Let's be honest… the job market is awful right now. The Bureau of Labor Statistics recently revised the July and August job reports, lowering previous estimates by 60,000 jobs.

This means that if you're looking for work, you might have to get creative with your job search. One of the most effective ways to earn extra cash is through side gigs. And the answer to your next quest could be sitting in your garage or driveway.

Below, I'll walk through key factors to weigh before starting a car-based side gig, along with several smart ways to put your car to work.

A few things to consider before choosing a side hustle

Before picking a path, look under the hood of your expected expenses. Fuel costs top the list: Unless you drive a hybrid or an EV, rising gas prices can quickly eat into your profits. But that's only one consideration:

Maintenance

Next, consider wear and tear. Car repairs are not cheap, and oil changes can be heartburn-inducing. How much should you budget? NerdWallet found that drivers spend 11.7 cents per mile on vehicle repairs.

The more miles you put on your car, the sooner you'll need new tires, brake replacements and other maintenance, all of which can eat into your earnings. Costs also vary by vehicle type. Electric vehicles don't require oil changes, but their weight and instant torque can contribute to faster tire wear. Hybrids still require engine maintenance, although regenerative braking can help extend brake life.

Taxes

Income from a side hustle is generally taxable, even if you earn less than $400. If your net self-employment earnings reach $400 or more, you'll generally also owe self-employment tax, which is 15.3% for Social Security and Medicare.

You may be able to reduce your taxable income by deducting eligible business mileage. For July through December 2026, the IRS allows a deduction of 76 cents per business mile, up from 72.5 cents during the first half of the year. An app like MileIQ can help you track your business trips and maintain records for tax purposes.

Insurance

Lastly, consider how using your car for a side hustle could affect your auto insurance. Driving more or using your vehicle for business purposes could increase your premiums or require additional coverage.

Before getting started, contact your insurance provider to find out whether your existing policy covers your planned activities. Depending on the side hustle, you may need a rideshare endorsement, business-use coverage or a commercial auto insurance policy.

Failing to disclose business use could leave you without coverage if you're involved in an accident while working.

If you haven't compared auto insurance rates in a while, use the Bankrate tool below to explore your options:

Doing your homework ahead of time can help you steer clear of any surprise expenses.

Smart car side hustles with minimal wear and tear

If your goal is to boost your income without running your vehicle into the ground, consider these high-efficiency alternatives to traditional rideshare or food delivery apps:

• Peer-to-peer car sharing: Platforms like Turo or Getaround let you rent out your car to other drivers. The best part? You can set custom mileage limits to reduce wear and tear.
• Vehicle advertising & wrapping: Services like Wrapify or Carvertise pay you for commuting with commercial decals applied to your car.
• Pet taxi & transport services: Helping pet owners transport animals to grooming appointments, vet visits or daycare often commands higher rates per trip than standard rideshare passengers.
• Localized hyper-local errands: Focusing on grocery, catering or localized neighborhood courier services within a tight radius can minimize fuel consumption and wear.
• Your car goes Hollywood: If you live in a larger city, many talent agencies have casting calls for vehicles in movies, TV shows and ads. While having a luxury or antique car helps, I've seen ads for regular sedans and SUVs too.
• Become a personalized driver: I know someone who drives people to and from the airport, and that side hustle became his full-time job.

This list notably omits standard rideshare services like Uber or Lyft. High-mileage driving rapidly multiplies your expenses for gas, tolls, oil changes and ongoing maintenance.

And those costs add up. AAA's Your Driving Costs study estimates that owning and operating a new vehicle costs an average of $12,863 annually, or about $1,072 per month, when driven 15,000 miles annually over five years. That includes depreciation, financing, fuel, insurance, maintenance and fees.

Unless you are primarily looking for an opportunity to get out of the house and socialize during retirement, full-time rideshare driving rarely delivers the best net return on your investment.

Ultimately, using your car as a side hustle can be an easy way to earn more income. However, your success requires careful planning.

By choosing side hustles that reduce wear and tear, such as car sharing, vehicle advertising or local deliveries, you can keep your side hustle profitable without destroying your car.

Related content

• The 7 Best-Paying Side Gigs For Retirees
• How Does Car Insurance Work for Ride-Sharing Drivers?
• Before You Dive Into a Side Gig, Consider These Issues

Have you ever wondered whether job-hopping is a good strategy for career advancement? Or what it does to your personal relationships?

There is a psychological connection between chronic job-hopping and serial relationship departures when driven by a deeply entrenched dissatisfaction personality, as you will see in a moment.

But first, in August, The Wall Street Journal published an article (paywall) that portrayed job-hopping as generally beneficial to the employee. It led to my office getting a number of emails and phone calls from readers — business owners and parents of job-hoppers — with very different opinions.

While this column has been critical of "helicopter" parents and those who enable their children's poor behavior that often plays havoc with their adult lives, the WSJ article prompted several parents of job-hoppers to ask me if I knew of "anything out there" that their kids could read that might help persuade them to knock it off.

What matters to employers

A recurrent theme common among the parents I talked with could be summed up like this: Old-fashioned values of stability and loyalty still matter to employers and are key to getting ahead on the job. But how do you get that through the thick skulls of young adults who merely see a few more dollars in a paycheck from changing employers every year or two, while chasing emotional fulfillment?

Instead of leading to advancement, constant employment changes can create a risk of falling behind.

And to answer the question, "Is there something out there that could influence job-hoppers to reconsider their view of employment?" — there is indeed. It's a new book, The Insider Advantage: Moving Up, Finding Success, and Building a Career That Lasts, by Wharton professor Matthew Bidwell.

I was sent an advance copy of his book over the summer, and I had the most interesting Zoom interview with Bidwell, a business professor who has put the dots together, leading to a simple and oh-so-valuable conclusion: "The real key to career growth is often staying exactly where you are."

A counterargument on job-hopping

Bidwell challenges the notion that frequent job-hopping is the fastest path to professional growth and higher compensation by showing that "insiders — employees who intentionally build their careers within a single organization — consistently develop a strong competitive edge over external candidates."

He notes that this advantage lies in the value of firm-specific skills, internal relationships and institutional knowledge that takes time to acquire.

Studies show that companies pay external hires 18% to 20% more than internally promoted staff for the same roles, yet these expensive outsiders score significantly lower on performance evaluations during their first two years. They lack an understanding of the existing workplace culture and operational mechanisms, requiring over two years to come up to speed while facing higher rates of voluntary and involuntary departures.

The Insider Advantage proves, through Bidwell's research, that staying put often accelerates upward mobility into positions of true leadership and influence.

"While moving to a new firm can provide an immediate salary bump," he points out, "long-term tenure lets a worker establish trust and climb the organizational ladder more easily and with greater job security."

Bidwell recommends that workers take advantage of internal mobility first and strategically time any outside jumps only once a clear structural ceiling is reached.

Red flags from the real world

I asked a friend of this column to share his opinion about and experience with job-hoppers.

Dr. David D. Schein is an attorney and full professor at the Cameron School of Business at the University of St. Thomas in Houston. He is also a published author and webcaster, with a focus on business, employment, ethics and human resources. He has a very dim view of the benefits of job-hopping.

"In my years as an employment attorney/HR consultant," he says, "I've never heard that job-hopping was a way to manage your career. Bluntly, in evaluating résumés for job hunters, (if an applicant has) a history of being in a position for less than three years, (that tends) to be a red flag.

"When they get to their 40s and 50s, that is a killer (because that's) when others are looking to move into C-suites. That said, employees who face a toxic workplace or other problems should leave ASAP."

On a relationship level

Frequent job-hopping correlates with a higher risk of divorce, according to sociological and economic data. Research indicates that high job turnover and employment instability are closely tied to reduced marital stability.

I asked another friend of this column, psychology professor Dr. Luis Vega of California State University in Bakersfield, to describe the impact it often has on personal relationships.

"Myriad reasons can explain job (or relationship) hopping," he says, "from impulsivity at not missing the next best option, to ambition, to lack of commitment — some of which may involve personality traits unique to the individual.

"For most people, the appeal of job-hopping is the belief that the next opportunity will bring monetary gain and prestige or a renewed sense of happiness. This also is true of relationship-hopping.

"Unfortunately, we are terrible at predicting happiness, what is called affective forecasting. Once the novelty wears off, happiness plateaus, and again we seek the next best thing, a repeat pattern."

He added that, instead of trying to forecast happiness — comparing to the past/future — it works best to focus on comparison of what is possible.

"Notwithstanding barriers that may require change, rather than replacing a job or relationship, it is best to rebuild on existing foundations, where comparisons to the possibilities are easier, and predictability is more assured."

So, if you are thinking of job-hopping, this might be the perfect time to read The Tale of Peter Rabbit by Beatrix Potter. He finally hopped home to his family.

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.

Related Content

• Want to Advance on the Job? Showing Some Courtesy and Appreciation Could Help
• Respected But Never Selected: The Real Reason You're Not Being Promoted at Work (and 5 Tips to Change That)
• Four Easy Ways to Get Yourself Fired
• Yes, You Can Discuss Your Salary With Your Co-Workers
• How to Ask for a Pay Raise in 5 Easy Steps

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.

Many parents and grandparents set up college funds for their children or grandkids. Given the cost of higher education today, starting a college fund early could help ensure they can earn a degree without the burden of overwhelming student loan debt.

But given today’s sluggish entry-level job market, funding a college education might no longer be enough to help your kids or grandkids be financially stable in young adulthood. In addition to education, you might want to create a "launch fund" — money your heirs can use to supplement their post-college paychecks or reserve for a down payment on a home.

Here’s how a couple of experts suggest approaching your launch fund, and how to balance it with your own financial needs.

Your financial security must come first

It’s noble to want to set your kids or grandchildren up for financial success. But Tyler End, CFP, CEO and co-founder of Retirable, says it’s important to prioritize your own financial needs and only give what you can truly afford.

"There can be a strong emotional pull to be looked at as the provider, but it is important to pay yourself first," he says. "There are no loans for retirement income like there are with college. It doesn’t help to stretch yourself and ultimately become a worry for your heirs."

Beth Stenz, CFP and financial adviser at Edward Jones, agrees.

"I would start with one important rule — secure your own retirement before funding the next generation," she says. "A young adult has decades of earning potential ahead of them."

Before earmarking significant assets for younger heirs, Stenz says, make sure your retirement savings are sufficient or on track. Also make sure you have a solid emergency fund and a plan for what she calls "potentially significant health care or long-term care costs."

Decide how much flexibility you want

Accounts like 529 plans offer tax benefits, but they’re meant for education expenses. If you end up with excess funds, you have options, but avoiding tax penalties requires strategic planning.

If you’re going to set up a launch fund, Stenz says, you might want to use different "buckets" or accounts that address different goals.

"A launch fund is ultimately about flexibility," she says. "The money may be used to supplement income during a difficult job market, fund additional education or training, help with a relocation opportunity, support the early stages of a business venture, or assist with other important milestones in young adulthood."

To that end, Stenz recommends thinking about how much money you want to earmark for education vs other young-adult expenses. You’ll also need to decide how much control of the money you want to retain and for how long.

Account options to look at

Once you’ve narrowed down your specific goals, Stenz says, you can look at different account options.

Taxable brokerage accounts

"A grandparent-owned taxable brokerage account can be particularly attractive for a launch fund because of its flexibility," Stenz says. "The grandparent retains ownership and control, there are no education-only spending requirements, and the money can ultimately be used where it is most valuable."

If you’re going to use a taxable account, your investment allocation should reflect when you might need the money, Stenz says.

"A fund for a 2-year-old can generally accept substantially more market volatility than money intended for an 18-year-old," she explains.

529 plans

Stenz says a 529 plan is still an excellent option when creating a launch fund.

"Earnings receive favorable federal tax treatment when distributions are used for qualified expenses, and a grandparent can establish the account with the grandchild as beneficiary. I particularly like that the account owner retains control rather than simply handing the assets to the child," she says.

End says that funding college and young adulthood can be a tricky balancing act.

"The cost of education can vary greatly or be non-existent depending on the path taken," he says. "The best course of action is to decide what is most aligned with your values and give the gift that will make the biggest impact. For example, if education is important, prioritize making that accessible."

Thanks to recent rule changes, 529 plans allow the beneficiary to roll over up to $35,000 into a Roth IRA over their lifetime. That gives you the option to help a child or grandchild’s college education, save for graduate school and start a retirement nest egg if they don’t need all the money while earning degrees.

A number of parents and grandparents have "superfunded" 529 plans to support their heirs and get a nice tax break. As a result, some young adults have substantial 529 accounts that, even after a $35,000 rollover, would still leave them with more than they could spend on education. A Senate proposal would allow unlimited Roth IRA rollovers from unused 529 funds, but its fate is uncertain.

Custodial accounts

Custodial accounts are similar to brokerage accounts, but with a brokerage account, you retain control perpetually. With a custodial account, ownership eventually transfers to a child or grandchild at a certain age.

"Typically, you structure them under Uniform Transfers to Minors Act or Uniform Gifts to Minors Act accounts where the ownership transfers at a set age, giving the beneficiary full control of the funds," End explains.

If you go this route, keep in mind that because a custodial account is owned by your child or grandchild, it could affect their ability to qualify for college financial aid. If you’re planning to fund their education entirely, this might not be an issue.

Trump Accounts

Trump Accounts, says Stenz, add another potential tool to the mix. You can contribute up to $5,000 per year, per child, to one of these accounts, and the money grows tax-deferred. Funds are locked until the beneficiary turns 18, when the account converts to a traditional IRA.

A Trump Account won’t help your child or grandchild cover the rent as a young adult or buy a new car. But it could give them a vital jumpstart in building retirement savings.

Share your plans so no one’s in the dark

Whether you’re saving to help a child or grandchild tackle young adulthood, End says it’s important to share your thoughts and get input from the loved ones you’re trying to help.

"Don’t hesitate to open communication with your family," he says. "You might have an idea of how to make the biggest impact, but opening the dialogue might help you learn what will make the biggest difference."

You might, for example, be inclined to prioritize 529 plan contributions. But if your teenage grandchild already knows they don’t want to go to college, your money might be better off in another account. Having open conversations could help you achieve your ultimate goal of making life easier for a child or grandchild you care deeply about.

Read More

• Use the 529 'Grandparent Loophole' to Maximize College Savings
• How to Help Your Adult Kids Without Hurting Your Retirement
• 'Subsidized Adulting': Can You Afford to Help Your Children Financially?
• We Retired at 70 With $4.3 Million. My Wife Won't Spend 'Our Grandkids' Inheritance,' but I Want to Travel.
• I Want to Help Pay for My Grandkids' College. Should I Make a Lump-Sum 529 Plan Contribution or Spread Funds Out Through the Years?

A proposed bill could be a game changer for families with well-funded 529 plans. Sens. Ted Cruz, R-Texas, and Lisa Blunt Rochester, D-Del., are calling for an end to a current law that places a $35,000 lifetime cap on rollovers from 529 education savings plans to Roth IRAs.

Both sponsors of the bipartisan bill, dubbed the 529 Retirement Enhancement Act of 2026, say it will give parents and 529 account owners more flexibility to save and invest in a child’s future.

If passed, the bill would further reduce the uncertainty about what happens to unspent money in 529 plans, adds Paul Stanley, a wealth adviser at Arca.

"It would be a positive development," says Stanley. "One of the biggest impediments to people saving money in a 529 was the risk that the money was going to just go to waste (and be subject to taxes and penalties) if the kid didn't go to college."

While 529s are not so-called "use it or lose it" plans, if you withdraw savings for nonqualified educational purposes, the earnings portion is taxed as ordinary income plus a 10% federal penalty. Account holders, though, can retain the funds for future qualifying educational expenses or change the beneficiary to an eligible family member, such as a sibling.

However, having the ability to roll over more 529 dollars into a Roth IRA, a retirement fund that offers tax-free withdrawals, enables parents to avoid taxes and penalties to access unspent 529 savings and gives their child a jumpstart on retirement savings.

The SECURE Act 2.0, passed by Congress at the end of 2022, allows individuals to roll over $35,000 from a 529 plan into a Roth IRA. Aside from eliminating the $35,000 lifetime cap on unused funds, the proposed legislation keeps all other requirements from the 2022 law, which allows excess 529 assets to be transferred into a Roth IRA over time rather than leaving the assets stranded in 529 accounts.

"The initial SECURE Act was a really, really great idea," explains Ernie Wingard, a financial adviser at Capital Choice Financial Group. "This proposal (if passed) will make it even better."

How the new bill could boost financial flexibility

When introducing the bill, Cruz said the existing law "penalizes" families who build up savings in a 529 plan but don't use all the money because their child got a scholarship, went to a less expensive school, or chose not to attend college.

The new bill, adds Blunt Rochester, gives 529 savers other uses for the money if education plans change.

"Families should be able to preserve financial flexibility regardless of what their child's education decisions are years down the road," says Blunt Rochester.

529s are a popular educational savings tool. Funded with after-tax dollars, the money in these savings accounts grows tax-deferred. While there's no federal upfront tax deduction for contributions, some states offer deductions for in-state 529 plans, according to Fidelity Investments.

Increasingly, the dollar amounts that pile up in 529s can reach sizable numbers. Why? There's no annual federal contribution limit for 529 plans, although each state's plan sets a maximum total balance per beneficiary. For gift-tax purposes in 2026, contributions of up to $19,000 per person ($38,000 for a married couple) per 529 beneficiary qualify for the annual exclusion. What's more, in 2026 a 529 contributor can front-load 529 deposits, giving five years of annual gifts in a single year, or $95,000 per person or $190,000 for a married couple.

These huge balances can potentially result in unused dollars. The downside of using leftover 529 dollars for nonqualified educational expenses is that they are subject to income tax and a 10% federal tax penalty on any earnings associated with the distribution, according to Fidelity.

"That's where a transfer to a Roth IRA could make sense," according to a Fidelity blog post.

Four things to know about 529 to Roth IRA rollovers

Consider a few things before transferring unused 529 dollars to a Roth IRA.

1. The 529 plan in the beneficiary's name must have been open for at least 15 years prior to the rollover. The new rollover IRA must also be in the beneficiary's name.

2. The amount rolled over in any given tax year must not exceed the Roth IRA annual contribution limit applicable to the beneficiary. The Roth contribution limit for 2026 is $7,500 for those under 50. Because transfers are capped annually, moving a large 529 balance into a Roth IRA can take many years — meaning families must start the process early while the child is still working and earning income.

3. The transfer amount must come from contributions to and earnings from the 529 account at least five years prior to the transfer date.

4. The beneficiary must have earned income that equals or exceeds the amount rolled over to a Roth IRA in any given year.

Turning leftover college funds into a multimillion-dollar nest egg

Passing the bill would likely boost 529 savings plans, as parents would no longer have to worry about the downside of this savings product if their kid doesn't go to college. "It gives the 529 more power," says Wingard.

Extending the amount of time 529 savings can stay tax-deferred can add up to huge dollars for beneficiaries through compounding. Under current law, Wingard notes that a 22-year-old who rolls over the maximum $35,000 and earns a 9% annual return can watch that money double every eight years, turning it into $1.12 million by age 62.

"That’s why I think this bill is huge," says Wingard.

But eliminating the lifetime cap takes that growth potential to a whole new level, as shown in the table below.

Under the proposed bill, if that same 22-year-old has $75,000 in excess 529 plan funds, they could roll over the entire amount over 10 years. By age 62, those tax-free contributions could compound into an estimated $2.1 million nest egg.

"Financial flexibility is incredibly important," says Stanley.

Currently, families concerned about penalties for non-educational distributions from 529s are reluctant to put all college savings in a single 529 bucket.

In contrast, the new bill "allows planners to look at planning purely from the perspective of saving in the best tax-preferred way we can," says Stanley.

Will the bill pass?

Financial advisers are split on whether Congress will pass the bill. Stanley thinks the odds are low, citing high U.S. deficits and lost tax revenue. But Wingard thinks the odds are higher, as both parties would benefit from making it easier for families to save for their children's futures.

The bottom line: If the child goes to college, the money grows tax-deferred under the proposed changes. And if the child takes another route in life, the dollars keep growing tax-deferred and become a retirement nest egg.

"That’s going to give your kid a leg up in retirement," says Stanley.

Read More

• 529 Plans and College Savings: 4 Urgent Questions
• Best 529 Plans of 2026
• Grandparents' Guide to 529 Plans for College and Private School
• Roth IRA vs 529 Plan for College Savings

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

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

Polish your application

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

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

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

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

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

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

Leverage your network

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

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

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

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

Ace the interview

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

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

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

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

Related Content

• Can You Afford to Live on One Income? 7 Things to Do Before a Parent Quits
• Stop Evaluating Job Offers on Salary Alone: Use This Checklist to Compare the Full Benefits Package
• How to Land a Job After 50: 7 Smart Moves That Actually Work

Apparently, artificial intelligence is going to take our jobs.

All of them.

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

I'm not buying it.

We've seen this movie before

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

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

Now it is AI's turn.

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

So, should we start cleaning out our desks?

Not so fast

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

So maybe we're asking the wrong question.

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

That is where this gets interesting.

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

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

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

Not yet. And maybe that's the point.

The future may not belong to AI

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

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

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

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

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

What could AI do?

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

Productivity can create jobs, too

We tend to think about AI productivity backward.

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

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

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

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

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

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

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

Don't compete with AI — learn to manage it

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

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

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

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

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

Five ways to make yourself and your kids harder to replace

1. Stop hiding from AI.

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

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

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

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

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

That's where your future job may be hiding.

3. Double down on being human.

AI has information. You have judgment.

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

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

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

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

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

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

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

This is the part nobody wants to talk about.

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

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

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

Don't compete with the machine

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

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

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

Great.

Give it the 30%.

Then become indispensable at the other 70%.

Related Content

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

2. Stress-test your retirement plan now

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

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

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

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

3. Stay connected

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

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

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

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

Related Content

• My Wife Was Laid Off at Age 64: Here Are 5 Questions We're Asking
• Facing a Potential Job Loss? Here's How to Prepare
• Don't Let Health Care Costs Wreck Your Retirement: Here's How
• An Expert Guide to Calculating How Much Money You Really Need in Retirement
• I'm a Financial Adviser: This Is What You're Really Losing if You Cut Back on Your 401(k) Contributions

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

If you thought of your client's career as an investment, what would it be? Would it be safe, like a bond? Or risky, like a stock?

Conventional wisdom says a person's career is more like a bond. The rationale is simple: Most people receive a relatively stable paycheck, so their career income has low volatility.

From there, the traditional advice follows that younger people can afford to take more risk in their investment portfolios and then gradually reduce their equity exposure as they approach retirement.

The logic sounds reasonable as a rule of thumb. The problem is that it's disconnected from how careers actually work. For starters, volatility and risk are not the same thing.

What can go wrong with a career?

Think about some of the risks embedded in human capital:

• Job loss. Career income is illiquid. You can sell a bond whenever you want, but you have to work to get paid. Even a temporary disruption to income can create a cash crunch.
• Disability. This is an obvious risk for certain professions, such as professional athletes, but an unexpected health event can leave anyone temporarily or permanently unable to work.
• Death. For someone with dependents, this raises a very practical question: What happens to my spouse or children if my income disappears?
• Displacement. This risk is particularly relevant in the age of AI. It's anyone's best guess which jobs and industries will be disrupted over the next decade.
• Professional liability. Doctors, lawyers, accountants, executives and others may have substantial career risk tied to litigation or professional mistakes.
• Skill. Career success isn't guaranteed. You may be a CEO spending as though you have another 10 years of high income ahead of you, but a few bad decisions can quickly bring humility to those expectations.
• Volatility. And yes, volatility matters too. Income can fluctuate considerably for people who rely on bonuses, commissions, equity compensation or other forms of variable pay.

Are all these risks important for every client? No, every career is different, and that's a key point.

Looking only at the volatility of somebody's paycheck misses the bigger picture. Human capital isn't a "safe" income stream that we can simply drop into a Monte Carlo simulation. It is a major source of wealth with its own liquidity, concentration, personal and economic risks.

The good news: Many of these risks are manageable

Many of these problems have solutions. A reserve fund can cover expenses during a job loss, buying someone time to find the right next position instead of taking the first available paycheck. Insurance can address disability, death and professional liability risks.

The investment portfolio can also play a role. If a client works in technology and much of their future wealth already depends on the technology sector, maybe their portfolio should have less exposure to tech stocks.

The portfolio can help diversify risks that already exist elsewhere in the client's financial structure.

Of course, not every career risk can be neatly hedged. If AI displaces your job, the solution may involve retraining, changing industries or reducing spending for a period.

Professional liability insurance may cover a malpractice settlement, but it doesn't find you another job. Disability insurance can replace some income, but it generally can't re-create the full economic value of a career.

Risk management doesn't mean eliminating uncertainty. It means identifying the things that could materially affect the client and putting practical protections in place where you can.

So what type of asset is human capital?

In my view, human capital looks much more like a private business than a bond.

Start with the opportunity. For most people, their career is one of the most important engines for wealth creation. Outside of the ultra-wealthy (and even many of those families originally created their wealth through somebody's career or business), human capital is often responsible for producing the majority of lifetime wealth.

Then consider the risks. Like a private business, human capital is:

• Illiquid. You have to work to realize its value. You can't sell 20% of your career tomorrow because you need cash.
• Concentrated. Your eggs are largely in one basket. An injury can end an athlete's career just as a professional mistake can materially impair the career of a doctor, lawyer or executive.
• Non-tradeable. You can't exchange careers with somebody else. If your profession becomes obsolete and you need to retrain, you may be starting over.
• Uncertain. You own both the upside and downside of your future earnings. The result will depend on some combination of skill, effort and luck.

Once you start thinking about human capital this way, the planning implications become more interesting. Instead of simply saying, "You're young, so you can own more stocks," an adviser can ask more useful questions:

• How resilient is this person's career?
• How accessible is their wealth?
• What happens if their income disappears?
• Is their investment portfolio doubling down on risks they already have through their job?
• What protections would allow them to take career or investment risk more confidently?

Those questions get us much closer to real risk management.

Human capital can also offset bad luck

Human capital isn't just something we need to protect. It can be an important risk management tool in itself.

Imagine someone is about to retire and the stock market suddenly falls 30%. If they're already retired, their options may be limited. They may need to cut spending or sell investments in a down market.

Someone who is still working has another lever available: Their career. They could delay retirement for a few years. They might work additional hours, pursue a higher-paying role or temporarily trade some work-life balance for additional income.

None of those choices is necessarily desirable, but having the option is valuable.

This flexibility can offset bad luck elsewhere in the financial structure, and that has implications for the portfolio. Someone with significant career flexibility may reasonably be able to tolerate more investment risk because they have another resource available if markets disappoint.

The opposite may be true for retirees, or even for younger individuals with fewer marketable skills.

Of course, the right approach depends on how human capital relates to the broader financial picture and interacts with an individual's unique risks.

Bringing human capital into the total wealth picture

Ultimately, I don't think advisers should treat human capital as a safe bond or simply as another line item in a planning projection.

It is a unique asset that creates wealth and carries risks. It can be protected with reserves, insurance and diversification. And, because careers give people the ability to adapt their future income, human capital can sometimes help absorb bad outcomes elsewhere.

That's why it belongs in the same conversation as the investment portfolio, private assets, real estate, liabilities, insurance and other components of a client's total wealth.

Advisers are in a unique position to see all those pieces together. When you understand the client's career as part of that broader financial structure, you can move beyond simplistic rules of thumb and start asking a more useful question:

What can we do to help the client navigate their key risks and maximize their wealth potential?

Related Content

• The Bear Market Protocol: 3 Strategies to Consider in a Down Market
• Why Company Stock May Be Riskier Than Employees Realize
• Taming Risk: Offensive vs Defensive Investing Strategies
• The Retirement Mindset Shift: Deciding When to Ease Off Risk
• Starting to Advise Ultra-Rich Clients? Don't Rebuild Your Firm, Just Rethink 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.

Think back for a moment to when you were a little boy or girl, out shopping with Grandma, and you saw a toy that you wanted. But she said, in a sweet, loving tone, "Honey, if wishes were horses, then beggars would ride."

Then she explained what that meant: "Wishing for things does not make them happen."

I am modifying that saying slightly as a way of leading into today's story: "Assuming things that are not yet concrete, not yet real, and relying on those assumptions can be a one-way ticket into a nightmare that you have created for yourself."

"Dr. Mark" is living that nightmare today, desperately reaching out to anyone who will listen, seemingly unaware that he burned all helpful bridges years ago.

The letter

In early September, emails with a letter attachment were received by a number of civil attorneys in a midsize West Coast city with the subject line: Possible Employment Discrimination/Withdrawal of Employment after Credentialing Approval.

In summary, the letter stated that the sender, Dr. Mark, was seeking legal advice "regarding a situation involving a medical position for possible unlawful discrimination or other wrongful conduct."

He wrote, "I was approached by a locum tenens company and interviewed with the medical director, who indicated he would be happy to have me join the clinic. The credentialing process led to a confirmation letter that the hiring committee had approved my status as a participating provider." (A locum tenens company in healthcare oversees providers who temporarily fill in for other healthcare professionals.)

However, communications from the company did not specifically state that he was being offered a job. And this is where Dr. Mark — who, at over 70 years of age, has worked for a variety of medical clinics — did something that no lawyer anywhere would have recommended.

"I relied on the expectation that I would be able to proceed with the position," he wrote. "Because of my understanding of restrictions concerning outside employment, I resigned from my existing position."

One week later, he said, the clinic sent him this note: "Leadership has pushed back, and we cannot move forward with your employment." No specific reason was given.

"While I have no proof," he continued, "I am concerned that the decision may have involved age discrimination, ethnicity discrimination or another reason, and I would like an attorney to investigate this." (For the record, Dr. Mark’s ethnicity is not part of a protected class.)

He added, "I resigned from my existing employment in reliance on this opportunity. My former employer will not take me back. Does my reliance create any potential claims for damages?"

An opinion from a labor and employment law attorney

Southern California labor and employment attorney — and a longtime friend of this column — Jay Rosenlieb provided this analysis: "Until you've got a job offer signed by the employer, and you've also signed it and sent it back, there is no deal.

"The offer can still be withdrawn at that point, with no liability to the prospective employer if the employer has done what we recommend to all of our clients."

Rosenlieb went on to describe what an employer should state in writing, that you are being offered a position:

• At a specific rate
• At a specific location
• With a specific start date

Additionally, the employer should include that your employment, where appropriate, is subject to:

• Passing a physical
• Passing a drug screen
• Passing a credit check
• Passing a background search, which includes a criminal background check

Rosenlieb added this warning: "Several states, in an effort to prevent discrimination against people with criminal records, have passed Fair Chance Acts. Employers need to be aware of how these laws impact criminal background checks."

Until you have a job offer in writing, do not quit your job

Rosenlieb added, "Dennis, in your recent story about a woman who wanted to put magnetic signs on her car, assuming the manufacturer and dealer were committing consumer fraud, you explained perfectly the danger of assuming facts that had not been proven.

"It is the same thing here with Dr. Mark. He has blended pieces of evidence that, in his mind, equate to having been offered a job, and relying on that logic, he did the worst thing possible by quitting his present employment."

Rosenlieb pointed out, "Now he wants to blame everyone, seeing himself as a victim. That is not going to fly."

Why would the locum tenens group suddenly just stop the process?

Dr. Mark apparently has a history of burning bridges and, to put it politely, not knowing when to remain silent. I learned that when he was at a teaching hospital, his residents loved and stood up for him when he was faced with being fired.

I met with several of them, who were in tears at the thought of losing this brilliant, gifted teacher. However, the many nurses he had embarrassed and yelled at also were in tears, but of a very different sort.

Dr. Mark never learned to listen when someone tried to talk to him about this, and he would never apologize.

I have no way of knowing what the clinic's background investigation turned up, if anything, but this issue made me feel sad for Dr. Mark.

I emailed him, "What a pity, someone with your level of education, a brilliant physician and teacher adored by your residents, and yet, one problem after another, always the fault of someone else.

"There is a common denominator here, and it has nothing to do with discrimination. Rather, blindness and judgment. Take a good, long look in the mirror."

He replied, "I looked at the mirror, and an old ugly face stared back at me."

The first moral of the story is something that Grandma might have also said: "Don't count your chickens before they hatch."

The second moral of the story: Be kind to others, especially on the job, and think long and hard when you're finding that it's always someone else's fault when something goes awry. It might not be them at all.

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.

Related Content

• Are You a Doormat at Work? The Hidden Cost of Excessive People-Pleasing
• How Much Fun Is Too Much Fun When You're in the Office?
• Can a Potential Employee Negotiate Conditions of Criticism?
• How to Spot a Drama Addict at Work (and What to Do About It)
• Six Things Not to Do if You Want to Resolve a Conflict

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.

529 savings accounts are a popular way for grandparents to help pay for education. Contributions to 529 accounts are treated as gifts to the beneficiary, and many states give residents who fund accounts in that state a deduction or credit on state tax returns. Distributions from 529 plans used for college, post-secondary credentialing programs and certain apprenticeship programs are tax-free.

And 529 accounts aren’t just for college. They can also help pay for K-12 education. Tax-free distributions of up to $20,000 per year per beneficiary can be taken from 529 accounts to pay tuition for elementary and secondary school. This amount can now also help cover the costs of materials for curricula and online studying, books, educational tutoring, fees for advanced placement tests or college admission exams, and educational therapies performed by licensed providers to students with disabilities.

The $20,000 annual limit doesn’t apply to 529 distributions used to pay for college, postsecondary credentialing programs or apprenticeship programs. Tax-free 529 payouts cannot be made to cover homeschooling expenses. You should know that not all states treat payouts for K-12 schooling as tax-free for state tax purposes, so be sure to check your state’s tax laws.

Leftover funds

What if the beneficiary decides to skip college? Or money is left in the 529 account after the beneficiary has completed school? You can always withdraw it and use the money for purposes other than education, but you will owe regular income tax and a 10% additional penalty tax on the withdrawn earnings.

There are several tax-saving options for handling unused 529 funds. For instance, under the federal tax laws, some 529 funds can be transferred tax-free to a Roth IRA for the 529 beneficiary in a direct trustee-to-trustee transfer. This relief, enacted under the 2022 SECURE 2.0 Act, is subject to important rules. The 529 account must have been open for at least 15 years, with the same beneficiary. There is a $35,000 lifetime cap on such transfers. 529 contributions made in the prior five years are ineligible for the transfer. And the amount of 529 funds transferred to the beneficiary’s Roth IRA in a year can’t exceed the annual contribution limit for Roth IRAs, which is $7,500 in 2026.

Note that any actual contributions made to any IRA owned by the beneficiary count against this limit. For example, let’s say a 529 account beneficiary contributes $3,000 to his traditional IRA in 2026. Only $4,500 of 529 funds can be transferred to his Roth IRA for 2026.

And if the beneficiary has already maxed out IRA contributions in a year, then no 529 funds can be transferred to a Roth IRA for that year.

There are a few other tax-saving options for dealing with excess 529 funds. You can keep the money in the 529 account in the event the beneficiary later decides to attend graduate school, participate in an apprenticeship program or enroll in a postsecondary credentialing program. Leftover funds can be rolled over from a beneficiary’s account to an ABLE account for a disabled beneficiary or the beneficiary’s disabled siblings.

Alternatively, you can roll over leftover funds to a 529 account set up for another family member, such as a sibling or parent. You can also use up to $10,000 to help pay off the beneficiary’s college debt (this $10,000 is a lifetime limit, not an annual limit).

Have a tax question? Write askkiplinger@futurenet.com.

Joy Taylor, the Kiplinger Tax Letter editor, will reply and, with your permission, choose a few queries for our online “Ask the Editor” feature. For past questions and answers go to www.kiplinger.com/tag/ask-the-editor.

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

Related Content

• Use the 529 'Grandparent Loophole' to Maximize College Savings
• I Want to Help Pay for My Grandkids' College. Should I Make a Lump-Sum 529 Plan Contribution or Spread Funds Out Through the Years?
• Best 529 Plans of 2026
• 529 Funds and a Roth IRA: How to Use One to Jumpstart the Other
• 529 Plans and College Savings: 4 Urgent Questions

Working more than one job is becoming more popular.

According to a Harris Poll, more than half of Gen Zers have a side hustle, compared with 21% of boomers.

Advances in technology have made it easier to earn extra income. Thanks to rideshare and delivery apps such as Uber and DoorDash, you can earn at your own pace.

But data also show more Americans, including those with higher incomes, are struggling to pay their bills.

According to the 2025 Harris Poll done in collaboration with the National Foundation for Credit Counseling, the share of individuals who paid less than the required minimum on their credit cards rose to 13% in August, up from 9% in the spring.

Additional income can improve your situation, eventually leading to financial freedom when good behaviors are developed.

But before committing your evenings and weekends to a side gig, that extra time might be better spent growing your primary career or pursuing another opportunity that better aligns with your future goals.

See if you can optimize your current job

Before you search for another source of income, I encourage you to evaluate your primary job. Can it become a long-term career with opportunities to grow, or does it serve more as a paycheck to maintain? The answer can help determine the right strategy for you.

If your main source of income provides you with opportunities to get promoted, earn more or develop valuable skills, focusing your energy there might have a better long-term payoff, rather than splitting your time between multiple jobs.

However, if you're exploring different career paths, or your current role offers limited opportunities to advance, a side hustle can be a great way to earn more, get additional experience and build new connections.

The decision isn't just about making more, it's also about deciding where your time and energy are likely to have the best payoff long term.

Look for work that works for you

If you find taking on a second job makes financial sense, the next thing to consider is whether it fits your personality and work style.

Some people thrive in a flexible environment where they can juggle multiple projects and commitments at once. Others find they perform best under structure, routine and a clear path forward.

Neither style is better than the other, but knowing which works best for you can help you make a more informed, sustainable decision.

As you're deciding, ask yourself whether you're looking for a temporary way to boost income or whether you want to build toward a long-term career. If you find managing multiple jobs at once energizes you, a side hustle might be a natural fit.

But if the thought of holding down another job makes you feel distracted or overwhelmed, it might be worth focusing your time on growing in the role you already have.

Use your extra earnings wisely

If getting a side hustle is what you decide, the next step is making sure the extra money you earn is working toward your long-term goals. A common mistake that can be easy to make is increasing spending because your income is higher.

It's OK to enjoy some of that money, but don't forget to be intentional about how it's being used.

For many, that might mean starting an emergency fund. Having several months' worth of expenses saved will give you a cushion when the unexpected happens, especially if one source of income changes suddenly.

Once you have three to six months saved, consider putting some of the extra funds toward long-term investments. Consistently saving and investing not only helps your money grow, it can also support future goals, such as saving for a child's education or planning for retirement.

Earning extra income can be a valuable way to increase your income, but that doesn't mean it's the right fit for everyone. Before accepting another job, consider your long-term career goals, evaluate your personality and plan for how the extra money will fit into your broader financial plan.

The goal isn't just about earning more — it's earning an income that moves you closer toward long-term financial security.

Related Content

• 50 Tools and Apps Shaking Up the Retirement Side Hustle Market
• Six Ways to Pay Off High-Interest Debt (and Still Save for the Future)
• The Top 10 Side Gigs For Retirees In 2026
• 7 Online Side Hustles Worth Your Time, Including in 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 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:

Related content

• How Much Should We Save in an Emergency Fund?
• A 5-Part Financial Checklist for Your 30s
• 5 Money Habits Every Young Family Should Have
• 5 Life Insurance Questions to Ask Before Buying a Policy

Creating a will is an important part of estate planning, but it doesn't necessarily determine who receives every asset you own. Retirement accounts, life insurance policies and certain other financial accounts typically pass directly to the beneficiaries named on those accounts, regardless of what your will says.

That can create problems if beneficiary forms are missing or haven't been reviewed in years. The person you named when you first opened a retirement account at work, for example, might no longer be the person you want to inherit today.

Beneficiary designations aren't always part of the estate-planning conversation. A new Morning Consult survey conducted on behalf of Kiplinger for our Trillion Dollar Talk campaign found that just 36% of parents surveyed had designated beneficiaries on retirement accounts or life insurance policies. Another 30% said they had none of the formal estate-planning arrangements included in the survey.

Fortunately, reviewing your beneficiaries is one of the more straightforward estate-planning tasks you can tackle. Here's where to look and when it might be time to make a change.

Know which accounts have beneficiaries

In the Trillion Dollar Talk survey, 17% of adult children said they expected life insurance to make up the greatest share of their inheritance. Retirement accounts were another source of expected inherited wealth.

Here are some accounts and financial products that allow or require you to name a beneficiary:

• 401(k)s and other workplace retirement plans. Money in these accounts generally passes to the beneficiary named on the plan.
• IRAs. Traditional and Roth IRAs also allow you to designate who will inherit the account.
• Life insurance policies. The insurer pays the death benefit to the beneficiary or beneficiaries listed on the policy.
• Annuities. Depending on the contract, an annuity might include a death benefit that passes to a designated beneficiary.
• Transfer-on-death (TOD) and payable-on-death (POD) accounts. These designations can allow assets in certain brokerage and bank accounts to pass directly to a named beneficiary without going through probate. Availability and rules vary by account, financial institution and state.

These accounts are different from assets that might be distributed through your will, trust or other estate-planning arrangements. A beneficiary designation is attached directly to the account, which is why keeping it current is so important.

Rules can also vary depending on the type of account. For example, with many employer-sponsored retirement plans, a spouse is generally required to be the primary beneficiary unless they waive that right. IRAs and life insurance policies typically provide more flexibility when choosing beneficiaries.

Check who is actually listed

Once you've made your list of accounts, check each one individually. Depending on the provider, you might be able to find your beneficiary information by logging in online. Otherwise, contact the plan administrator, insurance company, bank or brokerage firm.

Don't rely on your memory of filling out a beneficiary form years ago. Confirm what the financial institution has on file.

Look at both your primary beneficiary, who is first in line to receive the asset, and any contingent beneficiaries, who might receive it if the primary beneficiary dies before you, can't be located or declines the inheritance.

While you're there, make sure names and other identifying information are accurate and current. You should also look for accounts that don't have a beneficiary listed.

Pay extra attention to accounts you've moved between financial institutions. FINRA recommends double-checking beneficiary information after transferring an account to another firm to make sure the designation still reflects your wishes.

Life changes that should trigger a beneficiary review

Beneficiary designations shouldn't be something you fill out once and forget. Your relationships, finances and estate-planning goals can change significantly over the course of a decade or two.

Some of the biggest reasons to revisit your beneficiaries include:

• Getting married or divorced
• The death of a spouse or another beneficiary
• The birth or adoption of a child or grandchild
• Remarriage or the creation of a blended family
• Estrangement or another major change in a family relationship
• A beneficiary developing a disability or other circumstances that might require specialized planning
• A significant increase or decrease in your wealth
• Major changes to your broader estate plan

Even without a major life event, it's worth reviewing your beneficiary designations periodically. You might make the check part of an annual financial review, along with looking at your insurance coverage, investments and retirement contributions.

Don't assume your will fixes an outdated beneficiary

It's easy to assume that once you update your will, all your assets will follow those instructions. But that's not always how it works.

For accounts with a named beneficiary, such as a 401(k), IRA or life insurance policy, the beneficiary designation on the account generally takes priority over what your will says.

For example, say you named your spouse as the beneficiary of a retirement account years ago. You later divorce, remarry and update your will to leave your assets to your new spouse. But you never update that old retirement account. That outdated beneficiary designation could still create problems.

This is why it's worth reviewing beneficiary forms separately whenever you update your estate plan. If your situation involves divorce, remarriage or other complicated family circumstances, an estate-planning attorney can help everything line up.

Make sure your beneficiary choices fit your broader estate plan

Beneficiary forms might seem like standalone paperwork, but they should work with the rest of your estate plan.

Think about how your retirement accounts, life insurance, real estate and other assets will ultimately be divided. Looking at the full picture can help you spot imbalances, such as one child receiving a large retirement account while another receives significantly less through your will. Reviewing everything together can help ensure your beneficiary choices reflect how you want to provide for the people in your life.

Pay extra attention if you have minor children, a blended family, a trust or a beneficiary with special needs, since these situations might require additional planning. Don't forget contingent beneficiaries as well. Naming a backup helps clarify where an account should go if your primary beneficiary dies before you.

This type of planning also highlights the importance of talking about inheritance before it becomes an urgent issue. The Trillion Dollar Talk survey found that two in five families have never discussed inheritance, and 30% of parents surveyed had none of the formal estate-planning arrangements included in the survey. Even a basic conversation about your plans and where important documents are kept can make things easier for your family later.

Make a beneficiary check part of your financial routine

You don't have to overhaul your entire estate plan in one afternoon. Start with a simple task: Make a list of every retirement account, life insurance policy, annuity and other financial account that might have a beneficiary designation.

Then check the beneficiary listed on each one, including your contingent beneficiaries. Keep a record of any changes you make and when you made them.

Consider repeating the process once a year and after any major family or financial change. It can also be smart to review beneficiary designations whenever you update your will or other estate-planning documents so the different parts of your plan continue to work together.

If you have a more complicated estate, such as one involving trusts, a blended family, minor children or beneficiaries with special needs, consider coordinating your beneficiary review with an estate-planning attorney and your financial professional.

A beneficiary form might seem like a small piece of paperwork. But when it determines where some of your largest assets ultimately go, keeping it current can be just as important as creating the estate plan itself.

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

Related Content

• Life Insurance Beneficiary: What It Is and How It Works
• The Most Tax-Efficient Ways to Leave Investments to Your Children
• An Expert's Guide to the Estate Planning Documents Everyone Needs

Many U.S. workers who receive the green light to "work from anywhere" (WFA) choose to move abroad while continuing to work for their U.S. company.

While the importance of clarifying whether your company truly means "anywhere", or just anywhere within the continental U.S. is important, we'll focus on a different question, which assumes your place of work has approved an international WFA policy: How will your taxes be collected once you begin working abroad?

In a traditional U.S. employment relationship, payroll handles much of this process. Your employer calculates federal and state withholding, deducts Social Security and Medicare taxes and sends the money to the appropriate agencies.

However, without intervention, this system won't update to reflect your new tax reality, even though where you live, where you perform your work and where you owe and pay taxes might change.

Neglecting to make the appropriate updates can cause an ongoing cash-flow problem: You might have too much money withheld in the United States while needing separate funds to pay taxes in your new country. In my experience, I've seen this happen when Americans move to Spain on the Beckham regime.

That said, this problem is manageable when you address it before the first foreign payroll cycle.

Confirm how you will be paid

A good place to start is with your company's HR department. What will your employment structure be after you move?

There are several options, and each has different implications for your withholding, tax optimization and cash flow:

• Remain a W-2 employee of the U.S. company. If you remain on U.S. payroll, your employer might continue withholding U.S. federal income tax, state income tax, Social Security and Medicare from your salary.
• Your employer can transfer you to a foreign subsidiary or employ you through an employer of record. If you move onto local payroll, the foreign employer or employer of record might handle local withholding and social contributions instead.
• You can change your status from employee to independent contractor. If you become a contractor, you'll generally need to calculate and make your own tax payments. You might also be entitled to ask for higher compensation.

Before accepting any arrangement, the onus of responsibility falls squarely on the worker to understand who will be responsible for:

• Running payroll
• Withholding income tax
• Paying Social Security contributions
• Completing local registrations
• Managing tax payments that are not collected through payroll

A statement such as, "We'll keep paying you as usual," doesn't answer these questions. The worker should advocate in their financial interest.

Compare your withholding with your expected tax bill

U.S. income-tax withholding is a prepayment toward your expected federal tax liability. It's not a final calculation of what you owe. Moving abroad introduces considerations around tax credits, the Foreign Earned Income Exclusion (FEIE) and other expat tax provisions and forms with which most U.S. workers are unfamiliar.

Imagine that your U.S. employer continues withholding federal income tax throughout the year. You then receive a foreign tax bill before filing your U.S. return. You might eventually recover excess U.S. withholding through a refund, but you still need enough cash to pay the foreign bill when it's due.

In light of these complexities, we recommend obtaining a tax projection before moving. The projection should estimate:

• Your likely U.S. federal tax liability
• Your likely foreign tax liability
• Any continuing U.S. state liability
• How much your employer is currently withholding
• When foreign payments will be due

While it's conceptually simple to understand the above, obtaining a tax projection might be difficult to organize. It will require a consultation with both a CPA familiar with the unique tax challenges faced by remote workers abroad and a local accountant. In some cases, however, a joint consultation might be obtainable.

Bring specific questions to payroll

Some companies have global-mobility teams that regularly manage international transfers. Others might be handling an overseas remote worker for the first time, particularly if you work for a small company.

Questions to clarify with HR or payroll:

• Will I remain on a U.S. payroll?
• Will federal income tax withholding continue?
• Which state and address will payroll use?
• Will Social Security and Medicare continue to be withheld?
• Can payroll process a revised Form W-4?
• Does the company have a foreign subsidiary?
• Would the company consider using an employer of record?
• Has the company reviewed its obligations in the country where I will work?

A revised Form W-4 might help reduce federal withholding when a tax projection shows that the current amount is too high.

However, payroll might ask for an explanation or supporting documents before making a significant change.

In some cases, the employee might need to provide proof of foreign residence, immigration documents or a letter from a tax professional explaining the expected U.S. treatment. The adjustment is therefore both a tax exercise and a communication exercise.

Understand what a W-4 doesn't change

Federal income tax withholding is separate from Social Security and Medicare taxes.

Changing your Form W-4 can affect the amount withheld for federal income tax purposes. It does not affect Social Security or Medicare deductions.

Is there a way to avoid paying Social Security and Medicare taxes if you move abroad? Yes, sometimes. Totalization agreements can prevent a worker from paying into two Social Security systems on the same earnings, but these agreements exist on a country-by-country basis.

State withholding also requires a separate review. If payroll continues using your former state address, state tax might continue coming out of your paycheck. Moving abroad does not necessarily end state residency, particularly when you retain significant ties to the state.

Moreover, many states do not recognize the FEIE.

To summarize: The payroll question is what state your employer understands you live in. The tax question is whether that state still has a valid claim to tax you. Those answers might not be the same.

Build the payroll plan before the move

A workable international employment arrangement has four connected parts:

• An immigration status that permits the work
• An employment structure that reflects how you'll be paid
• A tax plan based on where you'll live and work
• A payroll system that sends money to the appropriate places

While it can feel like you're becoming a payroll expert throughout this process, the information is important to understand so you know who is responsible for each part of the system (and can troubleshoot accordingly, should an issue arise).

Once those pieces are aligned, the move becomes much easier to manage and more financially sustainable.

Related Content

• Considerations for Americans Who Want to Move to Europe
• Moving Abroad? You Might Need a Cross-Border Financial Adviser
• For a Move Abroad, Choosing a Fiduciary Financial Planner Who Sees Both Sides of the Border Is Critical
• These Are the Key Ingredients for a Successful Move to Europe (Being Super Rich Isn't One of Them)
• Semi-Retiring Abroad: How to Make Your Living Overseas Dream a Reality

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

In all states, the most common complaint filed with state bar associations by clients is that the attorney failed to return phone calls in a timely manner, or not at all.

According to data from the American Bar Association (ABA), a lack of communication and client neglect consistently rank as the most common complaints filed against attorneys nationwide. There is a direct and strong correlation between lawyers who fail to return phone calls, state bar discipline and legal malpractice.

But not only are clients being ghosted, but lawyers often ignore other attorneys, sometimes under circumstances where you might conclude the attorney has a character defect leading to irresponsibility and, at times, is using calculated behavior to play dirty, especially during hotly contested litigation.

Let me share with you concerns I have about "Diane," an attorney whom I helped pass the California Bar Exam last year after she failed it multiple times and who may be headed for trouble.

A troubling trend

Over the years, I have worked with several law graduates — often the children of clients — who failed the bar repeatedly. They lacked good writing skills, a testament to our education system, which decades ago quit requiring weekly essays in many high schools. Once they learned how to analyze a bar exam question and write an answer in a coherent manner, they passed.

Diane was consistent when it came to confirming an appointment or showing up for lunch and a tutoring session. Often, neither texts nor emails would confirm the appointment. The courtesy of not standing me up was a foreign concept in her psyche.

Days later, she would text, "Sorry, I got so busy that I just forgot."

So, she gets sworn in, is hired by a firm and is working in an area of the law I am writing about. I wanted to see if anything had changed. Did becoming a lawyer impact her sense of responsibility and thinking of others, especially colleagues and clients?

So, I texted and emailed her the factual basis of my question and asked for her input.

Now, as a new attorney, getting your name in a major publication is a feather in your cap and a plus for your employer, so anyone with a full deck would jump at the chance, right? Especially if asked by the person who helped them pass the bar!

Well, not Diane.

It's as if she has "I'm Irresponsible" tattooed on her forehead — really no surprise.

Can you imagine how she will deal with clients who depend on her? Pulling those same stunts — like not showing up in court for a hearing — is an engraved invitation to put her bar license at risk.

Top complaints against lawyers

State bars across the country have a massive amount of data on lawyers who have gotten into serious trouble. In an overwhelming number of instances, complaints about a lack of returned phone calls and "failed to communicate with client" led to worse violations of our legal and ethical duties.

One bar investigator, who asked not to be identified, told me, "It took them years of study and hard work to become an attorney, but they are passive-aggressive with clients. Their message is, 'I'll get back to you when and if I want to.'"

He added, "With the enormous amount of lawyer advertising, when phone calls from potential clients are not returned in a timely manner, we have seen instances of the statute of limitations (to file lawsuits) being blown.

"Even when we warn them to knock it off, their irresponsible behavior continues right to the point where they face suspension, or worse."

Failing to return a phone call to a client is one thing, but there is another closely related issue.

The Dalai Lama: 'Be kind whenever possible. It is always possible.'

Passing a state's bar exam and being sworn in as an attorney is a license to become quite wealthy. To me, while you will never find anything in our rules of professional responsibility and legal ethics that requires giving a fraction of your time to someone who phones your office at one of the lowest points in their lives — needing someone who will listen — that act of kindness should be obvious and thought of as obligatory. If not from you, the lawyer, then from a member of your staff.

I receive many calls from people who find one of my columns that relates to their situation, call attorneys, share the specifics with a receptionist and are promised a return call that never comes. Perhaps it is not a matter the firm handles, but at least call them back and say so!

A woman who resides in Houston called our office in August. Her 78-year-old husband died in the hospital two years ago in October, so the statute of limitations on malpractice is running.

As she related his many health conditions, the finding of "natural causes" seemed supported. At such moments with a terminally ill patient, family is distraught, and in their minds, hospital personnel might seem less than kind.

I listened as "Chelsea" told me about their marriage: "He was 35 years older than me when we were married 30 years ago. He was my world, a man of integrity, and they treated him so badly."

I explained that a malpractice case is complicated and usually difficult to prove.

We spoke for about five minutes before I asked her, "How many lawyers have you discussed this with?"

"None," she replied. "I left messages, was promised a return call, but you are the first."

It took only five minutes. Five minutes — the amount of time it would take to have a chat over coffee with a member of your staff or talk with your spouse. That's an invisible amount of time in reality, but too much for all the law firms she reached out to.

"Please keep my number," I said. "And if anything positive comes out of all of this, call me. Your husband was one of the luckiest men on the planet."

"And I was one of the luckiest wives, as well, Mr. Beaver. God bless you for taking the time to talk with me," she said, her tears audible.

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.

Related Content

• Beyond the Bar: Your 5-Step Guide to Discovering Whether a Lawyer Is Shady
• Billed 12 Hours for a Few Seconds of Work: How AI Is Helping Law Firms Overcharge Clients
• Five Things to Notice in Your Lawyer's Bill
• Deadbeat Lawyer Trying to Rip Off Doctor Gets Busted
• Seven Ways to Be an Absolute Jerk as a Lawyer

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 people ask one big question when evaluating a job offer: What's the salary?

While that single number tends to get all the attention, it only tells part of the story. According to the Bureau of Labor Statistics, benefits account for nearly 30% of private-sector employers' total compensation costs on average.

Yet, as a financial professional, I regularly see clients overlook that value, either by underusing their current benefits or comparing job offers based on salary alone.

An extra $10,000 in salary would get your attention. The same amount in benefits should, too.

Here's how to evaluate your full compensation package, whether you're reviewing a new offer or making sure you're getting the most from your current benefits.

1. Calculate the value of your health benefits

Health insurance can be one of the most valuable parts of a compensation package: After all, according to the KFF Employer Health Benefits Survey, insuring a family in the U.S. now costs nearly $27,000 a year.

But the complexities inherent in the U.S. healthcare system can make putting a number on it challenging. To evaluate your benefits, compare the health plans available to you based on the employer contribution, premium, deductible, out-of-pocket maximum and provider network.

A plan that saves you $100 a month in premiums, for example, could still cost more overall if its deductible is $2,000 higher and you expect to use enough care to reach it.

Also review preventive care options, fitness incentives and wellness programs that could add value.

2. Capture the full value of your 401(k)

While the employer match for a 401(k) is maybe the most obvious form of noncash compensation, many fail to maximize its value.

In my practice, annual employer retirement contributions have ranged from about $3,000 to $30,000 — a difference that can become enormous over a career.

Contribute enough to receive the full match, consider automatic annual increases and check for nonelective or profit-sharing contributions.

3. Understand what equity compensation is really worth

Equity compensation, such as stock options and company shares, can create a significant wealth-building opportunity. That doesn't mean you should take the number listed in the offer letter at face value.

Review when the award vests, when taxes may be due and whether you could lose unvested shares or face a deadline to exercise options if you leave the company.

4. Put a dollar value on paid time off

Most people know to ask how many vacation days they will receive. Far fewer calculate what those days are worth.

For an employee earning $100,000, 15 days of paid time off represents almost $6,000 worth of paid time (based on roughly 260 working days per year).

Consider paid holidays, sick leave, parental leave and caregiving leave, as well as what happens to unused time:

• Does it carry over into the next year?
• Is there a cap on how much you can accumulate?
• Will accrued time be paid out if you leave?

5. Review employer-paid life and disability income insurance

Life and disability income insurance are easy to overlook because you might not use them for years, if ever.

For disability income insurance, review the percentage of income replaced, the waiting period before benefits begin and how long payments can continue.

For life insurance, determine whether the employer-provided benefit would be enough for your family's needs or whether you'll need additional coverage.

6. Remember commuter and other tax-advantaged benefits

Some benefits look small but still add up.

Commuter benefits, for example, may allow employees to pay eligible transit or parking expenses with pretax dollars. That is particularly valuable for workers in bustling cities like New York.

Other benefits may include flexible spending accounts (FSAs), health savings accounts (HSAs), tuition reimbursement, student loan assistance and professional development funds.

Crucially, the value of these benefits depends in large part on whether you'll actually use them. A tuition benefit may be worth thousands to one employee and very little to another.

Look at the complete picture

At the end of the day, this is a simple math exercise.

Add up the salary, health benefits, employer retirement contributions, equity compensation, paid leave, insurance and other benefits each position offers. Then consider what those benefits could be worth across the five or more years you might remain with the employer.

A bigger salary is appealing, but there is far more to building a financially secure life than what lands in your checking account every two weeks. A lower-paying job could ultimately provide greater total compensation — if you know how to value its benefits correctly.

While this discussion summarizes, for your convenience, certain information about employee benefit plans, it is not an official explanation or discussion of these programs, and any information provided directly by your employer will prevail.

Related Content

• Don't Let Your Equity Compensation Trip You Up: A Financial Expert's Guide
• Why Company Stock May Be Riskier Than Employees Realize
• Have Equity Compensation? Strategies to Handle Stock Market Volatility
• Worried About an AI Bubble? 5 Ways to Ensure Your Portfolio is Prepared — Whether It Bursts or Not
• 2 Awkward Talks to Have With Your Kids Before They're 18 (Not 'That' One)

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

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

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

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

— Stressed Saver

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

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

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

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

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

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

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

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

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

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

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

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

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

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

2. What happens to excess 529 funds?

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

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

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

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

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

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

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

Codispoti calls this flexibility a game-changer.

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

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

Finally, a bipartisan Senate bill has proposed ending the $35,000 cap on 529-to-Roth rollovers, so stay tuned.

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

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

Codispoti's answer? Possibly.

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

Van Boening has a similar take.

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

4. Does four-year college still make sense?

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

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

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

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

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

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

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

Bonus advice: consider the Roth IRA

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

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

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

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

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

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

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

MORE WEALTH WISE ADVICE ON COLLEGE SAVINGS

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

Read More

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

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

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

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

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

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

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

First, make sure you have hit the federal ceiling

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

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

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

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

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

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

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

Understand what a cosigner really signs up for

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

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

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

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

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

The trade you are actually making

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

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

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

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

Here's a short checklist for before you sign:

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

The bigger picture

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

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

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

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

Related Content

• The Right Way and the Wrong Way to Use a 529 Plan That Doesn't Cover the Full Cost of College
• How to Budget for College Expenses Beyond Tuition
• How Grandparents Can Help with Education Expenses
• The FAFSA Quietly Got Friendlier and Stricter This Year: Will Your Family Win or Lose?
• 529 Plans Beat Trump Accounts for College Savings, But It Makes Sense to Have Both: Here's Why

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.

My parents were born during the Great Depression and understood money down to the penny.

I still have their passbook savings accounts — small booklets filled with handwritten deposits and withdrawals that documented the flow of money through their lives. Every entry is a reminder of a time when financial stewardship was a necessity.

Today's teenagers and young adults live in a very different world. As many prepare to leave for college and manage money on their own, parents are asking important questions: Should they provide a monthly allowance? Encourage a part-time job? Help their children open a credit card?

Many families understandably provide financial support during college — whether for tuition, housing or living expenses. In fact, according to Edelman Financial Engines' What Money Means study, 43% of parents with adult children say they currently provide financial support, including 14% who say they provide a significant amount.

Financial assistance has remained remarkably consistent over the past several years, suggesting this has become a normal part of launching young adults into adulthood.

1. Start with awareness: Help them see how money moves

Most teens and young adults experience money only at the moment of spending. They tap a card, and the story ends there. But financial maturity begins with understanding how money actually flows into, out of and through our lives.

One good way to illustrate the value of money is to encourage them to track their spending — ideally for a month. The point is not to judge their choices — it's to help them see patterns.

If they are earning a paycheck, walk them through it. Show them the difference between gross and net pay, how taxes work and why payroll deductions matter. For students who take on a campus job, reviewing a paycheck can be an eye-opening lesson.

Understanding why take-home pay is less than expected — and learning to budget around it — builds practical financial skills.

Another way to teach financial responsibility is to let young adults pay for certain things themselves. Start small with discretionary purchases — the things they really want — and gradually move to necessities.

Whether support comes through a monthly allowance or helps cover larger expenses, establishing clear expectations helps young adults learn to budget while still benefitting from a parent's guidance. This is not about withdrawing support — it is about giving them the dignity of ownership.

2. Teach credit before they need it

College is often the first time young adults are exposed to credit card offers. Before they apply, help them understand the difference between building credit and accumulating debt. Explain how interest works, why paying the balance in full each month matters and how credit utilization affects a credit score.

It's also important to discuss common credit card mistakes, such as making only the minimum payment, carrying a balance month to month, maxing out available credit, missing payments or treating a credit card as an emergency fund.

These habits can lead to costly interest charges, damage credit scores and make it harder to reach future financial goals.

In fact, nearly 60% of Gen Z credit cardholders say they typically make only the minimum payment on at least one credit card, according to a recent LendingTree report.

The survey also found that many cardholders mistakenly believe carrying a balance helps their credit score and rely on credit cards as a substitute for emergency savings.

Relying on minimum payments can become an expensive habit because interest continues to accrue on the remaining balance, making debt more difficult and costly to pay off over time.

When used responsibly, a credit card can be a valuable financial tool. When used carelessly, it can become an expensive lesson.

3. Help them start saving and investing early

If your teen or young adult has income through a job, helping them open a Roth IRA may be one of the most valuable gifts you can give. Even modest contributions to an individual retirement account can be powerful because time — not investment brilliance — is the most valuable asset a young investor possesses.

The goal is not to teach them how to pick winning stocks. Instead, teach them the importance of regularly saving, broad diversification and patience. Show them how a low-cost index fund allows them to become owners of hundreds or even thousands of companies around the world.

More importantly, help them understand the extraordinary power of compounding over decades. A teenager who invests a few thousand dollars today may find that those early contributions may become some of the most valuable dollars they will ever save.

4. Model the behavior you want them to learn

Young adults learn far more from what they observe than from what they are told. One of the most effective ways to teach healthy money habits is to be open about your own experiences with money, including the lessons you've learned along the way.

Whether it's sharing how you paid off debt, recovered from an overspending habit or learned the importance of saving for emergencies, these real-life examples can make financial concepts feel more relatable and achievable.

According to the What Money Means study, 86% of Americans say their parents or upbringing influenced their relationship with money, including 35% who say the influence was major.

Financial responsibility is not learned in a single conversation. When we help young adults understand money, we give them confidence, independence and a foundation for lifelong financial well-being.

Related Content

• How to Budget for College Expenses Beyond Tuition
• 3 Ages, 3 Money Lessons: A Parent's Guide to Raising Financially Savvy Kids
• Schools Can Teach Kids About Money, But Guess Who They Learn From the Most?
• These Small Money Habits Stick (and Now Is the Perfect Time to Adopt Them)
• My 2 Key Rules for Investing Work Even When the Markets Are in a Tizzy

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

Even retirees who budget carefully can find themselves needing extra cash. A good 49% say their expenses are higher than what they expected, according to Schroders’ 2026 US Retirement Survey. It's not surprising that many retirees are turning to part-time work or other solutions to earn more income.

As Amy Zamikovsky, JD, CFP, and senior wealth adviser at Focus Partners, says, "Extra retirement income allows retirees the ability to more easily absorb financial surprises, which is important while our broader macroeconomic reality still looms."

But earning extra money doesn't have to mean retail work or committing to a job you find boring. (It might not even mean working at all.) We asked financial pros for creative ways retirees are generating more income.

1. Sell your expertise (and your network)

You might have spent many years in the workforce honing skills and learning your industry inside and out. In retirement, you can take advantage of that knowledge in a couple of ways. First, you can consult in your former field on a schedule that works for you. Brandy Barnes Marion, retirement plans education manager at BOK Financial, says you can also take the concept a step further by selling your expertise.

"Expert networks pay retired operators and executives by the hour for short calls with investors and researchers," she says. "Medical schools pay standardized patients. Law firms pay mock jurors. Forty years of knowing how a distribution center actually runs is worth real money to somebody."

Other such jobs include acting as an expert witness, an industry mentor and a peer reviewer or grant reviewer.

Tip: These gigs can be lucrative, and they aren't necessarily time-consuming. You can work them into your schedule around vacations or other plans. Some of these jobs can be done virtually, though they might command a lower hourly rate.

2. Work a seasonal job with fringe benefits

Committing to an ongoing part-time job or gig work might not be optimal in retirement, as it might too closely mimic the work schedule you're trying to move on from. That's why Elias Friedman, CFP and founder and senior wealth adviser at Kadima Wealth, suggests pursuing seasonal work.

"Seasonal jobs at golf courses, museums, theaters or parks can be fun, a great way to make new friends, and stay active," he says. "There are other perks retirees can receive by working at these places, too."

Tip: If you work in a museum or theater, your gig might include free admission or comp tickets for friends and family. You can check sites such as Indeed for listings.

3. Rent out space you don't need

You'll often hear that renting out unoccupied space in your home, such as a spare room, basement or finished garage, is a great way to generate income in retirement. But it also means sharing your living quarters with another person. That's why Friedman suggests a different approach.

"I have seen interesting and creative things to get additional income," he says. "For example, this could include renting a garage, parking space, storage area, spare room or even an RV space."

Tip: Apps such as Neighbor can help you rent out your driveway, shed, garage or other home space, providing you with $1 million insurance coverage and charging a processing fee of about 5%. If you have an EV charger at home, you might also want to bundle it into a parking space rental. However, before you sign up, check your home insurance policy and local regulations to make sure it won't affect your coverage and is allowed in your neighborhood.

4. Turn clutter (yours and your friends') into income

It's pretty common to accumulate a lot of stuff in the course of your lifetime. Ernie Wingard, RFC and adviser at Capital Choice Financial Group, says you can turn unwanted items into a goldmine during retirement.

"The most creative thing I've seen is a retiree who built a resale marketplace for her own friend group," he explains. "She takes pictures, posts them online, and takes a small commission for her efforts. After all is said and done, it brings in another $400 or $500 a month."

Tip: Learn about collectibles that are genuinely valuable and niche areas such as silverware and vintage stereos.

5. Launch a YouTube channel

YouTube might not be the most popular app among retirees, but Wingard insists it offers solid opportunities to make money.

"I've also seen some really creative YouTubers in the retirement space," he says. "Lots of shared experiences from their previous field, passing those stories on to future generations, and even providing consulting for people trying to get a leg up in that same industry."

Wingard says one person he knows has a channel in which he talks about golf from his perspective of being a caddy for several decades.

"He teaches people how to pick up caddying professionally while teaching golfers how to read greens for themselves," Wingard says. "Talking about your life from that perspective can be a lucrative endeavor, and it can get really cool with some sponsorships, too.

Tip: Don't expect to make money at this type of venture until you've invested substantial time building a brand. Even then, you might not turn much of a profit if you can't grow an audience, so research the competition and various platforms first.

6. Do something you love

When you're in your 30s, 40s or 50s, you might have to take a job that covers the bills, even if it's not something you're particularly passionate about. But if you're going to work in retirement for extra money, Zamikovsky says it pays to pursue something you enjoy.

"Once upon a time I worked with the loveliest retired couple," she says. "Neither one of them had any experience in photography, but what they lacked in technical experience, they more than made up for with their inspirational love for each other and natural talent at being great with people."

That couple, Zamikovsky says, went on to establish a lucrative photography business.

"With their solid reputation, they booked regular weddings and created a fun and meaningful income stream. Being wedding photographers fit who they were and allowed them the opportunity to build something meaningful together."

The takeaway?

"Don't confine your search or ideas to the tasks and jobs you did pre-retirement," Zamikovsky says. "Instead, be honest with yourself about what it is you're good at, what you like to do, and what unique knowledge or product you can offer the world. If you're going to work during retirement, the work should truly reflect who you are and be something you enjoy."

Read More

• The Social Security Earnings Test: Know This Rule Before Working in Retirement
• The Top 10 Side Gigs For Retirees In 2026
• Best Jobs for Retirees

AI is beginning to hollow out parts of the white-collar economy, and the dominant response for workers has been: Go learn a trade.

The problem is that millions of displaced professionals can't simply pivot overnight from cognitive, credential-heavy careers into physically demanding trades — without major financial and psychological repercussions.

If employers and policymakers keep pretending the answer to AI's impact on white-collar jobs is a straightforward retraining problem, they risk creating a generation of displaced professionals who feel economically abandoned by the career paths and systems they were told would protect them.

The skilled trades labor shortage isn't a manufactured narrative that appeared out of nowhere. Fields that include electrical work, HVAC and infrastructure maintenance all need workers, and younger people questioning the value of expensive four-year degrees are pursuing these pathways instead.

Not a universal solution

The problem is that the current AI workforce narrative treats the trades as a universal solution for white-collar displacement.

That framing can sound practical and reassuring. There are open trade jobs with clear demand, and career paths appear to be less susceptible to automation in the near term.

But for employers and policymakers trying to calm fears about AI, "go learn a trade" is an overly tidy answer to a far messier problem.

The scale of the disruption that lies ahead makes that answer even less convincing.

AI systems are compressing parts of the office economy.

• Marketing teams are operating with fewer people
• Entry-level analysts are competing against systems that can summarize reports, generate presentations, and handle administrative tasks in seconds
• Customer support, legal review, coding and financial services are encountering similar pressures

Recent estimates suggest AI can already perform the equivalent of more than one in 10 U.S. jobs, much of it concentrated in administrative and knowledge work.

Even a major expansion of trade training would only go so far toward softening the landing for displaced office workers.

Financial repercussions

The financial adjustment would be substantial. In many areas of the country, an entry-level HVAC technician earns just $20 to $25 an hour. This would be a difficult transition for professionals accustomed to significantly higher salaries.

Construction-related trade work is stable, valuable work, but it also represents a major reset for a midcareer professional who may have spent 15 years building a six-figure career in an entirely different field.

Professional careers shape routines, social identity and long-term expectations about stability and mobility. Many white-collar workers followed the path they believed would protect them from economic volatility, only to take on debt and build households on the assumption that specialized knowledge would remain economically valuable over time.

But many of those same workers are now confronting the possibility that all or parts of their accumulated expertise might be rapidly losing market value.

Emotional repercussions as well

White-collar unemployment also carries an unusually intense form of self-blame. Professional hiring systems place enormous emphasis on communication, confidence and perceived competence.

Extended displacement can quietly destabilize marriages, physical health and long-term planning while producing a private sense of shame that rarely appears in economic data.

The earnings damage can last for years, even if workers find employment again. This is particularly true when they re-enter the workforce in lower-paying sectors with weaker upward mobility.

Over time, that shift becomes more than a temporary decline in income, as it can reshape lifestyles, retirement expectations and social positioning.

Part of what makes the current AI transition so destabilizing is that it targets cognitive and status-based work. Traditionally, repetitive manual labor has been the most vulnerable during previous waves of automation.

AI training evolves quickly

The historical record for retraining deserves a realistic assessment before we determine what comes next. Large-scale workforce retraining efforts have struggled for decades to consistently return displaced workers to their prior earnings levels, often because they eventually land in lower-paying occupations with weaker upward mobility than the careers they lost.

The pace of AI development presents greater challenges. Technical skills in areas such as data, software and operations are evolving quickly. Reskilling curriculum can struggle to keep up with the systems that workers are being asked to learn.

A more nuanced workforce strategy would treat transition support as a broader economic issue instead of a narrow training initiative. Technical retraining is always necessary, but workers will also need clear transition pathways to navigate environments where the ground is constantly shifting beneath them.

Midcareer workers navigating abrupt displacement might need counseling and temporary income support alongside technical certifications training and job placement.

Some companies are already funding skilled trades programs tied to infrastructure and manufacturing demand.

Still, those efforts were built to address labor shortages, not to accommodate large numbers of displaced white-collar workers.

There are still many unknowns. AI could ultimately reshape more jobs than it eliminates, and many professions might evolve through human-AI collaboration rather than outright replacement.

But uncertainty is not a strategy.

If large-scale workforce disruption materializes, retraining in trades alone will not be enough. A comprehensive response that includes soft skills development, job placement assistance, mental health support and some form of income assistance will be essential to preserve both economic opportunity and social stability.

Related Content

• Why the College-First Mindset Is an Outdated Relic That's Failing Us All
• Kiplinger Jobs Outlook: Job Growth Will Be Moderate, on Average
• 10 Highest-Paying Jobs Without a Degree in 2025
• I Changed Careers, and So Can You
• Is the 'AI Bubble' a Myth? Why Tech Experts Say AI's Boom Is Just the Beginning

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

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

Dear Wealth Wise: We've saved almost $4 million: $3.2 million in retirement and a $500K inheritance from my father that we put toward education and has already grown to almost $800K. I'm 53 and my husband is 54. Our children are ages 16, 13 and 10.

My husband and I work full-time but want to retire in eight years once our youngest graduates high school. Staying in our starter home helped us save, but we outgrew it years ago. We have equity in our home we could use to upsize, but we'd triple our mortgage payments and take on higher property taxes and insurance. We're not sure how much additional money we'll be able to save.

Can we just say we've saved enough for retirement plus college for three kids? In a few years, it won't make sense to upsize since our kids will be moving out. We've worked hard and would enjoy a bigger space. We're willing to downsize in eight years along with retiring. I see buying a bigger house as a very expensive rental to get more space while we see our kids through to college. — Cramped but Cautious.

Dear Cramped but Cautious: Saving for retirement often requires sacrifice. By staying in a starter home, you have clearly saved a bundle and understandably want to upsize while it still makes sense.

You might struggle to find something affordable. During the first quarter of 2020, the median U.S. home sale price was $329,000. Today, it's $410,700. That marks a roughly 25% increase. Throw in elevated mortgage rates, and it's no wonder you question if you can keep saving after upsizing.

But do you really need to worry? Let's see what our experts have to say.

You've probably saved enough for retirement

Moving to a larger home can feel like a risky financial decision when it means you don't have extra money to fund a retirement account. But Christopher Walsh, regional marketing director and financial adviser at Capital Choice Financial Group, says that assuming your future income needs aren't too outrageous, you're probably OK to stop contributing toward retirement.

"I would say for the most part, your work is done," Walsh says. "If your investable assets continue to compound around 9%, and if you follow the rule of 72, your retirement [account] should be near double what it is today."

Walsh says that if you also follow the 4% rule in retirement, that should provide an income of about $256,000 a year. Keep in mind that a 9% return might be too high a goal as you near retirement and invest more in fixed income. You'll also need to account for inflation. Still, with Social Security added in the income mix, you should have plenty with which to work.

"For most people, that's an outstanding retirement income and should also empower you both to leave quite a legacy for your children," Walsh insists.

Watch out for the expensive college years

While your strong nest egg positions you well to hit the brakes on retirement savings, it's the college years that might trip you up, says Michael McSweeney, financial adviser at Ascend Wealth Partners.

"An $800,000 balance should go a long way toward paying for college," McSweeney acknowledges. Your family's college savings are far ahead of the average 529 college savings account balance, which had slightly more than $34,000 at the end of 2025.

"That said, I'd be careful not to underestimate what the next eight years will look like," cautioned McSweeney. "Having three children close in age means there could be several years where college costs run $50,000 to $100,000 per year, or more, on top of their normal living expenses."

Given that you're looking at expensive college costs in the years leading up to retirement, the danger, says McSweeney, is being tempted to tap your nest egg to cover added expenses that arise, such as expensive off-campus housing or airfare to a distant school. That would still likely leave you with plenty of money to retire on, but it does change the math.

"That's why I would think twice about buying a larger home," McSweeney says. "The question isn't whether they can afford it. It's whether it makes sense to dramatically increase their housing costs for a home they already expect to sell in eight years."

As McSweeney points out, "A larger house doesn't just mean a bigger mortgage. It usually means higher property taxes, insurance, utilities, maintenance and furnishing costs."

There may be options other than buying a new, more expensive home

Eager as you might be to upsize while you still have kids living at home, whether it makes the most financial sense is questionable, says McSweeney. His recommendation? Renovate your current home to make it more comfortable.

"A home equity line of credit (HELOC) could be a great tool here," McSweeney says. "They can tap into the equity they've built over the years to remodel the kitchen, update bathrooms, finish a basement, add usable living space or make other improvements that help the house function better for a family with teenagers."

The payment on a reasonable HELOC, McSweeney explains, might be much lower than the cost of upgrading to a more expensive home. That way, he says, if you want to downsize in eight years, you'll have an updated home that's easier to sell.

The downside? Because they’ve lived in this starter home so long, their capital gain might already be approaching the $500,000 tax-free exclusion for married couples. Staying put for eight more years means future appreciation might be taxed. (Documenting qualified renovation costs will raise their home's cost basis, helping to offset some of that future tax bill).

The verdict: Go for it (or renovate)

All told, you can probably afford to stop saving for retirement and college and buy the bigger house you've always wanted. But you'll need to decide if it's worth the potential financial stress.

"When you factor in transaction costs, mortgage interest, property taxes, insurance, maintenance and moving expenses, they're spending a significant amount of money for something they already know is temporary. That's not necessarily wrong, but it's a lifestyle decision, not a financial investment."

If living in that bigger home is important to you, then you should go for it. You've earned it. But if you can make your current home work with a thoughtful renovation, McSweeney says, you'll likely enjoy these last few years with your kids just as much while keeping your monthly expenses lower, preserving more flexibility and putting yourself in an even stronger position when it's finally time to retire.

"They've spent years making smart financial choices, including staying in a modest home while building nearly $4 million in assets. I wouldn't abandon that strategy just a few years before retirement," McSweeney says.

A word from Wealth Wise on college costs

One of the hardest lifetime expenses to plan for (aside from retirement) is college. We agree that $800,000 for three children is a robust college fund, leaving an average of $266,000 for each child. That's almost exactly what four years of private college would cost ($60,920 times four years), according to College Board Research (PDF).

The reality, however, is that few students pay full price these days. As the table above shows, the net cost of attendance is about $28,000 less than the "official," published cost of attendance. Even if your income is high, your child might qualify for merit-based aid. Moreover, your child might choose an in-state public school which is much more affordable; the net cost of attendance at a public college was $21,340, according to the same study.

Still, it doesn't hurt to have plenty of college savings. Your child might wish to take a gap year abroad before college starts or might need more than four years to complete their educations.

Finally, if one of your children wants to go to law school or study medicine, they might need to stretch their college funds into graduate school.

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

More Wealth Wise Retirement Advice

• I Have a Sizable Roth IRA. Do I Still Need a 529 for My Grandkids' College?
• Should We Bankroll Our Son's $180K Law School Tuition Even Though We're Retired?
• Can You Actually Get Paid to Care for an Aging Parent?
• He's 49 and 'Burned Out.' Can He Afford to Quit a $200K Job?
• 'Subsidized Adulting': Can You Afford to Help Your Children Financially?
• Should Fully Funded Retirees Invest Like 30-Year-Olds?
• Is a 60/40 Portfolio Too Aggressive When You're in Your Seventies?
• You’ve Mastered Asset Allocation — Now It’s Time for Asset Location
• A Multimillionaire Wants to Marry Again. How Can She Protect Her Money?
• Should We Borrow Money From Our Elderly Father?
• Should We Downsize or Drain Our 401(k) to Pay Off Our Home?

Read More on Downsizing

• You May Not Want to Downsize in Retirement: Here's Why
• We Are Retired, Mortgage-Free, With $970K in Savings. My Husband Wants to Downsize to Lower Our Costs, but I Love Our House. Help!
• 6 Myths About Downsizing in Retirement

Trump Accounts went live on July 4, and parents have been signing up ever since. The pitch is easy to like.

Any child under age 18 with a valid Social Security number can have a Trump Account established on their behalf. Eligible children born between January 1, 2025, and December 31, 2028, who are U.S. citizens can get a $1,000 contribution from the federal government.

With or without that contribution, you can add up to $5,000 a year to the account, and your employer can contribute as much as $2,500 of that total without it counting as taxable income to you.

Free money for a newborn is a good deal, and you should claim your kid's $1,000 if they're eligible.

But I keep hearing the same question from parents: Should I put college savings here instead of a 529 plan?

The answer is no, and the reason has nothing to do with politics. It is in the tax code.

A retirement account under a different name

Strip away the branding and a Trump Account is a retirement account with a head start. Here is how it works. Until the year your child turns 18, the money is locked in what the law calls a growth period. It has to sit in a low-cost fund tracking a broad index of American stocks, with fees capped at 0.1% and no leverage allowed. Nobody can take money out during those years — not you and not your kid.

Then the account turns 18 and becomes a traditional IRA. That single fact drives everything else. Money in a traditional IRA grows tax-deferred, not tax-free, and when it eventually comes out, the earnings are taxed as ordinary income. Pull money before age 59½ and you generally owe a 10% penalty on the taxable portion unless an exception applies.

There is one more wrinkle that catches people. Only the money you and your family contribute creates "basis." The government's $1,000, anything your employer adds and any state or charitable contributions do not.

That means those dollars, plus every dollar of growth on top of them, come out fully taxable down the road.

Why a Trump Account is a poor substitute for a 529 plan

Put the two side by side and the gap is obvious. A 529 also grows without annual tax drag, but when you spend it on qualified education costs, the withdrawal is tax-free. Not deferred. Free. That is the whole point of the account, and it is exactly what a Trump Account does not offer.

Say you use a Trump Account to help pay for college. Because it is a traditional IRA by then, an exception can spare you the 10% penalty for qualified higher education expenses. Good.

But the earnings still land on the tax return as ordinary income, at whatever rate applies. The same dollars pulled from a 529 for the same tuition bill would have come out untaxed.

For a college goal, one account is built for the job and the other is being asked to moonlight.

The 529 also just got better, which sharpens the comparison. The annual K-12 withdrawal limit doubled to $20,000. Qualified expenses now include tutoring, SAT and AP fees, and educational therapies. And 529 money can now pay for workforce credentialing programs, not just traditional degrees.

If you want to see how the vehicles stack up against your actual goal, a college savings comparison guide like the one at the website I founded, CollegeLens, is a better starting point than a headline.

So where does a Trump Account fit?

It fits — just not where people are trying to put it. Think of the Trump Account as your child's first retirement account, funded by someone else. A thousand dollars invested in a broad stock index at birth, left completely alone for six decades, is a genuinely powerful thing.

That is not a small gift, and the lock-up that makes it useless for tuition is the same feature that makes it work as long-term compounding.

A few practical tips:

• Open the account and take the $1,000. It costs you nothing and there is no reason not to claim if your child is eligible.
• Ask HR about the employer contribution. Up to $2,500 a year, tax-free to you, is a benefit many workers do not know exists yet.
• Keep your college money in the 529. If a dollar is earmarked for tuition, it belongs in the account that lets you spend it tax-free.
• Do not skip the 529 to fund this. Contributing $5,000 a year here while your college plan sits empty is optimizing for the wrong decade.

The bigger picture

New accounts arrive with a lot of noise, and the noise tends to drown out the mechanics. The mechanics are what decide whether an account helps you. A Trump Account is a retirement vehicle wearing a family-finance label, and it is a decent one, especially if someone else is making the first deposit. It is simply not the thing that pays a tuition bill.

So take the free money. Open the account, let it sit and let it compound for 50 years. Then go back to funding the account that was actually designed for the goal you are worried about.

Two different jobs, two different tools, and the mistake would be asking one to do the other's work.

One caveat worth noting: The IRS has said more guidance and regulations are still coming, and state tax treatment does not always follow the federal rules.

If you are making a large contribution, it is worth checking where things stand before you commit.

Related Content

• How Trump Accounts Compare With 529 College Savings Plans
• Why the Trump Account Rollout Is Raising Questions About Social Security
• I'm a Financial Planner: Trump Accounts Are a No-Brainer if You're Eligible (How to Apply)
• The FAFSA Quietly Got Friendlier and Stricter This Year: Will Your Family Win or Lose?
• Parent PLUS Caps Just Changed the Math on Paying for College: How Will You Fill the Gap?

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 that time of year when parents are rushing to buy all the supplies for their college-bound child.

Getting the mini-fridge, the microwave, a new laptop, books, even on-campus meal plans is all part of the process of helping your child feel prepared and equipped to succeed in the next chapter of their life.

However, one essential item is often left off the checklist: Having a conversation about personal finance.

College is often when young adults start making financial decisions by themselves. Whether it's learning how to use a credit card, following a budget or deciding how to live on limited funds, the habits they develop during this time can have lasting financial consequences.

Before move-in day, parents should take this opportunity to teach their children how to make smart financial decisions from the start.

Start with a conversation

Before getting into budgeting, credit card use or opening new bank accounts, start with a much simpler conversation: Explaining how money works. Many college-age children understand spending money, but often don't understand how the financial choices they're making can either work for them or against them.

In life, money can be managed well, working for your benefit, or it can create obstacles and eventually start managing you.

While it's getting better, many of us weren't taught these fundamental financial skills in school or at home. For a long time, finances weren't openly discussed, which is why it's important for parents to break the cycle by having those conversations before their child leaves home.

Set up an emergency fund

One of the first lessons I encourage parents to teach is understanding that not every purchase has the same impact. For example, some of the things we buy, such as food, hygiene products, clothing and school supplies, are necessities that will eventually have to be replaced.

Other purchases have the potential to earn money or increase in value over time. These can be investments, starting a business and renting out property.

Money should also be set aside in an emergency fund, for example in a cash savings account, to help cover unexpected expenses, such as a car repairs, medical bills or a sudden job loss.

Saving these dollars and using them for emergencies only can help avoid taking on debt that could take years to pay off, or taking from your future by selling long-term investments and other valuable assets.

Use credit sensibly

College is also the first time many students take out their first credit card. While using credit responsibly can help build a positive credit history, it's important to teach them that a credit card is not an extension of their income.

They don't own this amount of money to spend — they're borrowing it to use now and will be held responsible for paying it off later. It's a loan. And loans carry interest.

When statement balances aren't paid in full each month, they start accumulating interest. This means that a $200 shopping spree could have the potential to end up costing $500-plus once that loan is paid back. This can create consequences that follow them long after graduation.

When it comes to credit card use or the impacts credit history can have on future opportunities, I like to tell families to introduce credit scores by explaining them as a lifelong financial report card.

The behaviors students fall into now — paying bills on time, keeping balances low, living within a budget and saving — can influence every milestone in their future, from buying a car to qualifying for an apartment or loan or even securing their first job.

That's why developing good financial habits from the beginning is crucial. It's much easier to build healthy habits early than to repair poor ones in the future.

Learn from mistakes

Through this process, it's also important for parents to remember that just because their student is leaving for college, it doesn't mean they have to stop being involved in their child's finances.

Continuing to provide additional guidance and support, especially during those first few months, can help reinforce healthy habits while giving students the opportunity to learn from small mistakes before they pose a risk to future financial security.

This doesn't mean controlling every purchase. The goal isn't to remove mistakes entirely. Instead, putting together a simple budget, reviewing recent purchases or setting reasonable spending limits on first-time credit card use until the child has demonstrated they can use it responsibly are all healthy ways to remain a part of your child's finances while still giving them the room to learn from their mistakes.

Build strong financial foundations

One of the most valuable financial lessons parents can teach their college-bound child is to think beyond the present.

Before they make a financial decision, encourage them to consider how it might affect their future. Whether it's taking on unnecessary debt or prioritizing saving for the future, whatever choice they make now can shape the opportunities they'll have in the future.

As your student heads off to school, use these final moments of summer as an opportunity to lay that foundation. As well as maximizing your time with them, talk to them about how money works, share mistakes you hope they avoid making and continue to reinforce the importance of making thoughtful financial decisions.

This will not only help them prepare for the next four years, but also give them the tools to build lifelong financial independence.

Related Content

• 6 Practical Steps to Help Keep Your Student Focused on College Rather Than the Financial Strain
• Finance 101: Money Skills Every New College Student Needs
• 7 of the Best Budgeting Apps for 2026
• I'm an Investment Professional: These Are the Three Money Tips I'm Giving My College Grad
• Is Your Emergency Fund Running Low? Here's How to Bulk It Back Up

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.

Nine in 10 midsize businesses plan to implement AI in 2026, according to J.P. Morgan's latest Business Leaders Outlook survey. But while it's incredibly easy for companies to simply "turn on" AI tools, poor AI implementation in the workplace is a growing cause of employee burnout and disengagement.

For businesses, adopting AI isn't just about technological capability. How it fits into a company's culture and systems is just as important.

AI tools as standard

Thanks to tech companies' race for AI dominance, it's never been easier for businesses to become "AI-optimized." Enterprise software now comes with AI integrated into email and basic productivity tools as standard, which means teams can use tools such as Windows Copilot or Google Gemini for practically anything.

But it's often given to employees without clear instructions or guidance. The AI tools employees most commonly use are large language models that run on user-generated prompts and back-and-forth dialogue, so most leaders assume their staff can and will figure it out for themselves.

It's imagined that through back-and-forth prompt engineering, they will eventually get the outcome they're looking for.

Research has revealed a significant gap between companies' desire to use AI and their employees' understanding of how best to do so. According to Slingshot, 77% of employees report being confused about how to use AI in their jobs, while 56% of employees in a KPMG report said they were making mistakes as a result of AI.

This hugely transformative technology is being unleashed on employees. Instead of guiding them through how to use it, it's being treated like a simple tool they can "figure out" for themselves. That is a damaging mindset for businesses and their employees, and it risks client security, employee satisfaction and burnout.

This is why leaders should develop a structured, change-management process — one that considers the risks and governance of AI within the business.

AI has the potential to transform company culture for the better, but only if the technology is rolled out in a way that fully recognizes the dynamics surrounding it. Here's how firms should be rolling out AI tools to their employees.

1. Start with vision

Companies that want to be fully AI-optimized need to start by developing a plan and a vision for their AI use. With a tool like AI that has so many potential uses, this vision offers employees a framework to address their concerns.

Rather than being fearful that they're simply training their replacement or frustrated that they're being asked to do something else on top of their regular job, a vision allows leadership to articulate how they expect AI to change the way individuals work — and, equally significant, what won't change.

2. Start small

While the ease of AI integration makes it possible for companies to grant everyone immediate access, that's not the best practice for successful implementation. Change requires buy-in and sponsors from peers and leaders, which is why any AI should be rolled out with a small pilot cohort to gain support, work out kinks and prove where it works best in the business.

Company-wide technology mandates can cause stress and resentment, but having cohort champions who can co-sign that this technology really does improve efficiency builds trust.

It also creates peer-level support systems so that, when a company-wide rollout finally does come about, employees know who can help troubleshoot problems and pass on best practices.

3. Build a culture of trust

One of the most significant ways that AI differs from most other technologies — especially more specialized digital industry tools — is that it's not perfectly honed. AI continues to evolve and make mistakes — but the only way companies can improve AI use is through a culture of trust.

Employees need to be comfortable enough to raise their hands when things aren't working, but also vulnerable enough to share when they think they've uncovered something new. Refining AI use is an experimental process, and that can be deeply uncomfortable for those used to more black-and-white processes and cultures.

Firms that want employees to use AI have to set new standards within their culture, elevating and celebrating incidents in which employees are willing to learn and share through collaborative problem-solving.

The bottom line

As AI continues to proliferate across the corporate landscape, having a clear change-management plan for its introduction isn't a nice-to-have: It's a critical need. Successful AI use won't happen on its own — especially at firms that haven't invested in the culture of trust AI needs to succeed.

Employees are crying out for guidance. In the 2025 AI at Work survey, 61% of employees said they want more transparent communication from leadership about AI use. It's up to leaders now to deliver.

Companies need to adopt AI to remain competitive, but without thoughtful change management, they're destined to fall behind.

Related Content

• If You Want Your Employees to Embrace AI, You Need to Let Them Have a Say in How It's Used
• How to Prevent AI-Generated 'Workslop' From Destroying Your Workplace Relationships
• Want to Shave 10 Hours Off Your Workweek? A Startup Expert Shows How AI Can Help
• How Small Business Owners Can Balance AI With Employee Loyalty and Retirement Goals
• Are Your Employees Quietly Cracking? How to Repair the Cracks Before Everything Breaks

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 seems that not a day goes by that we do not see a court ridiculing attorneys for filing frivolous cases in bad faith, clearly aware that what they are doing isn't supported by facts or the law.

In other words, they're doing things that they know are wrong and violate our ethical obligations as lawyers — often while under pressure to follow orders.

While violations of legally mandated professional ethical and moral codes are common in many professions, today's story stems from an email from a young lawyer. "Ruby" was debating whether she should remain married and wanted to know "what the psychological mechanism is that transforms a fair-minded person into someone I do not know anymore."

In the beginning, he despised lawyers who frustrate fair resolutions

"(My husband and I) got married when we were in law school," Ruby wrote. "Ben would get visibly upset when professors discussed insurance defense firms that, instead of fairly resolving claims and lawsuits, did everything possible to frustrate a resolution just to build up more billable hours. They'd drag cases out, doing bad things for a buck," which Ben agreed was awful.

"After graduation, an insurance defense firm made him a great offer — and agreed to hire me as well — to establish a wills and estate planning department.

"At first, they gave Ben run‑of‑the‑mill, small cases to handle and settlement authority — which he enjoyed using. Then increasingly complicated ones came along with a long list of work to be done. He admitted that, often, much of it was completely unnecessary as the matters could have been settled promptly, saving the clients thousands of dollars.

"Mr. Beaver, one night after Ben drank too much wine, the expression in vino veritas was proven true — he blurted out, 'I do not care that these cases involve people who were injured through no fault of their own. They are money makers for the firm, and I don't give a damn about putting them through the wringer, as this increases my billable hours. And, besides, how do I know they aren't faking it?'

"Could you do a story about how someone can go from wanting to do good and help people to becoming weak, collapsing morally and doing bad things? I want to confront my husband with what he has become, and unless he gets back to his former self, I cannot remain in this marriage."

Moral disengagement in the professions

I forwarded Ruby's email to a friend of this column, psychology professor Dr. Luis Vega at California State University, Bakersfield. Vega teaches a fascinating course there, called The Psychology of Good and Evil.

"Ruby is describing something far more than simply individual weakness," Vega said. "Ben is caught in a system that reshapes a person's ethics, a psychological transformation of values under chronic pressure found in high-pressure professional cultures, known as moral disengagement/corruption of the soul.

"It is affected by the powerful virus of apathy, profit-making and feeding greed at any cost. People like Ben are engulfed in a justification of their actions, a self‑persuasion process of believing the 'victims' deserve what comes to them, and an 'I know better' attitude.

"Psychologists and marriage counselors find that spouses of lawyers and other professionals often articulate a profound moral disconnect as a reason for divorce. Notably, caving in to pressure from management to earn the firm more money — performing unjustified work that ramps up billable hours — while losing their ethical compass."

Vega added, "It doesn't happen overnight, but with gradual — required — repeated behavioral adjustments that make prior unacceptable actions seem quite normal. Ben might not be aware of what has happened, while Ruby sees the change because she knows who he was before being 'reprogrammed' by the firm.

Vega set out a road map for how moral disengagement silences an individual's conscience, driving wrongful and unethical conduct in professional settings. This leads to them conforming to the norms of the group for income, status and identity, a step-by-step process in which:

• Senior partners model the behavior that teaches associates that promotions depend on compliance. They learn that dissent will have personal, negative economic and employment consequences.
• Principles and values that were once deeply held are transformed, not because the lawyer wants to be unethical, but because the cost of resisting the group becomes unbearably high.
• When unethical behavior becomes habitual, it can destroy personal relationships through a rationalization process. Spouses become emotionally detached by continually hearing, "Everyone at the firm does it, and clients never know. Anyway, my job is to save the insurance company money, and being fair has nothing to do with the practice of law."

What makes this possible?

The following mechanisms combine to produce a husband Ruby no longer recognizes:

Cognitive dissonance reduction. Ben initially wanted to practice law economically, but his firm requires maximizing billable hours, which creates dissonance (discomfort) that the brain rationalizes so that Ben now believes, "I am being thorough, not doing unnecessary work or dragging the case out."

The slippery slope. Losing one's values happens gradually, with one legal, ethical or moral compromise after another, resulting in medical overtreatment, corporate and political scandals and lawyers who build a reputation for doing anything when the price is right.

Identity drift. Ben began his life as a lawyer with strong ethical and moral values. His work environment has become so dominant that his professional identity has replaced his personal identity. Ruby says to herself, "He is not the same Ben I married. What happened? This is not the same, wonderful guy I fell in love with."

What should Ruby do?

Vega said, "Ruby needs to say, 'Ben, if I turned into the total opposite of the person you married, would you want to stay with me? I am losing you to this law firm that has corrupted your soul. I love you, Ben. Please come back to me, back to us.'"

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.

Related Content

• Billed 12 Hours for a Few Seconds of Work: How AI Is Helping Law Firms Overcharge Clients
• The Billable Hour Is on Life Support: How AI Is Killing the Clock
• Beyond the Bar: Your 5-Step Guide to Discovering Whether a Lawyer Is Shady
• What to Do if You're Concerned About Your Lawyer
• One Cure for Legal Headaches: The Advice of Outside Counsel

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.

My wife and I are expecting our third child later this year. When a client is expecting, I generally advise them to start thinking about their baby's financial future right away.

Trump Accounts allow parents to open an investment account on behalf of any children under age 18 who are U.S. citizens. If the child is born from 2025 through 2028, the government will deposit $1,000 into the account for your child.

Thanks to philanthropic donations, an extra $250 will be deposited into the account if you live in a ZIP code with a median income below $150,000.

If your child qualifies for that deposit, opening a Trump Account is a no-brainer; it's free money!

Where things get less clear is when considering whether you should contribute your own money to the accounts. As a financial adviser at Burns Estate Planning & Wealth Advisors and an expectant father considering the best path forward for my own child, I see both pros and cons.

What are the benefits of contributing to a Trump Account?

Contributing to a Trump Account can significantly increase your child's nest egg. The federal government estimates that if you simply take the $1,000 deposit from the government, that deposit will turn into $6,000 by the time your child is 18.

By contributing just $250 per year, your child would have an estimated $19,000. Clearly, contributing to the Trump Account — even a small amount — will have a significant impact on the amount of money your child ends up with.

While the Trump Account is touted as a retirement account for your kid, your child can also make withdrawals without penalty much earlier for qualifying reasons, such as paying for college or buying their first home.

Those withdrawals could be subject to restrictions and would be taxed at ordinary income tax rates.

Employers can make contributions up to $2,500 per year into the account as well, making it a potentially attractive employee benefit.

What are the downsides of contributing to a Trump Account?

If you're considering making contributions to a Trump Account for education for your child, you should first ask yourself: Why would you use a Trump Account for education when a 529 plan grows tax-free and is tax-free on withdrawal?

The nest egg your child has after 18 years of contributions to a Trump Account could be significant. However, that's not due to any special property of the Trump Account itself; it's simply the result of compound interest over time, which you would also enjoy with other investment accounts like a 529.

Unlike with a 529, your children will have to pay taxes on the growth of money in a Trump Account when they withdraw it. I often recommend that my clients convert their IRA to a Roth IRA because, while you pay taxes on the contributions or conversions to a Roth, you don't pay taxes when you withdraw the money.

Trump Account contributions are non-tax-deductible, like a Roth IRA, but the entire amount is taxable upon distribution, like a traditional IRA. That double taxation is not as tax-efficient as other options.

When my baby is born later this year, I'll definitely open a Trump Account to take advantage of the $1,000 free deposit, but I'll also open a 529 account and contribute my own money to that, because withdrawals will be more tax-advantaged for my child.

That isn't to say this is the right move for everyone with a newborn. A Trump Account is a tool, but, as with any other investment, it's not a one-size-fits-all solution.

If the goal is to save for higher education, it may make more sense to use a 529 plan, based on the tax laws that apply to distributions compared to a Trump Account.

It will likely be less common to use a Trump Account to save for your children's retirement, as most children are beneficiaries of their parents' estate to begin with.

However, if getting a jump-start on your children's retirement accounts is the goal, a Trump Account would likely make more sense.

It's important to work with your financial adviser for advice that takes into account your unique circumstances before deciding how to set your children up for a strong financial future.

Related Content

• How Trump Accounts Compare With 529 College Savings Plans
• How This 529 'Superfund' Strategy Can Transform Your Estate Plan
• Use the 529 'Grandparent Loophole' to Maximize College Savings
• Timing Is Everything for Roth Conversions: An Expert's Guide to the Right Strategy
• Market Downturns Have Upsides: How to Take Advantage

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

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

Dear Wealth Wise: My mother suffers from MS and now needs daily help. I'm starting to look into programs that will pay me to be a caregiver. Am I allowed to keep my regular job or will I be forced to quit? I'm a freelance consultant with flexible hours, but I can't give up that income (or not easily). I assume the pay to be a caregiver isn't great. — Squeezed

Dear Squeezed: As the U.S. population ages, a growing number of Americans are finding themselves thrust into a role they might not be prepared for — caregiving.

AARP reports that one in four U.S. adults is a caregiver, with the majority caring for another adult. Additionally, one in three caregivers is under 50, which means they may be trying to balance providing care for a loved one with maintaining a career during their peak earning years and keeping up with retirement savings goals.

Here, we have a reader who wants to step in and care for her ailing mother. But every hour she spends providing care is an hour she can't earn income through her consulting business.

While there are programs that might pay her to care for her mother, the question is: Will the income be enough to cover her lost wages? Here's what our experts say someone in this situation needs to know.

You probably won't have to quit your job

For people with strict working hours, juggling a full-time job and caregiving might not be possible. For someone with flexible hours who isn't tethered to an office, it may be doable.

Faris Flournoy is the CEO at Flournoy Health Systems, a home care management company. And he says that in this situation, you definitely do not need to rush to quit your consulting job.

"One of the biggest misconceptions about family caregiving is that you have to choose between caring for your mother and keeping your career," he says. "There are programs that may allow you to do both. Some states offer programs that compensate family caregivers while they continue working another job, particularly if they have flexible schedules."

Before reducing your work hours, contact your state's Medicaid office or Area Agency on Aging to determine exactly which caregiver programs are available, how many hours are covered, whether your parent qualifies and whether family caregivers are eligible for payment. Rules differ by state, so don't assume a program available elsewhere is the same where you live.

Don't expect caregiver pay to replace your income

As our reader correctly assumes, the wages associated with caregiver programs do not tend to be overwhelmingly generous. "Many programs cap the number of paid hours, even if you are providing significantly more care than that," Flournoy cautions.

He explains that while being paid as a family caregiver can certainly help offset some of the financial burden, it's rarely enough to replace a full-time income. Even with a flexible job, it might be challenging.

"Some caregiver programs require you to provide care during approved hours or meet minimum hour requirements, which can make managing another job more challenging," Flournoy says. "Before making any financial decisions, get clear on exactly what the program expects, how many hours it will cover, and whether those requirements fit with your current work schedule."

Flournoy also emphasizes the importance of looking out for your own financial best interests while trying to help.

"The financial impact of caregiving extends well beyond today’s paycheck," he warns. "Many family caregivers reduce their work hours, pass on promotions or leave the workforce entirely, which can affect retirement savings, Social Security benefits and long-term financial security. Those are sacrifices families often do not anticipate until they are already making them."

Evan Farr, a certified elder law attorney and retirement planner, agrees that caregiving can have more long-term financial consequences than expected.

"While the immediate costs include lost income for this calendar year, the true cost includes compounded losses from reduced savings and reduced career longevity due to interrupted employment," he insists.

Medicaid is what usually pays, but there are other solutions too

Medicaid: While getting paid to be a caregiver might be an option, there are requirements to meet, and one of those might be qualifying for Medicaid.

"Most paid family caregiver programs are funded through Medicaid, not Medicare, and each program has its own financial and medical eligibility requirements," Flournoy says.

Depending on the program, some Medicaid caregiver payments might receive favorable federal tax treatment.

Flournoy commonly sees families land in situations where they've saved too much money to qualify for Medicaid but not enough to comfortably pay for ongoing home care.

Flournoy also says that for the most part, Medicare does not have paid caregiver programs in place, nor does it pay for custodial care — the ongoing personal assistance many people need with bathing, dressing, meal preparation and other daily living activities.

Special cases: "Some Medicare Advantage plans, veterans’ benefits, and long-term care insurance policies may provide additional support, but families should not assume Medicare alone will cover long-term daily caregiving," he says.

To be clear, some Medicare Advantage plans (Part C) cover limited in-home support services or respite benefits, but they generally do not pay family members as ongoing caregivers. They might, however, cover adult daycare.

Veterans' benefits are available only if the care recipient is an eligible veteran (or, in some cases, a qualifying spouse).

Become your parent's employee: Finally, if your mother has sufficient assets to pay you directly, you could consider setting up a personal care agreement.

Your compensation must be set at a "reasonable" rate, or what you would typically pay someone else to do caretaking. The national average for non-medical in-home care was $35 per hour in 2025, according to CareScout. If you happen to be a trained nurse, you can charge more, or $90 per hour, on average.

However, be aware of the "nanny tax." If your parent hires you as a household employee, payroll tax rules might apply once annual wages exceed the IRS threshold. Check current IRS rules or consult a tax professional.

The devil's in the details when it comes to Medicaid

A big reason not to rush into a caregiving arrangement is that the nuances can be complicated, Farr says. As he explains, it's important to determine whether you can legally perform the authorized care within the authorized time frame and properly keep records of that care.

"Medicaid-paid family caregiving is not merely a family-arranged situation where Medicaid sends you a check. It is a regulated form of caregiving," Farr insists.

"The mother must meet medical requirements and financial requirements to receive Medicaid-funded (long-term care) LTC," Farr continues. "The state must also approve a care plan. The caregiver may be required to register through an agency, fiscal intermediary, or through the consumer-directed model."

Farr says that, in addition, to become a caregiver, you'll typically need a background check and training. You'll also need to see how many hours of care Medicaid approves.

"One of the largest misconceptions is that the family decides what hours of care need to be performed and then expects Medicaid to pay for those hours," Farr explains. "This is not how Medicaid-paid family caregiving works."

Rather, Farr says, each state determines what hours are allowed in the approved care plan.

Flournoy says that one challenge of becoming a caregiver is that each state administers these programs differently.

"One of the biggest differences from state to state is how many caregiving hours are eligible for reimbursement. Documentation requirements also vary," Flournoy says.

Some programs, he explains, require detailed time logs and care plans, while others have a more straightforward reporting process. Eligibility rules can also differ, including which family members can be paid.

"In some cases, spouses or legal guardians may not qualify," Flournoy cautions.

Build a robust care plan for your mom — and a financial plan for yourself

While it might be possible to get paid to care for your mom, both Flournoy and Farr recommend looking beyond the caregiver paycheck and instead focusing on a holistic care plan.

"I have seen too many families spend valuable time searching for one program that will cover everything, when the better approach is combining the right services at the right time," Flournoy says. He says that in this situation, a comprehensive plan may include personal care, skilled nursing, therapy services, hospice, and palliative care.

"The sooner families can identify what level of care their loved one needs and which programs can help along the way, the more flexibility they will have to build a care plan that supports both their loved one and their own financial stability," Flournoy says.

Farr, meanwhile, recommends consulting with an experienced elder law attorney to ensure that your mother maintains eligibility for Medicaid benefits and advise on the legal side of things.

He also says it's important to protect your family's financial well-being in addition to your own.

To that end, you might want to sit down with a financial planner to discuss how your caregiving role could affect your long-term financial goals. Even if you're able to continue working as a consultant, juggling both roles might force you to forgo income that impacts your retirement savings and future plans.

It's noble to want to step in and help your mother. But it's important not to sacrifice your financial security in the process.

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

More Wealth Wise Retirement Advice

• He's 49 and 'Burned Out.' Can He Afford to Quit a $200K Job?
• 'Subsidized Adulting': Can You Afford to Help Your Children Financially?
• Should Fully Funded Retirees Invest Like 30-Year-Olds?
• You’ve Mastered Asset Allocation — Now It’s Time for Asset Location
• A Multimillionaire Wants to Marry Again. How Can She Protect Her Money?
• Should We Borrow Money From Our Elderly Father?
• Should We Downsize or Drain Our 401(k) to Pay Off Our Home?

Read More on Caregiving

• Five Ways to Ease Caregiver Stress
• How to Hire a Caregiver: Tips for Finding the Right Fit
• How to Create a Retirement Income Plan to Cover Caregiver Costs

Keith Ward, 61, is proud of his son, who graduated from college in December of 2025 with a degree in information systems. His son was focused during his studies and worked hard to build skills he thought would lead to gainful employment.

Instead, Ward's son is living at home and struggling to find work.

"He's applied to more than 250 jobs, and I think has gotten seven interview requests," Ward lamented. "Five years ago, employers would've been having fist fights to hire him."

Ward's son's experience isn't unique. The rise of AI has made an already tight job market for new applicants even tighter.

As of March 2026, the unemployment rate among recent college graduates ages 22 to 27 was 5.6%, compared with a 3.1% unemployment rate across all college grads, according to the Federal Reserve Bank of New York.

Underemployment is an equally big issue. As of January 2026, 41.5% of recent graduates were underemployed.

The Federal Reserve also found that as of May 2026, 15% of adults ages 18 to 29 who weren't working said they couldn't find a job, while 10% were working part-time because they were unable to find full-time work.

Ward's son is trying to stay positive. For now, he's working part-time in a bookstore.

"It's been frustrating for him because now he's living with us," Ward says. "He wants to be independent. He wants to be working in this field that he trained for. When he started four years ago, there was no thought that AI was going to be taking jobs."

It's not just Ward's son who's been struggling.

"My wife and I have been planning for retirement. Now we have three of our grown children living with us," Ward says.

Ward's initial plan was to retire within five years.

"But I don't think it's going to happen," he says now. "We're going to continue working until circumstances force us to do something else because we want to have a place for our kids to be."

A troubling trend

Ward's experience isn't unique. A late 2025 AARP survey found that 75% of parents are providing financial support to a child 18 or older. That's apt to impact a lot of people's retirement plans.

Julianne Coleman is 62 and plans to retire abroad with her husband. Now, those plans are on hold indefinitely as her two 20-something children grapple with the reality of today's workforce.

Her 22-year-old, who's a recent college grad, is especially struggling.

"I just don't know how someone like him who's relatively new to the workforce and relatively green is going to find something fulfilling," Coleman says. "There's all this economic uncertainty created by the AI bubble."

Coleman's daughter, who's 26, is in the midst of a career pivot after landing a job out of college that was too AI-heavy.

"She doesn't want anything to do with AI, even though she's well-versed in it," Coleman says. "She wants to move another way because of how damaging she sees it being."

In the near term, Coleman is spending her own resources to feed her grown kids and provide a roof over their heads. Her dream of retiring abroad hinges on being able to sell her home, which she can't do with her children living in it.

"If my kids were fully independent, we would downsize," Coleman says. But since her kids only have roughly $10,000 in savings each and limited job prospects, Coleman feels stuck.

"The next 15 years are critical in terms of mobility," Coleman says. She's afraid she'll lose out on an opportunity she saved for because her kids can't leave the nest.

Mostly, however, she feels for her kids.

"I'm sad for them," Coleman says. "I feel like we had it so much better."

Data from the Federal Reserve Bank of New York points to the fact that remote work is sidelining young job applicants more so than AI right now. On the other hand, Challenger, Gray & Christmas found that U.S. employers implemented 45,849 job cuts in June, largely fueled by AI. While those cuts weren't necessarily specific to younger workers, they speak to a worrying trend.

Adam Spiegelman, founder and wealth adviser at Spiegelman Wealth, says he's seeing firsthand how much young adults are struggling.

"In my 25 years as a wealth adviser, I’ve never seen anything like this year," he says. "I’ve received about a dozen unsolicited emails from college juniors, seniors and recent grads … asking to shadow me or intern at my firm. That’s never happened before."

The trend is much broader, though.

"Many of my own clients are telling me their kids and grandkids are struggling to find work," Spiegelman says. "Whether it’s inflation, the broader economy, AI or some combination, this generation is having a genuinely hard time landing that first real job, and I’m seeing it push some parents to seriously reconsider their retirement timelines."

Should you delay retirement because your kids are struggling to find work?

AI might not be the only reason your 20-something children can't find work. But should you be altering your retirement plans because of it?

Spiegelman says that while it's natural to want to help your grown children, he thinks it's important to separate support from enabling.

"I have a client right now who’s buying a home for his adult child to live in rent-free — a full-time, able-bodied adult with only a part-time job. That’s a very different situation from a family giving a new grad six months to a year of breathing room while they find their footing," he says.

As Spiegelman explains, both are examples of support, but only one has an exit plan.

"Parents need to have that conversation with each other first, before their child even graduates, and agree on what their expectations are and where the line is," he says.

Steve Sexton, retirement planning expert at Sexton Advisory Group, agrees.

"It's natural for parents to want to help their children, especially when they’ve done everything right," he says. "But the biggest thing I would tell parents is support your adult children in a way that does not quietly derail your own retirement."

That's easier said than done when your child can't find a job and might be sitting on a pile of student loans. But like Spiegelman, Sexton feels parents should put a dollar amount and timeline around the help they'll provide.

Most important, Sexton says, parents should avoid tapping retirement accounts, pausing retirement contributions, or taking on new debt to support an adult child.

"Your child has time to recover financially. You may not. A 23-year-old can rebuild from a tough job market, but a 62-year-old who drains savings … may have a much harder time catching up," he says.

You're allowed to fulfill your own dreams

Ultimately, there are many such parents as Ward and Coleman who are in a position to help their kids without necessarily compromising their finances as much as their dreams. But that's also a problem, Spiegelman insists.

"People spend 20, 30, 40 years working and saving so they can retire in their sixties, and that window to actually enjoy retirement — travel, health, time — isn’t unlimited," he says. "Continually pushing that back to subsidize an adult child who could be working is usually not serving anyone well, including the child."

If parents feel they haven’t set their kids up with the right financial habits, Spiegelman says it’s not too late to have that conversation now.

"Start charging rent after a reasonable grace period, and scale support down deliberately rather than indefinitely," he says.

Spiegelman also recommends bringing in a financial adviser or CPA as the “bad guy.”

"It’s a lot easier for a parent to say, 'Our adviser says we can’t keep this up if we want to retire on schedule,' than to have that conversation alone," he says.

Some young adults are as fiscally responsible as can be, yet have fallen victim to circumstances. That's the situation Ward and Coleman are in. They're working to make their peace with a potential change of plans.

As Ward says, "We're fortunate enough to live on five acres in a great setting. It's a large house and a good place for grandkids."

He says, "I certainly do love having the kids around."

If he's ultimately forced to delay retirement, that's at least one consolation prize.

Read More

• 'Subsidized Adulting': Can You Afford to Help Your Children Financially?
• I Retired at 63 to Enjoy My Free Time, But My Grown Kids Want Help With Childcare
• The Real Cost of Funding Adult Children: Postponing Retirement
• We Are 65 With $2.6 Million. One of Our Two Daughters Struggles Financially. Is It Fair if We Only Help Her?

Every year, the FAFSA changes a little, and every year most families skim the headline and move on. This year, it's worth having a closer read. The 2026-27 form carries some of the biggest scoring changes in years, and they cut in two directions.

A few families will open their aid offer and find it suddenly brighter. Others will discover a door that used to be open has quietly closed. The trick is knowing which side of the line you land on before you file, not after.

The friendlier part: Your business or farm may stop counting against you

For years, one of the FAFSA's sore spots was how it treated families who owned a small business or a farm. If you ran a modest company or lived on the land you farmed, that net worth could inflate what the government decided you could afford.

None of it was cash you could hand to a bursar, but the formula counted it anyway. Plenty of self-employed parents watched their aid shrink because of an asset they could not actually spend.

That changes for 2026-27. The Student Aid Index, the number that drives your whole aid package, no longer counts the net worth of:

• A family-owned business with 100 or fewer employees
• A farm the family lives on
• A family-owned commercial fishing operation

If you are a small business owner, a farmer or self-employed, the household that looked too wealthy on paper last year may look very different this year. The same income, the same family, a lower SAI, and potentially more aid. It is a rare FAFSA change that simply helps.

The stricter part: A hard ceiling on the Pell Grant

Now the other edge. For the first time, the FAFSA puts a hard ceiling on who can receive a Pell Grant. If your Student Aid Index comes in at or above twice the maximum Pell award, you get nothing.

The maximum Pell for 2026-27 is $7,395, which sets the cutoff at an SAI of $14,790. Land below it and you may qualify. Cross it by a single dollar and the grant disappears, with no partial award and no sliding scale above the line.

This is genuinely new. Under the old rules, a family near the edge might still scrape together a small Pell award. That cushion is gone. The line is bright and it is final.

A second change pulls in the same direction and gets less attention: If you claim the foreign earned income exclusion, that amount now gets added back to your income when the formula checks Pell eligibility. Families with income earned abroad will see a higher number than they are used to, and some will land on the wrong side of the cutoff because of it.

The families most exposed here are the ones who sit just above the threshold. A household a few thousand dollars over the line loses the entire grant, while a near-identical household just under it keeps it.

If you think you are anywhere near $14,790 on the SAI, it is worth knowing your number before you file rather than guessing. A Student Aid Index estimator and Pell eligibility guide can tell you which side of the line you are on while you still have room to plan around it.

The new gatekeeper: Identity checks built into the form

There is also a change in how you file, not just what you report. Starting April 26, 2026, every FAFSA runs through real-time identity fraud detection the moment it is submitted.

Most people will sail through and never notice. But applications flagged as high-risk trigger an extra step: A camera-based check of a government ID, done on a phone or tablet. The Education Department has already pulled roughly 300,000 of this year's forms for added verification.

None of this should scare anyone off. The same overhaul made the form shorter, with as few as 36 questions, and sped up identity checks for people who open a StudentAid.gov account with a Social Security number.

The practical takeaway is small and easy: Have a valid government ID within reach, file from a device with a camera if you can, and do not panic if you are asked to prove you are who you say you are. It is a speed bump, not a roadblock.

What to do before you file

A few moves make the difference between a pleasant surprise and an unpleasant one.

Run your SAI first. Your Student Aid Index decides almost everything downstream, including whether you clear or miss the Pell cutoff. Estimating it early turns the whole exercise from a guess into a plan. This FAFSA and SAI guide walks you through the process.

If you own a business or farm, do not assume last year's result. The asset rules changed in your favor. A family that did not qualify for much aid before should have another look under the new formula.

If you are near the Pell line, know the number. The cutoff for 2026-27 is an SAI of $14,790. Being just over it costs you the full grant, so it pays to understand what is driving your figure before you submit.

Be ready for the ID step. Keep a government ID handy and file from a phone or tablet with a camera in case you are flagged for verification.

The bigger picture

The 2026-27 FAFSA is easier to fill out and, for a meaningful number of families, more generous. It is also blunter than the version it replaced.

The business and farm break is real relief for households that always felt overcounted. The Pell ceiling is a hard stop that did not exist a year ago.

It is the same form for everyone, with two very different outcomes baked in, and which one you get turns on details most families never look at until the money is already on the line. This is the year to look early.

Related Content

• School's Out — and Summer Is the Perfect Time to Reassess Your 529 Plan
• 2026 Changes to Student Loans You Need to Know
• Parent PLUS Caps Just Changed the Math on Paying for College: How Will You Fill the Gap?
• 6 Practical Steps to Help Keep Your Student Focused on College Rather Than the Financial Strain
• How to Find Free Money for Graduate School as Federal Loans Tighten in 2026

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

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

Dear Wealth Wise: If I have a fully funded Roth account, is there any advantage to adding a college 529 plan for my grandkids' college? I believe paying for college from a Roth account is just as good or better than paying for college from a 529 plan. A 529 plan is essentially the same as a Roth, but with different rules for how the tax-free money can be used. Is this correct? — Confused Grandparent

Dear Confused: The average cost of college today is $38,270 per year, including books, supplies and living expenses, according to the Education Data Initiative. If you're retired and are in a position to help your grandchildren cover the cost of college, it's natural to want to pitch in. But it's important to do so as efficiently as possible.

Here, a grandparent with a robust Roth IRA wants to know if there's any point to funding a 529 plan for their grandkids. As they correctly point out, 529 plans and Roth IRAs have similarities. Both accounts are funded with after-tax dollars, but gains and withdrawals are tax-free provided plan rules are followed.

In the case of a Roth IRA, gains and withdrawals are fully tax-free, provided you're at least 59½ and your account meets the five-year rule. For a 529 plan, gains and withdrawals are tax-free provided your money is being used to pay for qualified education expenses.

But that doesn't mean you should just flip a coin to choose the right home for your grandkids' college savings. It's important to understand the nuances of funding an education through a Roth IRA versus a 529 plan.

Roth IRAs and 529s are different beasts

While you can technically choose either a Roth IRA or 529 plan to save for a grandchild's college, Julian B. Morris, founder and principal at Concierge Wealth Management, says, "For affluent families, I don't view a Roth IRA and a 529 plan as interchangeable tools."

Morris calls a Roth IRA "one of the most valuable pieces of financial real estate that a high-income family can own." He points out that Roth assets are usually tricky for higher earners to accumulate. That's why he generally views Roth assets as retirement assets first and education assets last.

"Every dollar withdrawn from a Roth IRA for college is a dollar that loses the opportunity for decades of future tax-free compounding for retirement," he explains.

For example, imagine you're 65 and tap your Roth IRA to help cover your grandchild's tuition. If you live to age 90, you could miss out on a huge amount of tax-free gains.

On the other hand, as Morris explains, "529 plans are specifically designed for education, funding, and offer several advantages. Grandparents can move assets out of their taxable estate while retaining control over the asset, and a large contribution can be frontloaded to maximize long-term compounding for future generations."

The 529 "superfunding" rule Morris alludes to allows an individual grandparent to bundle five years of gifts into a single lump sum of up to $95,000 (or $190,000 for a married couple). This step instantly removes that chunk from their taxable estate, allowing it to compound tax-free for future generations.

The 529 financial aid trap (mostly) no longer applies

It used to be that grandparent-owned 529 plans had to be disclosed as assets on the FAFSA. An update to that rule makes a 529 plan a far more attractive option.

While parent-owned 529 plans can reduce aid by up to 5.64% of the account’s value and student-owned plans can reduce aid eligibility by 20% of the account’s value, a grandparent- or relative-owned 529 plan should not affect need-based federal financial aid at all. This strategy is known as the grandparent 529 loophole.

That said, roughly 200 private colleges (mostly highly selective colleges) use the CSS Profile, an additional financial aid form. CSS Profile requires students to disclose grandparent-owned 529s.

Another thing to keep in mind about 529 plans is that several states offer tax incentives for contributions. Those incentives are often available to anyone who funds a 529, even if that person is a grandparent. In many cases, though, you can only reap those tax benefits if you contribute to your home state's plan.

You can roll unused 529 funds into a Roth IRA

Morris also points out that recent rule changes have made 529 plans even more attractive.

"Unused 529 assets may be eligible for rollover into a Roth IRA for the beneficiaries. The ability to convert unused education dollars into future retirement dollars has significantly reduced the fear of overfunding a 529 plan and has greatly increased its use for life after college."

As Jaine Coann Barton, Wealth Management Advisor at TIAA, explains, "If you end up with more money in the 529 than your grandchild needs, current rules allow you to roll over up to $35,000 of those excess funds into a Roth IRA in your grandchild’s name."

Just keep in mind the rules for rolling excess 529 funds into a Roth IRA. For example, the account must have been open for at least 15 years before the transfer. Moreover, your grandchild must have earned income for the year that is at least equal to the amount of the transfer.

For these reasons, Morris typically recommends using a Roth IRA as a retirement nest egg and using a 529 plan if the intent is to fund an education.

Separating personal savings from college savings is often best

Ultimately, your best move will be to open a 529 plan for your grandchild. You never know when you might face expensive home repairs, need a new vehicle, or require long-term care. Allocating funds to a 529 plan allows for that separation. You can help fund your grandkids' education without having to worry about dipping into reserves you might eventually need yourself.

Along these lines, if you stick with a Roth IRA, you might contribute less toward your grandchildren's education than what you can afford if you're worried there won't be enough money left for your own needs.

Does the flexibility of a Roth IRA outweigh the benefits of a 529?

Despite positive changes to 529 plan rules, one expert offered a contrarian view: A Roth IRA might ultimately be your most flexible option for funding a grandchild's education.

As Coann Barton points out, "It can be difficult to predict what your grandchildren's educational path will look like. Will they attend a two-year community college or a four-year private university? Will advances in artificial intelligence reshape the cost of or need for a traditional college education? A Roth IRA allows you to adapt to whatever the future holds without being locked into a specific purpose."

You can't predict your grandchild's college plans or the future of college altogether, but the addition of an IRA rollover of up to $35,000 does offset some of Barton's concerns.

A word from Wealth Wise — 529 plans are almost always best

Overall, a 529 plan beats a Roth IRA by most criteria. It can help your grandchild while also aiding your tax planning. With a 529 plan, you can shield large sums all at once through superfunding, building a hefty college fund and potentially earning you a state tax credit or deduction.

Roth IRAs, on the other hand, allow only small annual contributions ($7,500 to $8,600 for 2026). Those contributions are probably better reserved for retirement. Since you're already retired, you can't make new contributions to a Roth IRA, anyway.

Ultimately, you're doing a wonderful thing — helping grandchildren you care about get a degree while minimizing their student debt burden.

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

MORE WEALTH WISE STORIES

• 'Subsidized Adulting': Can You Afford to Help Your Children Financially?
• Should Fully Funded Retirees Invest Like 30-Year-Olds?
• You’ve Mastered Asset Allocation — Now It’s Time for Asset Location
• A Multimillionaire Wants to Marry Again. How Can She Protect Her Money?
• Should We Borrow Money From Our Elderly Father?
• Should We Downsize or Drain Our 401(k) to Pay Off Our Home?
• Bridging the Healthcare Age Gap for Military Couples with TRICARE and Medicare

Read More on Paying for Grandkids' College

• We're 75 With $3.2 Million. Our Grandchild Needs Help Paying for College, but It's Not Our Fault She Picked a School That's $90k a Year!
• We're 54 With $1.8 Million. My Wife Wants to Start a College Fund for Our Grandson, but I Think We Should Keep Funding Our Retirement.
• I Want to Help Pay for My Grandkids' College. Should I Make a Lump-Sum 529 Plan Contribution or Spread Funds out Through the Years?

Most financial advice caters to stable payroll schedules, but freelancers don't make the same money every month.

That means you must plan differently.

Instead of planning around what you'll earn, plan around what you can count on, and put structure between the months that overdeliver and the ones that come up short.

Understanding your income streams

Most people with variable income have five or six moving pieces interacting at once, all with different pay cycles.

A sales month can look fantastic on paper while cash flow is still tight because commissions haven't cleared yet.

One delayed payment can throw off an entire month if your system is too tight.

How do you analyze your income quarterly to spot trends and seasonal patterns?

• Know when your busy and slow periods usually hit, so you can time major expenses and savings properly.
• Don't mentally spend money before it arrives or assume one strong quarter is your new normal.
• Track invoices, payment dates and which clients consistently pay late.

Tracking these helps understand when to take time off and make large purchases.

How to set financial goals

Instead of vague goals, attach percentages or fixed actions to incoming money:

• Move 10% of every payment into retirement
• Send 25% to taxes immediately
• Route part of each commission into emergency savings before touching the rest
• Near-term goals usually matter first:
• Quarterly taxes
• Emergency savings
• Eliminating high-interest debt
• Covering periods in which you can't work
• Building buffers for healthcare or time off

Jeff Zhou, CEO and founder of Fig Loans, works in consumer lending, where income volatility directly affects repayment behavior and financial stability. "The people who manage variable income best usually are not obsessing over perfect budgeting," he says. "They build small automatic rules that keep working even when income changes.

"Moving part of every deposit into taxes, savings or debt immediately creates stability before spending decisions have a chance to take over."

How to create a budget tailored to variable income

The key is budgeting based on your lowest typical monthly income rather than your average.

That lowest typical month number becomes the foundation for almost everything:

• Housing
• Utilities
• Insurance
• Food
• Transportation
• Minimum debt payments
• Baseline business expenses

If those essentials fit inside your floor month, the pressure drops dramatically.

Automatically transfer percentages of each check into different accounts, so you're saving the same, regardless of how much you earn that month.

Variable earners usually can't afford an aggressive lifestyle inflation because the income ceiling changes faster than the bills do. Even for salaried individuals, lifestyle inflation is hardly a good thing.

A flexible budget works better:

• Lean months prioritize essentials.
• Strong months strengthen reserves.
• The percentages flex.
• The system stays intact.

The structure matters more than keeping the same ratios every month.

Managing debt and expenses

A manageable payment during a strong month can feel oppressive three weeks later if work slows down unexpectedly.

During lean periods, the priority is usually stability:

• Make minimum payments
• Protect your credit
• Avoid missed payments
• Keep cash flow intact

Strong months are when you attack balances aggressively.

High-interest debt matters most because it keeps punishing you during weak income periods. The debt avalanche method generally saves the most on interest over time.

Expense audits matter for self-employed workers whose business tools and subscriptions multiply over time.

Review recurring expenses regularly. Separate personal and business spending clearly.

Otherwise, it becomes difficult to see which costs are helping you earn more and which ones are just friction.

Tax planning and preparation

Set aside 25% to 30% of each payment for taxes immediately upon receipt to create a buffer.

Open a dedicated tax savings account, and treat those deposits as non-negotiable. This simple habit prevents the stress of scrambling to pay quarterly estimates or year-end tax bills.

Once tax money mixes into your operating cash, it becomes psychologically easy to treat it like available income.

A few practical anchors help:

• Understand estimated tax deadlines through the IRS
• Learn self-employment tax obligations for Social Security and Medicare
• Keep clean records year-round
• Track deductions consistently instead of rebuilding everything during tax season

The people who handle variable income best are the people who separate obligations before the money ever feels spendable.

Investing with irregular earnings

Variable earners usually do better with flexible investing systems instead of fixed contribution expectations.

Percentage-based contributions work well because they scale naturally with income.

During strong periods, contributions rise automatically. During slower stretches, you reduce contributions without abandoning the habit entirely.

Someone with unpredictable earnings often needs more accessible cash than a salaried worker because dry spells happen.

Selling investments at the wrong time to cover basic expenses creates a different problem entirely.Marcus Reid, financial manager at Searqle, works with teams managing operational budgets across fluctuating revenue cycles.

"Variable income stops feeling chaotic once you stop trying to predict it and start building around the floor instead of the ceiling," he says. "The system has to work in your worst month, not your best one. Everything else is just upside."

Adjust as you go

A variable-income financial plan is never static because the income itself is not static.

When complexity grows, bringing in a fiduciary financial planner or tax specialist early is usually cheaper than cleaning up avoidable mistakes later.

Related Content

• 12 Tax Strategies Every Self-Employed Worker Needs in 2026
• Nine Key Tips Self-Employed and Gig Workers Should Know About Retirement
• The First 5 Years After a Salary Jump: How to Handle a Pay Raise Without Buying a Life You Can't Affordv
• I'm a Financial Pro: This Is What No One Will Tell You About Getting Rich
• Tired of Tracking Every Dollar You Spend? You Need an Anti-Budget

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.

My paralegal let me know I had a call waiting from a woman who teaches broadcast journalism. She wanted to discuss serious issues facing university students who find themselves caught in a trap because of the employment contract they signed when they were hired as a broadcast journalist.

I took the call, from "Rachel," who first wanted assurance that our conversation would be confidential. After I assured her it would be, she told me that she was calling about employees on the news teams of local TV stations owned by giant corporations "being forced to continue working when they want to quit.

"Viewers have no idea of this abuse, and depending on where you live and which local television stations you watch, often the nice young people — typically in their first job in TV news right after graduation — realize it isn't for them and don't want to be there, but they are, practically speaking, forced to continue working or suffer thousands of dollars in penalties.

"One of my former students is going through a serious depression as we speak, mugged financially by management at a television station she wants to leave. "Mr. Beaver, your column is popular in university mass communication departments, and you can do so many young people a great service by writing about this abuse."

So, how can this happen in today's America? Two things: Supply-and-demand and a corporate management philosophy among some broadcasters that views their employees as disposable.

It's not all glamor

If you live in almost any U.S. city with a population of less than 500,000 and watch local television, no doubt you've seen a revolving door of new "talent" delivering the news.

Every few months, new faces appear — some are absolute standouts — only to vanish, sometimes within months, for greener pastures. Often, viewers see people who just do not belong on the air. So, why have they been hired?

"There is a very good reason," Rachel explained. "There is an absolute glut of students majoring in broadcast journalism. When we ask our students why they chose this field, the most common answer comes down to their perception of television news as 'glamorous.'

"In reality, a broadcast newsroom is often one of the most toxic places in journalism, and sadly, it isn't until the graduates land jobs that the truth hits some of them.

"There is, in addition, a perception that these people we see on our local news are extremely well paid. So many students see young people like themselves on the news wearing what appears to be expensive clothing and do not realize this is fantasy."

TV reporters qualifying for food subsidies

How much would you figure is reasonable pay for a new graduate in a local television news department in cities with population of less than 500,000?

"First-job reporters in small markets are paid from $12 to $16 an hour, and many across the country (receive SNAP benefits). The low pay and exploitation in television news would shock viewers if they knew," Rachel said.

"This is a shrinking industry," she added, "with massive consolidation, layoffs and contractual traps. Sixty-five percent to 75% of broadcast graduates never enter TV news, and among the 25% to 35% who do, about 50% to 60% leave within two to three years.

"Only about 10% to 15% of broadcast journalism majors stay in TV news long term."

Reimbursement is required

Rachel sent me several employment contracts that her students have signed with a number of broadcasters. Most of them had this type of a clause:

If you quit before the expiration of your contract, we have the right to recover from you up to one half of your last six months compensation to reimburse us for publicizing you as a team member, training, clothing allowance and much more.

It isn't rocket science. From what I have seen, the repayment amounts are not tied to actual costs or a justifiable estimate of damages, and the intent appears to be to punish the employee for quitting, plain and simple.

Many of these provisions are unconscionable.

States have differing laws in the area

In California, it is illegal to require repayment of wages, and virtually none of this is legal, but that is not the case in several other states where employer rights dominate.

The effect of this language is clear: It restricts employee mobility and violates public policy in some jurisdictions.

As far back as 1911, in Bailey v. Alabama, the Supreme Court struck down a law that criminalized quitting after receiving an advance, holding that, "You cannot force someone to work or punish them for quitting in a way that effectively forces them to stay."

The court said this created a system of involuntary servitude, which, as we all know, was outlawed with slavery in 1865 when the 13th Amendment to the U.S. Constitution was ratified.

My recommendation

When offered a job and handed an employment contract, any broadcast journalism graduate — or anyone — needs to schedule a consultation with a labor and employment attorney who represents employees.

Don't just sign the contract!

Often, employers will include language in employment contracts that they know is not enforceable, hoping that, out of an applicant's desperation to get a job, they will sign anything.

For several years, I was an "action reporter" in local television and enjoyed the experience, but I know too many people who grew tired of being nomads, going from city to city every two to three years, station to station, discovering it wasn't what they'd ever expected. They opted for a more normal life with family, kids, a promise of tomorrow and a real home.

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.

Related Content

• Can a Potential Employee Negotiate Conditions of Criticism?
• How to Get Employees to Tell You Like It Is
• Are You a Doormat at Work? The Hidden Cost of Excessive People-Pleasing
• College Grads: This Is What Hiring Managers Are Thinking (But Won't Admit)
• How to Spot a Drama Addict at Work (and What to Do About 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.

As another school year winds down, many families are focused on graduation parties, summer camps and the logistics of the next academic year.

But summer can also be an ideal time to step back and reassess how you're funding your family's education, before fall tuition bills, enrollment decisions and financial aid deadlines arrive.

For many households, that means taking a fresh look at 529 plans — accounts that have quietly become far more flexible and valuable than many parents realize.

For years, 529 plans were viewed primarily as college savings vehicles. Parents or grandparents contributed over time, invested the funds and planned for the balance to cover future tuition expenses.

That function is still at the core of many 529 strategies, but recent legislative changes have significantly expanded how these accounts can be used.

The One Big Beautiful Bill Act (OBBBA), signed into law in 2025, expanded how families can use 529 assets. Beginning in 2026, another important change took effect: The annual federal limit for qualified K-12 expenses increased from $10,000 to $20,000 per beneficiary.

That is a meaningful shift for families with children in private school, students who need tutoring or academic support or households thinking more broadly about how education planning fits into their long-term financial plan.

529 plans are no longer just about college tuition

One of the biggest misconceptions surrounding 529 plans is that they can only be used for college tuition.

Under the expanded rules, 529 funds can now be used for a broader range of K-12 education expenses, including tuition, curriculum materials, books, instructional supplies, tutoring, standardized testing fees, dual-enrollment costs and certain educational therapies for students with disabilities.

That flexibility can be especially relevant during the summer. This is often when families are reviewing report cards, evaluating tutoring needs and planning enrichment programs.

However, families should understand that not every education-related expense will qualify, and state tax treatment can vary. Before taking distributions, investors should review their state's rules and may benefit from consulting a tax adviser. But the broader message is clear: 529 plans have evolved into more versatile education funding tools.

Why families should rethink 'overfunding' concerns

Historically, many families were cautious about contributing too aggressively to 529 plans because they feared ending up with excess balances if a child received scholarships, attended a less expensive school or chose not to attend college altogether.

Those concerns have not disappeared, but they have become less restrictive in recent years.

One reason is the expanded list of qualified education expenses. Another is the ability to roll unused 529 assets into a Roth IRA for the beneficiary if certain requirements are met. Current rules allow up to $35,000 to be rolled into a Roth IRA over time, provided the 529 account has generally been open for at least 15 years and other contribution rules were satisfied.

The planning implications are significant. In some cases, a 529 plan can now support a child not only through school, but potentially into early adulthood and saving for retirement as well.

That shift is changing the tone of conversations many advisers are having with families. In the past, clients often aimed to fund only a portion of expected education costs because they worried about excess balances. Today, for families with the cash flow and balance sheets to support it, we are discussing whether it makes sense to fund more aggressively.

Unused dollars may support another family member, help with qualified education expenses earlier than college or, in some cases, begin building a Roth IRA foundation for the child.

In that sense, the 529 has evolved from a narrowly focused college account into more of a long-term family planning tool.

Start earlier than you think — and review your state plan

If there is one consistent takeaway for young families, it is to start early.

The value of a 529 plan comes largely from tax-advantaged growth over time. The longer the money is invested, the more valuable that potential growth can become. Starting early may also matter for families who eventually want to preserve the option of a Roth IRA rollover, since the account-age requirement is generally 15 years.

Families should also periodically review which state plan they are using. Many investors default to their home state's 529 plan, and that often makes sense if the state offers an income tax deduction or credit.

However, many families do not realize they are not always limited to their own state's plan.

Some states, including Pennsylvania, for example, allow residents to receive a tax deduction even when investing through another state's 529 plan. Other states, including Georgia, require residents to use the in-state plan to receive the tax benefit.

That distinction matters because 529 plans can vary significantly in fees, investment options and usability. Certain plans, such as Utah's my529 program, are viewed favorably by advisers because of their low costs and broad investment selection.

For some families, it may even make sense to split contributions between multiple state plans — using one to maximize state tax benefits while directing additional savings to another plan with stronger investment features.

Do not ignore FAFSA or scholarship applications

Summer is also a good time to revisit financial aid planning. The federal FAFSA deadline for the 2025-2026 academic year is June 30, 2026, and families should pay close attention to school and state deadlines, which may come earlier.

Even families who assume they will not qualify for need-based aid should not automatically skip the FAFSA. Some merit scholarships, institutional aid programs or other opportunities may require it.

Scholarships also create additional 529 planning opportunities. If a student receives a scholarship, families may generally withdraw up to the scholarship amount from a 529 without paying the usual 10% penalty on earnings, although income tax may still apply to the earnings portion.

As summer begins, families may want to take time to review whether their current 529 strategy still reflects how these accounts can now be used. Between expanded K-12 flexibility, Roth IRA rollover opportunities and evolving state-plan considerations, many households may have more planning options than they realize.

Related Content

• Best 529 Plans of 2026
• 14 Education Tax Credits and Deductions to Know
• 529 Plan Contribution Limits for 2026
• 2026 Changes to Student Loans You Need to Know
• I'm a Financial Planner: Trump Accounts Are a No-Brainer if You're Eligible (How to Apply)

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.

At a time when college costs are spiraling out of control for many families, city, state and federal governments are offering relief. In the latest example, New York City has a proposal that would give kindergarteners $1,000 into a college savings account, with some families qualifying for up to $3,000.

Who qualifies for the maximum benefit? Jack Lobel, press secretary of the New York City Council, told Kiplinger, "Any participant who is already eligible for Human Resources Administration (HRA) benefits receives an additional $2,000 on top of the $1,000." The HRA is NYC's social service agency serving families by providing food, housing, child support and other services.

The measure would have to be approved by Mayor Zohran Mamdani, who excluded the proposal from his executive budget in May, per the New York Times, although budget negotiations are ongoing. He has expressed interest in expanding contributions into children's savings accounts.

The NYC proposal is one of the latest government initiatives designed to jumpstart college savings. These programs, which offer free funding, represent the most pertinent news for families seeking college relief. Here's a look at other government-backed funds you may qualify for.

Which states offer college aid for families?

Here's a look at states providing some incentives to help you save for college:

• California: Through the CalKIDS program, children can earn scholarships of up to $1,500 if enrolled in low-income public schools.
• Connecticut: The Baby Bond program helps parents by providing up to $3,200 for low-income families with children to attend college, buy a home or start a business.
• Pennsylvania: Thanks to the Keystone Scholars initiative, every child born in the state receives $100 into a PA 529 education savings account.

Along with these, other states offering incentives include Texas, Indiana, Maine, Nebraska, Rhode Island and Nevada. If you live in one of these states, check out their programs and what you would need to do to qualify.

Meanwhile, there's a new national program about to roll out that benefits all qualified families.

Trump Accounts are bringing the concept nationwide

As part of the One Big Beautiful Bill Act of 2025, the federal government will open tax-advantaged college savings accounts for U.S. citizens born between January 1, 2025, and December 31, 2028. These accounts feature a $1,000 contribution to help jumpstart your college savings.

From here, families can make annual contributions of up to $5,000 into U.S. equity funds — think the S&P 500. Employers can also make contributions, but they're capped at $2,500 annually.

You can open one by filling out Form 4547. Next, download the Trump Accounts app on the Apple App Store or Google Play. This allows you to monitor the account and make additional deposits. Once registered, you'll wait for an invite. These will come out in a few weeks as the Trump Accounts officially launch on July 4.

With this in mind, there are a few limitations to using these accounts. One, you won't be able to make any more contributions after your child reaches 18. Withdrawals are also not tax-free like they would be with 529 plans, and you have a narrower window of investment options. Still, even with the limitations, having $1,000 is a great start for families that need a boost with college savings.

In addition to using these programs, there are other options you can fund yourself that help you reach your savings goals, so you minimize how much debt you or your child needs to take on.

How do child savings accounts work, and what are my options?

While those are programs and proposals where the government funds savings, there are many options for savings or investment vehicles funded by yourself, designed to help parents (or grandparents) save for higher educational expenses. Some programs also allow children to use the money to open a business or to make a down payment on a home.

Plans, such as 529 and Roth IRA, also offer tax savings advantages as long as you use the earnings for college expenses. Here's a breakdown of some of the most popular options:

529 plans

This is a tax-advantaged investment account, where you invest after-tax earnings in ETFs, mutual funds or age-based portfolios. The benefit of this approach is that earnings grow tax-deferred, and as long as you withdraw funds for educational expenses, you won't pay federal tax on them.

This is the best option as you receive federal tax breaks (many states offer them too), and your child can use this money for trade schools, graduate programs and some college expenses overseas. Single filers can contribute up to $19,000, while married filing jointly couples can contribute up to $38,000 annually. You can do more in either instance, but it will go against your lifetime gift and estate tax exclusion.

Read more: 529 Plans: Everything You Need to Know

Roth IRA

While this is primarily a vehicle for retirement savings, you can also use it wisely to fund your child's education. Withdraw your contributions tax-free and your earnings tax-free, provided they're used for higher education expenses. The only thing to consider is that annual contributions are capped at $7,500. Meanwhile, with 529 plans, you don't have annual limits.

Read more: Why Every Grandparent Should Consider a Custodial Roth IRA Now + Where to Save Your Kids' Cash

Coverdell Education Savings Account

These accounts work similarly to Roth IRAs in that you contribute post-tax money into self-directed investments like bonds, stocks and more. Unlike Roth IRAs, Coverdell caps maximum annual deposits at $2,000.

There are also income restrictions with these accounts. Single filers have to earn less than $95,000 to $110,000 or more, whereas if you're married filing jointly, you won't qualify if you earn between $190,000 to $220,000 or more.

There's also a new college savings program that all qualified parents should use.

Read more: Coverdell ESAs vs 529 Plans: Which Should You Choose?

What's the best way to save for my child's college education?

I recommended a blended approach. Definitely open a Trump Account if you qualify because it's a free $1,000. Even if that doesn't become your main account for saving for college, over time, that money can grow, giving your child more funds to use when the time arrives.

I also suggest a 529 plan. They're among the best savings vehicles for college due to their flexible investment choices and tax savings. To determine long-term goals and monthly savings targets, consult with your spouse, a trusted friend or a financial advisor, who can guide you on specific savings measurables. And don't forget to take advantage of any local programs, as they can make saving for college more within reach.

Related content

• Best 529 Plans of 2026
• GOP Trump Account for Savings: Treasury Outlines July 4 Launch
• The Right Way and the Wrong Way to Use a 529 Plan That Doesn't Cover the Full Cost of College
• Student Loans are Changing This Summer for Undergrad and Grad Students and Parents. Here's What to Know.

As the Class of 2026 are handed their diplomas this spring, the outlook is bleak. They're facing not only one of the worst job markets in years, but also — and perhaps more devastatingly — the realization that the promise of higher education they've been sold their entire lives was a lie.

It's a broken promise for graduates, but also for the rest of us. The college-first mindset is ruining the job prospects of our young people and wrecking the economy.

It's time for America to grapple with what its college-first mindset has wrought. And it isn't pretty.

What went wrong?

For years, America sold young people a simple promise: Work hard, go to college, get a degree, and opportunity will follow.

That promise was rooted in something real. College opened doors for millions of people, building careers, widening horizons and helping families gain social mobility. But over time, what was a good path for some became something more rigid.

The four-year degree stopped being one strong option among several and became, for many parents, educators and policymakers, the only fully respectable route to success.

That belief shaped more than culture. It shaped how we spend money, how schools advise students and how the country defines ambition. Now the labor market is exposing how narrow that view has become.

Many young college graduates are finding that the old path into white-collar life no longer works the way it once did.

Just 30% of last year's college graduates were able to find positions in their chosen field, as entry-level jobs continue to be wiped out, and a tenuous economy pushes employers to do more with fewer people.