goals.

Like Mike Tyson famously said, "Everyone has a plan until you get punched in the mouth." And life will punch you in the mouth. This fund is what lets you take a punch and still remain standing.

I learned this the hard way early in life. There was a time when I thought it was important to wear the nicest clothes, drive the best car and have the best apartment, etc. That led to a lot of debt.

It never dawned on me that I would lose my only source of income. When it did happen, I found myself in debt, with rent and car payments due and no way to pay them. It was a setback that I'll remember for a lifetime.

Debt can be used as leverage to improve returns, but only for investments that will provide a return on investment. Credit card debt, store credit and automobile debt are not investments that will bring a return. These are poor uses of debt.

Since then, I have always had an emergency fund, lived below my means and saved always. I resolved that I would never be in that situation again.

Other important considerations are:

• Living below your means
• Saving and investing regularly and consistently
• Taking taxes into consideration when making investment decisions
• Monitoring and tracking progress on a regular basis

Do you have an estate plan?

Yes, we have an estate plan. It includes a revocable trust, wills, powers of attorney and instructions on how to settle our estate, including burial instructions.

Our goal is to make whatever decisions necessary in our estate be simple and emotion-free.

We want whatever hurt feelings or animosity that may result from our estate plan be directed at us and not at each other.

What do you wish you'd known …

When you first started investing? I wish we had access to the information that is now available to everyone. The internet was a game changer for us. It gave us the ability to easily find information and do research on and analyze any investment we are interested in.

It is a powerful tool that we use on a daily basis. Having this when we started would have helped us immensely in our investing.

When you first started working with a financial professional? We are investigating the possibility of using one. In the event of some occurrence that would render us incapacitated, we feel it would be useful to have someone at the ready to independently manage our affairs.

Before you retired? How enjoyable and fun it is.

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

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A question I frequently hear is: When can I retire? What they're actually asking is: When will work stop being something I have to do?

Those are different questions, and the plan you build depends on which one you answer.

The on-ramp isn't the exit

Think of financial independence as merging onto a highway with an exit ramp available at every mile marker. You don't have to take the exit; you just need to know it's there and that you could take it if you wanted.

That's the point of the milestone: It's optionality, not an instruction.

Retirement is the decision to take the ramp. One is a number your plan produces. The other is a life choice you make with that number in hand. Reaching the first doesn't oblige you to do the second.

You don't need a perfect number

A common misconception I run into is that financial independence requires some enormous account balance before it counts. It doesn't. What it requires is a sustainable gap between what you have coming in and what you spend.

I've worked with clients whose modest spending got them to that on-ramp years before a higher-earning, higher-spending household with a much bigger portfolio.

Chasing a balance in isolation, without looking at the spending side, is how people miss their own exit ramp without realizing it was already within reach.

Flexibility deserves to be treated as an asset

The part of financial independence that gets underrated is what it does when life doesn't cooperate with your timeline. A health scare, a caregiving responsibility, a layoff, a market downturn — none of these sends you a calendar invite.

Clients who've already built in flexibility navigate those moments very differently than clients who were counting on working exactly as long as planned.

Reaching the ramp doesn't mean you must take it

One surprising thing I hear from clients who reach financial independence: Their relationship with work improves.

Once a paycheck stops being a requirement, plenty of people find they still want to do the work — just on different terms. Some stay full time. Others shift into consulting, board work or mentoring.

The point isn't that everyone should retire the moment they can. It's that they get to decide instead of defaulting.

The planning doesn't stop at the on-ramp

Financial independence isn't a finish line at which planning ends. Markets still move. Spending still shifts. A retirement, once you do take it, can run for decades.

Reaching independence changes the stakes of the plan. It doesn't retire the plan itself.

The real goal isn't racing to the earliest possible exit. It's building enough flexibility that when you do take the ramp, it's because you chose to, not because a number on a spreadsheet told you it was time.

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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.

Dubbed The Great Junk Transfer, a recent study revealed a shift in how the next generation views an inheritance. While legacy once meant handing down every heirloom, modern families are pushing back: 51% of people now prefer to receive a few intentional items tied to personal stories, rather than a house full of possessions.

"The objects that once signaled status and care simply don’t carry the same language for the next generation," says Blaise Aguirre, assistant professor of Psychiatry at Harvard Medical School.

For generations, passing down a household of physical possessions was considered the ultimate act of love. You work hard, build a life and one day, your children inherit your mahogany dining set, your 120-piece fine China service and three display cases of commemorative state spoons.

The study from 1-800-GOT-JUNK? reveals that when a loved one passes away, what heirs truly want is connection, not a full-scale removal operation.

What we actually want (and what we really don't)

When people talk about inherited treasures, they rarely mean rusty 1980s workout equipment or the stack of dusty Encyclopedia Brittanicas in the attic. In the survey, people said they'd like to inherit fewer things (54%) and cited sentimental value as the reason they'd hold onto inherited items. Most respondents preferred to receive one to five items.

Items carry memories, but they aren't the memory itself. Giving loved ones permission to keep only a few meaningful treasures keeps the mourning process focused on healing — not clearing out a house. In the end, it's the personal connection that stays with us.

"Meaning is entirely in the eye of the beholder," Aguirre notes. What heirs cherish are items infused with personal story and presence:

• Handwritten recipes: Cards stained with vanilla extract and written in Mom's distinct cursive carry memories of licking the spoon and waiting impatiently for cookies to cool.
• A well-worn watch or ring: An everyday piece that instantly brings a loved one's presence back into focus.
• A photo album: An archive covering decades of family gatherings and milestones. Consider digitizing these albums to preserve the memories for future generations.
• A single favorite item: The coffee mug Dad drank from every morning, or the ring dish Mom kept on her nightstand.

4 ways to lighten the load (without the guilt)

Navigating an estate handoff doesn't have to mean hurt feelings or overloaded basements. By having early, open conversations about what holds value, families can protect both their cherished memories and their living space. When we focus on quality over quantity, passing things down becomes what it was always meant to be: A gesture of connection, not a burden.

Across international lines, on average, 48% of the Americans, Canadians and Australians surveyed would rather inherit nothing than cope with clearing out someone else's belongings. That said, 55% of the respondents said that they have helped clear a relative's home, with the task taking an average of 17 days.

On the other hand, 69% of people have discovered something they forgot existed while cleaning out a home. Some items held great sentimental value, such as a hard drive containing more than 12,000 family photos and passports from when their grandparents immigrated.

If you're currently looking around your home — or helping aging parents look around theirs — here is a kind, stress-free roadmap for navigating the handoff:

• Have the conversation early: Talk about items before life forces the issue. Ask your kids directly: "What's one or two things in this house you'd love to keep one day?" You might be surprised by what they select and equally relieved by what they don't care about.
• Aim for a "top 10": Encourage family members to select five to 10 items that carry personal meaning. Let the rest go without guilt.
• Separate sentimental value from everyday utility: That oak wardrobe might be solid wood, but if nobody has space for a 300-pound armoire, it's just furniture. Don't confuse emotional value with functional household goods.
• Give permission to let go: Remind your loved ones — and yourself — that an object is not the memory itself. Donating, gifting or hiring a removal team to clear out extra clutter frees up space for the things that truly matter.

Enjoy family and forget about the stuff

At the end of the day, a person's legacy isn't measured in cubic feet of cardboard. A single recipe box or a favorite worn sweater holds far more emotional weight than a house full of things nobody has room for. When we focus on the memories that truly matter, we give our families permission to hold on to the love — and let go of the rest.

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Most research suggests the best time to buy long-term-care (LTC) insurance is typically in your late 50s.

Ten years ago, the advice I was giving clients on LTC planning was totally different than it is today. Ten years from today, I'm hoping robots have made the cost of care significantly cheaper without, at the same time, taking our jobs.

Anyway, on to the reason we're here.

Like so many planning arenas where women should plan differently than men, this one stems from longevity. It's a fact that women live longer than men. Because of this, a married woman is often the one taking on the primary caregiver role for her husband.

Once he passes, there is no spouse to take care of the caretaker, so she is forced to hire someone or enter a community.

I often joke in the courses I teach that if both a husband and wife enter a retirement or nursing community together, the husband will hate it and die. The wife will make new friends and live forever.

The numbers actually support this. Over 70% of nursing home residents are women, according to the American Association for Long-Term Care Insurance.

First targets: The benefit period and amount

The first thing I would adjust on an LTC policy is the benefit period. At Exit 59 Advisory, where I am the president, when we structure benefit periods for traditional long-term care insurance, we often use a starting point of four years for women and two years for men.

According to LongTermCare.gov, women on average need 3.7 years of care, while men need 2.2. Many of the newer hybrid LTC policies rely more on pools of money, or the total amount of coverage, than on a specific number of years.

"Long-term care" is a broad term. It often starts with custodial care, where someone comes to your home to help you cook, clean and get around. For women, it is more likely to end with skilled nursing care, which is medical care.

As you may imagine, these two levels of care cost very different amounts.

This is the second adjustment I would make: Whether it's a pool of funds or a monthly benefit, I would increase the amount for women, based on the statistic I stated earlier: 70% of nursing home residents are women.

Next target: The inflation rider

I have written more columns than I choose to admit on inflation over the past four years. Not exactly what I was picturing as a young boy aspiring to be a professional athlete. This one is no exception: Don't ignore the inflation rider on an LTC policy.

This is especially true for women, who are more likely to enter a facility later in life.

You've seen how inflation can erode your egg-purchasing power over the last few years. The same is true in this space. The longer down the line you plan to use the policy, the more important the inflation rider becomes — 3% vs 5% over a long period of time compounds to two very different numbers.

Simple interest inflation riders vs compounding interest riders will also look quite different 25 years from now.

The bottom line

We always start with the financial plan to see whether long-term care coverage is even necessary. For those with significant assets and low relative expenses, you may have no problem paying out of pocket.

First, assess your needs. If there is a need, measure it and build the policy to fit.

Just as you wouldn't buy a custom suit made for someone else, you shouldn't buy a long-term care policy that doesn't fit you.

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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 parents and grandparents want the same thing: To give the next generation opportunities they might not have had themselves.

In many ways, families have never had more tools available to help make that happen. Yet many wonder, "Am I doing enough?" If that's a question you've asked yourself, you're in good company.

More than half of parents and grandparents (53%) believe today's children are less prepared for money management than they were at the same age, according to a new survey from Wealth Enhancement.

At first glance, those findings might not seem to add up. Today's children have access to more financial information than previous generations could have imagined. But most parents and grandparents know that financial confidence isn't built by downloading an app. It's built through experience, conversations and the values we pass along over time.

That might sound like a big responsibility, but it doesn't have to be. Helping children develop healthy financial habits often starts with small everyday moments rather than grand (or formal) financial lessons.

The important thing isn't doing everything perfectly. It's finding simple ways to make money a topic that feels approachable, practical and worth talking about.

Acknowledge today's financial world

One thing I've noticed as both a financial planner and a parent is that children experience money very differently from the way many of us did while growing up. My 5-year-old son has watched me tap my card to pay for groceries, swipe my card to make purchases and fill a Costco cart without ever exchanging cash. Outside the occasional dollar left by the Tooth Fairy, he's had very little reason to think about money as something tangible.

That isn't necessarily a problem, but it is different. Many of us grew up counting coins, saving cash in a piggy bank or watching money physically change hands.

Today, much of that happens behind the scenes. As a result, some of the money lessons previous generations absorbed naturally might require a little more intention.

At the same time, instant gratification has become part of everyday life. We can have almost anything delivered to our doorstep in a matter of hours. Even as adults, many of us aren't immune to the influence of social media, targeted advertising and one-click purchasing (I'm looking at you TikTok Shop).

Perhaps that's why 56% of parents and grandparents in Wealth Enhancement's survey said that avoiding impulse purchases and overspending is the hardest money lesson to teach.

Make room for regular money lessons

Most personal finance education doesn't happen through formal lessons. It happens in the everyday moments.

I've found that some of the most meaningful lessons happen during ordinary activities. When my family goes to the thrift store, my son gets a set dollar amount to spend. That's his budget. He can buy one larger item, several smaller ones or decide not to spend it all.

The amount isn't really the point. The lesson is learning how to make choices and think about tradeoffs.

If there's something he wants that's outside his budget, we don't turn it into a lecture. We simply acknowledge that it's hard when there's something you want and can't have right away. If it's something he still wants later, we might add it to a birthday or holiday wish list.

These moments might seem small, but they're often where the most meaningful money lessons happen.

Opportunities with allowances

Allowances can create similar opportunities. Our survey found that 63% of parents and grandparents have given children an allowance, with most starting around age 8. The age and amount matter far less than the conversations and experiences that come with it.

Children learn a great deal when they're given the chance to make real decisions with their own money. There's a unique sense of ownership that comes from deciding whether to spend, save or wait.

As children get older, those lessons can evolve. You might introduce investing by having them follow a company they recognize and watch how its stock price changes over time. The goal isn't to create the next investing expert. It's to help them connect the idea of ownership, growth and long-term thinking.

What works for one child might not work for another. Rather than searching for the perfect system, look for opportunities that fit your child's personality, interests and stage of development.

Most important, you're able to use these moments to pass along the values that matter most to your family. The lessons children learn about spending, saving, generosity and the relationship between work and reward often come from what they see us do every day.

Don't overlook your own financial foundation

More than half (53%) of parents and grandparents surveyed said they've never opened an investment account for a child. Investing can be one of the most powerful ways to help children build a financial foundation for the future. The earlier money is invested, the more time it has to grow.

When a parent asks me where to start, my answer is usually, "It depends on what you're hoping the money will do." A 529 plan, custodial account or a Roth IRA can all be effective tools, but the right choice depends on your family's goals and circumstances.

If you haven't opened an investment account for your child, you're not alone. Many families balance competing priorities, whether that's childcare, paying down debt, building an emergency fund or figuring out where to begin.

Before focusing on investing for the next generation's future, make sure your own financial foundation is secure. If your retirement savings aren't where you'd like them to be, start there. Your children can borrow for college, but there are no loans available for retirement.

Once your own future is on solid footing, you can decide how investing for your children and/or grandchildren fits within your family's goals and resources.

Make money conversations a part of everyday life

Financial education doesn't just come from what we teach children about money. It also comes from the way we talk about money at home.

Think about your earliest money memory. Maybe it was receiving cash in a birthday card or overhearing a conversation about household bills. Those experiences helped shape the way you think about money today.

The same is true for our children. The way we talk about financial decisions, priorities and tradeoffs influences how they think about money in the future.

Treat money as something that can be discussed openly rather than something that's off-limits. Talk about savings goals, explain financial choices and answer questions honestly (in age-appropriate ways).

Those conversations don't need to be formal, and they certainly don't need to be perfect.

Most important, remember that your children and grandchildren are watching. Long after today's apps and platforms have been replaced by something new, they'll remember the habits, values, and attitudes toward money they learned from the people around them.

Technology can be a useful tool, but it can't replace the influence of a trusted adult. We have an opportunity to be the guide that some of us may not have had ourselves.

That's one of the most meaningful ways we can help the next generation build a stronger financial future.

#2026-13422

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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.

Searching for a financial advisor often means entering a confusing marketplace filled with titles, credentials, compensation methods and marketing claims. Many advisors describe themselves as fiduciaries. Many claim to provide financial planning.

Yet consumers frequently discover that what they receive is primarily investment management — not comprehensive financial planning advice.

That's why more people should know about the Garrett Planning Network — a nationwide network of around 200 fee-only financial planners who share a commitment to comprehensive, fee-only financial planning and transparent compensation.

While members may use different fee structures — including hourly, project-based, retainer or subscription arrangements — they are united by a client-first philosophy and a focus on advice rather than product sales.

I asked Tracy St. John, a Kansas City financial planner and long-time member of the network, to explain its role and how it can help you find a financial adviser whose business models are aligned with your interests.

Why the Garrett Planning Network was created

Financial planner Sheryl Garrett created the Garrett Planning Network around a simple but powerful idea: Quality financial planning should be accessible to ordinary Americans, not just wealthy investors.

As St. John says, "The problem was the average person feeling like they couldn't have access."

That mission remains central to the network today.

Rather than requiring clients to meet asset minimums, many Garrett planners are willing to work with consumers who are just getting started, are approaching retirement or simply need objective advice on a specific financial issue.

If you've never worked with a financial planner before, this can be a significant advantage.

What makes Garrett planners different?

When asked how Garrett planners differ from many other financial advisors, St. John immediately points to two characteristics. "We are comprehensive planners," she says, and "We are client first."

She also emphasizes the dedication many Garrett planners bring to their work: "Many of us will work beyond the scope of a project or plan just because we want the best outcome for the client."

Those comments reflect an important distinction.

Many financial professionals focus primarily on investment management. Garrett planners generally view investments as only one component of a much broader financial planning process.

Their goal is to help clients make better decisions across all aspects of their financial lives.

Understanding comprehensive financial planning

Many consumers assume they are receiving comprehensive advice when they are actually receiving investment recommendations.

St. John believes comprehensive financial planning goes much deeper. In her practice, comprehensive financial planning includes far more than portfolio management.

It may involve:

• Cash-flow analysis
• Retirement planning
• Tax planning
• Estate planning reviews
• Social Security strategies
• Medicare decisions
• Employee benefit evaluations
• Insurance reviews
• Investment planning
• Tax-efficient withdrawal strategies
• Family financial education

It may also go into details that seem small individually, but collectively can have a meaningful impact on your financial well-being.

For example, one client discussion involved reviewing unused credit card rewards, St. John says. Another involved verifying whether a client had designated representatives on Social Security and Medicare accounts, while another involved identifying tax inefficiencies in investment accounts.

As St. John explains, "Comprehensive for me is really covering the gamut."

An interconnected approach

Consumers often approach financial planners with a specific question:

• When should I claim Social Security?
• Should I invest in this fund?
• Can I afford to retire?

But, St. John says, truly comprehensive planners recognize that these questions rarely exist in isolation.

"The depth to which every area of your finances intermingles with each other" is something consumers frequently underestimate, she notes.

For example, determining when to claim Social Security benefits requires understanding:

• Cash flow needs
• Retirement income sources
• Tax consequences
• Longevity assumptions
• Investment resources
• Estate planning goals

"We can't just answer that basic question without looking at other areas," St. John explains.

Similarly, she doesn't like making investment recommendations without understanding a client's tax situation.

This interconnected approach is one of the hallmarks of comprehensive financial planning.

Why fee-only matters

The Garrett Planning Network has long emphasized fee-only compensation.

While consumers ultimately must decide which compensation structure they prefer, fee-only arrangements eliminate many of the product sale conflicts that can arise when advisors receive commissions from product providers.

For St. John, the decision was deeply personal.

"I felt like if I [charged] hourly, the client would only pay when I'm doing work for them," she says. "That just felt morally right."

She also wants clients to feel free to engage in her services when they need help rather than feeling pressured into ongoing arrangements that might not fit their circumstances.

Importantly, Garrett planners use a variety of fee structures today. Some charge hourly. Others use flat fees, subscriptions or retainers.

What unites them is transparency and a commitment to putting the client's interests first.

As St. John explains, "It's about the client and what they need for their situation."

A culture of collaboration

Another distinguishing feature of the Garrett Planning Network is its culture.

Unlike many industries where professionals guard their ideas and processes, Garrett planners have historically embraced collaboration.

St. John describes the organization as one where members openly share knowledge and support one another's success.

One member who attended a Garrett event remarked: "I feel like I come here and it's this big group hug."

St. John laughs as she recalls the comment, but she believes it captures something important about the network: "It truly feels like a family where everybody cares, and everybody shares."

That collaborative culture ultimately benefits consumers because Garrett Planning Network advisors continuously learn from one another and share best practices.

The needle in the haystack

People often ask how they can determine whether an advisor is providing comprehensive planning or simply managing investments.

St. John's answer is surprisingly straightforward: "If they aren't being asked for their taxes and there isn't any tax work done, if they're not being asked for their estate plan, if they're not being asked to look at what their lifestyle costs, that from a high level would not be comprehensive planning."

In other words, you should expect your advisor to be interested in much more than investment accounts.

A comprehensive planner should seek to understand your entire financial life. But they're not always easy to find.

St. John tells me: "I've had several clients say, 'We did so much research and you were a needle in a haystack, but we are so glad we found you.'"

That statement highlights both the challenge and the opportunity facing consumers today.

The challenge is that truly comprehensive, fee-only financial planners remain a relatively small segment of the financial services marketplace.

The opportunity is that organizations such as the Garrett Planning Network make it easier to identify advisors who embrace this approach.

The bottom line

For consumers seeking objective financial guidance, the Garrett Planning Network offers a valuable resource.

Its members share a commitment to comprehensive, fee-only financial planning, transparent compensation and client-centered advice.

While no single organization has a monopoly on quality financial planning, the Garrett Planning Network has spent more than two decades promoting a model built around accessibility, education and putting the client first.

When you evaluate potential advisors, you should ask an important question: Am I receiving investment recommendations, or am I receiving comprehensive financial planning advice?

The answer may lead you to a new advisor — and a more complete understanding of your financial life.

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

For years, employers have expanded financial wellness programs to cover retirement savings, healthcare costs, emergency funds and student loan repayment.

Yet one of the biggest financial milestones in Americans' lives, buying a first home, has remained largely unsupported in the workplace. That is beginning to change.

A growing number of companies and benefits providers are exploring homeownership support as the next frontier of employee financial wellness.

The shift reflects a simple reality: For many workers, especially millennials and younger employees, homeownership feels further out of reach than ever. High prices, elevated interest rates and rising insurance and tax costs mean that even financially responsible workers struggle to turn "someday" into "this year."

Traditional benefits do little to solve that problem, since a 401(k) helps employees prepare for retirement decades away, a health savings account (HSA) helps manage healthcare expenses and student loan benefits help reduce debt.

Few employers, though, offer tools to help workers save for a down payment, improve mortgage readiness or navigate the homebuying process, leaving employees to piece together information on their own, often without clear guidance on what they can actually afford or how to trade off competing financial priorities.

That gap is exactly where employer-sponsored homeownership support can make a difference, and the mechanics are not complicated. Programs can help employees automatically set aside money from each paycheck toward a dedicated home fund, receive matched contributions or bonuses tied to milestones and access education on credit, debt-to-income ratios and local market conditions.

For many would-be buyers, simply having a structured plan, realistic affordability benchmarks and a single place to manage the process can be the difference between staying a renter and confidently taking the next step.

Benefits platforms are now trying to close that gap at scale. Partnerships between companies like Foyer (where I am the founder and CEO) and Nayya aim to integrate homebuying support directly into workplace benefits, offering employees savings tools, affordability planning and guidance throughout the homeownership journey.

Nayya has reported that roughly one in 10 users expects to buy a home within the next year. At the same time, HR Brew recently noted that only a small minority of employees currently receive any form of employer housing assistance, which suggests there is significant room for growth in this category.

There is also a broader workforce argument emerging. Employers increasingly compete on benefits that support major life milestones, not just base pay and a standard retirement plan. Housing affordability affects recruitment, retention, geographic mobility and overall financial stress.

Employees who feel permanently locked out of homeownership often carry that stress into work, which can influence everything from productivity to long-term loyalty. In that context, helping employees buy a first home looks less like a niche perk and more like a strategic workforce benefit.

The evolution mirrors what happened with student loan assistance a decade ago. A once-unusual offering gradually became part of mainstream financial wellness, as more employers recognized that workers cannot build a stable financial life while buried in debt.

Today, the pressure point has shifted. For many households, the largest single barrier to building wealth is not a lack of retirement vehicles, but the difficulty of getting onto the housing ladder in the first place.

If retirement benefits help employees build security for the future, homeownership benefits are the logical next step in helping them build wealth in the present.

For employers, integrating homeownership into financial wellness is an opportunity to stand out competitively and support long-term employee stability.

For workers, it is a sign that their workplace is not only focused on who they will be at age 65, but on the financial goals that shape their lives right now.

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• Why Buying Your First Home Is Way Harder Now Than in the Swinging '60s

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.

Financial stocks are teed up for a good second half of the year, supported by a number of factors.

For starters, stocks in the sector reported blowout earnings in the most recent quarter. On average, quarterly earnings growth compared with the same quarter a year ago has been "strong," coming in at 18%, says Matthew Bartolini, global head of research at State Street Investment Management. That outstripped analysts' expectations for earnings growth in the quarter by more than threefold.

The specter of looming interest rate hikes (instead of cuts) is also a positive — bank stocks tend to thrive when rates rise, unlike stocks in many other sectors. And price-to-earnings multiples for financials relative to the U.S. stock market are currently at 15-year lows, says Bartolini.

Five financial funds to consider investing in

The State Street Financial Select Sector SPDR ETF (XLF) is a diversified sector fund that holds all the financial stocks in the S&P 500, from big banks (JPMorgan Chase, for example) and capital markets companies (Goldman Sachs) to financial services firms (Visa) and consumer finance businesses (American Express).

The Invesco KBW Bank (KBWB) holds big banks, capital markets firms and some major regional banks, too. Top holdings include Bank of America, Morgan Stanley and U.S. Bancorp.

Or you could home in on big banks and capital markets firms. Among other pluses, these businesses stand to benefit from the enormous amount (reaching an anticipated $1 trillion in 2027) that analysts expect corporate America to spend on the buildout of artificial intelligence capacity.

"The AI buildout has been conducive to earnings within the financial sector — from loan growth to investment banking initial public offerings and mergers and acquisitions. All of these are financial services-related events" and are helping to boost results at big banks and capital markets firms, Bartolini says.

Bank-focused ETFs include First Trust Nasdaq Bank (FTXO) and State Street SPDR S&P Bank (KBE). Both hold stocks in big banks but have hefty stakes in regional banks, too.

The State Street SPDR S&P Capital Markets ETF (KCE) focuses on asset managers, investment banks, brokerage companies and financial exchanges, among other financial market firms.

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

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Each week in our Ask the Tax 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, including one on how long taxpayers should keep tax returns and other records. (Get a free issue of The Kiplinger Tax Letter or subscribe.)

1. How long to keep tax returns

Question: I am a pack rat and have kept my old tax returns, tax records, financial statements and more for many years. When can I start throwing these out?

Joy Taylor: As a general rule, you should keep your tax returns and supporting documents for at least three years from the due date of your return. That’s generally how long the IRS has to question items on your return and to bill you for any additional tax. It’s also generally the timeframe to file an amended return to seek a refund. There are situations when the IRS can audit even older returns. The IRS can go back up to six years if your return omits more than 25% of income. If fraud is proven, there is no limit. Also, you may have to keep your state tax returns for longer than three years, depending on your state's rules.

But don’t automatically throw out all of your tax returns and records after three years. Look over old documents to see if you might need any parts of them in the future. And there are some records you can toss earlier than three years.

For more information, see "How long to keep tax returns and records?".

2. Investment management fees

Question: I know that if I own an investment portfolio that is managed by an investment management firm, I cannot deduct the management fees on Schedule A of my Form 1040. But what if I pay for an investment letter, say, Stanberry Research, to help me with option trading that I do? Is this cost deductible on Schedule A if I itemize?

Joy Taylor: No. Investment management fees and similar investment expenses, such as the subscription cost for an investment letter, are not deductible on Schedule A. These all fall in a category of miscellaneous deductions that Congress temporarily repealed in the 2017 Tax Cuts & Jobs Act and permanently repealed in last year's One Big Beautiful Bill.

3. One Big Beautiful Bill or Working Families Tax Cuts

Question: I keep hearing lawmakers talk about the working families tax cuts. What is this? Did Congress pass another big tax bill this year?

Joy Taylor: No, the last large tax law passed by Congress was last year's "One Big Beautiful Bill." In July 2025, Congress enacted legislation, the original short title of which was the "One Big Beautiful Bill Act." However, soon before the Senate voted on its version of the House-passed legislation, Democrats required that short title be struck from the bill. The full title of the law is "An Act to Provide for Reconciliation Pursuant to Title II of H. Con. Res. 14." This doesn't roll off the tongue quite as easily as the One Big Beautiful Bill, and Congress, President Trump, tax experts and many media outlets, including Kiplinger, have referred to the law as the "One Big Beautiful Bill" for the past year.

Now, with the midterm elections taking place in November, we are seeing House and Senate Republicans, the IRS and other federal agencies and departments refer to the law as the "Working Families Tax Cuts." Republican lawmakers seem to think this sounds better than "One Big Beautiful Bill." Despite the recent attempt at rebranding through a name change, "Working Families Tax Cuts" and "One Big Beautiful Bill" refer to the same thing.

4. Inherited property

Question: I inherited a piece of real estate when my father died in 2010. I just sold the real estate. I didn't get an appraisal for the value of the property when my dad died. Can I now use the assessed value of the property from the real estate tax statement for the year my father passed away for the purpose of determining how much taxable gain I have on the sale?

Joy Taylor: Generally, for inherited property, you determine the stepped-up basis (to fair market value) on the date of the decedent's death. It's best to get an appraisal at the time the property is inherited.

Since you did not do this, maybe you can go back and look at the value of similar properties that were sold around the time of your father's death to help determine fair market value in 2010. Otherwise, you should be able to use the assessed value of the property from the 2010 real estate tax assessment, but normally, assessed values on those statements are a bit lower than what one can actually sell the property for.

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

The U.S. Postal Service financial crisis is no longer a future concern — it's happening now.

Testifying before Congress in June, Postmaster General and Postal Service CEO David Steiner said the agency is running out of cash, deferring retirement obligations and relying on temporary financial maneuvers to continue providing service.

Those maneuvers include borrowing from employees' retirement funds, a move that should stop every postal worker in their tracks.

When Steiner says the agency is borrowing from those funds to stay afloat, he doesn't mean individual Thrift Savings Plan (TSP) accounts are being raided or that earned pensions have vanished.

However, it does mean the Postal Service is using deferred employer retirement obligations as a cash-management tool, which can impact every postal employee trying to make informed decisions about retirement, benefits, income and long-term security.

What postal workers can do to prepare

Postal employees have valuable benefits. This announcement isn't reason to panic, but it is reason to prepare.

Find out how potential changes could affect your pension, TSP, benefits and the financial protections you have chosen for your family. A qualified Federal Benefits Expert can help with that.

Calculate the retirement income you can realistically expect from the Federal Employees Retirement System (FERS), Social Security and your TSP, then compare it with what you actually spend each month.

The difference — whether a shortfall or a surplus — may determine how prepared you really are.

A Federal Benefits Expert can help you run that analysis, too.

Decide now how you would respond if the Postal Service announced another early-retirement offer, a restructuring or an involuntary separation. Understand what you would gain, what you could lose and whether your income, health coverage and savings could support that decision. Options are easier to evaluate before the pressure and deadlines arrive.

Prepare for the potential delay between your last paycheck and your full retirement income. We are seeing some retirement claims take six months (and occasionally as long as 12 months) to finalize.

A dedicated cash reserve can help you cover that gap without being forced into an unplanned, taxable withdrawal that depletes your traditional TSP savings.

That preparation matters because this is unlikely to be the last difficult decision involving Postal Service finances. Until the Postal Service and Congress agree on a durable plan for the Postal Service's long-term financial stability, employees should expect continued proposals that could affect operations, staffing and retirement planning.

Why we're in this situation

Deferring retirement obligations just to keep the lights on is not only indicative of a cash-flow problem for the Post Service, it's clear proof that the current funding model no longer works.

Under Title 39, the Postal Service must serve every American community, including routes that lose money year after year. Today, the agency delivers to roughly 170 million addresses, six days a week, across 233,000 delivery routes. This costs more than $65 million a week.

Steiner says 84% of city delivery routes and 52% of rural delivery routes are financially underwater, totaling a loss of more than $120 billion in the past decade.

In other words, the Postal Service is expected to operate like a business while providing service like a public utility.

The Postal Service isn't just cutting costs, it's fundamentally restructuring how it operates. Through its 10-year Delivering for America plan, the Postal Service is consolidating operations by moving letter carriers from local post offices to larger sorting and delivery centers.

These changes are already underway and have important implications for employees' careers, benefits and retirement planning. It appeared to improve efficiency on paper, but for the workers, it's often resulted in longer commutes, unfamiliar routes, new schedules and increasing uncertainty about future job security.

Although implementation has not met the Postal Service's original timeline, the restructuring has not stopped. In 2022, the Postal Service unveiled plans to consolidate up to 100,000 carrier routes into 400 to 500 larger sorting and delivery centers.

Today, with roughly half of those consolidations complete and about 133 facilities activated, its impact on employees is becoming increasingly evident.

The Postal Service says this change in operations has produced more than $1 billion in savings to date, potentially generating billions more annually if fully implemented.

But an audit from the United States Postal Service Office of Inspector General found it also created $1.4 million in added overtime costs and about $19 million in additional labor expenses.

This raises concerns about whether the savings are as clear as the Postal Service suggests.

Although postal workers' TSP accounts aren't being raided, nor are their pensions disappearing, suspending employer contributions to the FERS to save money isn't a sustainable solution.

While it might be saving the Postal Service roughly $100 million per week, or $2.5 billion in the current fiscal year, using those would-be contributions to employees' retirement funds is only multiplying future indebtedness.

Eventually, those missed payments must be restored, restructured or addressed by Congress.

For postal workers, it also raises an important question: How will the agency afford to pay back both missed and future payments?

Postal workers aren't the only ones impacted by this financial crisis. While taxpayers might not be paying the Postal Service's operating costs now, that doesn't mean they won't in the future. When a public service is legally required to serve every American address, but can't sustain itself financially, the bill gets pushed onto workers, customers, communities and potentially taxpayers.

The Postal Service can no longer afford to be expected to operate like a business while fulfilling a public mission. Unlike commercial carriers chasing profitable routes, the Postal Service is the only carrier legally obligated to deliver to every address in America — from densely populated cities to the most remote rural communities.

Unlike most federal agencies, the Postal Service does not rely on annual taxpayer appropriations to fund its day-to-day operations. Instead, it's expected to finance the majority of its operations through the sale of postage, products and services, all while fulfilling its legal obligation to deliver to every address.

It's a unique mandate that combines the responsibilities of a public service with the financial expectations of a self-supporting enterprise.

Until the Postal Service's long-term funding model is addressed, measures such as deferring retirement contributions are temporary solutions that postpone — not solve — the underlying financial challenges. If universal mail service is a national priority, then ensuring the long-term financial stability of the institution that delivers it must be a national priority as well.

If you're a postal employee, this isn't just another headline — it's your career, your retirement and your family's financial future. As the Postal Service continues to evolve, the decisions you make about your federal benefits today can have a lasting impact for decades to come. Understanding how your pension, TSP, Social Security, healthcare and insurance work together isn't just helpful — it's essential. The best time to prepare is before change leaves you with fewer options.

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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.

Paying off your mortgage is a huge milestone, but a high property tax bill can rain on your parade. And once you enter retirement on a fixed income, those recurring bills might steadily erode your monthly budget.

According to U.S. Census Bureau estimates, the average American household pays roughly $3,200 annually into real estate property taxes, with figures in higher-tax states easily climbing past $4,000 to $9,000.

The good news? You might not have to foot the full bill. State and local governments offer targeted property tax relief, particularly for homeowners aged 65 and older. For example, some older adult residents can stack local senior discounts on the Florida homestead exemption, removing up to $100,000 or more in taxable value from a home.

However, tax breaks like these are rarely automatic. You usually have to apply by local filing deadlines, and remember that programs vary by location.

To help you get started, here are five frequently overlooked property tax breaks worth exploring in 2026 — some of which might just offer a financial umbrella.

Property tax relief for seniors

Before diving into specific tax breaks, it helps to understand how senior property tax relief works.

Because real estate taxes are administered at state, county, and municipal levels, availability and eligibility requirements vary significantly based on where you live. Generally, these programs are available to homeowners, but in some states renters might qualify for property tax savings as well.

Most programs set baseline criteria around primary residency, household income, and/or age (often at 65, though some start earlier). But all older adult property tax relief programs generally require an application. So check your local tax assessor or state Department of Revenue website to see what you are eligible for in your area.

1. Circuit breaker tax credits

Just as an electrical circuit breaker prevents a power overload, an income-based tax credit stops rising property taxes from overloading your annual bill.

States offering circuit breaker programs generally cap property taxes at a specific percentage of your total household income. When the annual amount exceeds that threshold, the state issues a refund or credits the excess back to your property tax bill.

For example: The Massachusetts Senior Circuit Breaker Tax Credit allows eligible residents aged 65 and older to claim a refundable tax credit worth up to $2,820. This tax break triggers if a homeowner's property tax (plus half of their water and sewer bills) exceeds 10% of their total income.

Typically, circuit breaker programs are tailored to low- and moderate-income households. Once more, rules can be complex and often require adding back items that may be nontaxable in your state, like Social Security benefits.

So, if you don't qualify or your state's Department of Revenue or Taxation doesn't offer this program, don't worry; next, we'll take a look at a property tax break most states offer to seniors.

2. Senior property tax exemptions and freezes

Both property tax exemptions and freezes can give seniors relief in 2026. Although closely related in the benefits they provide, these two differ in how they reduce your property tax bill:

• Exemptions. Reduce your home's taxable value by subtracting a flat dollar amount or percentage before the local tax rate is applied. For example, Colorado's Senior Property Tax Exemption grants eligible homeowners 65 and older a 50% exemption on the first $200,000 of their home's actual value, reducing their home's taxable basis by up to $100,000.
• Freezes. Lock in either your home's assessed value or the final dollar amount of your property tax bill once you reach a qualifying age. For instance, New Jersey's "Senior Freeze" program establishes a base year when you enroll; the state then reimburses you via check for any future tax increases above that baseline.

Unlike circuit-breaker credits, exemptions and freezes don't always require low income levels (though higher incomes may limit total savings). But some jurisdictions restrict them further to veterans or people with disabilities. Review your local municipal assessor's office for application information.

3. Bundled municipal fee waivers

Your annual property tax bill may not just cover land and buildings — some localities also bundle flat municipal fees for local services like trash pickup, recycling, and sewer maintenance.

Through a bundled fee waiver, eligible seniors can opt out of or significantly discount these specific line items on their property taxes.

For example: The city of Fontana, California, offers a Senior Citizen Discount Program for residents aged 60 and older through Burrtec Waste Industries. Qualifying seniors can reduce their trash and recycling charges from the standard residential rate of $37.63 down to $30.10.

Because these programs are authorized at the state level but administered locally, eligibility, availability, and tax savings vary widely by jurisdiction. Like property tax circuit breakers, municipal fee waivers are usually income-tested and depend heavily on county or city regulations.

If a program is available in your area, you can check your local tax assessor’s office or municipal utility department for specific information on how to apply.

4. Partial land exclusions

Partial land exclusions divide your land into taxable and non-taxable portions.

So instead of assessing your entire parcel at a uniform value, the tax assessor removes part of your land's physical footprint or appraised value from the tax calculations. While the state authorizes land exclusions in its constitution, county officials implement them according to local tax rules.

For example: Guilford County, North Carolina, applies an Elderly or Disabled Homestead Exclusion that excludes the greater of $25,000 or 50% of the home's appraised value from taxes. This includes a land exclusion capped at up to one acre of contiguous property. Any remaining acres are taxed at the standard rate.

Partial land exclusions may help seniors age in place by shielding acreage from full taxation. However, because these tax relief programs can be tied to local income caps, passive revenue spikes like capital gains tax could count toward your household total and can disallow eligibility.

See your local tax assessor or county's website for your area's specific income thresholds and rules.

5. Property tax deferrals

A property tax deferral is technically a financing option. But it acts like a property tax "discount" by allowing cash-poor, equity-rich seniors to postpone paying their property taxes entirely.

Here's how it works:

• The state or local government pays your property tax bill directly to the municipality and places a low-interest tax lien on your home.
• The accumulated principal and interest become due only after you pass away, sell the property, or move out permanently.

For example: The Oregon Department of Revenue loans qualifying seniors the funds to pay their property taxes, anchoring the balance to a 6% simple (non-compounding) annual interest rate.

Although deferrals preserve immediate cash flow, any outstanding tax lien reduces the ultimate equity passed to your heirs. Also, strict age, income, and residency requirements generally apply. So it's best to consult a qualified tax professional before taking on any new liens on a property.

Read More

• Bill Proposes $10,000 Home Upgrade Tax Credit for Seniors
• 6 Steps to Appeal Your Property Tax Bill
• Most-Overlooked Tax Breaks for Retirees
• Property Tax Changes For Homeowners 65 and Older

I can usually tell where we are in the precious-metals cycle by the questions investors ask me. When precious metals are quiet, few people want to discuss them.

When gold begins making headlines, interest builds. Then, after gold and silver have already rallied significantly, the questions inevitably shift to silver.

But when prices pull back, that interest disappears almost as quickly as it arrived. As a portfolio manager at Meristead Wealth, I have seen this pattern before, and it reflects one of the great challenges of commodity investing: Investors tend to become most enthusiastic when prices and expectations are already high.

The better time to get interested is often after both have come back down.

So, let's talk silver.

Silver is more than a precious metal

Silver is sometimes dismissed as "poor man's gold." That description badly understates what the metal has become. Like gold, silver has served as money and a store of value for thousands of years.

But unlike gold, silver plays a significant role in industry. It can be found in electronics, automobiles, medical equipment, electrical infrastructure and countless other products that have little to do with jewelry or investment demand.

Silver is particularly important to several technologies expected to shape the next generation of the global economy, including solar panels, electric vehicles, semiconductors and artificial intelligence data centers.

The reason comes down to the metal's physical properties. Silver is the most electrically conductive metal on Earth. In plain English, that means electricity can pass through it with exceptionally little resistance or wasted energy. It is also an excellent thermal conductor, allowing it to move heat away from sensitive components before they overheat.

Those qualities are valuable in everything from solar cells and vehicle charging systems to computer chips, servers and high-performance electrical connections. Industrial silver demand totaled 657.4 million ounces in 2025.

Although that was down modestly from the prior year's record, demand continued to benefit from investment in artificial intelligence infrastructure, automobiles and the power grid.

Here's the problem

The problem is that silver supply has not kept pace. The global market is projected to record its sixth consecutive annual supply deficit in 2026, with demand exceeding supply by an estimated 46.3 million ounces.

Since the current run of deficits began in 2021, about 762 million ounces have been drawn from above-ground inventories to bridge the cumulative gap between supply and demand.

That does not mean the world is about to run out of silver. It does mean that newly mined and recycled supply has repeatedly been insufficient to satisfy annual consumption, forcing the market to rely on metal accumulated in earlier years.

Mine production, meanwhile, has been remarkably stagnant over the past decade. Many of the world's premier silver districts are mature, and declining ore grades mean miners must move and process more rock to produce the same amount of metal.

Recycling can help, but only to a point. Some silver is concentrated in products such as jewelry, silverware and larger industrial components, making it economical to recover.

In many modern applications, however, each device contains only a tiny amount. A smartphone, medical instrument or electronic sensor may depend on silver to function yet contain so little that the recovered metal would be worth less than the cost of collecting, dismantling and processing the product.

As a result, much of the silver dispersed across millions of finished goods is unlikely to return to the market under current economics.

Diverse drivers of demand

The result is a precious metal with tight supply and a diverse collection of demand drivers. Better yet for silver producers, the small quantity used in many finished products can make demand relatively insensitive to price.

If the silver inside an expensive server, automobile or piece of medical equipment accounts for only a tiny fraction of its total cost, the manufacturer is unlikely to stop producing that item simply because silver becomes more expensive.

Supply can be equally unresponsive. Most silver is not produced by mines built primarily to extract silver. Instead, it is recovered as a byproduct from mines whose economics are driven by lead, zinc, copper or gold.

A sharp increase in silver prices will not necessarily convince a copper miner to expand production if copper prices, ore quality or the rest of the project economics do not justify it. Unlike commodities for which higher prices can quickly encourage greater production, silver supply does not always respond directly to the silver price.

For patient investors, that is an interesting setup indeed. Deciding how best to invest in it is more complicated.

Not all silver investments are equal

There is, of course, physical silver. Many of our clients at Meristead choose to own some precious metals directly, typically with the intention of holding them indefinitely or treating them as a form of "when stuff hits the fan" insurance.

That is a perfectly reasonable purpose for physical ownership. But owning more sizable quantities introduces practical problems, including secure storage, insurance and the risk of theft. Exchange-traded funds offer a more convenient alternative, but they charge fees and require investors to understand the fund's structure and custody arrangements.

Neither coins nor physical silver-backed funds provide the operating leverage that can make precious-metals equities especially rewarding when metal prices rise.

The obvious equity alternative is to buy a silver miner. Unfortunately, truly silver-focused mining stocks are in surprisingly short supply. Most of them are tiny companies that may own a mine but aren't currently pulling any silver out of the ground (which is to say, they aren't making any money).

This scarcity can also cause the few higher-quality silver companies to trade at premium valuations relative to the much larger universe of gold miners.

Even the "pure" silver miners are rarely as pure as the label suggests. Silver deposits frequently contain gold, lead, zinc or copper, and those other metals can represent a substantial share of a company's reserves, production or revenue. Investors who insist on seeing the word silver in the company name may therefore be restricting themselves to a small and sometimes expensive opportunity set without actually obtaining pure silver exposure.

Where silver hides in plain sight

At Meristead Wealth, we have found that investors seeking exposure to both gold and silver can often get the best of both worlds by looking beyond the narrow silver-miner category. A number of businesses thought of primarily as gold companies own meaningful silver-producing assets.

These companies can provide participation in higher silver prices without forcing investors to accept the limited choices or scarcity premiums that may accompany the most obvious silver stocks.

Newmont (NEM), for example, is known as one of the world's largest gold miners. Yet its Peñasquito operation in Mexico is also one of the world's largest silver mines. Peñasquito sold about 28 million ounces of silver in 2025, in addition to producing gold, lead and zinc. That is meaningful silver exposure hiding inside a company most investors place firmly in the gold bucket.

A different business model to consider

Another option is to move one step away from operating the mines altogether. In a previous Kiplinger article, I discussed precious-metals royalty and streaming companies, which provide miners with capital in exchange for a percentage of future production or revenue.

These businesses are typically highly profitable and capital efficient, and they avoid many of the day-to-day labor, equipment and cost risks faced by mine operators. They are not risk-free — their fortunes still depend on the underlying mines and operators — but I generally prefer the business model to traditional mining.

Here, too, investors can find both gold and silver exposure. Wheaton Precious Metals (WPM) is the clearest example. Longtime precious-metals investors may remember the company by its original name, Silver Wheaton — a nod to its roots as a silver-focused streaming business.

It has since broadened its portfolio, but silver still generated 36% of Wheaton's revenue in 2025, alongside 62% from gold. Its streaming agreements also provide exposure to hundreds of millions of ounces of attributable silver reserves and resources.

Royalty companies that appear more gold-oriented can offer silver exposure as well, although the degree varies by portfolio. Investors should examine the metals underlying each company's streams and royalties rather than relying on its name or headline gold-equivalent production.

That work can uncover silver assets within diversified businesses that offer stronger balance sheets, broader portfolios and, in some cases, more attractive economics than a narrowly focused mine operator.

Silver is still volatile

Investors who piled into silver when enthusiasm was at its peak earlier this year are now hurting. That is often the result of buying a volatile asset near record prices, when expectations are through the roof and it feels as though the rally can only continue. Just a handful of months ago, silver had both elevated prices and elevated expectations. Today, it has neither.

Make no mistake: Silver remains volatile, and I would hardly advise anyone to go "all in." Mining and royalty stocks also introduce company-specific risks that do not exist when owning the metal directly. But for investors possessing the right combination of patience and risk tolerance, a thoughtful allocation to silver-related equities after the recent pullback looks considerably more attractive than it did amid the excitement that preceded it.

In commodity investing, some of the best opportunities emerge only after the shine has worn off.

This commentary is for informational purposes only and is not investment advice or a recommendation. Any securities identified do not represent all securities purchased, sold, or recommended, and readers should not assume that investments in these securities were or will be profitable. Views and examples are subject to change and are not investment recommendations.

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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.