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.

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

As 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.

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

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.

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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.

Growing shortage of skilled workers

College still has value, of course. For many professions, it remains an essential stepping stone. But the larger assumption that a bachelor's degree is the safest default path for nearly everyone now looks less like wisdom and more like habit.

While college graduates are struggling, the U.S. is in desperate need of the skilled, well-paid workers who have been seriously undervalued in our public imagination.

Contractors need electricians, plumbers, welders and HVAC technicians; manufacturers need machinists, maintenance specialists and advanced technicians; healthcare systems, logistics networks, public infrastructure and public safety all depend on people with real skills that do not fit neatly inside the old, four-year college ladder.

These jobs are not fallback options; they are central to the functioning of modern life — and the AI revolution is only making these jobs all the more valuable. The explosive growth of data centers, which require their own fleet of skilled laborers, from construction to plumbing, has increased the demand for certain positions by over 100%.

And they're well-paying jobs, making anywhere from $80,000 to $250,000.

According to a study by the Bipartisan Policy Center, the U.S. is projected to face a shortage of 6 million workers by 2032, even as 70% of jobs will require education or training beyond high school. In construction alone, there are nearly two job openings for every unemployed worker.

Compare that with the unemployment rate for recent college graduates, which is a point and a half higher than the national average.

Yet, across the American education system, college is still spoken about as if it were the only honorable route into adulthood. High schools speak fluently about college preparedness while treating readiness for anything else as a lesser goal. Parents and public policy reflect the same bias.

The path towards traditional degrees is heavily subsidized, while many shorter, job-connected routes remain thin, scattered or culturally discounted. Meanwhile, the success of the four-year path is far from guaranteed; nationally, only about 60% of students complete a bachelor's degree within six years.

Students are being disenfranchised, while the talent shortage for employers only continues to grow.

How to break out of the college-first mindset

Across every level of education and policy, the U.S. needs to extricate itself from this college-first mindset. A healthy society does not organize opportunity around a single script. It builds multiple credible paths to economic security, adult dignity and useful contribution.

A quality education at a top-level university is right for some, yes, but for many others, the path to success looks like an excellent apprenticeship program, a modern community college pathway, employer-led training, or short-term credentials that are tied to real labor market demand.

These aren't side doors for those who couldn't rough it; they're part of a national talent strategy that more closely links the education system with private industry. On a state level, it means partnering with business groups to shape curriculum and state licensing requirements.

On a federal level, it means rethinking how — and what programs — we subsidize.

The Education Department's proposed Workforce Pell rule changes are a start. Updated rules would allow students to use Pell Grants for eligible short-term workforce programs beginning in July 2026, including programs as short as eight weeks.

It's a critical first step, but one that must continue to grow: one new funding stream will not fix a system that remains fragmented, uneven and culturally biased toward one route over the rest.

America does not need to turn against college. It needs to stop acting as if college is the only serious path for serious people. That idea has distorted our education system for years. Now it is starting to fail the people it was supposed to serve.

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

For many well‑intentioned parents, saving for college through a 529 plan feels like doing everything right. Contributions grow tax‑free, withdrawals can be tax‑free when used properly, and the account is designed specifically for education.

Yet when college finally arrives, some families discover that the balance falls short of the full cost. Rising tuition, housing expenses and education inflation have turned college planning into a moving target, even for disciplined savers.

The good news is that a 529 plan can still play a meaningful role, even when it does not fully fund four years of school. The key is how the money is used, when it is distributed and how it coordinates with other resources.

Thoughtful strategies can help parents maximize tax benefits, avoid costly mistakes and stretch limited savings further.

Qualified expenses

The primary advantage of a 529 plan is tax‑free withdrawals, but only when distributions are used for qualified education expenses.

At the college level, these expenses include tuition, mandatory fees, books, required supplies, computers, internet access and room and board for students enrolled at least half‑time.

Room and board is subject to limits based on the school's published cost of attendance, especially for students living off campus.

When funds are limited, it is often best to reserve 529 dollars for clearly qualified expenses such as tuition and required fees. These expenses are straightforward to document and provide the strongest tax benefit.

Using 529 money for non‑qualified costs can trigger income tax and penalties on the earnings portion of the withdrawal, reducing the effectiveness of the account.

Timing

One of the most common 529 mistakes involves the timing of the distributions. Distributions must occur in the same tax year that qualified expenses are paid. Paying tuition in January while taking a distribution in December, or the reverse, can unintentionally result in a taxable withdrawal.

Academic calendars can complicate this further. Spring semester tuition bills are often issued in December for a semester that begins in January. Families should coordinate payments and withdrawals so that both occur within the same calendar year. This helps ensure consistency between Form 1098‑T from the school and Form 1099‑Q from the 529 plan administrator.

Careful recordkeeping is essential. Retaining tuition statements, housing invoices and receipts provides clarity at tax time and helps support the tax‑free nature of the withdrawal if questions ever arise.

Other timing considerations

When a 529 balance will not cover all costs, it is rarely optimal to spend it all in the freshman year. College expenses often increase over time, and families may benefit from spreading withdrawals over all four years.

Some parents intentionally preserve 529 funds for later years, when scholarships may decrease or housing costs rise. Others use the account primarily for room and board once grants and discounts reduce tuition expenses.

There is no single correct approach, but the guiding principle is to avoid exhausting the account too early unless there is a clear tax or cash‑flow reason to do so.

Let the 529 complement other funding sources

When college costs exceed 529 savings, the account should be viewed as one part of a broader funding strategy. Most families rely on a combination of current income, savings, financial aid, scholarships and loans.

In many cases, limited student borrowing, particularly through federal student loans, can be a reasonable choice when it allows the 529 to be used efficiently and helps parents preserve retirement assets. Paying some expenses from cash flow can also allow remaining 529 funds to continue growing tax‑free for future years.

Parents should be cautious about draining their retirement accounts or sacrificing long‑term financial security in order to fully fund college. Education is important, but it should not come at the expense of financial stability later in life.

Be mindful of financial aid considerations

Parent‑owned 529 plans are treated relatively favorably in the financial aid process and are generally assessed as parental assets. However, distributions can affect aid eligibility depending on account ownership and timing.

While recent Free Application for Federal Student Aid (FAFSA) changes have reduced penalties related to certain distributions, families should still coordinate withdrawals thoughtfully, especially when 529 accounts are owned by grandparents or other relatives.

Understanding how distributions may interact with financial aid calculations helps avoid unintended reductions in eligibility.

Take advantage of expanded flexibility

529 plans are more flexible than many families realize. In addition to traditional college expenses, funds can be used for certain vocational programs, apprenticeships, certification costs and limited student loan repayment.

If a balance remains after undergraduate education, the account does not need to be hurriedly spent. Funds can be used for graduate school, reassigned to another family member or potentially rolled to a Roth IRA for the beneficiary under current rules and limitations. This flexibility reduces pressure to over‑distribute funds during the college years.

A failure? No way!

An underfunded 529 plan is not a failure. When used thoughtfully, it can still significantly reduce the cost of higher education. The value comes from strategic timing, careful coordination with tax credits and intentional use of qualified expenses.

Families who approach 529 distributions with a plan, rather than reacting to tuition bills, often find that their savings go further than expected. Viewing the 529 as part of a broader financial strategy allows parents to support education goals while still protecting their long‑term financial health.

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

When you work in an intense field like medicine, your job might eventually take a toll on your mental health. In 2025, 49.8% of emergency medical practitioners reported at least one symptom of burnout, according to the American Medical Association. And persistent burnout could set the stage for an early retirement, which may be good for your outlook but less good for your finances.

There may, however, be a better way — a sabbatical.

If you tuned into the Emmy-winning medical drama The Pitt last season, you know that the storyline revolved around Dr. Michael "Robby" Robinavitch's planned sabbatical. Robby, the show's main character, had planned a three-month motorcycle trip to escape the grind and trauma of the emergency department, where he works as an attending physician.

Of course, as viewers, we don't actually get to see Robby embark on his epic escape. But he may have the right idea.

If you're in a high-pressure job, whether it's medicine, finance, law, or something else, you may reach a point when you feel the need to call it quits professionally. But it pays to explore a sabbatical as a potential alternative to early retirement before you bring your career to a permanent close.

Sometimes, you need a serious reset

Part of the reason so many people in high-pressure jobs succumb to burnout is that they don't allow themselves opportunities to reset. A sabbatical could make that possible.

Michelle Seijas, Ed.D. is an executive and leadership coach who understands the importance of getting that reset.

"I took a six-month sabbatical in 2017 after burning out as a high school principal," she says. "I aspired to be a superintendent and realized that continuing on that path was not sustainable. My sabbatical allowed me to rest, reflect, and re-emerge with a new plan for my life and career."

As Seijas explains, a sabbatical isn't just a break.

"It's a reset of your nervous system," she says. "The leaders I work with aren't just tired. They've lost the thread between who they are and what they do every day. Time away, when used intentionally, gives them the space to rediscover that thread before they make an irreversible decision."

Lisa Chen, LMFT and founder of Lisa Chen & Associates Therapy, says, "A sabbatical is something I highly recommend for burned-out professionals who are psychologically depleted. This time off allows their nervous systems to move out of fight or flight mode into a place where they can reconnect with themselves."

A major misconception about burnout, Chen explains, is that people just need a vacation and everything will be fine.

"I see burnout as functioning in a prolonged state of nervous system overdrive, so a weekend off won't be enough to repair someone who's experiencing burnout," she explains.

Chen has seen her share of professionals contemplate early retirement due to burnout and stress. In those situations, she'll often try to steer them toward an extended break when appropriate.

"I'd much rather see my clients be intentional about their retirement, not to leave their profession out of impulse," she says.

Making plans for your sabbatical

Some people use sabbaticals to travel. Others use them to pursue creative projects or obtain licenses or credentials for a career shift.

Chen says it's a good idea to think about how to maximize a sabbatical before it begins. But, she says, you don't necessarily have to fixate on a single accomplishment or goal.

"I highly recommend those who are suffering from burnout to make their sabbaticals restorative and intentional," Chen explains. "It's not about what they accomplish during their time off… Time off is more about rest, introspection with or without therapy, learning how to regulate their nervous system, and reconnecting with meaning outside of work."

Consider it a retirement trial run you can learn from

Your burnout may be pushing you toward retirement. But Aaron Ulrich, Owner at Integra Financial Planning, LLC, says a sabbatical is a great way to find out whether you're truly emotionally ready.

"In financial planning conversations, I'll often ask clients, 'How do you feel at the end of a vacation?'" Ulrich says. "If you're the type of person who starts packing Thursday night for a vacation that ends Saturday because you need to get back to your routine, then we need to talk about what retirement is going to look like for you. Not from a financial view, but from an emotional one."

In Ulrich's mind, a sabbatical gives you an opportunity to see what life is like without a job as an anchor. It's insight that a vacation alone won't give you.

"You're not just planning a trip and the big, exciting parts of time away from your career," he says. "You're planning how you're going to satiate your mind and spirit with a new lifestyle that fulfills you. If you can't create that during a sabbatical, then the permanent sabbatical known as retirement may be a challenge."

Make sure you're prepared financially

While a sabbatical could serve as the reset you need to make the most of your final stretch in the workforce, it's important to make sure you can swing that time off financially.

"Planning for hobbies and travel is obvious, and easy to put a price tag on," Ulrich says. "Planning for the gaps between those things can be much more challenging."

To that end, it's important to map out your expenses for your sabbatical. That includes potentially having to pay more for health insurance. It also means you may need to pause contributions to retirement savings, so you'll need to see how that affects your long-term financial plan.

Didi Chen, CFP, CFA, financial planner, and founder at Everleap Financial Planning, worked in finance and tech for over 10 years before walking away from a six-figure career in 2024 for a planned sabbatical. And she says there are specific steps you can take to protect yourself financially while you're away from work.

"In many states, mental health conditions qualify for paid medical leave, which means your job stays protected and RSUs keep vesting. Talk to a doctor and plan this out," she says.

Those looking to pause corporate careers have distinct financial levers to pull. For those workers, Chen also recommends timing your temporary exit around your RSU vesting schedule, especially if you don't plan to return to your current job. Waiting a few months, for example, could help you kick off your sabbatical in a stronger place financially.

Finally, she says, not earning a paycheck for a while could set the stage for other savvy financial moves.

"Your sabbatical year is your best tax-planning window," Chen says. "A Roth conversion and tax gain harvesting at 0% capital gains are simply off the table at [higher incomes]."

All told, you don't want to spend your sabbatical stressing out about money if the point is to regroup mentally and figure out your next steps. With the right planning, you can spend that time focusing on you instead of worrying about paying the bills and how your time away will impact your financial goals.

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George Bernard Shaw is credited with saying that if all economists were laid end to end, they wouldn't reach a conclusion. And President Truman said, "Give me a one-handed economist. All my economists say 'on the one hand…' then 'but on the other hand.'"

If you read the business news, it often seems that Shaw and Truman were right. Some economists seem to always favor one viewpoint, while others favor another. Often, it seems that their opinions line up with their politics.

And yet, there are many areas where there is common thought among economists. One way to find them is to read basic economics textbooks. When professors write these books for students, they want to cover the basic principles that are needed to understand the field.

While there are many areas of agreement, these are the six that I think are most important.

1. Incentives matter

When it comes to incentives, what can we do to encourage people to take one action over another? How can we attract people to one career over another?

Most of us know it takes years of study and high tuition to become a doctor, lawyer or engineer. But people who go into these fields can look forward to financial and social rewards.

And even if they don't reach the pinnacle of income in their fields, they can benefit from the psychological rewards of their professions. Can there be any greater reward than for a doctor to save a patient's life?

Other people may choose to work in fields that aren't as difficult to enter but can provide an attractive set of workplace benefits.

Look at how employers who are competing for qualified workers bid up salaries, offer health insurance and retirement plans with matching contributions, or provide vacation pay, tuition reimbursement and paid time off.

2. Scarcity is real

Is there scarcity in the world? Can there be any doubt of this? What is one of the scarcest things we have? Time.

None of us has enough time to do all the things we would like. As a result, we have to make trade-offs. Which would we rather do — watch our child's ball game or go fishing? Would we rather take a family vacation to Florida or save money for our children's college education?

And of course, would we rather spend all of our earnings today or save some for retirement? As Mick Jagger, a former student of the London School of Economics, sang, "You can't always get what you want."

3. Division of labor creates efficiency we can all benefit from

In 1776, Adam Smith wrote about the benefits of trade and economies of scale. A worker who specializes can be far more efficient in producing goods and services for himself and others than a worker who tries to do everything himself.

A great example of the division of labor is Smith's description of a pin factory, where he wrote that a single man working alone "could scarce, perhaps, with his utmost industry, make one pin in a day, and certainly could not make twenty.

"But in the way in which this business is now carried on, not only the whole work is a peculiar trade, but it is divided into a number of branches, of which the greater part are likewise peculiar trades …

"I have seen a small manufactory … where ten men only were employed, and where some of them consequently performed two or three distinct operations. But though they were very poor, and therefore but indifferently accommodated with the necessary machinery, they could, when they exerted themselves, make among them about twelve pounds of pins in a day."

4. Choices involve opportunity costs

• Making a choice to do one thing means not doing another
• Eating at a fine restaurant means not going to a Broadway show that night
• Buying a Ford F-150 now means not taking a weekend getaway later in the year
• Do you like an expensive latte every morning, or will you make a home-brewed cup of coffee?

There is no right choice. Each of us must choose what's important to us.

5. Trade makes us better off

The benefits of trade generally outweigh the costs. No matter what you do, there are things that others can do better and/or cheaper. Or they might not be better than you, but you may be better served by doing something else that gives you a comparative advantage.

If you spend all your time growing corn, you might be able to afford a home, a car or trip. But you can't be a farmer and also build your own home, build your own car or build an airplane.

It makes more sense to do what you do well and let others do what they do well. And this is true whether you trade with your neighbors, people in other cities and states, or other countries.

America is a great supplier of food to the world, even though a small part of our population works in agriculture. Workers in other countries are more efficient in other areas and can build computers and smartphones at a substantially lower cost than we can.

When we trade corn and soybeans for computers and phones, everyone does better.

6. Money has a time value

Would you rather have $10,000 today or in a year? In this case, take the money now. A year from now, what the money buys may and probably will be less.

What if the choice is to take $10,000 today or be paid $12,000 in a year? In this case, the future dollars will be 20% higher. As long as inflation is less than 20%, the value of the future dollars will be greater than the value of the dollars today.

But here we come back to the opportunity cost. Taking the money today may make it possible to buy something that you can enjoy and benefit from now. Would you rather have a new home today or in a year? It depends:

• What kind of home?
• Where?
• How close to friends, relatives and work will it be?

All of these factors come into play.

Because each of us has our own values, economists can't say what a better choice is. They can tell us what some of the trade-offs are.

And that, in the end, is why economists don't always reach conclusions. However, they will tell us that the best answers depend on which hand we consider.

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

Graduation and adulthood are still years down the road for my two young kids, so my focus now is on setting them up for success when they get there. One way my husband and I are doing that is through 529 college-savings plans.

With these investment accounts, you can set aside money that grows tax-deferred and withdraw it tax-free for qualified education-related expenses, including college tuition and fees, room and board, and computers.

A common concern among parents who contribute to 529s is that their kids won't end up going to college, or that the costs will be lower than expected. Luckily, the qualified uses for 529 money have expanded in recent years.

The One Big Beautiful Bill Act, signed into law last summer, introduced additional eligible expenses, including tuition, books and other fees associated with qualifying non-degree credential programs, such as for plumbing, electrical work, HVAC and welding. You can also withdraw up to $20,000 per year for elementary and secondary school tuition, course materials, tutoring, fees for standardized tests, and more. (Not all states follow the federal rules, so check your state's policies.)

If you end up with leftover money, a compelling option — one that I'm keeping in my back pocket in case my kids don't need all their 529 funds — is the ability to roll over up to a lifetime limit of $35,000 of the 529 balance, tax- and penalty-free, to the beneficiary's Roth IRA.

The 529 plan must have been held for the beneficiary for at least 15 years before you can make this move, and you can't roll over more than the Roth IRA contribution limit ($7,500 in 2026 for those younger than 50) each year.

Even if you withdraw 529 money for non-qualified expenses, all is not lost. You'll pay income tax and a 10% penalty on the investment-earnings portion of the distribution, but not contributions.

Picking a plan

Almost all states sponsor a 529 plan, and you can invest in any of them. More than 30 states offer a tax credit or deduction for contributions. Usually, you can get that tax break only if you invest in your own state's plan.

But in Arizona, Arkansas, Kansas, Maine, Minnesota, Missouri, Montana, Ohio and Pennsylvania, residents get a tax benefit no matter which plan they choose.

If you're shopping among plans, compare features, including the investment options and costs. Most plans offer age-based portfolios that gradually dial down the risk, shifting to more-conservative investments as your child approaches college.

When it comes to minimizing fees, opening an account directly with the state, rather than through a broker, is your best bet. You can compare plans with Saving for College's tool here. The site also rates plans based on performance, ease of use and more.

Read: The Best 529 Plans of 2026

Watch for promotions that could give your savings a boost. May 29 is National 529 Day, and some plan sponsors offer a cash bonus or match to families who open a 529 during a specified window near that date.

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

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Graduation season is here! While most students fresh out of high school or college welcome a cash gift, you can go a step further by offering it in a way that helps them form good habits and sets them up for a bright financial future. Consider these options.

Give them a savings boost.

One of the best gifts you can give a young graduate is a jump-start on their savings. You could, for example, seed their emergency fund, giving them money to put in their savings account.

Or you could supplement their retirement savings. If the grad is earning income, they can fund a Roth IRA. Contributions to a Roth are made with after-tax money, but withdrawals of those contributions are tax- and penalty-free anytime.

Once the owner reaches age 59½ and has had the account for at least five years, withdrawals of investment earnings are free of taxes and penalties, too.

Offer to make a matching contribution for every dollar that the grad puts into the Roth, suggests Cary Carbonaro, a certified financial planner and managing wealth adviser at Ashton Thomas Private Wealth in Scottsdale, Ariz.

The total contribution (including your gift) that those younger than 50 can make to a Roth IRA for 2026 is $7,500 or an amount equal to their earnings for the year, whichever is less.

Another option: Purchase a Series I savings bond from the U. S. Treasury website, at TreasuryDirect.gov, as a gift.

An I bond's interest rate consists of a fixed rate that never changes and an inflation-based rate that adjusts every six months. The composite rate for bonds issued from May through October 2026 is 4.26%.

An I bond isn't redeemable until the owner has had it for least a year. But it can be an excellent long-term savings tool, reaching full maturity after 30 years.

Whittle their debt.

Student-loan debt can be a heavy burden. The median debt among individual borrowers was in the range of $20,000 to $25,000 in 2024, according to the Federal Reserve.

You might offer to cover, say, a few months of the grad's loan payment, or a portion of the payment for a longer period.

If the graduate has credit card debt, assisting with those payments could be even more impactful. Average interest rates were recently about 22%, according to the Federal Reserve.

And young adults in their twenties have an average of $3,493 in card debt, according to credit-reporting company Experian.

Pay for a financial-planning session.

A graduate who has little in savings and investments may not come to mind as a prime candidate to sit down with a financial planner. But a visit with a professional can help a young adult set a strong foundation.

They might, for example, benefit from a planner's guidance in crafting a budgeting and saving strategy, paying down debt, and reviewing insurance options.

Carbonaro suggests scheduling a one-time, 90-minute session with a CFP. Hourly rates typically run from $200 to $400, according to financial website NerdWallet.

Advisers in the Garrett Planning Network and XY Planning Network offer their services on a fee-only basis — that is, they are paid only by their clients and do not accept commissions for selling financial products — and they don't require clients to meet certain asset minimums.

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

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Under what circumstances should university students be allowed to take their final exams before the scheduled date or after? Could a professor who denies a request get into trouble if a student complains?

"Ada" teaches history at a major West Coast university. She phoned our office, worried that two of her students in an online course were going to file a grievance against her.

"Mr. Beaver, I have read you in Kiplinger for years and need your help. My syllabus lists all exam dates and times, along with my policy on rescheduling an exam, which is the same as the university's." She included the policy, which states:

With few exceptions, students are not permitted to take any test early or late. Those exceptions include:

• Emergencies, including verifiably documented medical issues, deaths
• Preapproved university events, including athletics and conferences
• Religious observance. Accommodation will be allowed for alternate exam dates if a scheduled exam conflicts with a student's religious creed. Students should tell me during the first three weeks of class beginning, or as soon as possible after an examination date is announced.

In those events, an alternate exam will be administered, different from the test that all the other students have taken to prevent test questions being leaked to others in the class.

Ada's syllabus, which legally forms a contract with students, states in bold letters: "Students are required to show up or log in for all tests. Failing to do so without my approval will result in a failing grade."

A chance to visit Italy

Ada told me, "Two students rushed into my office, without making an appointment, and didn't ask — rather, they stated that I needed to let them take the final exam early or late, because the family of one had just invited both to accompany them on a trip to Italy.

"I pointed out that the test is online, multiple choice, true/false and, with a cell phone, they could take it, even in Italy. They rejected my explanation, so I encouraged them to sign up for the course next term, as not taking the final would result in a failing grade. They left the office in tears, and I heard them mumbling 'grievance' as they walked down the hall."

Ada added, "As I am a new employee, the last thing I need is a black mark on my record, and I am afraid to tell my department chair, so my thinking is that I will send them a polite letter inviting them to sign up for the class next term if they plan to miss the final. What do you think I should do?"

Do not let yourself get blindsided

In my law practice, I've spoken with new and tenured instructors who've experienced virtually identical situations and worried about bringing a student's entitlement issue to the attention of their department chair for fear of looking like a problem employee.

Yet, Ada's silence could be dangerous, as the students could use the grievance process to extort what they want and embarrass her.

"Talking with your chair now is the correct approach," I told her. Here's why:

• This prevents the chair from being blindsided if the students file a grievance and the chair hears about it from the dean instead of from Ada. By just saying, "I want to be certain that I am handling this properly," she would show herself as a responsible faculty member and that she is being fair to all the other students in the class.
• Sending a letter to the students before alerting the chair means she could inadvertently use language the department might not approve of.
• The chair may agree that she should write to the students, and if so, Ada should ask if there is preferred language she should use. She should also show a draft of the letter to her chair for editing and approval.

Heads, I win; tails, I win

I discussed these issues with grievance personnel at universities around the country, and it became painfully clear that higher education has become a world like Alice in Wonderland's, where up is down, right is wrong, and entitled students have found a "heads, I win; tails, I win" strategy to coerce higher grades or avoid consequences for academic misconduct, such as plagiarism or failing to show up for a final exam.

All of the people I spoke with agreed that Ada must immediately alert her chair. By doing so, she would thwart any scheme the students might try to force her to cave in to their demands.

One longtime staff member at a Florida university's grievance office described these students' justification for rescheduling the exam as "capricious."

His tone conveyed disgust. (He asked not to be identified so he could speak bluntly.)

"We see this all the time, and you really have to wonder what kind of education at home they get, as so many view threatening instructors with grievances (as a means) to make up for their failings. If they do not log in for the exam online when it is given, I would tell Ada to give them a zero!"

Dennis Beaver practices law in Bakersfield, Calif., and welcomes comments and questions from readers, which may be faxed to (661) 323-7993, or e-mailed to Lagombeaver1@gmail.com. And be sure to visit dennisbeaver.com.

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

Question: Our grandson just graduated from college with $45,000 in debt. I want to pay off his student loans, but my husband says we can't afford it. We're 73-year-old retirees with $2.1 million and $4,000 a month in Social Security that covers most of our bills. Who's right?

Answer: You'll often hear that college graduates are drowning in debt. That might not be true for everyone, but the average student loan debt, including private loans, could be as high as $42,673 today, reports the Education Data Initiative.

A balance that large could be difficult to shake for recent grads who aren't diving into instantly lucrative careers. If you're a retired couple who's financially comfortable and have a grandson who just walked away with a $45,000 pile of student loan debt after wrapping up his studies, you might be inclined to help.

If you're sitting on a $2.1 million nest and your $4,000 monthly Social Security check mostly covers your bills, it's clear that you have some wiggle room in your budget. But your husband might not be as convinced.

Here's how to figure out how to lend a hand in a manner that doesn't compromise your financial security or convey the wrong message.

Paying off the loan probably won't change your lifestyle

A $2.1 million nest egg is not the same thing as unlimited financial resources. But if you're mostly able to live on Social Security and that $2.1 million is just your "extra" cash, a $45,000 withdrawal might have a minimal impact, says Deon Strickland, Ph.D. financial adviser at Scholar Advising.

"If you’re looking at the couple, 73 years old, about $2 million in retirement assets, and $4,000 a month in Social Security, you’re probably talking about somewhere around $100,000 a year, give or take, available to spend after tax," he says. "They’re in a position where this decision is not going to dramatically change their lifestyle."

That doesn't mean you should just write a check without thinking things through, though.

As Strickland says, "This really comes down more to the relationship with the grandson and what they’re trying to accomplish. If the grandson has been responsible, appreciates the opportunities he’s had, then maybe there’s a way to help. But it doesn't necessarily have to be just writing a check."

Strickland says you shouldn't feel obligated to pay your grandson's debt in its entirety.

"It could be structured," he explains. "It could be something like, 'If you pay the first $5,000, we’ll match it.' Something that reinforces good behavior rather than replaces it."

Consider your goals carefully

A $45,000 gift to repay student loans might be a small chunk of a $2.1 million pool of money. But for your grandson, it's huge.

Strickland says that if you're looking to make that gift, it's important to tell the right story.

"It’s more about what they want to pass on, not just financially, but in terms of values," he says. "While $45,000 is not going to be a huge shock to their overall financial picture, it is an opportunity to demonstrate how to make good financial decisions."

In other words, if you're going to give your grandson the money, set some expectations and help him realize what that gift represents. It could be the thing that allows him to build savings early on or get a head start on accumulating his own retirement nest egg so that he might one day be in a position to help a grandchild pay off their student debt.

Figure out the path that's best for your cash flow

Even though you can probably afford to pay off your grandson's $45,000 debt without blinking, that doesn't mean you shouldn't try to do so strategically. Brandon Agamennone, CRPC and wealth management adviser at Victory Private Wealth, says you have several options for handling that bill.

"It depends on what you need for your income," he says. But one option is to use dividends or interest from your portfolio to pay off the loan over a few years. Another option is for each of you to give your grandson a $19,000 gift this year, for a total of $38,000, to stay within the gift tax limit. You can then tackle the remaining loan balance the year after.

Another option? "If you have RMDs on a portion of your investment portfolio," Agamennone says, "you could take those and then gift some or all of that amount to your grandson to pay off the student loan."

Make sure your grandson knows what repayment options he has

A $45,000 student loan bill might seem overwhelming to a new college graduate. But before you rush to come to the rescue, you could want to walk your grandson through his options for repaying that debt, either on his own or with assistance.

"I would have the grandson understand college loan consolidation options," says Brian Safdari, founder of College Planning Experts. "Maybe the [grandson] can get some student loan interest deductions while working."

Safdari thinks it's important that borrowers realize that there are different ways to tackle college loans. With federal loans, for example, there are income-based repayment plans that can be more affordable.

"Start with a strategy and a plan first," he says. "Then execute the best plan that provides the family the best outcome."

That plan could involve having you foot some or all the bill, but it's important to dole out that money in the context of a broad plan everyone involved is on board with.

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  • We're 75 With $3.2 Million. Our Grandchild Needs Help Paying for College.
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It's easy to assume that earning more money will solve all of life's financial problems. It's logical: If the income increases, the financial pressure should subside.

But, for many of us, the opposite happens. The paychecks are bigger, yet the feeling that you're still behind hasn't gone away.

Hitting a long-term salary goal can lead to a flood of thoughts and emotions including, "This still doesn't feel like enough."

What often gets overlooked is that income alone doesn't determine how financially secure you feel. Two people can earn the same salary and have different financial experiences. The deciding factor usually comes down to how that income is managed, spent and structured over time.

Why do you feel like you're behind?

In most cases, lifestyle is where the gap begins to form. As income starts to increase, spending usually follows suit. Earning a higher salary can often lead to higher fixed expenses, such as a more expensive apartment or a newer car, or increased daily spending.

Although more money is coming in, increased spending is diminishing what's left after necessities and bills.

The shift isn't always dramatic. Small upgrades such as dining out more often, taking more weekend trips, even prioritizing convenience can become routine. As time progresses, those habits can shift what feels normal, making it harder to identify where the extra money is going.

For many Americans, earning more money can also come with the feeling of needing to catch up. This can range from aggressively paying down debt to covering prior financial gaps, which can absorb additional funds before they can be saved or invested.

Additionally, the cost of living has increased significantly. Since 2020, household expenses have increased 25%, according to a report from Boston College. Food and transportation costs are up 30%.

Consequently, higher incomes don't stretch as far as they once did. For a proportion of Americans, what used to feel like a comfortable salary now feels like it's just covering just enough to survive.

When all of these factors compound, it's easy to see why earning more doesn't always translate to feeling financially secure. While it may feel like a tough situation to navigate, the solution isn't necessarily earning even more, but changing how the income is being used.

Remove the guesswork

Prioritizing savings before doing anything else is one of the most effective strategies to begin creating financial stability.

Allocating a fixed percentage of income, whether it's 2% or 6%, builds consistency regardless of how much is earned.

Rather than saving what's left over at the end of each month, which can vary, saving a fixed amount biweekly or monthly soon becomes a built in part of your financial routine.

For those who earn more than the average annual salary, the issue usually isn't income, it's structure.

According to Forbes Advisor, using data from the Bureau of Labor Statistics, the average annual salary in America is $64,505. For someone earning well above that amount, the expectation is that financial stress should go away.

However, without a clear framework for managing that money, the additional income can be spent just as fast as it's earned.

The key to making meaningful change starts with a shift in mindset: Pay yourself first. Treat every savings or investment contribution as your first expense, rather than something that happens after everything else is paid. Doing this removes the guesswork, ensuring saving doesn't become dependent on what's left over at the end of the month.

Earning more money is a great accomplishment. It can create more opportunity, but it does not guarantee financial stability. Making real progress comes down to how that extra money is managed over time.

Ron Tallou is a registered representative of and conducts securities transactions through CoreCap Investments, LLC. Advisory services offered as an investment advisory representative of CoreCap Advisors, LLC. RJP Estate Planning is a separate entity and not affiliated with CoreCap Investments or CoreCap Advisors. The information provided here is not investment, tax or financial advice. You should consult with a licensed professional for advice concerning your specific situation.

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Just about every day now, I get emails and phone calls from readers asking the same question: "With what we are seeing, AI is leading to the wholesale firing of hundreds of thousands of employees across entire industries. Should I consider law as a career?"

My answer: Let history be your guide. Consider these questions:

• What was the dominant means of transportation in the early 1900s in villages and cities across our country?
• Who, and in which profession, assured their dependability?
• How many of them were there in the late 19^th century? How many now?
• What one factor explained their vanishing as a primary industry, and when it first emerged, was it seen as a threat to their profession?

Indispensable to daily life

The answer: The village smithy, aka the blacksmith, assured that horses could provide the transportation that was indispensable to daily life. Blacksmiths numbered in the hundreds of thousands in the late 19^th century, but there are only about 10,000 today.

When the first automobiles hit the market, they were seen as playthings of the wealthy, not a threat to the respected role blacksmiths held in society.

I submit that AI is today's equivalent of the automobile, and it's having a similar impact on the legal profession as law firms no longer require dozens of junior lawyers to search through millions of pages to find a smoking gun when AI can do it, and so much more, in minutes.

Solving a problem without a lawyer

One of my clients, "Dr. Dan," called the other day, thrilled to tell me how he'd used AI to avoid becoming the victim of his landlord's unreasonable requests. "She sent a modification to our lease that made no sense at all. I could have called you, but first I asked AI if this was legal and reasonable and how could I politely reply.

"AI said that it was not legal and asked if I wanted a response that I could send, in lawyerlike language, explaining why the landlord was wrong. I typed, 'yes,' and in a couple of seconds, I got a beautifully reasoned response, which I sent to her.

"She phoned me right back saying, 'Dan, you're right. But tell me, how much did your lawyer charge you for this letter? It is so well written!' We had a good laugh. I think AI is going to put a lot of lawyers out of work."

What do law school deans and admissions officers say?

To get a feel for what the top brass in higher education have to say, I reached out to several deans and admissions officers and left this voicemail: "How will AI impact law? Today, would you advise a family member to apply to law school? Also, can you explain the enormous increase in applications to law schools the past several decades?"

Two agreed to discuss these issues on condition of anonymity so they could be perfectly candid, and both noted one of the most important reasons we have seen an enormous increase in the number of law students over the past few decades: Money (for the schools).

"The growth in law school enrollment hasn't matched the actual need for new lawyers," said the dean at a Midwest law school. I'll call her Anna. "The ratio of lawyers to the U.S. population today is four times what it was in 1970, and many of our graduates are underemployed and facing enormous student loan debt.

"The explosive growth in admissions over the last 50 years was primarily because law school is a cash cow for universities.

"We can't lose — but no one cared if students would get hired into positions where they could have a decent life and repay their loans.

"And the more students we admit, the greater the damage will be due to AI. Law schools are motivated by tuition, not placement. It is as if we are graduating manual laborers into a robot-factory economy, and there will be pain."

Big, bad gamble

The dean of a Southern law school, whom I'll call Stacey, pointed out, "As we speak, law school enrollment is surging, and many students are making a horribly bad bet on future, high-income employment. The supply-and-demand mismatch will be horrible as AI adoption scales upward."

Both educators provided this gloomy outlook on the future: Law school graduates of 2027 and 2028 will be entering a job market where AI has progressed from the testing stage to real, daily operational functionality.

Their advice: Look for a law school with a curriculum that teaches how to use AI — those courses will impress an employer.

So, here is what anyone considering law school needs to keep in mind: Just as the Model T didn't put blacksmiths out of work overnight, we are not going to have fewer lawyers immediately. Those who can master AI will be hired and well compensated.

Anyone considering law as a profession might want to check out the one-star ratings of law firms on Yelp. Also, give these questions some thought:

• Why do so many young lawyers leave the profession?
• Why do so many attorneys become alcoholics and substance abusers?
• Why are they so disillusioned?
• Why do they have such a high divorce rate?

Instead of being a lawyer, why not become a blacksmith? At least you'll be paid for — wait, it's coming — horsing around.

Dennis Beaver practices law in Bakersfield, Calif., and welcomes comments and questions from readers, which may be faxed to (661) 323-7993, or e-mailed to Lagombeaver1@gmail.com. And be sure to visit dennisbeaver.com.

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

Federal student loans are undergoing an overhaul. Starting July 1, new students who take out a loan will have fewer repayment-plan options, and some families who already have loans will be forced to select a different repayment plan.

Parents who take out federal loans to help their children pay for college may be subject to new borrowing limits. And for those starting a new graduate or professional degree, Graduate PLUS loans will no longer be available. The One Big Beautiful Bill Act (OBBBA), signed into law last year, ushered in these changes.

If you or your child is already paying off student loans, or if your family is planning to borrow for college in the future, there's a good chance some of these updates will affect you. Here, we offer details on what you should know, as well as strategies for families to make the best choices.

The new student loan repayment plans

The OBBBA narrows to two the options for students taking out a loan on or after July 1. One is an income-based plan known as RAP (Repayment Assistance Plan). Under this new plan, payments range from 1% to 10% of the borrower's adjusted gross income, with a minimum payment of $10 a month. Lower-income borrowers pay a smaller percentage; the maximum 10% applies to those with an AGI of $100,000 or higher, and there's no dollar limit on the monthly payment. RAP deducts $50 from the monthly payment for each of the borrower's dependents. After 30 years, any remaining balance is forgiven.

The other option for new borrowers is the Tiered Standard Plan, with fixed payments over the course of 10, 15, 20 or 25 years, depending on your federal loan balances. If your loan balances add up to less than $25,000, the repayment term is 10 years. For loans of $100,000 or more, the term is 25 years. Borrowers may prefer this option if they want fixed, predictable payments, if they would like to pay off their loan more quickly than they might with RAP, or if their payment with this plan is lower than it would be with RAP.

The Public Student Loan Forgiveness program remains in place. Those who have direct loans and work for a government or nonprofit employer, such as firefighters, teachers and first responders, can have remaining balances forgiven after 10 years of repayments on either plan. To minimize the amount they pay before forgiveness, those who may qualify should evaluate each year whether RAP or the Tiered Standard Plan results in a lower monthly payment.

Choices for those who borrowed before July 1. The OBBBA brings an end to three income-based repayment options: SAVE (Saving on a Valuable Education), PAYE (Pay As You Earn) and ICR (Income-Contingent Repayment). Borrowers who are in one of these plans will have to choose among the remaining options — and those on the SAVE plan will have to make a decision soon.

The SAVE plan was designed to be more affordable than other income-based plans, in part by preventing unpaid interest from accumulating enough to cause the loan balance to grow. Borrowers enrolled in SAVE will need to change plans in the coming months, with their servicer providing information on the deadline. They can choose among existing plans, but if they go with PAYE or ICR, they'll have to switch again before those plans sunset in 2028. Starting July 1, 2026, SAVE borrowers can also select among the new repayment-plan options.

Before July 1, 2028, borrowers on the PAYE or ICR plan will have to switch to the new RAP or Tiered Standard Plan, or they can choose IBR (Income-Based Repayment), the sole remaining option among existing income-based plans. IBR caps monthly payments at 10% or 15% of your discretionary income, depending on when you first took out the loan. Payments can be as low as $0, with a repayment time frame of 20 to 25 years.

Because IBR limits your payment based on income, it may be the best choice for borrowers with higher income and debt levels. For instance, with $100,000 in loans and a salary of $80,000, the monthly payment on IBR would be $334. For a RAP borrower with no dependents, it would be $534.

Borrowers with lower debt and income may be better off with RAP. For example, someone with $30,000 in debt and $50,000 in income who has two kids would have a $25 payment with RAP, compared with $84 with IBR.

Student loan strategies for parents

Parents who take out a PLUS loan before July 1 can borrow up to the cost of their child's attendance, minus the amount of any grants, scholarships and federal loans made directly to the student. For loans disbursed on or after July 1, parents can borrow up to $20,000 per student annually, with a total limit of $65,000.

If your student was enrolled in school before the 2026–27 school year, you can maintain access to Parent PLUS loans under the previous borrowing standard for three years, as long as your child's school and degree type don't change and they don't take a semester-long break from classes other than for an approved medical reason.

If your child is scheduled to start school this fall, you may be able to access Parent PLUS loans under the pre–July 1 borrowing limit if they enroll in classes for the summer 2026 session. If you go this route, apply as early as possible for summer financial aid on the 2025–26 Free Application for Federal Student Aid, or FAFSA (the federal deadline is June 30, 2026). The courses your student takes must count toward their degree and add up to at least half-time status.

Before you take on debt to fund your child's education, however, make sure you have a solid plan for your own financial security. “I discuss holistically with clients how student loans will affect their retirement, vacations, ability to buy a new home and other personal life goals before they decide how much to borrow,” says Jack Wang, a wealth adviser and host of the Smart College Buyer podcast.

To prevent both students and parents from getting in over their heads, families may need to consider such cost-cutting strategies as focusing on affordable schools or having the student start at a community college and then switch to their preferred school later.

Repaying parent loans. Under the rules in effect before July, parents have a few ways to repay their PLUS loans, including a plan with fixed monthly payments for 10 years. Borrowers who owe more than $30,000 can use a plan that spreads fixed payments over 25 years.

Parents who consolidate PLUS loans from different school years into a single federal loan are also eligible for an income-based plan, which could lower their payments, with any remaining balance forgiven after 25 years. But starting in July, new parent borrowers have access only to the standard repayment plan, with fixed payments that are spread over 10 to 25 years.

If you act quickly, you may still have time to consolidate your PLUS loans and then enroll in ICR before July, at which point the new law cuts off this strategy. Even if your payments are manageable now, you may want to do this if income-based payments could benefit you at some point— say, because you expect to be paying off the loans in retirement, when your income may be lower than it is now. As long as you make one payment in ICR first, you can then change programs to IBR.

Note that if you take out a new Parent PLUS loan on or after July 1, you'll lose access to the income-driven repayment option, even on any loans you consolidated before that deadline. To avoid that scenario — and reduce your borrowing — consider other funding options. Most schools offer low-fee tuition-payment plans that allow you to make payments throughout the year.

Student loan updates for graduate and professional students

Until July 1, students earning a graduate or professional degree can access two types of federal student loans: Unsubsidized loans and Graduate PLUS loans. With unsubsidized loans, you must pay interest while you're in school. These loans charge lower interest rates than Graduate PLUS loans, so borrowers should turn to unsubsidized loans first.

For students who can't cover all their education expenses with unsubsidized loans, Graduate PLUS loans can bridge the gap up to the full cost of attendance. But starting July 1, borrowers can no longer take out Graduate PLUS loans. Students can still take out unsubsidized loans, but with some new caps on how much you can borrow.

Graduate students (including those earning a master's degree as well as those in most PhD programs) will be subject to a lifetime cap of $100,000 for unsubsidized graduate loans; the annual limit is $20,500. For students in eligible professional programs, such as medical, dental, law and pharmacy school, the unsubsidized-loan limit is $50,000 annually. The lifetime limit, not including undergraduate loans, is $200,000.

If you were enrolled in graduate or professional school before July 1 and haven't taken out a federal student loan yet, consider getting one for the spring or summer session if you think you may need one in the next three years. If a direct loan is disbursed before July 1, 2026, you can keep borrowing Graduate PLUS loans for up to three years while completing your program. Taking out even a $100 loan gives you the option to borrow more later, if you need it.

Scheduled to start your graduate or professional program this fall? Call admissions and see whether you can apply for the summer 2026 session, starting your program early and potentially allowing you to get a Graduate PLUS loan before the July 1 deadline. Confirm it will not affect any other financial aid you're scheduled to receive in the fall and spring terms.

You'll need to enroll in enough summer coursework to be designated at least a half-time student (and apply for financial aid that is disbursed before July 1, 2026), to be grandfathered into the PLUS loan program, says Sarah Austin, policy analyst for the National Association of State Financial Aid Administrators.

Options beyond federal loans. With Graduate PLUS loans off the table, some borrowers may consider private loans. Generally, however, private loans don't come with the same protections or income-driven repayment options that federal loans do, so you'll need to weigh the decision carefully. And it's best to limit your overall student debt as much as possible. A financial adviser can go over a post-graduation budget with you, factoring in your expected salary.

If you determine that you can afford to take on some private loan debt, consider national non-profits such as MEFA or EdvestinU, says student loan expert Colleen Krumwiede. These providers can offer options for borrowers who may not qualify for other loans because they have a thin credit history or don't have a cosigner. She also recommends looking for lenders that specialize in certain majors. For instance, a lender that focuses on medical student needs may also lend money for residencies.

Check for state lending programs, too. “A small number of states already run their own student-loan programs, some dating back decades,” says Thomas Harnisch, vice president for government relations at the State Higher Education Executive Officers Association.

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

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College graduation season is approaching, so a lot of new professionals will soon hear this timeless financial adage: Pay yourself first.

It's simple and smart. Make saving and investing a priority before everything else claims your paycheck. But it's only part of the picture.

Building a strong financial life often comes down to three habits that reinforce one another: Pay yourself first, pay attention to your career and, eventually, pay it forward to others.

Here are five things for new college grads and young professionals to pay attention to right now.

1. Start building for retirement

Retirement seems super far away when you're just starting out. You might wonder if there will ever come a time when you really won't be working — or even wanting to work.

But one day, you'll want to have options, and that's what retirement is — the choice to work or not work, to scale back or try something new or be choosy about when or how you earn money.

Options and choices require a nest egg. The bigger it is, the more options you have.

Start by fully participating in your employer's 401(k) or similar program, contributing at least as much as your employer will match.

If your employer doesn't offer a 401(k) or other retirement plan, you can open and fund an IRA. A good general rule is to save the first 10% of your gross income.

When you intentionally set aside money for the future, you form a powerful habit of paying yourself first and living within your means.

You won't miss what you don't have to spend, and you'll quickly learn to love the power of compounding as you earn interest, not just on the principal invested but on the interest.

When you start early, you don't have to save crazy amounts to make up for lost time; you just have to be consistent.

2. Set aside cash reserves

Plan for the unexpected because the unexpected always happens. The car breaks down. Your friend decides to get married on a moment's notice in some expensive destination. You buy a house and the roof leaks during the first hard rain. You lose your job.

Start your emergency fund now. Aim to have at least three months of living expenses covered, then keep going, because as life goes on, the emergencies only get bigger.

Once you've set aside money for retirement and contributed to your emergency reserves each month, you're free to spend whatever lands in checking — after rent or mortgage, car payments, student loans, utility bills and other essentials.

Adulting is hard. It gets easier, especially if you're disciplined and focused on what matters.

It's pretty liberating to know exactly how much money you have to spend on whatever you want. Some adults never get there.

3. Keep learning

If there's something you want to learn how to do, do it. It could be that you want to pick up a new hobby — do it. Learn how to play tennis or take up knitting. I'm a big believer in having hobbies outside of work and family that feeds your soul.

You could even take classes through your community college, which is what I did when I was fresh out of college — and it changed my life.

After graduating with a journalism degree from the University of North Carolina at Chapel Hill, I thought I'd be the next Katie Couric. Instead, I landed a bank job in my hometown, Charlotte, North Carolina, the banking capital of the South.

I wasn't a financial adviser then, and I just wanted to know what to do with my very first 401(k). I found a class at a local high school run by the local community college.

I loved that class so much — and it showed. The teacher suggested I become a financial adviser, so I entered the financial adviser training program at the bank where I worked.

Later this year, I'll mark 20 years as an adviser. I still use what I learned in that class — empathy and appreciation for how we are all on our own financial paths.

I met a widow who had never written a check before — a foreign concept for my generation and the ones that have followed. You never know what you'll learn, who you'll meet and how it will change your life — perhaps for the better.

4. Take time to network

Get to know your co-workers, other people at your company as well as other people in your industry and in your community. You must take the time and be intentional.

Just as with investing and saving money, you have to start early and be disciplined so that it becomes a habit and doesn't feel too outside your comfort zone. If you don't do this, your professional world will be small and stay small. That's no way to grow.

As one of my friends likes to say: Nobody will ever care as much about your career as you do.

Get out there. Make coffee meetups and lunch dates. Join professional organizations. Invest in your professional development. You and your career are worth it.

5. Invest in your community

Pay it forward by volunteering for causes and organizations that matter the most to you. Not so that you have something to put in the volunteer work section of LinkedIn, but because it will make you a better human — and strengthen your community. It might be something you wish later you had more time to do.

If you're afraid of a long-term commitment, start small. Plenty of organizations offer one-off experiences — from stocking food pantries to visiting older people in senior centers.

You could work the polls on election days, foster dogs or join the Meal Train committee at your church.

As you find what you like, you can choose where to focus and if you want to devote more time by joining a board.

Take the time now, and as with saving and investing money first, you won't miss it. Everyone thinks they're busier than they are.

Bottom line: By being intentional with your time and money early in your career, you're investing in a rich life for your present self, your future self and the people and things that matter most.

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Stepping away from work to take care of a loved one is a selfless act, but even a temporary pause can bring long-term financial consequences.

Whether it's raising children, caring for elderly parents or taking care of a spouse who is sick, that responsibility often falls on women. In 2025, 61% of family caregivers were women, compared to 38% of men, according to AARP.

In addition to the increased physical and emotional pressure of caregiving, 19% of women say they've experienced financial strain, compared to 16% of men. That's where long-term planning becomes crucial. Without a plan, recovering from a loss of income and future earning power can be extremely challenging.

Retirement savings take a hit

Taking time off work not only reduces your income in the short term — it can also impact your ability to earn at the same level in the future, disrupting your career momentum and long-term earning potential. When you stop earning income, even temporarily, retirement savings are usually the first to take a hit.

Many employers offer retirement savings programs as part of their benefits package. For example, some companies will allow you to contribute to an employer-sponsored plan, such as a 401(k). Others may offer to match your contributions up to a certain percent. When those contributions stop, the ability for that money to grow over time is also lost. This is where the financial impact can start to build

Time is one of the most important factors in building retirement savings because of compounding. Basically, this allows your money to grow on itself over time. The longer you remain invested in the account, the more opportunity it has to grow. Pausing contributions, even for a short period, can reduce how much time your money has to grow. Those missed years can be difficult to make up down the line. As a result, what may feel like a short-term decision in the moment can have lasting impacts in the future.

Reduced Social Security benefits

Beyond retirement savings, leaving the workforce can impact your Social Security. Benefits are based on your highest earning years. As a result, stepping away can lower your overall earnings record, which can lead to reduced benefits when the time comes to collect. A lapse in savings combined with reduced Social Security benefits can make it more difficult to maintain financial stability in retirement.

The hidden cost of leaving the workforce

In one case, I was working with a client who chose to leave her job at the peak of her career to care for an aging parent. After caring for her mother for about a year and a half, the parent passed and she struggled to get back into the workforce. It took her nearly a year to find another position. Even then, she had to work her way back up to the level she'd been at previously. In the end, that decision set her back almost five years financially.

I've been confronted with this choice myself. When I started having kids, I had to figure out how to be there for my children while also making sure I was taking care of my future. Instead of leaving the workforce entirely, I became an independent contractor. This allowed me to continue earning income and saving for the future while taking care of my family in the present.

Situations like these aren't uncommon, but they highlight the importance of planning ahead. No one knows what the future holds, but there are steps women can take to prepare.

• Start an emergency fund to help provide a cushion for income disruptions, unexpected expenses or periods of transition.
• Consider exploring options for independent or part-time work. This will give you the flexibility to balance providing care while earning some level of income. That way, you can take care of your loved ones and still protect your future. Working with your employer to find flexibility may also be an option. In some cases, simply adjusting job responsibilities or scheduling can help you balance both responsibilities.
• If flexibility isn't an option, it might be time to explore other opportunities. Women tend to be more loyal to employers, even if it comes at a cost.

Caring for another person is one of the most selfless acts you can do, but it doesn't have to come at the expense of your future financial stability. With proper planning, it's possible to take care of both your loved ones and your financial future.

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

At one point in my life, I thought I had it all.

I had the title, the responsibility, the power, the big salary, the upward trajectory, the perfect house, a cute family — a life that looked perfect.

In reality, I missed dinners with my family, was always preoccupied with work, thought our house wasn't big enough compared with others, and still worried about finances. And ... I was dying on the inside.

I had built the life I thought I was supposed to want, only to realize it was all a lie.

The only thing that really mattered to me was putting my daughter on the bus one more day, because I didn't know if I would have tomorrow.

It took (literal) brain surgery for me to come to this realization.

Many of us have spent years trying to achieve "success," to have what looks like the perfect life, to be seen among our peers as what others think success is.

But rarely have I run into someone who would say for themselves that they've achieved that success. Why? Because as Americans, we have been fed what success is: Bigger, better, faster, more.

In reality, studies show most Americans want happiness first.

Here are five signs you're living someone else's definition of success — and what you can do to start changing course.

1. You're chasing everyone else's idea of 'enough'

You look around and ask yourself, "Is everyone richer than me?" They have a bigger house, a nicer car, and they're still striving for more. You feel as if you need to do it, too. The old "keeping up with the Joneses" mentality.

Inwardly, you're tired of striving and if you really think about it, you don't really care about the bigger house, the nicer car or the bigger title. If this is you, you're chasing their definition of enough, not your own.

Try this. Ask yourself, "What would success look like if nobody else knew about it?" You might realize the things that matter most aren't things anyone can see.

2. You've achieved it, and you're still not happy

You have the car. You have the title. You have the house. You have everything you thought was supposed to make you happy — and you're still not happy. You have an inner voice that whispers, "I thought this would feel different. I thought I'd like this more."

That moment — what I call Unfortunate Awareness — can feel like failure, like you've missed the mark. It's actually freedom. Once you see the truth, you can do something to fix it.

Try this. Don't rush it. Sit in the quiet long enough to hear what that discomfort is trying to tell you, and name it. What isn't right? What isn't working? That's where clarity lives.

3. You define yourself by the role you play

If you catch yourself leaning into a part — "the doctor," "the room mom who always says yes," "the multitasker who can handle anything" — you might be performing more than living.

This is likely because you identify your worth with your title. You've defined success as being that person with that title. My questions: Is this really who you want to be? Are you happy?

Try this. Before you say yes, pause and ask yourself, "Am I saying yes because I really am happy, or because it aligns with the role I feel I'm supposed to play?"

4. You feel guilty for wanting something different

From the outside, your life looks perfect — or so you tell yourself. You guilt yourself into thinking, "I shouldn't say anything, I have so much!"

"Shoulding" yourself out of your feelings is a sure sign that something isn't right. You're feeling the push/pull of what you've been taught success is vs what you really want in life.

Try this. Swap "What will they think if I quit/change?" for "What will I think of myself if I stay/don't change?"

5. You've said to yourself, 'I'll be happy when …'

We've all been told the American Dream is about wanting and achieving more, more, more. It seems the golden ring is always just beyond our grasp. If you find yourself saying, "I'll be happy as soon as …" you might be missing what's right in front of you.

Try this. Finish this sentence: "I'll feel successful when …" Then ask, "What's stopping me from feeling that now?"

What can I do?

The good news is you don't have to burn everything down or start over to change course. You can build a future that feeds your soul and keeps the stability you've worked so hard for by owning your own definition of success.

Start by writing your definition down, reviewing it, and asking yourself where it came from and if it still fits. If not, tear it up and create a new one. Say it out loud. Share it with your loved ones.

It's OK not to want what you think others think you should want, as long as you own it.

Becca Pearce is a personal executive coach, speaker, and author of You Don't Have to Achieve to Be Loved: Escape the Lies You've Been Sold to Design the Life You Want. She helps high-achieving professionals rediscover joy and design lives that actually fit. Learn more at www.morebeccapearce.com.

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Many companies are in a "promotion recession," with managers and executives experiencing five-year lows in job advancement rates.

In this kind of environment, high-performing employees can deliver strong results and not see their titles or compensation increase for what feels like career-altering spans of time.

What should these star performers do about it? How does a corporate achiever ensure that they're the ones advancing even in a slow promotion cycle like this one?

Professionals pursuing leadership roles in this environment must recognize a two-part truth: Performance earns respect, but visibility determines who gets selected.

The skill sets underlying those two outcomes are related but very distinct.

Being respected vs being selected

Of the two, visibility is the less well-defined component of an individual employee's career track. It signals how a professional operates beyond the boundaries of their current role.

Leaders notice who influences conversations across teams, who shapes decisions that affect broader outcomes and who already behaves like someone responsible for the next level of leadership.

The difference between those signals becomes starkly visible when promotion cycles slow, making organizations more selective about who moves forward.

Promotion decisions rarely depend on performance metrics alone. They take shape in leadership meetings where executives compare reputations, discuss who already operates beyond their current role and decide which candidates appear ready to represent the organization at the next level.

At organizations with the lowest promotion intensity, workers have just a 1.3% chance of advancing in any given year. When the path narrows that sharply, the difference between being respected and being selected becomes the defining variable in a career.

That is why professionals who consistently deliver strong results can still find themselves passed over for advancement. Their work may be widely respected within their immediate team, but their broader leadership narrative may not yet exist in the rooms where promotion decisions are made.

For many professionals, this moment feels more personal than strategic. They did what their organization asked of them — stayed late, took on the hard projects and steadied teams through uncertainty — yet they still watched while others moved ahead.

This risks the quiet erosion of confidence and engagement that organizations rarely see until it shows up in attrition numbers.

Performance earns credibility. It demonstrates that a professional can deliver results, solve problems and operate reliably within a role. Selection readiness signals something different. It shows decision-makers that someone is prepared to represent the organization at the next level of leadership and influence.

How to get ahead

Professionals need to take responsibility for engineering their own visibility and leadership preparedness story.

If you're one of them, here's where to start:

1. Get clear on your 12-month goal. Not in a vague way — but in a way that takes your personal strengths into account and maps exactly where you want to go in a practical one-year time frame.

2. Evaluate your visibility in the organization. Many professionals can explain their work results in detail, but struggle to answer how the most influential decision-makers in the organization would describe their leadership trajectory today. If your answer to that question is unclear, your visibility gap has already appeared.

3. Make your ambition explicit to leadership. Professionals often assume their goals are obvious from the responsibilities they take on, but in practice, decision-makers aren't thinking about your career goals as much as you are. When you clearly communicate your interest in your next role, it removes any ambiguity about your aspirations and puts you on the radar for career advancement.

4. Create your personal board of directors. Advancement decisions rarely hinge on a single manager's recommendation. Deliberately cultivate sponsors, mentors and allies — each plays a distinct role, just as a company's board does. Sponsors advocate for you in rooms you're not in. Mentors guide your development. Allies amplify your work in the moment. It's not enough to identify these people in the abstract — you need to place specific individuals in each role and know exactly what each one contributes to your advancement.

5. Advocate for yourself. This is not about self-promotion for its own sake. It's about building the muscle to ask for what you want and deserve, rather than waiting for your manager or someone else to speak for you. This is your career, and no one will be as invested in it as you are.

None of these steps replace strong performance. Results remain the foundation of advancement. But without signals indicating readiness for broader leadership responsibility, those results can remain invisible to the people responsible for promotion decisions.

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

Question: We're 75-year-old retirees with $3.2 million. Our son's pressuring us to help pay for our granddaughter's college so she can avoid loans. It's not our fault she picked a school that's $90k a year! What should we do?

Answer: It's hardly a secret that obtaining a college degree is an expensive prospect.

The average cost of college today is $38,270 per student per year, which includes books, supplies, and living expenses, according to the Education Data Initiative. The average borrower with federal student loans today owes $39,547. Moreover, the full annual cost of attending a top school can, shockingly, top $90,000. It's understandable that your grandchild wants to avoid graduating with burdensome debt.

If you're well-off retirees, you may be asked to help cover your grandkids' education costs so they don't graduate with debt. But if you have a granddaughter who's chosen a school with a $90,000-a-year price tag, that ask may not be reasonable, even if you have a $3.2 million nest egg to fall back on.

Here's how to handle what could be a tricky situation without hurting your loved ones or putting your own retirement at risk.

You need to be comfortable helping out financially

As grandparents, it's natural to want to help your granddaughter out. But even with a generous nest egg, you may not feel ready to start writing large checks just yet.

Mike McCracken, president and founder of Wealth Guide Financial, says, "Having $3.2 million at age 75 is a great position, but that doesn't mean you should automatically write a big check for a $90,000-a-year school tuition."

McCracken says that before you hand out so much as a dollar, ask yourself whether helping out with college will leave you with enough money to live comfortably for the rest of your lives without the risk of running out of money. Keep in mind that you may have extra costs to contend with, from home repairs to medical bills to long-term care. So the numbers need to work for you.

Brett Bernstein, CFP, CEO and Co-Founder of XML Financial Group, agrees.

"The first thing the grandparents need to do is build a financial plan to ensure that they can maintain their current lifestyle and see how much they can financially help their grandchildren," he says. "Once they have an understanding of the actual number they can contribute, then they have to decide how much of that they want to gift."

Make sure you're treating your heirs fairly

It's one thing to help fund your granddaughter's college education if she's your only grandchild. If not, you risk running into problems if you start cutting her large checks without mapping out a plan.

McCracken says the cleanest way to go about things is to document everything meticulously.

"Have your estate-planning attorney draft a simple amendment to your revocable living trust stating that the amount you paid for college will be subtracted from your child’s or grandchild’s eventual inheritance," he suggests, assuming you have that legal document in place. If not, put something in place before distributing a portion of your assets.

Another option, McCracken says, is to treat the money as an interest-only loan that your granddaughter or their parents will repay.

"This keeps everything transparent, protects the other children’s share, and prevents anyone from being taken advantage of," he says.

Be as tax-efficient as possible with your giving

Unfortunately, there's no easy way to enjoy a tax break in the course of gifting a grandchild money for college. Contributions to a 529 plan may grow tax-free, but you don't get to deduct the sum you put in.

Still, it's important to be mindful of tax implications. To that end, McCracken says that if you're going to help, paying tuition directly to the school is usually the most tax-efficient route. This way, it doesn’t count against your annual gift tax exclusion.

McCracken also warns that giving directly to your grandchildren could reduce their financial aid eligibility.

Bernstein agrees that paying tuition directly is generally the best option, and that eking out tax savings is unlikely.

"The only way for a grandparent to get some benefit is if the school is willing to accept a highly appreciated asset in return for the tuition, or if the school is a qualified charity and the grandparent can [send] part or all of the required minimum distribution directly to the school," he explains.

However, Bernstein says, these strategies typically don't work, so "this comes down to what the grandparent can ultimately afford to gift and their willingness to do so."

Read: Use the 529 Grandparent Loophole to Maximize College Savings

Don't succumb to pressure

Aside from genuinely wanting to help your granddaughter, you may be feeling immense pressure to contribute toward her education. That's why McCracken supports having an honest family conversation and setting clear boundaries up front.

"You can say something like, 'We love you and want to help, but we also must protect our own retirement and want to keep our inheritance planning even among the heirs,'" he suggests.

From there, explain how you're willing to structure the assistance if you feel comfortable chipping in.

"Helping the next generation is one of the most rewarding things you can do," says McCracken. "But it should never come at the cost of your own financial peace of mind."

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• 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?

Today, I'm sharing two inspiring stories that I think will help motivate college students looking to have an impact on society as they embark on their careers.

This article is in response to a request I received from Professor Deborah Cours, dean of the College of Business and Public Administration and executive director of the Center for Entrepreneurship and Innovation at California State University, Bakersfield, California:

"Mr. Beaver, our students often ask about societally impactful inventions and ventures. You have interviewed many highly successful people. Do you have examples that are specifically relevant to university students looking to make their way in society that I could share with them?"

I'm happy to answer Dean Cours' question. Over the years of writing this column, I've learned what it takes to turn an idea into something that matters, that has real — not hyperbolic, but real — societal impact.

For any entrepreneur, inspiration is important, but it's only the beginning. Societally impactful ventures face a long process of turning those inspirations into something that people use, rely on and, in some instances, depend on to make better decisions.

I have two examples to share: One is a device you can easily hold in one hand that has the ability to both keep the owner out of jail and save a life at the same time.

The other is a book that can provide students with usable, practical insights into themselves and the world of employment.

So, what sparked the inventor's and author's recognition that a societal need existed, the equivalent of seeing someone in a wrestling match with their arms tied behind their back and feeling the need to free them?

'I can fix this problem'

History has made clear that a common denominator in inventive creativity is the thought, "I can fix this problem. I can help."

That is what Keith Nothacker, at the time a twentysomething University of Pennsylvania undergrad economics student, thought more than 20 years ago. The device he developed, of which hundreds of thousands have been sold in over 20 countries, has saved countless lives and kept a vast number of its users out of jail.

Most of us know someone who has been pulled over by law enforcement, suspected of driving under the influence of alcohol (DUI). They are asked to blow into a breathalyzer to measure their blood alcohol content (BAC).

If the resulting number is over their state's limit (most often, .08), typically it's off to the slammer for a few hours, a fine to rival the size of our national debt and auto insurance rates through the roof for years, not to mention the possibility of losing their driver's license.

"It seemed so unfair that the general public had no way to measure their own BAC and, knowing that figure, make an informed decision to not drive," Nothacker told me.

He was asking the key question that led to some of the most meaningful ventures ever started: "Why does this problem exist?"

He wondered why consumers couldn't purchase a personal breathalyzer, and how he could make that happen."

Answering those questions, with help from a team of Penn colleagues, led to the development the BACtrack family of personal breathalyzers.

Of the many entrepreneurs I have interviewed over the years, Nothacker stands out as someone who has directly impacted many people, saving lives, marriages and families.

He can help you get and keep a job

Here's another example of societally impactful innovation I've encountered.

Getting hired today and keeping a job is not a given.

Job-related advice is offered everywhere, but the advice provided by William Vanderbloemen, founder and CEO of Vanderbloemen Search Group and author of Be the Unicorn: 12 Data-Driven Habits that Separate the Best Leaders from the Rest, is among the best I've seen.

In his book, Vanderbloemen zeros in on life and business personality characteristics that lead to success on the job — even in marriage — and explains how to implement them. He helps readers avoid common pitfalls that lead to being fired and, instead, become the most-sought-after person on their team.

Had I been able to read Be the Unicorn at the time I joined the working world, I would have made fewer dumb mistakes. This book can help Dean Cours' students avoid the quicksand of their minds and keep clear of what can cause failure on the job.

I can't overemphasize the value of Be the Unicorn and its companion book, Work How You Are Wired, which avoids the nonsense advice of "follow your passion," providing a data-backed method for discovering your unique "wiring," your innate strengths and the roles where you will excel and find purpose.

The takeaway for the dean's students

Several of their employees told me that Nothacker and Vanderbloemen — as accomplished as they are — remain humble, and success hasn't gone to their heads.

They recognize in their bosses a deep sense of wanting to help and not being motivated by money. Many noted that these two "brilliant, inspiring men make coming to work a true joy."

Dennis Beaver practices law in Bakersfield, Calif., and welcomes comments and questions from readers, which may be faxed to (661) 323-7993, or e-mailed to Lagombeaver1@gmail.com. And be sure to visit dennisbeaver.com.

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

You hit your 60s. Maybe you're even sliding into early retirement, and suddenly the days stretch out in a way that feels both enjoyable and… weirdly empty. For many, retirement starts after that long-awaited exhale after decades of work. But then the quiet sets in. The structure of the 9-to-5 vanishes, and the identity you built around "what you do" starts to crumble. That's when a surprising number of people decide to hit the late-career reset button, and they go back to work.

The reasons vary, and it's not always because they have to. Although money often plays a part, sometimes it's because something deeper inside pulls them back in.

A recent AARP survey shows that about 7% of retirees have returned to the workforce in the past six months, with more actively looking or planning to return. Nearly one in eight Americans over 65 either returned to work or intend to this year. And it's not just financial pressure driving the return. Much of it is mental. The mental side of a late-career reset is real. Such a move can also be surprisingly rewarding for those who navigate it well.

Why a late-career reset might be exactly what you need

"Assuming a financial plan was in place at retirement, and assuming one follows that with reasonable care, it will not be financial need that drives most people to 'unretire' but rather a need to be engaged and contribute," explains Elizabeth Zelinka Parsons, retirement transition expert, lawyer, and author of the book, Encore: A High Achiever's Guide to Thriving in Retirement. "Generally, they often find it much more motivating to define their goals according to individual purpose."

While true, your identity may take a real hit. That's because for years, your job title, salary and expertise quietly told you who you were. And, while stepping away can feel liberating at first, one morning you wake up and realize you miss the version of yourself that people turned to for answers. Retirement can trigger a quiet grief over lost purpose and social connection, according to a study published on PubMed. Phasing into retirement or going back to work, full- or part-time, can help reclaim a sense of self without sliding into a funk that hits some retirees hard.

But retirement is rarely simple and can involve a mix of fear, excitement and rethinking your future. Then there's the very real concern about workplace "ageism," a type of discrimination based on a person's age. Will younger hiring managers see your experience as an asset, or will you be seen as overqualified and disconnected? Your confidence can also take a hit when you realize you might need to learn new tech and platforms or fit into an entirely different work culture.

What can often be even more unsettling is the internal tug-of-war: Do you still have what it takes? Are you too old to start over, and will you regret not just staying retired?

Studies on midlife and later-life career changes show that people who leap often end up happier and less stressed, and even report a renewed sense of purpose. One older study found 90% of career changers over 40 felt more successful and content afterward. In fact, experts overwhelmingly agree that when the work aligns with your skills or values, it boosts mental sharpness and provides social connection and structure that help deter cognitive decline.

The practical side mixed with the mental

Some people "unretire" into bridge roles — temporary jobs taken to transition between careers or to fill a gap — such as consulting gigs, mentoring, or part-time positions. Others might take bolder steps. For example, the former corporate executive who becomes a community college instructor, the retired nurse who contracts to help families navigate long-term care, or the engineer who teaches workshops via YouTube.

What they all have in common is intentionality — deciding to reset a career thoughtfully and on purpose, rather than reacting to outside pressure. Although unretiring can be a reaction to boredom or a way to pay the bills, most often a successful reset simply answers the question, "What matters to me now?" What kind of contribution still feels meaningful?

Of course, not every late-career reset goes smoothly. Sometimes you find yourself back in a toxic environment, or you struggle with younger team dynamics. All the extra stress can make you wonder if returning to work was the right call.

But employers are finally starting to wake up. In today’s tight labor market, more companies are dropping the “overqualified” label. Boomers and late Gen Xers bring something valuable to the table, like institutional knowledge, being calm under pressure and the kind of mentoring younger teams sometimes need. Flexible hours, part-time roles, and remote options are becoming more common as organizations recognize that experience really does matter.

So how can you mentally prepare for a late-career reset?

Start with honesty. Parsons has found that some entrepreneurs seeking a career reset reprioritize their goals from profit to purpose, with many entrepreneurs transitioning from a profit-driven role to a mission-driven role. "This allows them to easily align their skill sets with organizations driven by values." Second-act entrepreneurs often find it much more motivating to define their goals in line with their individual purpose. "Instead of scaling for maximum revenue, they build businesses or return to jobs that matter, either to targeted communities or to the world at large."

Talk to people who've done it. Update your skills through free or almost free online courses and volunteer projects to rebuild confidence. Small wins rebuild confidence fast. Rethink the narrative — you're not starting from zero; you're bringing decades of wisdom to the table.

Most importantly, permit yourself to try something new. A late-career reset doesn't have to be all-or-nothing. It can be a consulting gig, a passion project with pay, or even a freelance position that keeps you engaged without the full-time grind.

It's only the beginning

A late-career reset isn't always just about the paycheck. For many, it's about staying connected to people, to a purpose and to the part of yourself that still has something valuable to offer. With longer lifespans and shifting attitudes towards age, phasing back into the workplace or unretiring isn't a sign that you can’t hack retirement. It's simply a smart and healthy way to stay engaged.

"The reset might feel daunting at first, but overcoming these barriers requires a mindset shift away from the "starting from scratch," says Ilir Salihi, Founder at IncomeInsider. “Late-career resets most always work best when framed as redesigning your career around your strengths and longevity rather than as an attempt to catch up.”

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With a perky "Here you go!" it arrives in your inbox: A tonally awkward, super wordy, not-quite-right series of paragraphs from your coworker. You're furious, already fatigued and ready to rip someone's head off.

You just got "workslopped" — a new workplace dynamic where AI-generated content gets submitted by coworkers without adequate editing or quality control.

And while headlines around workslop have focused on the supposed productivity costs it's creating for businesses, the bigger issue is the erosion of trust happening between colleagues.

That's a dynamic that companies are completely unprepared to handle.

A breakdown of trust

The impact of workslop can be immediate: 50% of people who received workslop said they now viewed the sender as less creative, capable and reliable, according to research from BetterUp Labs and Stanford Social Media Lab.

Forty percent considered them less trustworthy. One-third said they were less likely to want to work with that person again.

These numbers are depressing. But instead of using them to actually fix the problem, everyone's just pointing fingers — at coworkers for sending it, employers for allowing it, AI companies for overselling it. The age-old blame game is having a tech-fueled resurgence.

None of this helps employees dealing in real time with workslop's ramifications. Blame prevents collaborative problem-solving, amplifies negative emotions and blocks opportunities to learn. Worse, it robs people of the chance to take meaningful action right now.

Don't wait for company policy

Instead of waiting for companies to solve this from the top down, employees can deal with it using something surprisingly simple: Conversation.

And no, not the "let's circle back and align on this" kind of conversation. Productive conversation isn't about casting blame; it's about exploring the context behind unmet expectations.

Rather than letting distrust fester, equipping ourselves with these skills builds the confidence to respectfully share concerns and the humility to recognize there's more to learn — all for the sake of getting work done together.

Workslop may be the tech-powered headache of the moment, but it's far from the only workplace friction point. Building skills for productive conversation doesn't just help with AI use — it creates a healthier culture overall.

How to manage workslop frustrations

Nobody wakes up excited about difficult conversations at work. But the alternative — silently seething while trust evaporates — is worse. Here's how to handle it without losing your mind or your cool:

Come prepared. Confronting someone about work quality is already uncomfortable; don't make it harder by winging it.

Before you say anything, map out the conversation on paper: Clarify your feelings, what you want to communicate and — critically — what you don't want to say if your frustration spikes. Without this prep, emotions can derail everything.

Lead with curiosity, not accusations. Nobody wants to hear "Did you even read what you sent me?" Create common ground by framing the conversation as collaborative: "Let's figure out how we both work so we can create something we're actually proud of."

Frame questions as opportunities for understanding, not gotchas. And don't assume AI was involved — ask first. You might be wrong, and starting with an accusation kills the conversation before it starts.

Ask what actually happened. If your colleague did use AI, dig into the how and why to determine a path forward. What prompts did they use? Where in the process did they let AI run wild? This isn't an interrogation — these questions help everyone learn how to use AI more effectively.

But also ask about constraints: Did tight deadlines or competing priorities make them feel like they had to use AI as a producer rather than an assistant? These questions can surface workplace issues that extend far beyond AI itself.

Here's the kicker: When you choose curiosity over judgment, you're not just giving your colleague the benefit of the doubt — you're proving you're trustworthy. It's easy to declare someone else unreliable, rather than be reliable ourselves.

Every honest conversation about AI use is the harder choice, and colleagues notice. The cost of avoiding these conversations is steep: Workers may increasingly withdraw from collaboration altogether.

The payoff

Here's what most people miss: Employees have more power in this moment than they realize. While companies scramble to create AI policies, colleagues can act now by choosing conversation over blame.

These conversations don't just solve your immediate problem — they generate the insights that inform better company-wide policy.

Don't keep what you learn to yourself. Share it with your wider organization. Document what works and what doesn't. This isn't about waiting for the perfect company directive; it's about recognizing that the skills to work together effectively are already within reach.

You're not just fixing individual frustrations — you're building the organizational knowledge that shapes how AI gets used everywhere.

Teams that can talk openly about what's working, address disappointments without throwing blame grenades, and learn from each other's experiments won't just survive workslop. They'll build cultures that can thrive when everything is changing.

AI doesn't have to be one more reason we turn against each other. Handled right — through curiosity and real conversation — we can transform inbox rage into something better: Genuine human collaboration. No algorithm required.

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

Question: At 54, we're young grandparents. My wife wants to start a college fund for our grandson, but I think we have to focus on funding our retirement. We've already saved $1.8 million. Who is right?

Answer: As of 2022, the most recent year for which data are available, the average retirement savings balance among 54-year-olds was about $313,000, per the Federal Reserve. If you're 54 years old with $1.8 million saved for retirement, you're clearly in a strong position compared to the typical person your age.

Just because you've amassed a $1.8 million fortune by age 54 doesn't mean your work is done, though. If you're planning to stay in the labor force for another decade or longer, you have a prime opportunity to add to your savings and buy yourself even more long-term financial security.

What if that's your plan, but your wife would rather focus on making contributions to a college fund for your grandson? It's clearly a kind and generous thing to do. But it's important to strike the right balance so that a desire to help your grandson doesn't put your retirement at risk.

Your nest egg needs to take priority

Saving for retirement and funding a college account for a grandchild are both excellent goals. But Eric Croak, CFP and President at Croak Capital, says contributing to a retirement account in the coming years should be your first priority.

"Retirement contributions come first. Period," Croak insists. "Retirement has to come first because there are no scholarships or loans for being old and poor."

John Madison, CPA and personal financial counselor at Dayspring Financial Ministry, agrees.

"As a young grandparent myself, I appreciate the desire to help your precious grandchildren get a head start on college funding," he says. "However, any contributions to a grandchild's 529 account should only be made after carefully considering your own retirement funding needs."

Madison says that in this situation, it pays to aim to contribute 15%-20% of your income toward retirement. But if there's money left over beyond that, then by all means, fund a 529 plan or another college account of your choice.

Croak agrees with this approach and says that even if prioritizing college savings doesn't make sense today, there may be opportunities to do so in the future.

"Life often has a way of providing more financial flexibility down the road, whether it’s an extra bonus year, an inheritance, or a fully paid-off house," he says. "If they maximize their retirement accounts first, they can always 'superfund' a 529 later."

Croak explains that 529 plan contributions can be front-loaded with five years of gift tax exclusions at one time.

"Knowing that possibility exists means there’s no need for over-funding now," he says.

Don't assume a 529 plan cuts off access to funds

If your grandson is fairly young, you may be eager to start saving for his education now, when that money still has years to grow. The danger of prioritizing a 529 plan is losing out on money you may end up needing for retirement if your portfolio doesn't grow as much as you'd like.

But Matt Hylland, financial planner and investment advisor at Arnold and Mote Wealth Management, says you may have more flexibility than expected.

"It is smart to be thinking about how much you can comfortably save today in a 529, because the tax-free compounding growth is so valuable," Hylland says. But, he continues, "Realize that 529 contributions are not irrevocable. If your retirement planning does not go to plan, you will have access to the money in the 529 account."

When a 529 plan is used for non-qualifying withdrawals, earnings are subject to income taxes and penalties, Hylland explains. However, your original contributions are not (though some states may claw back income tax deductions on contributions).

"Putting money in a 529 now will give decades for tax-free growth, potentially," Hylland says. "That value may greatly outweigh the small likelihood of needing an emergency withdrawal and paying taxes."

Choose your college account strategically

If you don't like the idea of tying up college funds in a 529 plan because you might need the money for retirement and don't want to face penalties, Hylland says there are other types of accounts you can consider utilizing instead.

"You could start a new brokerage account that is earmarked for future college goals," he says.

"This is not as tax-efficient as a 529. You will be subject to ongoing taxes on dividends and interest, along with capital gains. However, you will eliminate any income tax and penalties if you ultimately need the money for other uses."

Look at the big picture

While Madison agrees that retirement savings should take priority over helping a grandchild go to college, ultimately, his suggestion is to look at the total financial picture before deciding what to do. In addition to the $1.8 million already saved, Madison suggests factoring in other planned income streams, like Social Security and pensions.

From there, he says, you can run projections based on where you are today and your anticipated retirement spending needs.

"If this in-depth study shows they are on track for meeting their retirement income needs, easing up on additional retirement contributions to instead fund a 529 would be perfectly reasonable," he says.

Your projected retirement age should also factor into the decision. Although some people end up having to retire sooner than planned, a $1.8 million nest egg left untouched for 13 years could grow to $3.8 million at a somewhat conservative 6% annual return.

If all goes according to plan, you may end up with more than enough retirement savings even if you contribute minimally to an IRA or 401(k) in the coming years. So while it's good to keep funding those accounts to build in a buffer for a forced early retirement, a slower-than-average market, or other suboptimal scenarios, after doing a financial deep dive, you may find that you have more leeway to fund that college account than you thought.

Do you have a tricky money situation? We want to hear about it for an upcoming advice column. We're interested in retirement-related financial dilemmas, especially those that impact relationships with partners, friends and family. You will remain anonymous. Submit your question to KipAdvice@futurenet.com. Not all questions will be published.

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There's a specific moment most people have at work. It's not Monday morning or Friday afternoon. It's some random weekday, when you glance at the clock in the midafternoon and think, "I can't do this for another 20 years."

That feeling isn't rare anymore. A lot of people aren't just complaining about work — they're actively building exits. Side businesses. Freelance income. Consulting. Anything that gives them more control over their time.

If you want to leave regular employment and go it alone, you need a concrete financial plan. Here's how to approach it.

1. Set clear financial goals

Wanting to leave your job isn't a goal — it's a feeling. A goal is something you can check on a spreadsheet and say yes or no to. Until you set some clear financial goals, it's hard to tell whether you're making progress or just staying busy.

This is where structure helps. Using the SMART framework will force you to be specific. So instead of simply stating, "I want financial freedom," start by defining the conditions under which leaving your job would feel safe.

That usually means answering a few uncomfortable questions:

• How much money do I really need each month?
• How long could I survive without a paycheck?
• What income would make quitting feel boring instead of terrifying?

Once you answer these questions, your goals start to look like this:

• Save enough money to cover 12 to 18 months of what you actually spend
• Earn $3,000 per month in side income for six consecutive months
• Pay off all high-interest debt before your final day at the 9-to-5 job
• Build a six-figure emergency fund if your income or family situation requires it
• Secure five retainer clients at $800 per month each

These are just ideas. When you set your own goals, pick the target that matters most for your situation, put a date next to it and work backward. If the deadline is a year out, what has to happen this month? This week?

For a broader view of how people turn savings rates and investing into time freedom, the Financial Independence, Retire Early (FIRE) approach breaks down the underlying mechanics.

2. Understand your current financial situation

Before you hit the gas on earning more, find out exactly where your money goes today.

Track all income, every expense, and your current savings and investments. Use a spreadsheet, your bank's tools or a budgeting app. The Consumer Financial Protection Bureau has free cash flow worksheets.

Three numbers matter more than everything else:

• Net worth. Assets minus debts. Watch the direction, not just the total
• Cash flow. What's left each month after expenses — this fuels everything
• Liquidity. How many months you could survive if your income stopped tomorrow

Honestly, track your subscriptions too. You may have signed up for many services that you don't use but are still paying for, which is a common mistake.

People expect magic from investing, but the first quick wins usually come from canceling subscriptions and renegotiating bills. Small habits build up fast. Look out for the 13 habits wealthy people practice to retire early.

3. Build a reliable income stream

You don't have to quit to begin. The safest way out is building new income while you still have a paycheck. It's easier to test ideas when your rent is covered.

Your day job is the perfect safety net, as this will allow you to experiment without needing immediate results.

Here's a practical approach:

• Start with something you already get paid to do. If your job involves writing, analyzing, designing, managing, selling, teaching or fixing something, there's usually a stripped-down version of that work someone will pay for outside your employer.
• Use platforms to find early customers: LinkedIn for B2B, local networks for hands-on work and marketplaces for digital products.
• Build one active stream and one scalable stream. Client work pays now. A digital product or course builds over time.
• Explore income that doesn't require your hourly presence, for example dividends, rental real estate and digital products.

Be careful with the word "passive." Most passive income takes real work up front. But that work can decouple your time from your earnings.

4. Master budgeting and expense management

Your budget is the throttle. Boost your savings rate and you shorten your exit timeline. That doesn't mean a joyless life. It means making deliberate choices.

Start with the big three: Housing, transportation and food. The Consumer Expenditure Survey shows these categories dominate most budgets. Cut here first if you can, as this may be what is holding you back the most, not the paycheck itself.

Quick wins:

• Negotiate rent at renewal or consider house hacking
• Reshop insurance and your mobile plan
• Switch to meal planning and reduce takeout
• Audit subscriptions (most of us forget at least three)
• Use cash-back strategies (as long as they don't tempt you into overspending)

Set a target savings rate tied to your exit timeline. If you need $36,000 for a one-year runway and you want to quit in 12 months, you need to save $3,000 a month. Work the budget until that number fits. If it can't, increase your income.

5. Invest for long-term financial stability

When you leave a paycheck, your money has to work harder. You need a simple, diversified portfolio you can stick to through ups and downs.

Create a tiered strategy. Keep one year of expenses in highly liquid accounts. Invest the next two years in moderate-risk assets. Put everything beyond that timeline into growth-focused investments. This will help create both security and opportunity.

Think of it like shelves:

• Top shelf. One year of expenses in high-yield savings, T-bills, or money market funds
• Middle shelf. The next year or two in short-term bonds or a conservative allocation
• Bottom shelf. A globally diversified stock-heavy mix for growth over five-plus years

Index funds and ETFs make this simple and cheap (the SPIVA scorecards show how hard it is for actively managed funds to beat their benchmarks after fees).

Tax wrappers also matter, so consider

• A Roth IRA for tax-free growth if you qualify
• A Solo 401(k) or SEP IRA if you have self-employment income
• A health savings account (HSA) for the triple tax advantage if you're eligible

6. Reduce and managing debt

Debt doesn't feel urgent when your paycheck shows up on time. A $300 credit card payment, a $450 personal loan, maybe a car payment layered in — it all feels manageable when the money is predictable. You set it to autopay and move on.

It feels different once you start thinking about leaving work. Picture someone earning steadily with:

• A credit card carrying a $6,000 balance at a high rate
• A second card with a smaller balance they keep meaning to clear
• A $450 monthly personal loan that once felt reasonable

None of this is extreme. But together, those payments quietly set a floor. No matter what else happens, a certain amount of money has to come in every month just to avoid stress.

Some people go after the most expensive debt first because it saves money over time. Others need the psychological win of closing an account and watching a balance disappear. The method isn't the point. Reducing the number of required payments is.

Balance transfers and consolidation loans can help in specific cases. They can also backfire if they stretch repayment out longer or make spending feel easier again.

Student loans, especially federal ones, are usually worth leaving alone until you fully understand the trade-offs.

While you're doing this, you don't need to obsess over your credit score. You just don't want to damage it. Pay on time. Don't let balances creep back up. Avoid opening new accounts while you're trying to simplify.

As you do this, protect your credit. Pay bills on time, keep balances from creeping back up and avoid opening new accounts while you're getting ready to make a transition.

7. Create an emergency fund

An emergency fund keeps a flat tire from turning into a total detour.

• Saving for six to 12 months of expenses is common for people leaving stable jobs, especially if they have dependents or variable income.
• Keep your emergency fund in a high-yield savings account or a short-term Treasury ladder. Don't chase yield by adding risk.
• When you need the money, you want it fast and intact. Make sure your accounts are FDIC- or NCUA-insured.
• Build it gradually. Automate transfers every payday. Windfalls, refunds or side income can top it off faster.

While the standard advice is that your emergency fund should be able to cover three to six months' worth of essential expenses, you should aim higher if you're going solo.

8. Develop a financial exit strategy

Here's a checklist to give you an idea of what you should have in place before quitting:

• On your calendar, circle the month in which you hope to leave work and set 30/60/90-day milestones leading up to then
• Decide how many months of expenses you need in cash
• Define the minimum monthly revenue from your side work before you give notice
• Presell your products or services where you can and secure at least one predictable channel
• Price health insurance on the ACA marketplace
• Set money aside for self-employment tax and start quarterly estimated payments
• Update contracts, business banking and invoicing
• Live on your projected post-exit budget while you're still employed

Review this plan monthly. Markets change. Clients change. You'll change.

A teacher may start tutoring on weekends, then build a small team. A marketer can freelance after hours, then package a service. A salesperson may launch a digital product, reinvest and add retainers. The specifics vary. The structure repeats. Start small, learn fast, scale what works.

Start today

Leaving the 9-to-5 rarely happens in one dramatic moment. It happens quietly, after enough small decisions line up.

Get specific. Set goals tied to dates and dollars. Audit your finances to find hidden cash and redirect it. Build income on the side while your paycheck buys you time.

Invest with a plan that gives you cash when you need it and growth when you don't. Eliminate expensive debt so your new life needs less income.

Starting today:

• Write one exit goal with a date and a dollar amount
• Track every dollar for 30 days
• Schedule five hours a week for one income experiment

And remember that even small steps will bring your dream closer.

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

For parents of the Class of 2026, current headlines can feel challenging. After years of tuition payments and academic rigor, the prospect of a "weak" entry-level hiring market — the softest since the pandemic — raises a fundamental question: Is the return on investment for a college degree diminishing?

Remember that market cycles apply to labor just as they do to equities. While a growing share of employers may characterize the entry-level landscape as "poor" or "fair," it is vital to separate near-term economic friction from long-term wealth and career planning.

For the Class of 2026, success may not look like the linear path of previous generations, but with a strategic pivot, the ROI remains achievable.

The shift in entry-level dynamics

Several structural forces are currently cooling the "big three" sectors that traditionally absorbed new talent: Technology, consulting and corporate rotational programs.

We are seeing a "flight to experience," where employers are increasingly filling junior roles with professionals who have one or two years of experience — often those recently displaced by corporate restructuring — rather than first-time entrants.

Furthermore, the "AI effect" is no longer theoretical. Research from Forrester suggests that automation could replace roughly 6% of U.S. jobs by 2030.

For a new graduate, this is particularly relevant because the "training ground" tasks — the spreadsheet modeling, basic coding and administrative coordination — are the exact functions being consolidated by generative AI.

Where the growth has migrated

Reports of the "death of the entry-level job" are, in my view, overstated. Demand hasn't disappeared; it has migrated.

According to the Bureau of Labor Statistics, the growth engine has shifted toward sectors that require high-touch human interaction or specialized technical oversight.

Health care continues to lead, with roles like nurse practitioners and specialized clinicians seeing unprecedented demand.

Simultaneously, we are seeing a resurgence in "new collar" roles. Massive investments in data centers and energy infrastructure have created a premium for construction technologists and specialized electricians.

For the student focused on immediate ROI, targeted certifications and apprenticeships are increasingly viewed as primary wealth-building strategies rather than fallback options.

Strategic planning for families

Career outcomes remain highly individual, and as parents, our role is to provide a stable financial and emotional foundation that allows for flexibility.

Here are several planning considerations to help your graduate navigate this transition:

1. Reframe "survival" jobs as skill-building

If the "dream job" doesn't materialize by June, encourage early workforce participation in any capacity. I often tell clients that a job at a high-volume café is a masterclass in behavioral finance.

Managing high-stakes transactions and maintaining service quality under extreme time constraints is excellent preparation for dealing with executives and clients later in life.

In interviews, a graduate shouldn't just say they were a barista — they should describe how they managed logistics and customer expectations in a high-pressure environment.

2. Establish a "bridge fund"

From a cash-flow perspective, families should consider carving out a defined "transition fund." This isn't an indefinite subsidy, but rather a structured bridge to cover living expenses while a graduate searches for the right fit or pursues a specialized certification.

Having three to six months of liquidity prevents a graduate from making a desperate career move that might hinder their long-term trajectory.

3. Lean into geographic arbitrage

The traditional hubs — New York, San Francisco, Chicago — are facing stiff competition and high costs of living.

However, ADP Research indicates that cities such as Baltimore; Milwaukee; Raleigh, North Carolina; and Austin, Texas, are seeing hiring increases.

Moving to a high-growth, lower-cost secondary market can significantly accelerate a young professional's ability to begin saving and investing early.

4. Cultivate "human" capital

While technical skills get the first interview, "soft" skills — or what I prefer to call "durable" skills — secure the career. Encourage your student to focus on the quality of their education to refine their thinking.

In an AI-driven world, the ability to synthesize complex information, practice empathy and maintain open-mindedness is the ultimate hedge against automation.

Every generation enters the workforce facing its own "unprecedented" challenge. The Class of 2026 is entering a market that demands more adaptability and technological fluency than perhaps any before it.

The goal of planning isn't to guarantee a specific starting salary, but to build a framework that allows for pivots.

By focusing on transferable skills, geographic flexibility and a sound financial bridge, parents can help their children turn a challenging market entry into a resilient career foundation.

The degree is the ticket to the stadium — how they play the game in the first few innings will depend on their ability to adapt.

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

"Begin at the beginning," to quote the King of Hearts from Alice in Wonderland. That's how most people approach business ownership, and on its face, it seems like a smart strategy.

We all know the sobering statistics on entrepreneurship: According to the U.S. Bureau of Labor Statistics, about 21% of businesses fail in the first year, nearly 50% fail by year five, and about 65% fail within 10 years.

So to avoid becoming a statistic, most entrepreneurs focus primarily on the first five years (launching their business, securing funding, building operationally and scaling). But it would be a mistake not to also think about preparing for a potential exit.

What is your exit? Do you plan to sell the business, pass it to a family member, partner or employee or dissolve it?

While you might not readily know the answers to these questions, by following the five best practices below, you can both build your business and put yourself on stronger footing when the time comes to begin your next act.

1. Keep your financials clean and transparent

Often, business owners are good at what they do but need help on the financial side of running a company. If you want to eventually sell or transition your business, you will want to make sure everything is above board.

It is important to have a trusted executive — whether that's a CEO, CFO, outside accounting firm or even a fractional CFO — who can guide you in the day-to-day bookkeeping of your business, making sure you have proper cash flow and the right people in place.

Clean and transparent financials are critical to maximizing valuations. Unfortunately, I have worked with business owners who were not focused enough on the operations and finance side of their businesses and eventually found that employees were embezzling funds.

If you do not have a strong background in business accounting, make sure you bring on trusted, experienced people early who can set you up for success and keep it running smoothly as you grow.

2. Make sure the legal structure is aligned with your goals

When setting up a company, you can structure it as an LLC, C corp or S corp. There are different tax advantages to how you structure your business.

For example, if you are registered as an S corp through an LLC, you can give yourself a salary through the company and set up a solo 401(k) to maximize tax advantaged retirement savings.

You can also structure the company to support your retirement goals in additional ways.

For example, if you set your business up as an LLC, you can take out a private-placement life insurance policy through the business, which will allow you to protect and grow your assets tax-free.

3. Know when to scale your business

A business cannot rely solely on the person who founded it. Make sure you are creating a repeatable business model, which will add value to your eventual selling price.

For obvious reasons, very few buyers are interested in purchasing a business that will stop functioning if you no longer work there (unless they are buying your clients or buying you to stop you competing with them).

Therefore, to maximize valuation, you need to put in place the team and processes that allow the business to effectively function without you.

4. Protect yourself

Hire an attorney to help you on the planning side, but also with setting up trusts, taking out insurance, filing patents and all other important legal matters.

Where applicable, legally controlling and protecting the intellectual property of your business may also directly increase the value of the company.

5. Begin thinking of your long-term plans

Beyond your five-year growth plan, think about 10, 20 or 30 years down the road. Do you want to cash out completely or make a partial sale? Do you envision yourself working part-time in retirement or being fully retired?

Of course, your answers may change over time, and that is okay. Financial planning provides a road map and should never be set in stone.

By working with a financial adviser, you can create a strategy while also adjusting if your goals change over time.

Entrepreneurship is about being in control of your own life. When you are building a business, think about the full lifecycle — launch, scaling and eventual exit.

If you "begin at the beginning" but also think about where you want to land, you will be creating a road map to achieve not just your business goals but your vision for your life.

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

For years, paying for graduate school followed a predictable pattern: Borrow what you need and deal with repayment later. Federal Grad PLUS loans made that possible by allowing students to cover nearly the full cost of attendance after other aid was applied.

According to the Education Data Initiative, in 2025 the average outstanding balance on a Federal Grad PLUS loan stood at about $66,000, which underscores how central these loans have been to graduate financing.

That model is changing.

Beginning July 1, 2026, new graduate students will no longer have access to Grad PLUS loans. Federal borrowing will instead be governed by annual and lifetime limits, with caps determined by whether a student is enrolled in a professional degree program or another type of graduate program.

For many students, especially those in high-cost programs, federal loans may no longer cover the full cost of earning an advanced degree.

This shift matters most for programs with high upfront cost structures, including degrees commonly associated with medical school funding, law school funding and other advanced career pathways where students often assume federal loans will fill any remaining gaps.

In 2026 and beyond, that assumption becomes far less reliable.

Graduate school remains attainable, but the financing strategy must evolve. As Grad PLUS ends, scholarships, assistantships and other forms of "free money" should become the foundation of a funding plan, not an afterthought.

A new borrowing framework for graduate students in 2026

Starting with students who borrow for the first time in the 2026–27 academic year, federal graduate loans will follow a two-tier structure:

Non-professional graduate programs (including most master's degrees):

• Annual limit: $20,500 in Direct Unsubsidized Loans
• Lifetime graduate aggregate limit: $100,000

Professional degree programs (such as medicine, law and dentistry):

• Annual limit: $50,000 in Direct Unsubsidized Loans
• Lifetime graduate aggregate limit: $200,000

In addition, an overall lifetime federal loan cap of $257,500 applies across undergraduate and graduate borrowing combined.

Students and families should act early by:

• Confirming how their program is classified with the financial aid office
• Requesting clarity on annual and lifetime borrowing limits specific to that program

Doing this upfront helps avoid unexpected funding shortfalls later in the program.

What counts as a professional graduate degree?

This is where many families get tripped up.

Under federal aid rules, professional graduate programs are narrowly defined. They generally include doctoral-level degrees that lead directly to entry into regulated professions, such as medicine (MD or DO), law (JD), dentistry, pharmacy, veterinary medicine, optometry, podiatry, chiropractic care, theology and clinical psychology.

Importantly, career outcomes do not determine classification. A program's federal status is defined by U.S. Department of Education rules — not by earning potential, licensure requirements or job demand.

As a result, some high-cost, career-focused degrees may not qualify for professional-level loan limits.

Classifications are set through federal student aid regulations and reflected in the Classification of Instructional Programs (CIP) codes used in federal reporting.

Universities may also signal distinctions in their catalogs, often separating professional schools (such as law or medical schools) from graduate schools of arts and sciences.

The key takeaway: Do not assume a program is treated as professional for federal aid purposes.

Students should confirm classification directly with their financial aid office and plan accordingly, especially in high-cost programs where borrowing limits may not align with total expenses.

Why funding gaps will become more common

Graduate borrowing has increased steadily over the past two decades. While graduate students make up a smaller share of borrowers, they hold a disproportionate share of outstanding federal student loan debt.

That imbalance has led policymakers to impose borrowing caps to limit government risk and promote more sustainable lending.

For students, the result is clear: Funding gaps are more likely — particularly in programs with high tuition, unpaid clinicals or internships, or limited ability to work while enrolled.

These gaps extend beyond tuition. Housing, transportation, exam fees, equipment, childcare and licensing costs all add pressure as borrowing options narrow and private loans become the fallback.

Start with the funding gap, not the loan amount

With borrowing now capped, planning should begin by identifying the true funding gap, not by maximizing loan eligibility.

The funding gap is the difference between these two things:

• Total cost of attendance (direct and indirect)
• All non-loan resources available to the students

Many students focus only on tuition. Including living expenses and program-specific costs often reveals a much larger gap, especially in high-cost graduate programs that are not classified as professional.

Students should:

• Calculate their full funding gap early, including living expenses
• Actively pursue scholarships, assistantships, employer benefits and other non-loan resources first
• Turn to federal or private loans only after non-repayable options are exhausted

Where 'free money' fits into the new reality

Free money rarely comes from a single source. It is built over time.

Departmental scholarships and fellowships remain among the most effective and most overlooked options.

Regular conversations with faculty, monitoring departmental announcements and engaging in academic or research groups can uncover funding opportunities that are not widely advertised.

Graduate assistantships are another cornerstone. Teaching and research roles often provide stipends, tuition reductions and health insurance, significantly reducing reliance on borrowing.

A stipend that offsets living costs can lower future debt more effectively than taking out additional loans.

Employer tuition assistance is also increasingly important, particularly for working professionals. Even partial reimbursement can materially improve affordability when applied over multiple terms.

Professional associations and workforce-based programs offer additional funding that many students overlook because it is not labeled as traditional financial aid.

Addressing funding gaps in real time

As borrowing limits tighten, timing matters as much as total cost. Many scholarships are awarded annually, while graduate students often experience month-to-month cash-flow challenges.

To help address this issue, Edvisors recently launched a $3,000 monthly scholarship for graduate students, awarded on a rolling basis to help offset funding gaps as they arise.

The scholarship is designed to complement, not replace, institutional aid and assistantships. More information is available at Edvisors.com. (Note: I am the chief marketing officer of Edvisors.)

Tax benefits also warrant attention. Credits such as the Lifetime Learning Credit may not reduce upfront costs, but they can lower total out-of-pocket expenses and function as another form of free money.

What students' advisers should watch closely

• Program classification is now a central planning factor, not a footnote
• Timing matters — students who borrow before July 2026 may face different rules than those who begin after
• Competition for scholarships will intensify as borrowing caps push more students toward non-loan funding

This is especially relevant for advisers working with students pursuing degrees such as medicine or law, where perceived program status may not align with federal aid classifications.

The bottom line

Graduate school financing in 2026 will require greater intention and less reliance on automatic borrowing.

Students who succeed will verify program classification early, understand borrowing limits, calculate their true funding gap and build a strategy that treats scholarships and other free money as essential — not optional.

For advisers, the role is clear: Help students confirm classifications, model borrowing limits accurately, identify funding gaps early and prioritize non-loan resources as a core part of graduate education planning.

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

We're almost two months into 2026, but it's never too late to set (or reset) your financial goals. And now we are well past the busy holiday season, it may be easier to think clearly about the "need-to-dos" and "nice-to-haves" to create a financial plan.

The key is to start whenever you're ready and to focus on building a realistic plan you can follow over the next 12 months (or any time frame that makes sense for your life).

One helpful way to begin is by choosing a single word as your guiding theme, instead of a long list. It can be anything — just identify what's most important to you.

Maybe it's health: This year, you want to get in better shape, improve your mental health and strengthen your financial resilience.

Or perhaps this is the year defined by education as you look to become more financially savvy and save for your children's college expenses.

Whatever your personal goals, keep that theme word in mind. If you don't pick a destination, you're not really going anywhere, so first find that North Star.

But to make real progress toward it, you'll need to make a road map.

To do that, and to guarantee that you end the year further along than you started, identify three concrete steps toward your theme to spread across the year, each one building on the last.

This process will be the same regardless of your goals, but to illustrate it, let's focus on the theme of "retirement" — because it's the most important thing to get ahead on, and the easiest thing to put off for another year.

Step No. 1: Set up an early win

Once you've determined your theme, figure out the easiest step on that journey. If you can guarantee yourself a win here, you'll not only end up with tangible results — you'll have proved to yourself that you're capable of making progress toward your financial goals.

Often, the reason we struggle is that we've become used to letting ourselves down. So make a promise to yourself and keep it. Learn to trust yourself again.

For retirement planning, there are three big considerations:

• How much will I need?
• How will I spend it?
• What legacy can I leave?

Rather than thinking of this as a single, overwhelming goal, spread the steps across those considerations. The first is about clarifying what you're aiming for.

It's tempting to want to focus on reaching your "number" — or the dollar amount you'll need to save to retire. But there's little point in thinking up a number for its own sake. What's most important is thinking about the life you want to live in retirement.

For example:

• Where do you plan to live — in the U.S. or abroad?
• What income sources will be available to you?
• When does it make sense to claim Social Security, knowing that even a few years' delay can meaningfully increase lifetime income?
• What do you think your health will look like?
• What hobbies do you plan to pursue in retirement?

Adjusting your plans in line with the answers to these questions could be your first step.

Step No. 2: Develop an overarching strategy

Your next goal should be a bit more ambitious.

You might already have your map to retirement. But what about through retirement?

Consider the statistic that on Mount Everest, more accidents happen on the way down than they do on the way up. We have oriented our mindset to say that building our nest egg is the hard part. That's true, but spending it down can be equally tough.

Whether you're 35 or 75, it's essential to build an income distribution plan and test it against your estimates of factors, including taxation and living expenses.

As a hypothetical example, let's say you have a retirement account, an investment account and an annuity, which together give you $2 million to draw from.

• How much and from which of those accounts do you withdraw money to live comfortably?
• Are you taking a little from each account every month?
• If you are, what amount should you take?

The decisive factor here is the taxation of your withdrawals. Taking that money from a traditional IRA is the least tax-efficient option, for example, because every dollar is taxed at the ordinary income tax rate.

Paying attention to how your retirement assets are taxed, and spending them strategically, can make a huge difference in how much income you can have in retirement.

You don't want to relax and say, "I've made it because I have $2 million." Getting to that number is only half the journey, so start planning how you will turn your savings into income as efficiently and effectively as possible.

Step No. 3: Make progress on long-term plans

For the third step in your 2026 plan, you want to take on your furthest-reaching goal. In this example, that could be leaving a legacy to your loved ones or a cause that's important to you. This means moving past step two to figure out what assets you can pass on.

You might organize your will and estate planning documents. According to one study, fewer than a quarter of Americans have a will, and a quarter of those who do have never updated it.

Your goal this year might simply be engaging an attorney. From there, you could have everything done within three months — but you have to take that first step.

Tax efficiency can be important here, too.

For example, proceeds from a life insurance policy are not taxed when the death benefit is paid. This makes it a tax-efficient way to pass on wealth.

You should be careful not to spend the cash inside a life insurance policy down to zero and eliminate that benefit because loans and withdrawals from cash value life insurance reduce the policy's cash value and death benefit and increase the chance that the policy may lapse.

There are also investment vehicles that you shouldn't pass on to your heirs.

For example, an IRA can be the least tax-efficient way to pass money on because, as mentioned above, traditional IRAs are taxed as ordinary income by heirs when they seek to access that money.

Finding your financial North Star

"Retirement" is just one example of how you might approach a theme. If you're having trouble coming up with yours, try thinking beyond, "How much money do I have?"

Think:

• "How secure do I feel in my ability to spend it?" ("Security.")
• "Do I have an emergency plan?" ("Emergencies.")
• "Do I have financial reserves?" ("Resilience.")

Answers to questions like these could help clarify your priorities over the next 12 months.

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

Most financial advice is aimed at people just starting out or those already planning their exits into retirement. But for millions of women, the real pressure point sits squarely in the middle.

Your 40s and 50s are what I call the messy middle. You're often at your peak earning power just as your financial responsibilities — college tuition for your kids, mortgages, aging parents, rising health costs and the emotional toll of being everyone else's safety net — explode.

(I'm exhausted just typing all that.)

It's no wonder so many successful women feel financially stretched, even when their incomes look impressive on paper.

This is also the decade when a quiet realization tends to creep in: "I can't do this for another 20 years."

That's when many women have the idea of a midcareer pivot — launching a business, changing industries, scaling back or finally building a life that feels aligned instead of exhausting.

This is my story. In my 50s, one more kid in college, parents getting up there, etc., and I decide to take (another!) leap and join an independent financial advisory firm that aligned with my values.

Scary? Heck yeah. But am I happier? Oh, heck yeah.

Here's the thing most people miss: A midlife pivot doesn't have to be a financial setback. When done correctly, it's one of the most powerful wealth-building moves you can make.

These years are your hinge years. What you decide now doesn't just shape your next job; it can reshape the next 30 or 40 years of your financial life.

The traps that derail career pivots

Most pivots don't fail because the idea was bad. They fail because there wasn't enough financial planning.

A pivot isn't just a job change — it's a cash-flow disruption. The biggest mistake pivoters often make is not building a true bridge fund.

You need a financial runway that allows you to make smart decisions instead of desperate ones. For professionals, that usually means six to nine months of expenses. For new entrepreneurs, it can easily be 12 to 18 months.

Then there's the hidden cost of losing corporate benefits. When your employer disappears, so do subsidized health insurance, disability coverage, health savings account (HSA) contributions and, sometimes, life insurance.

Replacing those benefits can quietly add thousands of dollars a year — money many people don't account for when they plan their leap. (Not speaking from experience or anything.)

The most dangerous trap, though, is hitting pause on retirement savings. Missing even a couple of years of contributions during your highest-earning decade can permanently reduce your future nest egg by hundreds of thousands of dollars.

If contributions must slow down, they should be offset later with aggressive catch-up strategies and smart portfolio design.

Why your pivot is really a tax strategy

A midcareer shift isn't just about income — it's also about tax control.

When earnings become unpredictable, taxes become one of the biggest risks. Self-employment tax, quarterly estimated payments and the timing of the Qualified Business Income (QBI) deduction, which lets many small-business owners deduct up to 20% of their business profits before calculating their tax liability, all start to matter in ways they never did before.

But pivot years can also create rare opportunities. A temporary dip in income might allow for Roth IRA conversions at lower tax rates, locking in tax-free growth for decades. In other words, the same income disruption that feels scary can become one of the smartest tax moves of your lifetime — if you plan for it.

Be sure to talk to your accountant or tax preparer.

Your five-year money map

A pivot is not a one-year event. It's a five-year financial arc.

It starts with a life audit, an honest look at what's draining you, what energizes you and what kind of life you want 20 years from now.

From there, you build your capital stack, not just cash, but skills, relationships and emotional resilience. These are assets, too, and they often matter more than money during a transition.

Year one is about stabilizing your finances and sharpening your skill set.

Years two and three are when income starts rebuilding, and benefits get replaced.

By year four, you should ramp investments back up.

Year five is when you start shifting from survival to legacy — thinking about wealth, family and long-term impact.

A midcareer pivot isn't a crisis; it's a power move

Women today are reinventing themselves more than any generation before them. Time after time, the women I advise say the same thing: I only wish I'd done it sooner.

Your future isn't locked in. Your next chapter is yours to design.

Get out there, change it, and reap the benefits.

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

The Olympics are inspiring for many reasons. Athletes see them as literal goals, while us mortals at home are moved by the competitors' perseverance, fortitude and collegiality. It's a beautiful thing for us to get together every few years across the globe and put our best feet forward.

You might never stand at the 420-foot top of a ski jump, but there are still lessons you can take from the Olympics into your career.

5. Put yourself in the right position for your career

One of the most interesting career lessons in these Olympics has nothing to do with sports. If you've been watching NBC's coverage, you've seen sportscaster Mike Tirico. If you watched the Super Bowl last Sunday, you also saw Tirico.

It's remarkable to go from calling the biggest game in the United States to headlining the Olympics, and it all happened because of a career decision Tirico made a decade ago, smartly detailed by Andrew Marchand for The Athletic.

He left ESPN, where he had established an impressive career with a role regularly calling football games, to go to NBC, in part because he had an ambition to call the Super Bowl, to which ESPN didn't have broadcast rights (it also didn't have rights to the Olympics).

When he first got to NBC, Marchand wrote, "Despite formerly being a 'No. 1,' Tirico only got occasional games." But Tirico had smartly positioned himself in the commentating line of succession, giving himself opportunities, between the Super Bowl and the Olympics, he never would have had if he had stayed being "No. 1" at ESPN.

The lesson? To chase your career goals, position yourself strategically where the opportunities are.

4. Sometimes the best investing decision is the obvious one

...within reason.

As you earn enough money to make serious investments, you face a question: Do you invest in the Magnificent 7, which "everyone knows is the best," or do you look for a hidden value stock that can skyrocket? (There is another option, which is investing in a fund, but bear with me here.)

You might think the Mag 7 is overplayed, and there's no way something that's had such a great rise will continue having such a great rise. But the thing is, sometimes companies that are performing well will continue to perform well.

Just ask the U.S. women's hockey team. Coming in as favorites, Team USA finished the group stage undefeated, scoring 20 points in four games and only getting scored on once.

Or ask Johannes Hoesflot Klaebo, the skier who just tied the record for the most gold medals at the Winter Olympics.

But then there are the counterexamples. Consider, if you will, figure skater Ilia Malinin; or Mikaela Shiffrin, the best alpine skier in the world "for three years and 11 months out of every four years," as the Wall Street Journal put it, who has had a dismal time at this and the last Olympics. Consider Chloe Kim, who missed a difficult attempt on the snowboard halfpipe and took home a silver.

The thing is, that's us looking at two weeks of performance out of a full career. If you looked at the Magnificent 7 in the last week or two, you might also think they're a lost cause. (With the hockey competition still going on, there's no certainty the U.S. will continue its dominant streak.)

The lesson? Sometimes "the best" get that reputation for a reason, but you have to trust returns over a reasonable time period. Do your research and make your own determinations on your investments, but take it from someone who sold Facebook stock at $65 in 2014: Big companies can get bigger.

3. Subjective judgment is a painful part of life

Imagine you were working for 15 years, steadily moving up from assistant to vice president at the same company, not causing any drama, picking up side projects for other teams, and getting consistently improving results.

How would you feel, then, if someone who got hired less than a year ago — who had lower numbers than you last quarter — got that promotion you've been hoping for?

That was something of the case for Team USA's Madison Chock and Evan Bates, the married ice dancers who have been skating together for 15 years. This was their fourth Olympics, and they came in determined to leave champions.

Instead, they lost the gold by 1.3 points to the French team, who only paired up last spring as they each faced controversial situations with their previous partners.

Figure skating is a famously subjective sport, as scores are made by a panel of judges making their best determination.

While efforts have been made to make the process more objective, hiring decisions are also famously subjective and can come down to something as simple as another candidate using a phrase that was on the hiring manager's mind, while you had a different word choice.

The lesson? You might never know why someone got the job over you, but that decision doesn't determine your worth or how good you are at what you do. U.S. figure skater Michelle Kwan never won gold, but we still consider her a legend.

"Sometimes in life you can feel like you do everything right and it doesn't turn out that way, and that's life and that's sport," Bates said after the results came out.

He went on to add, "We're married, so we're gonna be fine, we're gonna go home and we're gonna have a life," which brings us to our next lesson...

2. Professional success means less without personal fulfillment

In one of the most baffling moments of this — or any — Olympics, Norwegian athlete Sturla Holm Laegreid confessed to cheating on his ex-girlfriend in an interview after winning bronze in the 20-kilometer men's biathlon competition.

Fighting back tears, he said, "I'm not quite sure what I'm trying to say by saying this now, but sport has taken a back seat in recent days." He later told journalists he felt "not really here, mentally," and he went on to issue a statement apologizing for the comments, as they outshined what should've been a celebratory moment for Norway (his teammate won gold).

The lesson? As much as we want to compartmentalize and Severance our professional lives from our personal ones, we are the same person whether we're at work or at home. Professional success can feel hollow if you made missteps in your personal life on the path to victory.

1. You can unretire, but it might not go how you expect

One of the biggest stories coming into this Olympics was skier Lindsey Vonn's return to competition after retiring from the sport in 2019. It was an inspiring story as she bounced back to podiums in the lead-up to Milan-Cortina, including becoming the oldest alpine World Cup winner at age 41.

Then the dream of winning came crashing down. Days before the Olympic Games, Vonn crashed in a race, rupturing her ACL. She was still determined to compete, though — and within seconds of starting her run at the Olympics, she crashed again, breaking her leg.

There are many lessons people have made out of this tale, and it's easy to interpret it as saying unretiring is impossible and destined to end in tragedy. But consider this: Since returning to competition in 2024, Vonn made World Cup podiums twice, and she was good enough to secure a spot on the Olympic team.

"I have no regrets," she wrote. "Standing in the starting gate yesterday was an incredible feeling that I will never forget. Knowing I stood there having a chance to win was a victory in and of itself."

Let's not discount the finances. Vonn is one of the highest-paid athletes in these Olympics, per a Forbes estimate, and there's no doubt these additional competitions secured more endorsement deals for her.

There's more to the story of unretiring at the 2026 Olympics, as Vonn isn't the only athlete to have done so. Over in figure skating, Canada's Deanna Stellato-Dudek is preparing to compete in the pairs competition, which, at 42, would make her one of the oldest female figure skaters to compete at the Olympics. More than half her life ago, this would've seemed an impossibility. She retired at age 17 due to injuries, before returning to competition 16 years later.

"To know me is to know that I wasn't going down without a fight," she said this week while practicing after an injury, per The Canadian Press.

Similarly, American skater Alysa Liu retired from the sport at 16, after the 2022 Winter Games. Her retirement was less about physical injuries and more about taking control of her own life. The Liu we're seeing on the ice in these Games appears visibly free and happy.

"Before, literally, she never disagreed with anything anybody ever said," her coach told NBC News. "But now she has complete freedom to chime in and we respect that. So, she exercises her right all the time."

The lesson? You can unretire, but know that "success" in returning to work might look different from what you expect.

Maybe it's not returning to the C-suite to rocket a company to the top of the S&P; maybe success is finishing your work on your own terms, proving you can still do it, and making a little extra cash to cushion your retirement 2.0.

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Today's story will be valuable to anyone who is presently looking for a job, or will be in the future.

Graduates are finding now to be one of the most difficult times to land a job. They need every tool available to convince a hiring manager that they are the right fit.

William Vanderbloemen's Work How You Are Wired: 12 Data-Driven Steps to Finding a Job You Love offers job-searching readers insights such as, "Who am I? What am I wired to do? What should I steer clear from? These are qualities that job seekers need to be aware of and prepared to articulate during an interview to be hired for work that they are best suited to do."

I consider Work How You Are Wired and Vanderbloemen's Be the Unicorn, which I reviewed in my 2023 article Four Easy Ways to Get Yourself Fired, as the ideal graduation presents for the business major or MBA in your family, or anyone who wants to learn how to be a standout at whatever career they choose. (I wish that they'd been available when I joined the working world. I would have made fewer dumb mistakes!)

Also, if you know someone who wanders from job to job, Work How You Are Wired will help them to figure out why they are stuck in that revolving door and to find work that matches their motivations, personality, skills, strengths and values.

Here are some of the main points that I discussed in my Zoom meeting with Vanderbloemen, who is also the CEO of the executive-search firm Vanderbloemen:

1. Begin your job search by asking, 'What am I wired to do?'

If you feel you must take any job to put food on your family's table, or you are hired for something that you are not wired to do, you will most likely end up hating the job. Unfortunately, many Americans do not like their jobs, according to the Pew Research Center.

So the question is: How do you make sure you don't interview for a position you're going to absolutely loathe?

The answer to that begins with a journey of self-discovery and figuring out what you are wired to do — your natural abilities.

Most people have one or two "strength zones," or areas of competence where they excel. The challenge is discovering what they are.

2. Knowing yourself is imperative before that job interview

There are several commercial personality assessment tests that help discover how we prefer to communicate, work and make decisions — in effect, what occupations we are best suited for and will enjoy doing and even what we should avoid.

These include DISC, Enneagram, Myers-Briggs and the Vander Index, which draws on the 12 success-building habits discussed in Be the Unicorn.

Vanderbloemen notes that Work How You Are Wired provides much of the same useful information as commercially available products without the need to take a personality test. He presents objective data that will help refine the search for employment that matches your strengths, personality, habits and values — in effect, how you are wired.

So, for anyone pounding the pavement and perhaps not feeling on top of the world after meeting with hiring managers, Work How You Are Wired is a gift, as it can show the reader how to discover and articulate their strengths and abilities and figure out which types of positions they are best suited for.

3. Determining your ideal work

Vanderbloemen zeroes in on objective categories of data that can point you in the direction of what you are wired to do, including your communication style, core values, ideal work environment and skills.

The book also helps identify what motivates you and your calling or purpose. Do you have a desire to effect change and have an impact? Do you seek recognition? Do you work best on a team or alone? Are you the one who has a plan or carries out the plans of others? Are you a leader or a follower?

These objective data points open a door to finding not just any job, but the right job for you.

Being prepared for AI-directed interviews

Today, when you sit down for an in-person interview, you've got to assume that the questions are provided by AI, and the human interviewer will be looking for clarity, logical structure and consistency in the applicant's narrative rather than focusing on the applicant's personality and charm.

After reading Work How You Are Wired, you'll be more self-aware, and it will be far easier for you to explain why your skills and abilities are a good fit for the job.

Over the years, I have read several "how to get hired" books. Wired and Be the Unicorn are the best I've found when it comes to providing job applicants with the insights they truly need in order to land the right job for them, the job they are meant for.

Dennis Beaver practices law in Bakersfield, Calif., and welcomes comments and questions from readers, which may be faxed to (661) 323-7993, or e-mailed to Lagombeaver1@gmail.com. And be sure to visit dennisbeaver.com.

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

Question: My father died and left me $250k. I want to use the money for a second home, but my wife wants to earmark it for our kids' college. Who is right?

Answer: By 2048, an astounding $124 trillion is expected to pass from older generations to younger ones. It's been called the Great Wealth Transfer, and it could have huge implications for those who will inherit wealth.

It could be a source of conflict. When an inheritance comes through, it's not a given that you and your spouse will be on the same page as to how to use it.

If you recently inherited $250,000, you might hope to use the money to buy the second home you've always wanted. But if your wife wants to use the money to fund your kids' college education, you might struggle to come up with a compromise.

Here are some important points to consider in the course of making that decision.

Understand the costs of buying a second home

There are many benefits to owning a second home. That property could serve as your personal escape, or it could even become an income stream.

Before you decide whether to use a $250,000 windfall on a second-home purchase vs college, it's important to understand the total costs of buying a second home and recognize that your inheritance might not come close to covering all of them, says David Johnston, wealth management advisor at OnePoint BFG Wealth Partners.

"My first thought when posed with this question was a $250,000 down payment is just the tip of the second home journey," Johnston says.

As he explains, many people underestimate the total cost of owning a second home. In addition to mortgage payments and property taxes, there are home insurance, maintenance, repairs, and potential HOA fees to consider.

Plus, as Johnston points out, "Has anyone bought a place without doing some sort of upgrading? Even a coat of paint?"

Before deciding whether to use the $250,000 on a vacation home, Johnston recommends calculating what you're likely to spend outside of that money and making sure you can afford it.

"In today’s markets, what percentage of a down payment does $250,000 represent?" Johnston says. "I’m thinking quite short of 50%, leading to larger monthly payments, especially with mortgage rates still hovering between 6% to 7%."

Even if you plan to rent out the home to offset your costs, Johnston warns that doing so could lead to higher insurance premiums.

He says, "You’ll likely need to hire a property management company to coordinate the rental calendar, keep the place tidy after each stay, and answer the maintenance calls."

After accounting for all that, you might find that the second home is less affordable than expected, even if you're able to use your inheritance to cover a sizable down payment, furniture, and some initial updates.

Recognize the psychological impact of student debt

Because there are plenty of affordable ways to borrow money for college, you might be inclined to prioritize a second home over your kids' higher education. But Johnston warns that just because your children can borrow for college doesn't mean it's an ideal situation.

"The psychological impact of feeling like you can’t get ahead because of the debt-service albatross is significant," he insists.

"Every dollar your child needs to put toward student loan payments is a dollar not going into their short-term savings," Johnston says. That could make it very difficult for them to build a safety net as young adults, and it could become a huge source of stress.

A recent Pew Research Center survey found that 51% of student loan borrowers don't feel financially secure. Data from ELVTR finds that 54% of Americans have experienced mental health issues due to carrying student debt, while 84% have delayed at least one major life event because of it.

You'll need to decide whether you want to expose your children to the drawbacks of student debt, given that there might now be a way around it.

As Johnston points out, "Depending on the ages of your children, the tax advantages of 529 plans could be impactful. Play by the very-easy-to-abide-by rules, and you gain tax-free growth and tax-free withdrawals."

Figure out your priorities

What makes this situation tricky is that both a second home and paying for college could have a positive impact on your family as a whole. That's why Brian Safdari, founder of College Planning Experts, says it's important to do some soul searching and figure out your priorities.

"Whether you're purchasing a second home or funding your child’s education, each option is an investment that can benefit the family in different ways," he explains.

Safdari says it's important to understand your family's goals before making your decision. If the goal is financial security, both options could lend to that. A second home, for example, could appreciate over time, creating more generational wealth. It could also generate future income to support retirement.

A college degree could be a great investment, too, Safdari says.

"Based on numerous studies and statistics, individuals with a BA or BS degree or higher earn over $1 (million) to $1.5 million more in lifetime income compared to those without a degree," Safdari says.

Ultimately, Safdari says, the right decision is the one that brings your family the most happiness and fulfillment. If you and your wife are struggling to make that choice together, it's a good idea to get some help.

"My advice is to work with a holistic fiduciary adviser who acts in your best interest, helps you evaluate both options, reviews the risks, benefits, and trade-offs, and aligns these decisions with your short-term and long-term financial goals," Safdari says.

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• I Want to Retire, but I Have to Keep Working so My Adult Kids Have Insurance

Being a military spouse can throw constant curveballs your way. Between demanding work schedules for the servicemember, frequent moves and living alone or taking on single-parenting duties during deployments, the life of a military spouse is all about navigating disruption.

If you're a military spouse handling the family finances, whether by choice or necessity, this article aims to help you feel empowered and prepared to make smart financial decisions.

Here are practical tips and resources that will help you manage your finances and military life.

Short-term financial goals

Having the right amount of cash set aside as emergency savings can be a simple way to be prepared for the unexpected. Saving at least three to six months' worth of non-discretionary expenses is recommended.

Non-discretionary expenses include those items you must pay each month, such as rent/mortgage, car loan payments, food, gas, childcare and so on.

The recent government shutdown serves as a reminder of why an emergency savings account is imperative. It will provide some breathing room if there is a disruption to your normal expected income. To build up an emergency fund:

• Pay yourself first after receiving each paycheck.
• If the servicemember is receiving additional pay for items such as Family Separation Allowance, combat pay, hazardous duty pay, etc., try to set aside a portion of those extra funds to build up your savings. If you're unsure whether the servicemember is receiving these special payments, have them log into myPay to review their Leave and Earnings Statement (LES).

If you are struggling to save, take some time to set up a budget to prioritize monthly savings. A good rule of thumb is to spend 50% of monthly after-tax pay on your non-discretionary items, 30% on discretionary items (dining out, movies, travel, entertainment) and 20% on savings (retirement savings, emergency fund, saving for other goals).

Long-term financial goals

Contributing to retirement accounts
Whether the servicemember plans to serve for at least 20 years to earn a military pension or wants to return to civilian life after four years of service, it's never too early to begin planning for retirement.

The servicemember can contribute to the Thrift Savings Plan (TSP) and should be contributing at least 5% after one year of service under the Blended Retirement System to maximize the government match.

It's important for the servicemember to review their contribution percentage by logging into TSP.gov or logging into myPay to make updates to contributions.

Similarly, if you're employed and have a retirement plan, it's always best to contribute at least enough to receive the full match from your employer, if applicable, so you aren't leaving free money on the table.

It's even better if you can afford to contribute the maximum amount ($24,500 for 2026 if under age 50, and an additional $8,000 for a catch-up contribution for those over 50).

Traditional and Roth IRAs
If you are not currently employed, you can still save for retirement by making annual contributions to a traditional or Roth IRA (subject to income limitations).

While the maximum contribution limits for IRAs ($7,500 for 2026 if under age 50 plus a $1,100 catch-up contribution for those age 50 and older) are not as high as for an employer-defined contribution plan (401(k), 403(b), etc.), you're still able to contribute without having earned income, as long as you file taxes married filing jointly (MFJ) and the servicemember is employed.

Of course, if both you and the servicemember are employed, you can still contribute to a traditional IRA (tax deductibility subject to income limitations) in addition to your employer retirement plan.

Contributions to a Roth IRA are subject to income limitations, so you will want to ensure you are below those Modified Adjusted Gross Income (MAGI) limits before contributing to a Roth IRA.

Choosing between a traditional or Roth IRA will depend on whether you want to get a potential tax break now (traditional IRA) or get a potential tax break in retirement (Roth IRA). If you are eligible to receive a tax deduction, consider a contribution to a traditional IRA. This allows you to forgo taxes now and then pay taxes when you take a distribution in retirement (after age 59½).

Alternatively, if you prefer to pay the taxes now and are below the income thresholds, consider a contribution to a Roth IRA.

These contributions, as well as the earnings on the contributions, can be withdrawn tax-free in retirement, provided the account has been open for at least five years and you have reached age 59½.

As mentioned, there are rules and income limitations associated with traditional and Roth IRA contributions, so consider consulting with a tax professional to ensure you're compliant with these rules. Military One Source provides free tax preparation and consultation through MilTax and is a great resource for the military community.

Education and career benefits

It can often be challenging for military spouses to find employment due to frequent relocation. For those spouses looking for new employment or those who may want to explore starting a career or going back to school, the military offers several resources and benefits to help you.

Post-9/11 GI Bill
Servicemembers may be eligible to transfer some or all of their Post-9/11 GI Bill benefit to their spouse. The GI Bill covers tuition, housing and books.

Military Spouse Preference Program
The Department of Defense has a program that gives priority consideration to military spouses for DOD civilian jobs. Requirements include being the spouse of an active duty servicemember and being listed on the Permanent Change of Station orders to a new duty station.

Military Spouse Licensing Relief Act (MSLRA)
The MSLRA was passed in 2023 to alleviate challenges military spouses face when relocating and who hold state occupational licenses (for example, teachers, nurses and realtors).

This act allows the license holder to transfer their license to the new state. Additionally, each branch of service may have a licensure reimbursement program (up to $1,000) for military spouses who relocate. Check with your specific branch of service.

Military Spouse Education and Career Opportunities (MySeco)
The DOD offers free career counseling, education scholarship opportunities and much more through MySeco.

Military Spouse Residency Relief Act (MSRRA)
If you are a military spouse with earned income, it can be confusing to determine in which state you need to file your state tax return. The MSRRA provides flexibility in choosing either your own state, the state where the servicemember claims residency, or where you are currently stationed.

This allows you to be strategic, especially if one of those states happens to be a state with no income tax.

This can be a complex topic, so discuss it with a tax adviser. Again, MilTax will be knowledgeable in these military laws and may be a good resource for you.

Content in this article is for general information only and not intended to provide specific advice or recommendations for any individual. This information is not intended to provide individualized tax or legal advice. Discuss your specific situation with a qualified tax or legal professional.

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

It's common for families to treat college tuition like buying a car and to make decisions based on published (sticker) prices. But college pricing is highly individualized.

In reality, the published rate is seldom the actual cost of attendance after financial aid is applied.

For instance, a college might list a tuition fee of $50,000, yet after accounting for scholarships and financial aid, a family might pay $20,000.

This gap highlights why families need to look beyond sticker prices when considering education costs. Understanding the rationale behind these numbers will fundamentally shift your perspective.

Why the sticker price exists (and why it's not the point)

The sticker price matters, but not in the way you might think. Colleges use it as a "list price" to anchor expectations. A high sticker price signals quality and exclusivity and allows strategic aid adjustments.

A school with a $75,000 sticker price can award a $30,000 merit scholarship and still meet its revenue targets. For families, the scholarship feels like a reward; for colleges, it's a pricing tool.

This disparity in what families actually pay sets the stage for a deeper dive into how college costs are determined and experienced by individual students.

Most students don't pay what they see online

One of the most misunderstood dynamics in higher education is how few students pay the published rate. Private colleges now offer tuition discounts that would have been unimaginable 20 years ago.

For example, the average private-college discount now tops 56%, according to the National Association of College and University Business Officers (NACUBO). This substantial reduction in tuition highlights the extent of discounting in today's education landscape and changes the economic equation for many families.

To research discounts, parents can examine reports from organizations including NACUBO and the College Board, which provide data on average discount rates for specific institutions. Accessing these resources empowers families to set realistic expectations and better understand the true costs of attending different colleges.

According to the College Board, financial aid offers are shaped by calculations that consider how well a student fits with the college and whether attending is affordable.

Access to net price calculators helps families look beyond the published price and understand what truly makes a college a good match both culturally and financially.

Aid is a tool to shape the class, manage enrollment and meet institutional goals, not just a reward for academic performance.

Merit aid is not what you think it is

"Merit aid" sounds like an honor. Sometimes it is, but more often, it's strategic.

According to NACUBO, colleges use merit awards to:

• Attract students who will raise the school's academic profile
• Pull in students from competitive geographic regions
• Encourage enrollment from families who can still afford a portion of the cost
• Compete with peer institutions offering aggressive discounts.

This is why two students with similar GPAs can get different packages, and a high-income family can receive generous merit money.

To illustrate, consider Sarah and Emily, both top students in their graduating class. Sarah, hailing from a small town in Montana, receives a substantial merit award for being from an underrepresented region, while Emily, from a densely populated suburb with many applicants, receives a different package despite their similar academic achievements. The award reflects the college's goals as much as student achievement.

Now, let's look at another scenario: James and Olivia, from families with different financial backgrounds but similar academic profiles. James, from a middle-income family, receives aid intended to attract students who can boost the school's diversity. Olivia, from a higher-income family, receives a merit award intended to encourage her enrollment over peers at institutions offering competitive packages.

This example shows how families' financial profiles can also influence the aid received, highlighting the complex strategies colleges use to shape their incoming classes.

Why does the same college cost different amounts for different families?

Families often think cost differences come only from FAFSA eligibility. That's just part of the equation.

What a college offers is influenced by:

• Your financial profile
• The student's academic standing relative to that school
• How much the college wants to increase enrollment in certain majors
• Competition from comparable institutions
• The school's budget and discount strategy for that year

Each of these factors affects the final price. This surprises many families when an "expensive" college turns out to be one of the most affordable on their list.

Families should therefore focus on the net price, not the website number. The actual cost comes after grants and scholarships are factored in, and that number is increasingly personalized.

The key takeaway: Net price is unique to each family and situation. Comparing offers side by side is essential to find true four-year affordability, not just for freshman year.

How to navigate an opaque pricing system

Even though the system is confusing, the main idea is to focus on a few principles to avoid mistakes. Here is a quick-scan checklist for parents during application season:

• Apply broadly and consider multiple options.
• Ignore the sticker price until you have offers, and focus on your net cost after grants and scholarships.
• Remember: You are not shopping for a static price, but for an offer.
• Compare net prices, not tuition, as two schools with identical tuition can differ drastically in aid.
• File the FAFSA and all required forms, even if you anticipate not qualifying. Many grants and merit decisions still require the FAFSA.
• Consider the full four-year picture. Some awards are not renewable, and costs may rise, so forecasting is crucial.
• Read the award letter closely since not all 'aid' is free. Loans and work-study often appear as well.

You can also use tools like the Financial Aid Gap Calculator on Edvisors.com to help you compare award letters and understand your net tuition cost. (Note: I am the chief marketing officer of Edvisors.)

Before using such calculators, make sure you have your award letters in hand, as well as details about any scholarships or grants received. This preparation will make the process smoother and the calculations more accurate.

The current pricing system isn't going anywhere

Colleges have no reason to abandon the high-price/high-discount model. It helps them manage enrollment, signal prestige and shape classes.

Unless federal policy changes aid or caps discounting, families will keep navigating a marketplace where the posted price is more about psychology than reality.

The bottom line

College pricing is not broken — it is just misunderstood. What seems like a fixed cost is actually flexible. Understanding the system's incentives provides greater clarity and reduces anxiety.

The sticker price may be prominent, but the most crucial takeaway is that the real cost is the personalized net price in your award letter, often much lower than expected.

To turn this insight into immediate action, here are a few steps parents can take today to feel more confident about college financing:

• Review last year's award letter or log into your student portal to compare financial offers. Knowing these details can start you on the path to securing the best possible aid for your educational journey.
• Create a comparison chart with at least three different college financial offers to visualize where the best value lies.
• Gather all relevant financial documents, such as FAFSA results and income statements, to prepare for any upcoming meetings with financial aid officers.

These actions will help you navigate the college pricing landscape more effectively, ensuring that you maximize the financial opportunities available to your family.

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• One Family's 529 Journey: A Guide to Smart College Savings, From a Parent Who's Also a Financial Professional
• Four Ways to Find Free Money to Pay for College: Affluent Families Can Apply, Too

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.

College enrollment has been declining for more than a decade, especially after 2010. That story is well known by now. What's less understood is what has happened underneath that trend.

Even with fewer students going to college overall, completion rates have improved. According to data from the National Student Clearinghouse Research Center (NSCRC), six-year completion rates have risen across most sectors since 2010 — most notably at community colleges.

And even though total enrollment is lower, the number of younger adults earning bachelor's and graduate degrees has steadily increased. Fewer people are entering college, but more of those who do are finishing.

There are two reasons for this shift.

First, many colleges have spent the past decade prioritizing completion — streamlining degree pathways, improving advising, adding intrusive outreach and building academic and financial support systems that simply didn't exist 10 or 15 years ago.

Second, the students historically least likely to finish may now be opting out of college altogether. When that group doesn't enroll, the remaining population appears stronger on paper, mechanically nudging completion rates upward even if no real improvement occurs.

But this positive trend has slowed. The latest numbers show a plateau. The six-year completion rate for the fall 2017 cohort was essentially unchanged from the 2015 cohort, and completion declined in all four-year sectors for that specific group.

So the concern is no longer "why are fewer students enrolling?" but "how do we keep the ones who do?"

And that's where financial aid becomes a make-or-break factor.

Why students leave college

Roughly 60% to 62% of first-time college students earn a credential within six years, according to both NSCRC and the National Center for Education Statistics. That means nearly 40% take longer, remain enrolled without finishing or drop out.

When researchers ask students why they left, the answers are remarkably consistent across studies:

• It wasn't the coursework
• It wasn't academic difficulty
• It was a financial strain

According to Trellis Strategies, 67% of students work for pay while enrolled, and four out of five of those students work more than 20 hours a week. Other studies show 58% to 70% of undergraduates work at least part-time.

No matter how motivated a student is, this combination — tight budgets, long work hours and unpredictable costs — directly affects momentum, credit load and the likelihood of finishing.

Families need more than 'fill out the FAFSA'

Parents and students hear the same advice every year: Complete the Free Application for Federal Student Aid (FAFSA), look for grants and apply for scholarships.

All of that is necessary, but not sufficient. The aid landscape is more complicated than that, especially when it comes to understanding which funding actually continues beyond the first year.

A recurring point of confusion is the difference between one-time grants, renewable grants and project-based awards.

One-time grants. Many grants — especially private or special-project awards — are explicitly one-time. They cover a single year or a specific purpose and do not renew. These can be incredibly helpful for year one, but families should not build multiyear plans around them.

Renewable grants. Some grants are renewable, but "renewable" does not mean "automatically renewed." Students usually must reapply or meet yearly requirements. GPA thresholds, enrollment intensity and financial need can change the award amount. Even federal Pell Grant recipients must submit the FAFSA every year and maintain eligibility.

Very few grants are renewed by default. That nuance matters when families map out costs for four or more years.

Project-based or institutional grants. These are tied to a particular academic initiative, research project, or institutional priority. When the project ends, the grant ends — even if the student's need continues.

All of these grants come with a Notice of Funding Opportunity (NOFO) or award letter, which explicitly states:

• Whether the funding is one-time or renewable
• Eligibility rules for renewal
• Conditions that can increase or reduce the award
• Whether reapplication is required
• Contact for questions

Most students never read this fully — families should.

What can families do to protect completion?

Here's the part that matters: Practical steps families can take right now, grounded in how the financial aid system actually works.

1. Build a four-year cost map, not a one-year snapshot

Use tools such as:

• College net price calculators on each school's website
• College Scorecard for completion and earnings expectations
• Edvisors.com planning tools for comparing four-year costs, grants, scholarships and loan scenarios (I am the chief marketing officer at Edvisors.com)

Families who understand the trajectory of costs — not just the first bill — make better decisions.

2. Create a renewal checklist for every aid type

For each grant, scholarship and loan, list:

• Renewal requirement (if any)
• GPA or credit minimums
• FAFSA deadlines
• Whether financial changes require an appeal

A lot of drop-outs happen because students don't realize a grant disappeared until after the charges hit.

3. Keep a running list of emergency aid options

Many colleges now offer:

• Micro-grants
• Emergency completion grants
• Short-term tuition coverage
• Food or housing support
• Transportation funds

Families should identify these before a crisis, not during one.

4. Be realistic about work hours

A student consistently working 25 to 30 hours a week while taking full-time credits is at a higher risk of stop-out.

Families can:

• Encourage seeking predictable-schedule employers
• Explore campus jobs
• Use summer sessions strategically
• Ask the aid office about credit-load impact before dropping classes

Academic momentum is one of the strongest predictors of completion.

5. Make FAFSA renewal automatic

Put reminders in calendars for:

• FAFSA opening date
• Priority deadlines
• Document deadlines
• Loan counseling or entrance/exit requirements

Late FAFSA = late awarding = late decision-making = higher risk of melt or stop-out.

6. Use scholarship search tools consistently, not once

Instead of "search once and forget," treat scholarship applications as ongoing. Look for:

• Monthly scholarship cycles
• Renewable scholarship opportunities
• Departmental or major-specific funding
• Local and regional awards with lighter competition

Many students only look for scholarships during their senior year of high school. They leave money on the table every year after.

The real message for families

Enrollment matters, but completion matters more. The last decade has shown that colleges can move the needle when they intentionally design for persistence, but the burden can't sit entirely on institutions.

To be better positioned to help students finish the journey — from the first day of enrollment to the first job after graduation, families should understand:

• How multiyear cost structures work
• How to interpret (and not assume) grant renewals
• What the data actually says about why students leave and
• Which resources exist now to buffer financial instability

Financial aid can be a driver of completion, but only when families have a clear view of the entire financial landscape, not just the first step.

Related Content

• Going to College? How to Navigate the Financial Planning
• A 529 Plan Strategy That Could Help Boost Your Financial Aid
• The New Rules for Student Loans
• ​​Are Scholarships Always Tax-Free? What You Need to Know
• Four Ways to Find Free Money to Pay for College: Affluent Families Can Apply, Too

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

When it comes to hiring, most interviews still look like a game of verbal ping-pong. The interviewer lobs "Tell me about a time…" and the candidate volleys back a perfectly practiced story. But today's workplaces don't run on perfect scripts — they run on improvisation, collaboration and quick thinking under pressure.

That's why a growing number of companies are experimenting with escape-room-style interviews — timed, team-based challenges designed to reveal how candidates actually think, adapt and work with others when the clock is ticking.

It's not about solving puzzles for fun. It's about revealing the soft skills that matter most: Communication, humility, teamwork and calm under chaos.

My escape room revelation

I attended an escape room with my YPO Forum recently. We were locked in a room and had to find the "real diamond" and replace it with the fake one.

I thought that this was sort of lame and would be simple, but it wasn't. We had to work together and use different skills — one of us needed to be able to read music and play part of a tune on a piano, another had to do the foxtrot, and others had to read codes upside down and find locks and hidden pictures.

It took lots of discipline and teamwork.

I watched as my forum-mates celebrated as a team, not as individuals, as we continued toward the goal.

It was also interesting that people backstage were monitoring us and stopping us from doing dumb stuff like trying to pull keys off the piano when the clue said, "Find the clue in the piano keys." It meant in the tune, not the actual keys.

We found the diamond, with 15 minutes to spare (just sayin').

The experience made me realize I would want my future employees to go through the same thing. Let's face it, if you want to know who really works well under pressure, lock them in a room.

Breaking out of the boring interview

Traditional interviews tend to measure poise, polish and preparation — not performance. As Harvard Business Review has noted, unstructured interviews are notoriously poor predictors of job success.

By contrast, simulated exercises reveal how people behave in real-time scenarios, not just how they say they behave.

Enter the escape room. Whether physical or virtual, these challenges simulate stress, time pressure, incomplete data and shifting goals — conditions that mirror modern work environments.

Researchers at BMC Medical Education have found that "escape-room-style simulations" improve assessment of leadership and collaboration compared to traditional interviews. They test not only intellect but interpersonal dynamics — who steps up, who listens and who credits others.

I discussed this with my daughter, Kyel, and mentioned that escape rooms would be a great way to interview for the banking industry. I see it with my graduate students at Columbia, some of whom go on ChatGPT to get the questions and pat answers for their interviews.

My daughter said, "Forget banking. If any field proves why these interviews matter, it's supply chain management — a profession where calm problem-solvers are gold."

Over the past few years, global supply chains have faced tariffs, shortages, volatile freight costs and skyrocketing prices that couldn't always be passed on to consumers.

Leaders in this space must make quick calls with imperfect information — rerouting shipments, juggling suppliers and making decisions that can ripple for months. Big accounting firms like Deloitte are trying to help the industry cope with these changes, but companies also need talent to match these strategies.

An escape room exercise can mirror those realities:

• A key "supplier" disappears midway through
• New "tariffs" appear, forcing quick adjustments
• The "budget" shrinks with minutes to go

You watch how candidates collaborate under uncertainty — who takes initiative, who asks for help, who listens — and who quietly credits the team when the buzzer sounds.

That's a much truer test of readiness than a canned answer about "strategic agility."

Why this works across roles

Escape-room-style challenges aren't just for supply-chain hires. They're powerful for any position that demands agility and teamwork — from project management to marketing, operations to finance.

Here's what they reveal:

• Problem-solving under pressure. Candidates must think critically and creatively when data is incomplete.
• Adaptability. When rules or constraints change, who freezes and who pivots?
• Collaboration. The ability to communicate, compromise and build on others' ideas is often more valuable than raw IQ.
• Emotional intelligence. Does someone dominate or listen? Encourage or dismiss? Do they share credit or seek it?

These qualities are hard to extract from a résumé but shine brightly in a shared, time-bound experience.

Designing your own escape-room interview

Whether you use an off-the-shelf escape room vendor or build an in-house simulation, the principles are the same:

• Mirror your work reality. For sales, simulate a client negotiation with shifting goals. For tech, a system outage. For a supply chain, a disrupted delivery.
• Add constraints. Time limits, incomplete data or new obstacles introduced mid-task.
• Observe silently. Let behavior emerge naturally — don't intervene.
• Debrief immediately. Ask candidates to reflect: What did you learn? What frustrated you? How did you decide who led?
• Evaluate collaboration, not victory. Sometimes, the most revealing test is one that can't be solved in time.

Caution: Not every candidate thrives in these settings

Yes, it's fun, but the goal isn't entertainment. It's behavioral insight. You still need structured evaluation criteria, trained observers and fairness safeguards. Not every candidate thrives in game-based settings, so balance creativity with equity.

Still, the benefits are hard to ignore: Deeper engagement, memorable experiences and insights into traits that no résumé bullet point can show.

The bottom line

In a world of complex challenges — from tariff swings to tech disruptions — the real differentiator isn't what candidates know but how they think and collaborate.

The escape room interview gives employers a glimpse into that reality. It turns hiring into a high-fidelity test of what matters most: Composure, creativity, teamwork and trust.

After all, if someone can stay calm, problem-solve and credit their team while trapped in a locked room with a ticking clock, they're probably ready for whatever challenges your business throws their way.

Related Content

• Why Poor Job Interviews Hurt Both Employers and Job Seekers
• Looking to Make a Job Change? How to Stand Out Like a Pro
• College Grads: This Is What Hiring Managers Are Thinking (But Won't Admit)
• Seven Steps to Build Your Billion-Dollar Business Today
• I'm a Financial Literacy Expert: Bubble-Wrapping Our Kids Robbed Them of Resilience. Now What?

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.

Question: I'm 59 with $1.7 million in savings and just found out my team is being phased out in January. I'm getting a six-month buyout package. Should I just retire at 59½, or try to find another job?

Answer: The U.S. economy is generally in a good place, and the unemployment rate is fairly low. Yet many people are worried about layoffs going into the new year.

Part of it stems from what Glassdoor calls the "forever layoff" trend. Small layoffs of under 50 people are now the most common type. And because they only impact small pockets of employees, they're happening more frequently.

It's not surprising, then, that 26% of workers are more worried about being laid off now than they were six months ago, according to a November FlexJobs report.

If you've just learned that your team is being phased out in January, it's probably not the news you wanted going into the holiday season. But if you're getting a six-month buyout package, at least you have time to figure out your next move.

For people in their 30s, 40s, or even early to mid-50s, pivoting to a new job may seem like the next logical step. But if you're 59, you may be wondering whether it pays to look for a new job given your age and the state of the labor market.

With six months of severance coming your way, you'll be getting paid long enough to tide you over until at least age 59½, which is when you can tap a tax-advantaged retirement plan like an IRA or 401(k) without facing an early withdrawal penalty. And if you already have $1.7 million saved, you have a reasonable cushion to work with.

Still, that doesn't mean rushing into retirement is your best choice. You may want to explore other options so that you don't deplete your savings prematurely or end up in a situation you aren't happy with.

Consider a different type of work

If you'll be retiring when you're close to 60, you're ending your career early, but not that early. You still need to be careful with your $1.7 million in savings.

The 4% rule says you can take a $68,000 withdrawal from your savings your first year of retirement and adjust future withdrawals for inflation, all the while giving your nest egg a strong chance of lasting 30 years. So you'll need to ask yourself whether $68,000 is enough to live on, especially given that at 59, you're still a good three years away from being able to claim Social Security benefits.

You'll also need to decide whether you're comfortable tapping your savings at 59, rather than waiting. If you don't love the idea of giving up your paycheck completely, Christine Mueller Coley, Senior Vice President and Wealth Advisor at SteelPeak Wealth, says that in this situation, you can explore what she calls a "non-career role."

"Many of my clients have taken full-time positions in hardware stores, sporting goods stores, and similar workplaces," she says. "These jobs offer benefits, provide steady hours, and allow for a gentler transition into retirement without the stress of a traditional career role."

Most importantly, says Coley, a "non-career role" could provide you with health coverage, bridging the gap between early retirement and Medicare, which you don't become eligible for until you turn 65. That's especially important now, as Congress debates subsidies for the Affordable Care Act and the cost of health care.

Coley also says that local governments often hire for temporary roles, so that may be a place to look if you're interested in a six- or 12-month contract once your job comes to an end. Remote part-time jobs are worth looking at, too, she says, allowing you to earn some money without requiring a full-time job commitment.

Figure out what you really want

You may see your forced buyout as an opportunity to pivot into a more rewarding job. Or, you may be relieved that you've potentially been given the green light to retire.

Keith Spencer, CFP, founder and financial planner at Spencer Financial Planning, says it's important to figure out where you actually want to go from here.

"There are two major factors to consider," he says. "First, do you have enough money saved up to last through retirement at your desired lifestyle? Second, what do you want your life to look like over the next few years?"

The money aspect boils down to how much you want to spend. And if you have modest needs, $1.7 million in savings might be plenty, Spencer says. It's important, though, to be honest about your spending plans, because if you're used to a large salary and don't want to scale back, stopping at $1.7 million could leave you with a big shortfall.

Just as importantly, though, Spencer says you need to ask yourself whether you'll be happy not working.

"The prospect of retirement might sound enticing at first, but is it what you truly want?" he says. "I encourage my clients to think of it this way. Don’t just retire from something. Retire to something. Retire to something you’re excited about that will take up your time in a meaningful way."

Of course, Spencer recognizes that continuing to work and/or finding a new job will present its own challenges for someone on the cusp of 60. However, he says, "You can see the word 'challenges' as a positive or a negative."

All told, a situation like this requires you to dig deep and be honest with yourself.

"The prospects of [finding and adjusting to a new job] might fill you with excitement, dread, or something in between," Spencer says. "I’d encourage you to listen to what that inner voice is telling you as you think through these things."

Read More

• I Got Laid Off at 59 with an $800,000 401(k). What Are My Options?
• I Walked Away from a Stable Mid-Career Job — Here’s the Retirement Math Behind that Decision
• I'm 57 With a Great Remote Job, but My Company Wants Me in the Office Full-Time
• I'm 51 and My Portfolio Is Up. I Plan to Retire at 60 and Want to Start Moving out of Stocks. Is That Smart?

Question: I’ve got $10,000 from my year-end bonus, and I want to keep it safe but still earn something. Is a CD or a money market account the smarter move?

Answer: It’s a natural question to ask right now. With your bonus in hand and interest rates slipping after the Fed’s rate cuts this year, deciding where to put that $10,000 can feel surprisingly tricky.

Certificates of deposit (CDs) and money market accounts (MMAs) remain two of the safest, most popular options. Both offer FDIC/NCUA insurance, both earn interest and both protect principal. But the best choice for your $10,000 depends heavily on two things: timeline and liquidity.

Let’s break down how these accounts work today, including updated earning tables, so you can choose the smarter home for your year-end bonus.

What’s the main difference between a CD and a money market account right now?

The main difference between a CD and a money market account right now is rate certainty versus rate flexibility. A CD locks in a guaranteed APY for a set term (anywhere from three months to several years). No matter what the Fed does next month or next quarter, your rate won’t change. That predictability is valuable in a declining-rate environment like the one we’re entering.

A money market account, however, has a variable rate. APYs can adjust up or down depending on market conditions and bank pricing decisions. For savers who want liquidity and the ability to move funds anytime, MMAs offer more flexibility.

How do liquidity and access differ?

CDs restrict access while money market accounts don’t. With a CD, withdrawing before maturity typically triggers an early-withdrawal penalty. That makes CDs better for money you know you won’t need for a set amount of time.

Money market accounts allow withdrawals and transfers as needed. While some banks impose monthly transaction limits, you can generally access your cash penalty-free, making MMAs ideal for near-term goals or emergency-adjacent savings.

Are both options equally safe?

Yes, as long as you stay within insured limits. Both CDs and MMAs are insured up to $250,000 per depositor, per institution, through the FDIC (banks) or NCUA (credit unions).

In terms of safety, they’re essentially identical.

How much a $10,000 CD earns at today's best rates

CD rates have drifted down slightly following recent Fed action. But some terms like one-year CDs remain competitive.

Earnings assume interest is compounded annually.

The biggest advantage here is the certainty: once you lock in a CD, the rate is yours regardless of economic shifts. If the Fed cuts again, as many expect, today’s 12-month yields may look unusually attractive compared with what banks offer three or six months from now. For savers wanting predictability, that’s a major benefit.

How much a $10,000 money market account earns right now

Money market accounts remain competitive even as rates cool, with many high-yield MMAs still offering around 4.25% APY. Because the rate is variable, earnings calculations below assume monthly compounding and no changes to APY over the period.

What stands out is the combination of liquidity and competitive returns. While a money market account can’t guarantee the rate won’t slip, it gives you significantly more flexibility.

Many banks also offer these accounts with low monthly fees, making them accessible for everyday savers. For short-term horizons, especially under nine months, today’s best MMAs earn slightly more than comparable CDs.

Use the tool below to quickly explore and compare some of today's top savings account offers:

CD vs. money market account returns compared

Below is how the two products compare head-to-head across common savings timelines:

Across most terms, the money market account slightly outperforms the CD, with the largest edge appearing over longer periods as compounding works in its favor.

The notable exception is the one-year CD, which is currently offering elevated rates that many analysts expect won’t last. If you’re attracted to locking in one of the last remaining CD terms with a “4-handle,” this is the window.

When a CD makes more sense

A CD is most effective when you value rate protection and you’re confident you won’t need to touch the money. For people with a fixed savings goal like an insurance premium due next year, a future home improvement project, tuition savings or wedding costs, a CD gives you exact, predictable earnings without requiring active management. CDs also make sense right before a rate-cut cycle.

Locking in a higher APY shields you from the declines we often see in variable-rate products after the Fed shifts its policy stance. If you’re someone who finds peace of mind in structured savings and guaranteed outcomes, a CD delivers clarity at a time when interest rates are in flux.

When a money market account makes more sense

A money market account is the better choice when liquidity or flexibility is your priority. This is ideal for savers who want their bonus accessible at any moment whether for emergency expenses, a home repair, a flight deal you can’t pass up or simply because you prefer not to lock up your cash.

While MMAs don’t guarantee the rate won’t drift lower, they still tend to retain strong competitiveness, especially in the online banking sector where promotional APYs remain plentiful.

If your timeline is short or uncertain, or if you’re looking for a place to keep cash while evaluating potential investment opportunities, an MMA lets you earn a solid return without sacrificing access.

How to decide between the two

The simplest way to choose is by assessing your timeline and your liquidity needs. If you know with certainty that you won’t need the money for at least 12 months, a CD may offer a slightly higher return with rate protection. If you’re unsure about your plans or may need access at any point, the money market account is the safer, more flexible pick.

You should also consider how sensitive you are to rate changes. If locking in a guaranteed APY brings peace of mind, that’s a strong argument for a CD. If you’re comfortable with the variability and you prefer being able to move money freely, an MMA offers the better balance of return and accessibility.

Final takeaway

If you’ve received a $10,000 year-end bonus, you’re entering 2026 with options. Both CDs and money market accounts are safe, federally insured, and deliver attractive yields compared with traditional savings accounts.

In today’s environment, the money market account typically comes out ahead for most time frames thanks to its liquidity and strong APYs, while the one-year CD remains a standout for its combination of guaranteed yield and rate certainty.

The right choice ultimately comes down to how soon you’ll need the money, how much flexibility you want, and whether locking in a rate before the Fed’s next move aligns with your financial strategy.

Related Content:

• Why a 5-Year CD is Your Best Bet After the Fed Meeting
• Best One-Year CD Rates
• Money Market Account vs High-Yield Savings Account

Layoff notices used to be reserved for cyclical downturns, but recent years have proven that no salary level is safe. We've seen mass white-collar job cuts sweep through the once-bulletproof sectors of tech, finance and consulting.

If you're a high earner or affluent professional, you might feel a profound sense of whiplash. You've done everything right — you maximized your retirement savings, paid down your mortgage and watched your portfolio grow.

Yet, the threat of a "jobpocalypse" can still feel unsettling.

The good news is that this anxiety is a signal to act, not panic. Your goal now isn't just to grow your money; it's to use that wealth to buy yourself optionality — the freedom to choose your next move, negotiate from strength or take the time you need to find the right next opportunity without financial stress.

A key lesson from this new era of job volatility is simple: Liquidity is your ultimate defense, and optionality is the ultimate luxury.

The 18-month rule: Your career gap insurance

For years, standard financial advice suggested keeping three to six months of expenses in an emergency fund. For high earners, that advice is woefully inadequate.

Think about it: Replacing a six-figure salary requires a specialized job search that takes time. Networking, interviews and due diligence can easily stretch beyond a year. That's why you need to upgrade your financial defenses.

The new gold standard for affluent families is the 18-month rule of fixed expenses.

This rule dictates setting aside 18 months of your non-negotiable costs — the expenses that keep the lights on and the family running smoothly.

What goes in your 18-month safety net?

• Housing. Mortgage or rent payments, property taxes, HOA fees
• Debt service. Car payments, student loan minimums, etc.
• Insurance. Health, life, auto and home premiums
• Non-negotiable family costs. Essential groceries, utilities and fixed costs like private tuition or necessary childcare

You should keep this capital in highly liquid, low-risk accounts — think high-yield savings accounts, money market funds or short-term Treasury ETFs.

This money is your career gap insurance, providing you with the peace of mind that you will not have to liquidate growth assets — like your stock portfolio — at a loss just to cover the rent.

Creating the financial eject button

Beyond holding cash, strategic planning requires creating immediate, low-cost access to capital that doesn't force you to sell your investments. We call this the financial eject button.

While we generally advise paying off high-interest consumer debt, not all debt is bad. Low-interest, tax-deductible debt, like your primary mortgage, is often efficient to carry.

However, the real strategic move is setting up a contingent source of liquidity while you are still employed and highly creditworthy.

• Home equity line of credit (HELOC). If you have significant equity in your primary residence, a HELOC offers a flexible line of credit secured by your home. It's inexpensive to establish and costs you money only if you actually draw on it.
• Pledged asset line (PAL). Offered by most brokerages, a PAL allows you to borrow against the value of your non-retirement investment portfolio.

The value of these facilities is simple: They are preapproved, ready to deploy and can provide immediate, non-taxable cash flow if your income stops.

Establishing these resources now ensures that you avoid the worst-case scenario: being forced to sell good, long-term investments into a declining or turbulent market just to cover an unexpected expense.

Your career is an asset: Reinvest in it

Just as you audit your investments, you must audit your career. With artificial intelligence rapidly transforming how work gets done, the durability of even highly compensated specialized roles is questionable.

You must treat your professional standing as a primary wealth-generating asset that requires continuous strategic reinvestment.

Ask yourself: Are your specialized skills complementary to AI or easily replaceable by it?

Make the "résumé refresh" a low-effort, year-round discipline. This means:

• Networking. Make time for one meaningful professional conversation per month.
• Upskilling. Identify new certifications or adjacent skills that make you adaptable.
• Auditing. Periodically update your résumé, even if you're happy in your role.

Finally, remember that the true measure of your wealth is not your net worth, but your well-being. Your financial strength should empower you to trade a small amount of income for a dramatically increased balance and fulfillment.

The true value of your wealth plan is the confidence it grants you to say, "No, thank you" to a toxic environment or an unsustainable work pace.

By adopting the 18-month rule, establishing your financial eject button and continuously investing in your own adaptability, you move beyond merely surviving market changes.

You achieve the financial fortitude necessary to navigate whatever comes next — and do so entirely on your own terms.

Related Content

• Are You a High Earner But Still Broke? Five Fixes for That
• Roth or Traditional? Seven Considerations for High Earners
• Are You a High-Income Earner? Three Unexpected Reasons to Save More Than You Think You Should
• Six Ways High-Income Earners Can Optimize Their Tax Strategy
• Will My Children Inherit Too Much?

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.

With college costs outpacing inflation, even affluent families are rethinking how to pay less out of pocket during National Scholarship Month, which is this month.

The assumption that "we make too much to qualify for aid" is one of the costliest misconceptions in higher education.

In reality, billions of dollars in scholarships, grants and state workforce incentives are available — many with no income restrictions at all.

Kiplinger's Adviser Intel, formerly known as Building Wealth, is a curated network of trusted financial professionals who share expert insights on wealth building and preservation. Contributors, including fiduciary financial planners, wealth managers, CEOs and attorneys, provide actionable advice about retirement planning, estate planning, tax strategies and more. Experts are invited to contribute and do not pay to be included, so you can trust their advice is honest and valuable.

The families who benefit most aren't the ones who spend hours filling out random scholarship applications, but those who approach funding strategically, much like portfolio management.

Here are four overlooked avenues of "free money":

1. Merit aid as the new recruitment tool

Colleges are increasingly using merit scholarships to attract high-performing students, regardless of their financial need.

At many universities, 22% of all undergraduates receive merit-based aid. Some private institutions and regional universities offer non-need-based aid to half or more of their full-time students as a competitive strategy to attract specific applications.

These institutional awards serve as tuition discounts, some renewable for up to four years.

Families can gain an advantage by building a list of target schools where their student's academic profile (GPA, test scores, extracurriculars) lands in the top 25% of admitted applicants.

Many institutions publish "automatic merit" charts showing thresholds for guaranteed awards.

A strong GPA and solid test performance can translate into five-figure savings per year — making merit a powerful lever even for wealthy households.

2. Skill-based scholarships in high-demand fields

Not all scholarships are based solely on grades or financial need. Many reward skills and interests that align with the future workforce. For example:

Cybersecurity and IT. The CyberCorps Scholarship for Service pays full tuition and a living stipend in exchange for federal service after graduation.

Semiconductors and engineering. Schools like the University at Albany offer scholarships funded under the CHIPS+ Act to train engineers for the microelectronics industry.

Esports and digital media. Over 300 colleges now offer esports scholarships that can stack with academic awards.

These programs focus on ability, not income, and often lead directly to internships or guaranteed job placement.

3. State 'Workforce' and 'Promise' scholarships

Nearly every state now funds "last-dollar" scholarships that cover tuition gaps after other forms of aid have been applied. Many are tied to high-demand fields such as health care, teaching and public safety.

Some examples:

• New York state's Scholarships for Academic Excellence award scholarships of $500 and $1,500 per year to students achieving academic excellence while in high school.
• The Kansas Promise Act Scholarship covers tuition for designated programs like logistics, nursing or cybersecurity if recipients work in-state for two years after graduation.
• The Maryland Workforce Shortage Grant supports majors in education, therapy, social work and other public service areas.
• The New Mexico Opportunity Scholarship covers up to 100% of tuition and required fees at public colleges for eligible residents.

These programs are structured for accountability: In exchange for service or residency commitments, students can graduate debt-free or with minimal debt.

To learn more about available scholarships and grants within your state, visit Edvisors.com to access links to scholarships and grants per state.

4. Employer tuition benefits (for students and professionals)

Employer-funded education is one of the most underused forms of "free money." Some examples:

• The Starbucks College Achievement Plan covers 100% of tuition through Arizona State University's online degree programs.
• Walmart's Live Better U program pays tuition and for books at partner schools nationwide.

Some of these opportunities are also available to dependents or part-time employees.

For professionals pursuing graduate degrees, many companies offer $5,000 to $10,000 annually in tax-advantaged tuition assistance — a benefit that can be paired with scholarships and 529 funds.

Strategic families utilize these employer programs as an asset class — layered on top of merit and grants — to minimize cash flow strain.

Integrating scholarships into a total funding strategy

For high-net-worth households, the real advantage comes from coordination — aligning scholarships, 529 plans, grants and savings into a coherent strategy.

A few high-yield moves:

• File the FAFSA anyway. Many merit and state programs require it, even if you don't qualify for need-based aid.
• Time your 529 withdrawals. If your student secures substantial merit or state aid, you can preserve 529 funds for graduate school or later years.
• Leverage credible planning tools. Resources available on Edvisors.com, where I am the chief marketing officer, help families compare college costs, explore scholarship options and understand how aid packages interact with personal savings.
• Know each college's stacking policy. Some institutions cap total aid at tuition cost; others allow overage for housing or books. Always verify in writing.

This disciplined approach transforms scholarships from a side pursuit into a core component of financial planning.

Quick wins for National Scholarship Month

Audit your college list for automatic merit. Check published grids and note eligibility thresholds.

Target workforce-aligned programs. Identify three scholarships linked to your student's intended major.

Explore employer partnerships. A part-time or summer job with an education benefit can offset thousands in tuition.

File the FAFSA before year-end. It's the single-most-efficient eligibility trigger for all types of aid.

Document your student's "skills profile." Compile achievements — coding contests, leadership roles, athletics — that strengthen competitive awards.

Bonus tips: How to negotiate a merit bump

Time it right. Wait until your student receives multiple admission offers. Colleges often have flexibility during late winter when they're finalizing enrollment numbers.

Looking for expert tips to grow and preserve your wealth? Sign up for Adviser Intel (formerly known as Building Wealth), our free, twice-weekly newsletter.

Be specific, not emotional. Send a short, professional email to admissions that says something like, "We're grateful for the $12,000 scholarship offer. [Competing university] has offered $15,000. Is there any room for adjustment?"

Most schools will re-evaluate awards if the student fits a high-priority profile.

Confirm renewal terms. Many scholarships require maintaining a minimum GPA or credit load. Always get renewal criteria in writing to avoid surprises later.

The bottom line

"Free money" isn't about luck — it's about alignment.

By blending scholarships, state programs, employer benefits and strategic timing, even affluent families can significantly reduce college costs without sacrificing investment goals or liquidity.

In the end, the smartest move isn't chasing the biggest award — it's treating college funding with the same precision you bring to every other part of your financial life.

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

When Congress established 529 plans in the 1990s, they were designed as a tax-advantaged tool to save for college.

Contributions to these investment accounts grow tax-deferred, and you can withdraw funds tax-free for qualified college expenses, such as tuition, room and board, computers, and books. Most states and Washington, D.C., also offer a tax deduction or credit for residents who contribute to their state's plan.

Over the years, tax-free uses for 529 funds have expanded to include some other educational costs, too, including apprenticeship programs and tuition for kindergarten through 12th-grade schooling. The One Big Beautiful Bill Act, signed into law over the summer, has further extended the ways you can use 529 money, including a wider range of postsecondary educational programs.

What's covered by 529 plans now

Under the new rules, you can now withdraw 529 funds tax-free for tuition, books and other fees associated with qualifying non-degree credential programs, including for plumbing, electrical work, HVAC and welding.

Programs listed under the Workforce Innovation and Opportunity Act generally qualify; you can look up your state's directory of WIOA-eligible programs on CareerOneStop, the U.S. Department of Labor's career, training and job-search website. You can also check for eligible programs in the Web Enabled Approval Management System (WEAMS), maintained by the Department of Veterans Affairs.

Additionally, withdrawals from a 529 are tax-free for certification and licensing expenses and for continuing education required to maintain those licenses. For example, you may use funds to prepare for and take exams required to practice law or become a certified public accountant. Professionals such as teachers, nurses and real estate agents may use 529 money for continuing education to retain their licenses or certification.

If you've been saving money in a 529 for your child, these new rules broaden the options for how they can spend the funds. Or, if you need to take continuing-education courses for your current job or want to learn new skills for a career pivot, you could benefit, too, says Mary Morris, CEO of Commonwealth Savers, Virginia's program for tax-advantaged education savings.

You can change a 529 plan's beneficiary to another member of the family. So if your child doesn't need all the money in their account — say, because their educational expenses were lower than expected — you could switch the beneficiary to yourself and use the funds for your own education.

Note that provisions in the Big Beautiful Bill Act also let families use up to $20,000 per year for elementary and secondary school tuition, course materials, tutoring, fees for standardized tests, and more. Previously, qualified withdrawals of 529 money for K-12 students were limited to tuition, up to $10,000 annually. (The $20,000 limit starts in 2026.)

Not all states have altered their rules to follow the federal government's expanded uses for 529s, so make sure to check your state's policies.

The Roth option for 529s

Keep in mind that thanks to the SECURE 2.0 Act, passed in 2022, there's another way to put leftover 529 money to good use. You can roll over the funds, up to a $35,000 lifetime maximum, into the 529 beneficiary's Roth IRA, tax- and penalty-free.

Rollovers must be within the annual Roth contribution limit, which was $7,000 in 2025 and is $7,500 for 2026. The 529 plan must have been maintained for the beneficiary for at least 15 years before you can do the rollover.

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

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I can’t think of two words that generate more excitement and fear at the same time than “I quit.”

If you’re leaving for a better job, starting a business or stepping into retirement, the words can be thrilling. But if all you have is a dream and a blank calendar, they feel very different.

That’s the position I found myself in. After 10 years in a finance job, I took a leap and decided to write full-time. In this job market, I fully understand why people reacted with some version of concern or disbelief, as U.S. layoffs hit their highest October level since 2003.

Still, I’d rather know I took the risk than wonder for the rest of my life what might have happened if I hadn’t.

Behavioral researchers have long found that people regret what they don’t do more than what they do. And throughout history, leaps like these have preceded many well-known success stories. Jimmy Iovine left a stable career in recording studios to launch Interscope and eventually Beats. Howard Schultz left a rising corporate career to buy a small Seattle coffee shop.

Of course, not everyone ends up in a bestselling biography or on a magazine cover. Most people are just trying to build a stable life, save for retirement and avoid getting blindsided.

As someone who covers retirement professionally, I wanted to understand what this choice might mean for my long-term finances, especially my retirement prospects.

What happens when you step out of full-time work, whether by choice or by circumstance?

The financial impact of leaving work

The first reality is that leaving a job, even for a short period, can create long-term financial consequences.

Economists have studied this for decades, and the impact can be significant. For instance, research from the Brookings Institution shows that workers who lose a job see their earnings fall sharply, dropping by more than half in the first year after displacement. Earnings do recover over time, but not fully. Even ten years later, displaced workers earn roughly 25% less than similar workers who weren’t displaced.

Wealth takes a hit as well. A Department of Labor report found that household wealth remains about 8% lower six years after a job loss.

As advisor Melissa Caro, CFP® and founder of My Retirement Network, told me, "A break from steady employment hits you in two ways: lost contributions and lost compounding. You’re not just trying to replace a missed deposit; you’re trying to replace years of growth you never got."

I’m moving into freelance work, which means inconsistent income while I build up my client base. Until the work steadies, I’ll rely on my emergency fund as needed. If things become too tight, I may have to entertain tapping retirement funds. That’s something I know the numbers strongly discourage, yet it is relatively common.

A survey from the Transamerica Center for Retirement Studies shows that 37% of workers have taken a loan, an early withdrawal or a hardship withdrawal from a retirement account such as an IRA or 401(k). Across generations, the most common reason was a financial emergency.

Caro says, "It’s possible to catch up, but it almost always requires either a higher savings rate once you’re working again or a meaningful reset of lifestyle expectations." Even if your income eventually matches or exceeds your previous job, she notes, you still have to contend with "the gap: the months or years when you didn’t contribute to retirement accounts and missed out on growth."

Tom Geoghegan, CFP® and founder of Beacon Hill Private Wealth, agrees. To stay on track, he suggests people "roll over old employer plans if it improves investment access or lowers fees. And if you pick up contract or consulting work, remember that a solo 401(k) can offer extremely high contribution limits and help you close the gap faster."

These are the risks you should weigh when you're considering a voluntary break. Because timing also plays a role.

Timing matters — sometimes more than the decision itself

I can’t pretend my timing was perfect.

Research consistently shows that the impact of leaving an employer depends heavily on what’s happening in the job market. In strong labor markets, wage growth for job switchers (gray) often outpaces that of workers who stay put (red), as tracked by the Federal Reserve Bank of Atlanta. In weak markets, that flips: displaced workers take longer to find new roles and earn less when they do.

Age also plays a major role. Research from the Urban Institute has found that workers in their 50s experience longer unemployment spells and steeper earnings losses than younger workers. Expertise, it turns out, doesn’t always insulate you. In some cases, it makes you more expensive to replace.

I’m in my 40s, which gives me a bit more room. But the rapid rise of AI and automation means even workers with secure jobs may find their industries shifting faster than expected. That thought is both discouraging and oddly reassuring — change is coming for everyone, not just the people who step off the treadmill voluntarily.

Whether you quit or get laid off, it typically pays to hope for the best but prepare for the worst. As Caro points out, “The people who manage voluntary breaks well are the ones who model it years in advance and run worst-case numbers, not just the optimistic ones.”

The emotional and practical fallout

The financial math matters, but it’s only part of the story. Losing or leaving a job also affects health, habits, confidence and identity in ways that aren’t visible on a spreadsheet.

A wide body of research shows that job loss correlates with worse mental health outcomes and higher mortality risk. Without a work structure, people’s routines and social ties often fall away. Studies have documented increases in risky behaviors such as gambling and substance abuse following job displacement.

Caro told me the first emotional hurdle for many people isn’t financial at all. “Work becomes a proxy for stability, competence and purpose,” she said. “Losing it, especially without warning, feels like your foundation cracked overnight.”

The practical side can be overwhelming, too. The moment someone loses a job, their benefits clock starts ticking.

Jim Shagawat, CFP® and partner advisor at AdvicePeriod, described a client navigating this recently. Before anything else, he helped her assess cash flow and estimate how long her reserves could last while she planned her next move. “Before benefits ended, I advised her to complete any medical or dental visits and review health insurance options, including COBRA, a spouse’s plan and marketplace coverage,” he added.

In my case, I'm lucky that my wife is fully employed, so the plan is to join her benefits. Still, what has surprised me most about leaving a job is just how many balls you suddenly have to juggle. Caro calls this phase “financial triage,” in which the goal is to strip spending down to essentials, protect cash and avoid letting emergency measures, like using credit cards, turn into long-term habits.

Moving forward — the part you can control

The advisers I spoke with said the biggest determinant of long-term recovery isn’t just income or age, it’s mindset.

Geoghegan said something that stuck with me: “Behaviorally, momentum is just as important as math.” He says small wins, such as restarting contributions, consolidating accounts and clarifying next steps, can help restore confidence and build structure again.

For me, the choice to leave a steady job wasn’t made blindly. I have a plan, a path and a body of work I’m committed to building. Still, I understand exactly how large the bet is. It could blow up in my face. Or it could lead to something far more meaningful.

Retirement math rewards discipline, but life rewards courage. And in money as in life, rewards only follow risks if you take them.

The key, I remind myself, is to keep playing the game, even when the rules change.

There are two other powerful words that matter just as much as “I quit.” When you hear that the top regret of the dying is “I wish I’d had the courage to live a life true to myself, not the life others expected of me,” the goal becomes simple.

I want to be able to say, at the end of all this, “I tried.”

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Here's a quick pop quiz: What do Ray Kroc, Colonel Sanders, Arianna Huffington, Bernie Marcus and Grandma Moses have in common?

Answer: They all launched highly successful businesses — McDonald’s, KFC, a major media company, The Home Depot and a career as a preeminent folk-art painter — after age 50.

Like these icons, a growing number of people are choosing to become entrepreneurs in their 50s, 60s and beyond.

Recently, nearly one-fourth of new businesses have been started by founders between the ages of 55 and 64, up from 15% two decades ago, according to the Kauffman Foundation, a nonprofit that fosters entrepreneurship.

Overall, the U.S. Census Bureau reports, more than half of small businesses are owned by people 55 and older, with other surveys suggesting the number may be even higher.

Your odds of doing well are pretty good

Starting a business after 50 can be a great way to add years to your career or earn extra income in retirement. And while the chances you’ll strike it rich by creating a top-selling fast-food franchise or a multibillion-dollar retail operation are slim, your odds of doing well are far greater than for younger founders.

Research shows that people launching a business at age 50 are twice as likely to succeed as their 30-year-old counterparts, and the probability of being solidly profitable rises further with age after that.

“The wisdom, experience and network built up over the course of a long career can really pay off for older entrepreneurs,” says Andrew Chamberlain, principal economist at Gusto, an online payroll and human-resources platform for small and midsize businesses.

Still, entrepreneurship is not without risks. That’s particularly true if you are giving up a steady income to launch your venture or pulling cash from a 401(k) for funding — at exactly the point in life that most people of a similar age are trying to pump up savings before retirement or preserve nest eggs they’ve already built.

“Launching a business can be a great move when you’re older, but it’s not an easy path,” says certified financial planner Jovan Johnson, co-owner of Piece of Wealth Planning, a financial planning firm in Atlanta that primarily serves small-business owners, private practitioners and independent contractors.

“It takes the right mindset, the right business and the right setup to succeed without sacrificing your current lifestyle or future retirement.”

Intrigued by the possibilities? Here’s what experts in entrepreneurship, along with people who have recently launched businesses, say it takes to achieve success.

Build on what you know

Just how much more successful are older entrepreneurs? Gusto’s research shows that Baby Boomers using its platform take home $60,000, on average, in their first year of operation.

That’s six times as much as the $10,000 that Gen Z founders are able to pay themselves in year one, and it’s considerably more than Millennial entrepreneurs’ first-year salaries as well.

Gusto’s Chamberlain attributes this greater profitability to older entrepreneurs’ deep experience in their industry, which allows them to better identify unfulfilled market needs.

Some 44% of founders in a recent Gusto survey said they started a business precisely because they saw a new opportunity, compared with 34% of the respondents overall.

“The longer you’re in a field, the more likely you are to see those unmet opportunities, which can be a strong basis for your business,” Chamberlain says.

If you launch a business when you’re older, you also have an edge because you’re likely to have a stronger business network, existing client relationships and initial credibility and authority built through a long body of work.

Says Chamberlain, “These are advantages that just come with age and a long career history.”

“Utilizing the same skill set you’ve used throughout your career allows you to fast-track the new business,” adds Johnson. “It’s a very different proposition than if you’ve been an engineer or lawyer and now want to buy a food truck or open a restaurant.”

Leveraging your knowledge

Building off his industry experience is what Rick Moore, 55, had in mind when he launched his consulting business, The RGM Group, in Colorado Springs last year.

The former deputy chief of staff for plans and programs for the Air Force, Moore retired in 2024 after 32 years of service so that his son, then a rising eighth grader, could spend his high school years in the same place with the same group of friends.

Now Moore, who had been responsible for the Air Force’s five-year budget and six- to 30-year plan, provides insights into the federal government’s budgeting process for companies that want to work with the Defense Department.

“I’ve been able to leverage the knowledge that I gained in the military to continue to serve the Air Force, helping small businesses get to a point where they can provide a much-needed service or product that helps airmen,” he says.

To Moore’s surprise and gratification, the consulting business has been a success from the start. He managed to build a client list quickly through referrals and cold calls to companies he thought would be a good fit.

The $156 billion in mandatory defense funding passed by Congress over the summer has also been good for business. “Luck and timing are a part of all of these things, and mine happened to be good,” he says.

The greatest challenge so far? “In the military, I always knew what the near future held, and what my next paycheck would be; it was relatively certain and very secure,” he says. “I’m working harder and more than I thought I might when I worried I wouldn’t have enough business, but not harder and more than I desire. It’s the best problem to have.”

Create a brain trust

One other critical component of Moore’s success: He has been able to call on a strong professional network for assistance with both logistics and conceptualization, from how to find and approach clients to the best way to set up the company as a legal entity.

“I got a ton of good, practical advice from people who had walked this path before me, and I have found that remarkably helpful,” he says.

Developing that circle of trusted advisers helps you fill the gaps in your knowledge.

“You’re not going to have expertise in everything, but given your age and the work you’ve done, you probably know people who, for example, have strong marketing or financial backgrounds if you don’t,” says Elizabeth Isele, founder of the Institute for Experienced Entrepreneurship and a leading speaker and researcher on the topic.

Your brain trust can also act as a sounding board for your ideas.

“You need to identify people who will be really honest with you about whether they think this business will fly or not,” Isele says. “You want people who will help validate the idea and make sure it’s marketable, as well as people who can help you actually operationalize the idea.”

You don't need your family's opinion

Who shouldn’t be in the brain trust? Your family, Isele says.

“Asking your family for their opinion on your business is a classic mistake, because they’re not about to give you an honest opinion,” she says. “They will either be blindly supportive or immediately pooh-pooh the idea because, perhaps unconsciously, they may have their own agenda.”

In addition to people you know personally, you can connect with advisers who will provide free technical expertise, answer questions about best practices and generally assist in getting the business off the ground through SCORE, a nonprofit partly funded by the Small Business Administration.

Its seasoned mentors, often retirees themselves, are experienced in everything from creating a business plan to marketing and customer service (find a mentor in your area at score.org/find-mentor).

The SBA’s regional Small Business Development Centers may also offer free or low-cost counseling in some areas (check sba.gov/local-assistance), as do some state- and local-government business development initiatives.

Some of these services, though, may be affected by recent federal funding cuts.

Do the (side) hustle

Sometimes you have little choice but to make a full-body leap into entrepreneurship. That may be the case if you are laid off from a job, still need to earn a living and have had trouble finding another staff position — something more likely to happen later in your career.

One-fourth of entrepreneurs age 55 and older in the Gusto survey started their businesses due to job loss, compared with just 10% of founders on the platform overall.

But if you have the option to stay on at your current job and start your venture as a sideline business, experts say that’s typically the better way to go.

You’ll keep money coming in while you’re getting the business off the ground, and you won’t have to dig into your savings to pay the bills until your business is profitable — if it becomes profitable.

It also gives you time to test the idea, see what works and what doesn’t, and get a sense of whether you can really make a success of it while you still have a financial safety net.

“If you start small and learn the ropes while you’re still on someone else’s dime, it takes a lot of the fear and stress out of launching a business,” says Ross Buhrdorf, CEO of ZenBusiness, an online platform that provides a suite of services to help entrepreneurs create, manage and maintain their businesses.

“Once it gets going and growing, you can progress into a full-time job. But don’t jump off the financial cliff first.”

The most important thing to learn during this sideline period, Buhrdorf says: “You need to make sure someone — actually, lots of someones — will pay you for what you are selling. It sounds so basic, but not knowing is the number one thing that will trip you up.”

Lean on technology for help

A variety of digital tools, from artificial intelligence to Zoom, can help you establish, manage and promote your business at no or low cost. But entrepreneurs in their 60s, 70s and beyond can sometimes be reluctant to use them.

“Embrace technology,” advises Marisa Giorgi, director of education for Older Adults Technology Services (OATS), a nonprofit affiliate of AARP that offers a series of free technology courses for older entrepreneurs through Senior Planet, its flagship program.

“Think about whether there might be a digital or tech solution for whatever business problem or challenge you have in front of you.”

At a minimum, says Giorgi, you need to be on LinkedIn, with a professional page for yourself as well as your new venture, and establish a separate e-mail account for business communication.

You’ll want your own website to promote the business, too. (You can create one yourself with a user-friendly service such as Google Sites, or you can hire a pro to do it for you.)

Online payment services such as Cash App, PayPal and Venmo can simplify getting compensated for your services.

Crowd-funding sites such as GoFundMe, Indiegogo and Kickstarter can help you raise capital for the business so you don’t drain your savings to run it until you become profitable.

A bonus to using a crowdfunding site is that you will get a solid early read on what others think about your business idea.

“If no one wants to risk investing a dollar, you know that either a market doesn’t exist for what you want to do or no one believes it does, so you need to work on your messaging,” says Isele.

“If someone comes back and says, ‘I’m a little hesitant to invest, but did you ever think about doing this … ?,’ that’s free intel. You would have to pay a marketing firm thousands of dollars to get those insights.”

AI can be especially helpful, says Giorgi, who suggests making a list of all the tasks involved in running your business — say, pricing, invoicing, marketing, writing e-mails and analyzing market data — and ask an AI tool such ChatGPT, Claude, Google Gemini or Microsoft Copilot (all offer a free version) which jobs it can help with.

Says Giorgi, “AI can act as your intern or collaborator, freeing you up to focus on the things only you as CEO of the company can do.”

Courses can help too

Courses from Senior Planet have helped Lorena Jiron, 70, become comfortable with AI tools, digital payments, cybersecurity and social media that now help her manage and promote the life-coaching business she launched last year.

A U.S.-educated former interior designer, Jiron had worked for years as a facilitator of emotional wellness programs for nonprofits in Central America but moved back to the U.S. with her husband in 2023 to be closer to their adult children.

“Before I took the classes, I had to rely on my daughters for tech help, and they’re very busy people,” she says. “The digital training gives me independence and autonomy.”

It has also given her a new client, because Jiron, a bilingual coach, is now conducting workshops in Spanish for Senior Planet, helping the organization expand its audience.

“People ask me why I don’t just relax and enjoy retirement. But I’m passionate about this work, and it keeps me going and happy,” says Jiron. “And while we don’t need the money I make to live on, it’s nice to have that extra level of financial comfort.”

Don’t bet the farm — or the 401(k)

Apart from the cost of getting her certification as a life coach, Jiron was able to launch her business with relatively little money. That’s common. Although the particulars vary with the type of business, studies show that the majority of entrepreneurs launch their ventures with a modest initial investment, typically $5,000 or less.

That wasn’t the case for Noelle Boyle, 58. After she was laid off from her job as a senior marketing manager at Dell, where she’d worked for 18 years, Boyle invested $1 million, mostly from her 401(k), to open a branch of The Lash Lounge, a salon franchise that specializes in lash extensions, lifts and related services.

She learned about the opportunity from a franchising consultant during her outplacement counseling. “It was something I could pour my passion into,” she says. “Helping people feel better about themselves gave me a raison d’être I didn’t have in the tech world.”

Since opening her first salon in 2017, Boyle has bought three more, funded mostly via business loans. The business is flourishing, she says, with market dominance in the Austin area. Boyle has paid off some of her loans but hasn’t yet earned back her initial investment.

Still, she’s comfortable with the risks she has taken and feels she’s leveraging the marketing, public relations and accounting skills she built over the course of her tech career.

She says that her husband has been able to support them while she has been building the business, and notes that, fortunately, he has ample savings and a comfortable pension for when they eventually retire.

“I’m playing the long game,” Boyle says. “I’m being aggressive with my growth strategy, but I only take risks I’ve carefully considered and am comfortable with.”

Considering expenses, revenue and profits

Mapping out, realistically, what the first one to three years of your venture will look like in terms of expenses, revenue and potential profits is vital to ensuring that you’ll be okay financially, says Johnson, the Atlanta CFP.

He encourages clients to think about the worst-case scenario — how many years of savings might you need to forgo, and how would that impact your retirement? How would you pay the bills?

“Getting input from a financial adviser or another third-party expert is helpful to catch any blind spots, because if you’ve never launched a business before, there are going to be some expenses and hiccups you’re just not aware of,” he says.

Johnson recommends, if at all possible, building up your emergency fund before you launch, as well as having separate accounts for those surprise personal and business expenses.

To reduce bookkeeping challenges and potential liability issues, he also recommends opening a separate regular bank account and credit card for the business.

As for using your retirement savings to help fund your venture and pay your living expenses in the early stages, Johnson, like most experts, is not a fan.

“It’s a big gamble, especially when you’re older,” he says. “I would never tell a client no, but it’s important to project the impact, carefully consider it, and understand that if you go this route, you’re probably going to retire later than you originally planned.”

Of course, if you love the work, that may not matter.

“I’m pursuing my passion and feel like I’m genuinely making people’s lives better,” says Boyle. “I’m exactly where I need and want to be.”

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

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It feels like we've seen more layoffs happening among clients at our financial planning firm in the past few quarters than we've seen in the last 10 years.

Companies cutting costs and shrinking workforces have been trends across tech and biotech lately, and layoffs are hitting other industries too.

Losing your job might feel like something you can't plan for or control. But a core tenet of financial planning is to expect the unexpected.

Kiplinger's Adviser Intel, formerly known as Building Wealth, is a curated network of trusted financial professionals who share expert insights on wealth building and preservation. Contributors, including fiduciary financial planners, wealth managers, CEOs and attorneys, provide actionable advice about retirement planning, estate planning, tax strategies and more. Experts are invited to contribute and do not pay to be included, so you can trust their advice is honest and valuable.

There are proactive steps you can take, as well as immediate action items to put on your list to better protect yourself in the event of a layoff, and to keep your financial plan on track.

Here's what we've been advising our clients who are dealing with a job loss.

1. Make a counteroffer on your severance package

You likely understand the power of negotiating the terms of a job offer — from pay or bonuses to benefits packages — when looking for a new job. But you can also end up in a better financial position by negotiating any potential severance packages, as well.

Just like negotiating compensation when considering a new job, you can negotiate the terms of your severance package. Such packages can include lump sum payments, equity grants and payouts of banked paid time off.

Benefits apply here, too: You could ask for support in the form of career coaching, reimbursement for training programs or placements with recruiters and other job-search specialists.

And like a job offer, your company should give you time to consider the severance package they present to you before you need to respond.

Take advantage of the time provided (while being mindful of any deadlines). Use it to consider your leverage points, which could include potential legal claims but may also be centered around the value you created as an employee.

Do any additional research to back up your counteroffers, and review company policies to make sure you understand what, if anything, your employer may owe you beyond what they initially offered.

This is an opportunity to walk away with a better deal, so don't ignore it.

2. Triage your monthly cash flow with an emergency budget

The loss of regular income is usually the biggest immediate financial impact of a layoff. To address this, you need to evaluate your cash flow and determine what can be cut from your budget immediately, vs what has to get paid no matter what.

For those no-matter-what items, this is the purpose your emergency reserves serve: a cash cushion to get you through unexpected pitfalls.

Building an emergency budget is a useful tool to keep handy and deploy when you need it. To create it, start with your existing budget or record of monthly cash flow and strip out or dramatically reduce discretionary spending. That's it! Very simple, although it's not easy to go through and choose what to eliminate.

Keep in mind that the idea here is to see what costs you can eliminate immediately to help you get through a period of unemployment. No, this is not fun. It's also temporary, and doing so will help your cash reserves last longer.

Ideally, your emergency budget is something you'd construct before a layoff. If you're worried about losing your job, this exercise can help ease some anxiety because it shows there are things within your control you can do to better your financial situation, even as you deal with a loss of income.

You know you have a backup blueprint that can guide your spending decisions while you get through a period of unemployment.

But this is also something you can do on the fly, if needed. If you need help working through it, your emergency budget should probably include:

What you have to pay for, regardless of your employment status. Think fixed costs and bills with no flexibility or ability to change, like your mortgage and utility bills.

Scaled-down line items for things you need, but also have control over how much you spend. This might be things like groceries, household shopping or even gas.

These things are more needs than wants — but you can start shopping at your local chain grocery store vs Whole Foods or be more judicious with long-distance trips.

One or two things that are extremely important to you, but don't qualify as needs. Even if you lose your income, some things that are technically "wants" vs needs are still extremely important to maintain.

This will look different for different people, but some examples might include a gym membership so you can maintain your workout routine, a monthly appointment with a therapist or a (smaller) budget for select self-care spending.

Everything else should be cut out or drastically reduced in your emergency budget. Remember, this isn't your new normal. It's just your guide to navigate through a temporary tough time.

3. Reconsider one-time purchases (for now)

On a similar note, if you're worried about a layoff or just lost your job, you need to take a second look at any upcoming one-time purchases you previously considered.

Avoid big-ticket purchases or delay as much choice spending as possible until you secure a new paying position. Hold off on any financial decisions that would insert large fixed costs into your monthly budget, as well.

Again, it's not forever. But you want to focus on what you can control to get through a potentially tight period, and pausing spending is a great way to successfully navigate a period of no or low income.

4. Know your health insurance options and apply for unemployment

COBRA may cover your health insurance needs in the event of a layoff. You may not know this until you actually receive a severance agreement/package, but you could get coverage this way for a period of time — typically 18 months.

Depending on your state, you may also be able to purchase your own private coverage on an exchange.

We're based in Massachusetts and can leverage the commonwealth's exchange. If your state does not offer this, HealthCare.gov may be a good place to start for researching other options.

We also generally recommend our clients apply for unemployment benefits as well. Again, specific terms of a layoff may affect when and how much you qualify for benefits.

5. Identify other benefit gaps

Most employed workers get health insurance through their employer, and that's typically what people think of losing when experiencing a layoff.

But your benefits package might have included other policies and types of coverage as well, like life and disability insurance or access to certain professional services.

In the event of a layoff (or ahead of a potential one if you're concerned), ask your employer if your group life and disability policies are portable — meaning, you could maintain the policy you have now even if you were laid off.

You may be able to keep the coverage; you'd just need to pay the premiums yourself, where previously your employer covered that cost.

Looking for expert tips to grow and preserve your wealth? Sign up for Adviser Intel (formerly known as Building Wealth), our free, twice-weekly newsletter.

If your policies are not portable, you may want to speak with an independent insurance broker about private term life or long-term disability policies to cover any gaps.

This is a sound recommendation even if you feel confident in your current job security! Most employer-sponsored plans don't quite cover the full needs of higher-income earners.

6. Reach out to your financial planner

Providing a clear set of steps to take now to navigate through a challenging time is exactly what a real financial planner is made to do. Keep them in the loop and lean on their expertise.

A great planner will help make sure you understand the best steps to take, provide support and resources (including helping you sort through new job offers when those start coming in) and take care of the technical aspects of your planning so you can focus on what comes next in your career.

Related Content

• Five Financial Tips to Help You Plan for the Unexpected
• Facing a Layoff? Ask Your Employer These Questions Now
• I Got Laid Off at 59 with an $800,000 401(k). What Are My Options?
• Six Winning Moves to Land a Job After 50

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.

Question: I'm 57 with a great remote job, but after five years of working from home, my company wants me in the office full-time. I don't have the energy for a daily commute. Help!

Answer: In early 2020, many companies implemented remote work policies in response to the pandemic. And a good number of employees have been enjoying a fully remote schedule ever since.

But companies are increasingly asking workers to return to the office. And many are mandating it. CBRE reports that 77% of companies today across the U.S., Canada and Latin America expect employees to report to the office three days a week or more.

If you're 57 and have been working remotely for the past five years, you may feel that you don’t have the energy to start commuting daily. But if your employer wants you back in the office full-time, you may also feel like you don’t have a choice.

It’s hard to start over at a new employer at age 57, since you may be approaching the tail end of your career with plans to coast until retirement. Plus, it may not be so easy to get hired at 57.

Almost two-thirds of workers ages 50 and over have seen or experienced age discrimination in the workplace, according to AARP. It is especially a problem for older women. And while it’s illegal to pass over a qualified job candidate on the basis of age, it’s also a hard thing to prove.

Also, there’s no saying that if you were to apply for a new job, you’d be able to find one that’s fully remote. So all told, you’re looking at a tough situation. But that doesn’t mean there aren’t solutions.

It pays to have an open mind

After five years of remote work, the idea of a daily commute may be jarring. But Suzanne Hawes, a seasoned human resources consultant, says it’s important to have an open mind. If you like your job and the commute is the one sticking point, there may be ways to make it work.

The most important thing, she says, is to give commuting a chance.

“Often, it takes a few weeks to get used to the old routine again,” says Hawes. “If you were able to balance work and life before, it may be possible to find that balance going forward. If the only negative thing about the job is having to be in the office full-time, you might try it for a few months before deciding to leave.”

Diana Bernal, CEO and Career Strategist at Diana Inc, says you may be able to make the most of a commute.

"Use it as a chance to listen to audio books or podcasts," she suggests. And if you don't have to drive, you could read or watch TV and use the commute as an opportunity to enjoy some downtime.

Bernal also points out that if you can afford to do so, there may be ways to make your commute more comfortable.

"When I got a new job downtown that increased my commute, I leased a comfy Lexus, a nice step up from my Honda Accord," she explains.

Or, you may realize that there are benefits to being in the office, such as family, friends, or activities nearby. All told, it may not be so bad once you get used to it.

There may be some wiggle room

If you’re being asked to return to full-time office life, one thing to consider, says Hawes, is that your employer may be more flexible than you’d think.

“One possibility,” she says, “is to comply with the order and come back full-time for a few months. Then, see if your leadership is open to one or two work-from-home days. People who show they are willing to comply with the return-to-office order may find that buys them some flexibility.”

Hawes also says that the more leverage you have at your job, the more your employer may be willing to negotiate.

“If you’re a high performer or in a role that’s hard to replace, your leaders may be more willing to offer you a hybrid arrangement,” she explains.

Consider a new job or go freelance — if it fits your financial plans

If your employer insists on five days a week in the office and it doesn’t work for you, you could always look for a different job. But Hawes warns that it may be tough going.

“Not only is remote work harder to come by now,” she explains, “but in some locations, all jobs are harder to come by. If you’re going to leave your job because of a return-to-office order, either find your next job before you leave this one, or make sure you have enough savings to support a potentially long job search.”

Hawes says that while taking a lower-paying job with more flexibility may be possible, you should work with a financial adviser to understand how prepared you are for retirement now.

“If your planner says you’re in good shape, a lower-paying job may make sense,” she says. “But be clear about what you’re giving up in return for fully remote work. Are you used to a high level of independence and decision-making? Are you prepared for a role with less authority or visibility than you have today?”

Hawes says you can also consider a shift into freelance work if you can’t find a suitable job that will let you work from home. But there are risks involved.

Freelance income can be inconsistent, and it may take time to build up a steady stream of it.

Before going the freelance route, Hawes says, “Talk to people who are doing it and find out what it takes to get work. Ask how they price their services and, if they are willing to share, what they earn in a typical month.”

You’ll also need to consider the benefits you may be giving up by going freelance, such as employer-subsidized healthcare and access to a workplace retirement plan, like a 401(k).

“Many employers contribute to employee plans, often by matching contributions,” Hawes says. “That’s free money you would be giving up.”

The good news is that, as an independent contractor, you can save for retirement through vehicles such as SEP IRAs, Solo 401(k)s, or SIMPLE IRAs. And in some cases, you can contribute more than you could to a 401(k).

But as Hawes warns, “All of those contributions will be coming from you.”

Don’t rush into a decision

You may be tempted to quit your job if you’re forced to resume a five-day commute you’re dreading. But before you do that, Hawes says, it’s important to have a game plan.

“My recommendation would be to go back and approach it as an experiment,” she says. “Give it at least three months and pay attention to how you feel and how the rest of your life is functioning.”

If, after three months, you’re truly unhappy, you can explore other options. But as Hawes says, “If you still want to quit after that, take the time either to find another job that better fits your needs or to save enough money to give yourself a cushion while you build a freelance or consulting practice.”

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When you enroll in a 2026 health insurance plan this fall, don’t be surprised if you see a significant increase in your premium, whether you get coverage from your employer or on the Affordable Care Act marketplace.

Large employers expect health care costs for employee coverage to rise by a median 9% in 2026, according to the Business Group on Health. “This is the highest single-year forecast in more than a decade,” says Ellen Kelsay, BGH president and CEO.

Employers plan to pass along more of the increase to employees than they have in the past few years, and some are offering new kinds of plans with restricted provider networks as another way to manage their expenses.

The sticker shock will be even more intense for people who buy insurance on the ACA marketplace. When health insurance companies filed their proposed rates for 2026 with regulators over the summer, the median premium increase from 2025 was 18% — the largest rate change insurers have requested since 2018, according to an analysis by KFF, a health care research organization.

And that’s just part of the picture for marketplace plans. If you’ve qualified for a premium subsidy to reduce costs based on your income in recent years, that may change: The enhanced premium tax credits that enlarged the subsidies starting in 2021 are set to expire at the end of 2025, unless Congress makes a last-minute change.

If they are not extended, the subsidies will shrink for people earning less than 400% of the federal poverty level; for 2026 plans, 400% of the poverty level is $62,600 for singles and $84,600 for couples in most states. People earning more than that won’t receive a subsidy.

Despite these developments, you still have solid strategies at your disposal to make smart health care decisions and manage the costs during open enrollment. Here’s what to expect when assessing your plan options this fall.

New employer-plan options

The BGH study’s 9% projected increase in health care costs is driven primarily by the rising price of pharmaceuticals, the growing popularity of obesity treatments (especially GLP-1 medications, such as Ozempic), an increase in cancer diagnoses, and higher usage of mental health services, which many employers have expanded in the past few years.

The employers who responded to the survey expect to moderate the increase to a median of 7.6% by tweaking the design of their health plans, including some changes that affect employees’ options and costs. The plans may limit or reduce coverage for GLP-1 medications and require prior authorization for more procedures and services before they provide coverage.

Employers may also pass along a larger share of the cost increase to employees than they have over the past few years, through higher premiums, deductibles and co-payments. The median estimate of employee contributions to annual premiums is rising from $2,983 to $3,251 per employee in 2026 (including both single and family coverage), and the median yearly out-of-pocket cost for employees is increasing from $1,825 to $2,224, according to the BGH study.

But a growing number of employers are also looking for alternatives to increasing deductibles, recognizing that high deductibles can cause people to avoid seeking care, leading to more expensive medical issues in the future.

More than one-third of the plans surveyed by Mercer, a human resources and employee benefits consulting firm, expect to offer a medical plan with no deductible or a low deductible, and 12% expect to offer at least one plan with no premiums for employees.

Some employers hope to reduce costs by offering plans with incentives for employees to use certain providers that offer high-quality and cost-efficient services. So you may see plans with new types of provider networks on the menu.

For example, if your plan includes a “high-performance network,” you may have lower deductibles and co-payments when you use certain providers than you do when you visit the rest of the providers in your plan’s standard network. A high-performance network is “generally like a PPO, but it’s a more curated network,” says Tracy Watts, senior partner at Mercer.

With these plans, you may be able to use out-of-network providers, but with higher costs for you, as is typical with a PPO (preferred provider organization). Another version of these high-performance network plans, called EPO (exclusive provider organization) plans, restricts coverage to in-network providers only.

As another option, some employers are offering “variable co-pay plans” that have no deductible and provide a range of co-payments that vary by provider, which the employees see up front. “The idea is you’re getting somebody to do their homework before they call the doctor,” says Watts.

You may also be able to use centers of excellence, which are hospitals that may be outside your area but specialize in certain conditions. More than half the companies surveyed by BGH plan to include centers of excellence in their networks in 2026 for bariatric surgery, musculoskeletal conditions, fertility treatments, or cancer. Centers of excellence are more commonly included in large-employer plans than those from smaller employers.

Employers and their health plans have also been beefing up navigator programs. Health care navigators can help you learn about your care options if you’re diagnosed with a medical condition and find in-network providers in your area. Navigators may let you know whether your plan offers a center of excellence for your condition or whether you may be eligible to participate in a clinical trial, says Watts. They can provide information about other programs the employer offers, too, such as employee assistance programs, which provide a growing number of in-person and online counseling options and other benefits.

Strategies for workers

Because of the increasing costs and changes to employer health insurance, it’s worth making an extra effort to review all your choices during open enrollment this year. The following steps can help.

Make the most of each spouse’s benefits. If both you and your spouse have coverage at work, compare the options. “Don’t assume that if you work for a bigger company, your family should all go on your plan,” says Watts. It may make sense to stay on your own company’s plan, but have your children on your spouse’s plan. Or you could get medical coverage through your plan, but dental and vision coverage through your spouse’s employer.

Do the math. Add up premiums plus the costs for the care and prescription drugs you and your family need regularly under the plans offered by your employers. Also check coverage if you were to get a serious diagnosis, such as cancer or a condition that requires major surgery, so you’ll understand how your medical care may be covered under each plan, says Watts. If you choose a high-deductible health insurance policy paired with a health savings account and the employer contributes money to the HSA on your behalf, subtract that amount from the potential costs.

Contribute to an HSA if you do choose a high-deductible policy. Many employers seed HSAs for employees with eligible health plans or match their contributions. To qualify for an HSA in 2026, your policy must have a deductible of at least $1,700 for single coverage or $3,400 for family coverage. You’ll be able to contribute up to $4,400 in 2026 if you have self-only coverage or $8,750 for family coverage, plus an extra $1,000 if you’re 55 or older.

Learn about new network options, which may be a way to reduce your costs. If you don’t have a strong relationship with any doctors, or if your current doctors happen to be in the network, making use of a plan that offers a preferred network could help you save money on premiums without paying a high deductible, says Watts. Find out whether the plan will cover out-of-network providers with higher cost-sharing or if it will cover only in-network providers.

Check how the plans will cover your medications, especially if you need expensive maintenance drugs. Some plans are altering their formularies, which specify whether a drug is covered and what your co-pay would be, says Watts. Even if the plan includes your drug, you may need to meet prior-authorization requirements before the insurer will cover it for you. Don’t assume your drugs will continue to be covered the way they had been in the past.

Take advantage of extra benefits. For example, employers are making their wellness programs more attractive to many employees. Employers may give you a few hundred dollars each quarter for a gym membership, for example, rather than require you to complete a complicated health assessment. Employers may also offer more mental health benefits and other programs, both in-person and remotely, such as virtual physical therapy.

Choosing a marketplace plan

If you buy insurance on the Affordable Care Act marketplace — either at HealthCare.gov or your state’s marketplace — you may see a particularly large jump in costs. The increase in premiums might not be quite as high as 18% by the time rates are finalized.

“But this gives us a really good signal of what insurers are thinking of the current state of the individual market and how health costs will change,” says Matt McGough, policy analyst in KFF’s program on the Affordable Care Act.

Final rates are available on HealthCare.gov starting the week before open enrollment begins, on November 1. Open enrollment for 2026 plans ends on January 15. (The time frame for open enrollment will be shorter, starting with 2027 plans.) Some states have different time frames.

The increases are due in part to rising health care costs, but they’re also fueled by uncertainty about what will happen to the enhanced premium tax credits.

"Last year, we saw record insurer participation,” says McGough. "Consumers had more choice than ever when it came to selecting a plan on the marketplace. But partially due to the uncertainty, a lot of insurers are pulling out because it might not be as profitable anymore."

Some insurers are worried that if the enhanced subsidies expire, some healthier people will choose not to get a marketplace plan, which could leave the pool of insured individuals sicker and more expensive for insurers to cover.

"Insurers are going to try to protect themselves from what might be a sicker group of people,” says Sara Collins, senior scholar for health care coverage and access with the Commonwealth Fund, a health care research organization. If the insured people are less healthy overall, the costs go up for everyone — even those who are free of medical conditions.

Aetna, which had sold marketplace plans in 17 states, is leaving the ACA marketplace in 2026. Two large plans in Colorado announced in late August that they would exit the individual market. But regardless of whether the insurer that provides your current plan is sticking with the marketplace, it’s a good idea to shop around.

Your options will be based on where you live and whether you qualify for a premium subsidy. It’s important to look not only at the plan’s sticker price but also at your after-subsidy premiums and potential out-of-pocket costs.

"The amount you pay depends on your income and the plan you choose,” says Cheryl Fish-Parcham, director of private coverage at Families USA, a consumer health care advocacy organization.

“Don’t assume that what another person pays is what you’re going to pay," said Fish-Parcham. Look at the plan choices, and make sure you’ve updated your income figures when shopping for a marketplace plan.”

To help estimate your premiums and possible subsidies, you can use the calculator at kff.org/interactive/subsidy-calculator. (KFF plans to update the tool for 2026 plans before open enrollment starts.)

Plans on the exchange are separated into bronze, silver, gold and platinum categories. Bronze policies generally offer the highest deductibles and lowest premiums; platinum policies provide the most robust coverage in exchange for higher premiums; and silver and gold policies fall in the middle.

Platinum plans aren’t available in most states, so you’ll likely be choosing among the other options. If you have a silver or gold plan now, you may be able to reduce your premiums by switching to a bronze-level plan — but be prepared to pay more for the deductible and cost-sharing. Make sure you understand the types of care that aren’t subject to the deductible, such as a lot of preventive care.

One important benefit to buying an ACA marketplace policy rather than going without insurance: All marketplace plans cap your maximum out-of-pocket costs for the year. In 2026, the cap will be $10,600 for individual plans and $21,200 for family plans. That limit protects you against the risk of incurring massive bills should you end up needing expensive health care.

A helpful development from the One Big Beautiful Bill Act (OBBBA), which the president signed into law in July, is that all bronze-level plans will be eligible for health savings accounts starting in the 2026 plan year.

Make the most of an HSA to build up tax-free savings, which can help you pay out-of-pocket health care costs now or in the future. Contributing to an HSA also reduces your modified adjusted gross income, which could help you qualify for a premium subsidy.

If your income is less than 250% of the federal poverty level (which will be $39,125 for singles and $52,875 for couples for 2026 plans), you can also qualify for a special subsidy that reduces your deductible and co-payments if you buy a silver-level plan, which could be a better deal for you than a bronze plan.

Understand how the network works. Is it a PPO that lets you use both in-network doctors and out-of-network doctors, but with higher co-pays, or is it an HMO that covers only in-network doctors? Find out whether your providers will continue to be in-network. Also, check the plan’s formulary to see how it will cover your medications.

Fish-Parcham recommends getting assistance from a helper or navigator in your area; you can find one through HealthCare.gov or your state marketplace. The federal government has cut back on funding to support these helpers. In case they’re stretched thin, it’s best to get started early so you have time to work with them.

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

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As with almost any new technology, AI promises exciting new applications, while also posing significant threats. From environmental damage to economic upheaval, we're still untangling exactly what challenges we will face from AI.

One of the most serious problems AI poses for job seekers is the potential elimination of entire classes of jobs, as well as a reduction in demand for many white-collar positions. The issue is so contentious that Congress introduced a bipartisan bill that would require companies to report jobs lost due to AI to the Department of Labor.

The other way AI can mess with your job search? AI is notorious for both reflecting and perpetuating human biases, such as racism, sexism or agism. If you're an older woman seeking a job, it's essential to be aware of the latest research findings and take steps to mitigate them.

AI absorbs stereotypes about working women

According to research published in Nature, advanced AI systems, known as large language models (LLMs), appear to have formulated some troubling ideas about what a working woman looks like and the types of jobs she can do.

Specifically, an analysis of large language models (LLMS) and millions of videos and images across the web revealed that when women are portrayed in different occupations and social roles, they're almost always depicted as being younger than men in the same positions.

While this is true across all jobs and scenarios, the researchers also found the biggest age gap in pictures depicting high-status, high-paying work. Moreover, this isn't an isolated problem of gender bias, as researchers were specifically looking for a "culture-wide trend."

The fact that LLMs had these misperceptions was especially troubling because the models didn't formulate the idea of which roles women fill by looking at pictures — the LLMs looked at words and still developed biases against older working women.

“Why would it be showing up in billions of words where there’s no visual presentation of people?” Douglas Guilbeault, the study's author and an assistant professor of organizational behavior at Stanford Graduate School of Business, said. “That is really suggesting it’s woven into the fabric of how we categorize and interpret people in the social world.”

In other words, our stereotypes of what men and women are good at, and which women belong in the workforce, are so baked in — despite decades of challenging those perceptions — that AI models now view women as less capable, and capable women as being young.

AI (and online images) are perpetuating these stereotypes

So, why does it matter that online images of success show men or young working women, or that LLMs think all women leaders are young and that women are less experienced than their male counterparts?

AI bias affects the real world

For one thing, many people spend all day online, forming their perceptions of the world based on the images they see. In fact, another recent study revealed that just 45 minutes of exposure to online pictures of people in various occupations altered people's perceptions of which gender is associated with specific jobs.

Furthermore, a growing number of companies are utilizing AI to review resumes, screen candidates, and even conduct interviews, which could make it harder for women to secure a seat at the table — and to retain the seats they've worked so hard to claim.

When AI writes resumes

In fact, when researchers asked ChatGPT to generate 34,500 unique resumes for 54 different jobs using traditionally male and female names, the resumes also depicted women as being less experienced and younger. Then, when ChatGPT was asked to evaluate resume quality, older men were given the highest ratings even in situations when fake male and female candidates had been given the exact same credentials from the start.

Women have long been the subject of age discrimination. Older women, who tend to live longer than men and often have less saved for retirement, may find themselves in a position where they need to work longer than their male counterparts.

If AI is screening them out, and they're facing hiring managers who have spent years online having their perceptions of professionals shaped by biased images, what chance do they have of fair treatment in the workforce?

How can you beat the AI algorithm?

AI isn't going anywhere, and the reality is that its role in screening job candidates will only grow. That's a problem for employers and society to address, but in the meantime, how can you beat an AI algorithm to get the job you want?

One of the simplest ways to combat AI bias is to limit the recruitment tool's ability to stereotype you. As Leslie Stevens-Huffman writes in Dice, "Consider removing your full address and specific dates from the education and work‑history sections of your résumé, online profiles, and digital portfolio. AI scans all of them, and together they shape the algorithm's picture of you."

You should also study how to navigate AI screens and develop a resume that will help you succeed. "There are tools to help you 'see' your resume the way an AI screener might, says NYU journalism professor Hilke Schellmann. "Sites like Jobscan and others allow you to input a job description and compare your resume to that description to see if your resume matches the role. But beware of looking too good on paper."

Older female job seekers often have to go the extra mile to get past AI-screening tools. For example, you can get a foot in the door by developing a robust network, joining industry associations or pursuing additional certifications.

Hopefully, over time, those developing AI models can find smarter ways to avoid bias. But, until that day comes, this may be just another hurdle that has to be overcome.

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Americans’ money worries are stacking up as tariffs, inflation and a weakening jobs outlook take an increasing toll. Even stocks hitting a series of record highs lately hasn’t been enough to shake the financial jitters, with memories of the market’s spring swoon still relatively fresh.

Four out of five Americans in a survey by Discover this summer said they feel anxiety about their finances — an increase of nine percentage points since 2021 — and one-third characterized their stress as moderate to severe. The findings echo recent studies by Northwestern Mutual and Motley Fool, which found that more than half of Americans now worry about their finances at least three times a week.

Overall sentiment in the U.S. continues to deteriorate, with major gauges of consumer confidence falling in August. Topping the list of concerns: high inflation and everyday expenses, followed by job fears and worries about a recession.

“The change in trade policies and uncertainty over prices — most of our clients are aware of that, and it puts them on edge,” says certified financial planner Eric Walters, managing partner at Summit Hill Wealth Management in Greenwood Village, Colo.

The concerns are not unfounded. Several measures of inflation have been inching higher recently, and many retailers and consumer goods manufacturers are warning that prices will continue to rise due to tariffs. The latest analysis from the Budget Lab at Yale University suggests tariffs could add 1.8% to price increases this year, the equivalent of an average income loss of $2,400 per U.S. household. At the same time, employers are becoming reluctant to hire, creating another economic headwind.

What makes experts anxious, though, is that many people may make impulsive and possibly damaging money decisions to ease their worries, such as moving most of their retirement savings to cash or loading up on gold, cryptocurrency and other high-risk alternative assets.

“Everybody wants to get back into the driver’s seat of their lives financially, so they look at what they can control,” says CFP Bob Wolfe, founder of HealthyFP in Conshohocken, Pa.

These steps can help you tackle money worries in a healthy way.

Zero in on your biggest concern

Pin down what disquiets you the most, then work on a specific plan to address that worry. If high prices top your list, for instance, you might start by reviewing your budget to find ways to lower expenses, says Juan HernandezAriano, a CFP and director of WealthCreate in Houston. For example, you might be able to take advantage of available discounts, cancel little-used streaming services and subscriptions, or negotiate a lower interest rate on debt.

If you’re retired and inflation is fueling fears you could outlive your savings, consider shifting an additional three to six months’ worth of expenses from your investment portfolio to a lower-risk, easily accessible money market account or high-yield savings account that you can dip into as needed. That way, you’ll avoid selling stocks at a low if the market drops sharply again, HernandezAriano says. Temporarily lowering your annual portfolio withdrawals — say, from 4% to 3% — can help as well.

Naming your next three moves if your worst fears materialize is also a good exercise, HernandezAriano says. If you’re worried about losing your job, for example, you might assess your cash reserves to make sure you have enough on hand to meet your immediate bills, plan to file for unemployment benefits, and figure out how you’d maintain health insurance.

“The anxiety is reduced simply because you start flushing out that uncertainty,” HernandezAriano says.

Avoid habits that fuel your anxiety

Keeping up with the 24/7 news cycle and reading constant social media posts about the economy can trigger your brain to release “a burst of dopamine, which feels good and trains the brain to seek out more news,” says CFP and therapist Joy Slabaugh, founder of the Wealth Alignment Institute. But doing that ultimately feeds your anxiety, so “set up safeguards to turn that off,” she advises. Maybe limit your financial news viewing to an hour or less a day or stop following alarmist economic pundits on social media platforms.

Similarly, take a break from looking at your portfolio balances. “Those who check their investments frequently have a greater likelihood of seeing the inevitable short-term ups and downs,” says Walters, even though over the long term the market typically rises.

Clients who instead rely on quarterly updates have lower stress, Walters says — and research shows they average significantly higher returns on their investments as well.

Get perspective

Accept that some factors are out of your control, says Patrick Huey, a CFP and owner of Victory Independent Planning in Naples, Fla. He likes to offer his clients a reassuring historical perspective: Periodic bear markets and recessions are normal, and so is eventual recovery. “They feel like, okay, this isn’t the first time this has happened,” he says.

Instead of checking your portfolio, review your long-term financial plan, which should account for market ups and downs, recessions, and other setbacks, such as higher-than-average inflation. It also offers a concrete representation of your wealth and goals, how far you’ve come, and where you’re going. “It lowers the stress level,” Walters says. “You feel like there’s a map for your life.”

Allow yourself some grace

Avoid beating yourself up for feeling anxious, says Rick Kahler, a financial adviser and certified financial therapist in Rapid City, S.D. Instead, use the emotion to your benefit. “It’s what we call a trailhead to explore,” Kahler says. “It will lead us to some place that can be really productive.”

There’s also a good chance you’re not the only one dealing with financial jitters. Reaching out to trusted family and friends can help. As Slabaugh notes, “There can be comfort and solidarity in realizing you’re not the only one who feels this way.”

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

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Question: I want to help pay for my grandkids' college. Should I make a large lump-sum 529 plan contribution or spread the funds out evenly over the years?

Answer: A lot of people experience sticker shock when they sit down to look at college costs today. For the 2025-2026 academic year, U.S. News & World Report puts the average cost of tuition and fees at a four-year public in-state school at $11,371.

For a public out-of-state school, the average price tag is $25,415, and for private universities, it's $44,961. A top-notch school may even cost over $90,000 a year!

Meanwhile, an estimated 42.8 million people today owe federal student loan debt, according to the Education Data Initiative, which also reports that the average public university student borrows $31,960 to get a bachelor’s degree.

A late 2023 Bankrate survey found that 59% of student loan borrowers felt forced to delay key financial milestones because of their student debt, including building emergency and retirement savings.

Owing all that money can take a toll. Many student loan borrowers experience high levels of stress and delay major life milestones due to their student debt, according to a 2026 Fidelity Investments research (PDF) report. The study found that 67% of borrowers find their personal finances overwhelming and nearly one third (32%) have delayed purchasing a home due to their debt.

If you’re in a strong enough financial position to help pay for your grandchildren’s education, you might be eager to ease that burden — both for them and your grown children who might also be struggling to set aside money for college savings.

If so, a 592 plan is a good place to start. These plans offer tax-free gains and withdrawals, provided the money is used to cover qualifying educational expenses.

You might wonder if it’s better to make a large lump-sum contribution to a 529 plan now or spread those funds out evenly over the years. You could go either way. It’s important to understand the pros and cons of both options.

The case for megafunding a 529 up front

If you can afford to fund a 529 plan with a lot of money up front, it could pay to do so, says Jonathan Sparling, director at CollegeWell.

As he explains, “Contributions to 529 plans are excluded from an individual's taxable estate, even though the account owner retains control of those funds.”

Moreover, Sparling says, “529 plans are eligible for the super-funding provision, which allows individuals to front-load five years of contributions in one tax year. A married couple could contribute as much as $190,000 per beneficiary, thereby reducing their taxable estate by that amount of money.”

There’s also the benefit of time to consider from an investing standpoint.

“Contributions made to 529 investment plans when a child is very young have more time to accumulate growth and weather market fluctuations. The same is true for 529 prepaid plans, like ones provided by certain states and the Private College 529 Plan,” he says.

With the Private College 529 Plan, Sparling explains, contributions lock in a percentage of tuition and fees at nearly 300 member colleges across the country.

“Making a lump-sum contribution earlier on locks in more years of tuition at a lower rate, protecting against future tuition inflation,” he says.

The case for funding a 529 plan through the years

If you can afford to front-load 529 plan contributions, not only does it give your money that much more time to grow, but it’s also an expense you won’t have to think about year after year.

However, Brian Schmehil, CFP and managing director of Wealth Management at The Mather Group, points out that while you’re generally better off investing a lump sum of money, this approach increases your market-timing risk compared with dollar-cost averaging year after year.

Schmehil also points out that it’s important to consider the tax benefits your state might offer.

“Many states limit the amount you can deduct from your income each year,” says. “Spreading out your contributions can provide a guaranteed tax benefit to you and your family. In some cases, the value of this guaranteed tax benefit may outweigh the uncertainty of market returns.”

Schmehil also says that making contributions on a yearly basis gives you more flexibility if your circumstances, or those of your beneficiaries, change.

For example, you might end up in a situation in which your health care costs increase dramatically later in retirement. One of your grandchildren might decide that once they reach middle school, they’re interested in a specific trade and don’t wish to attend college.

Even though 529 plans give you some flexibility to switch beneficiaries, ultimately, you’ll get even more flexibility by having your money outside one of these accounts.

Any 529 plan contributions you make should go a long way

When it comes to funding a 529 plan, there’s really no right or wrong approach. Sparling also points out that not everyone can make a significant lump-sum contribution to a 529 plan, so for many people, spreading out contributions over time is the only feasible option.

No matter which option you choose, as Sparling says, “Regardless of when contributions are made, every dollar saved for college can help offset future costs and increase college options for their grandchildren.”

Next Steps for Funding Your Grandchild's College Tuition

• Start with the basics:
  • We're 75 With $3.2 Million. Our Grandchild Needs Help Paying for College
• If your grandchild has earned income:
  • How to Open a Custodial Roth IRA: A Guide for Grandparents
• Read up on 529 college savings plans:
  • Use the 529 Grandparent Loophole to Maximize College Savings
  • The Best 529 Plans of 2026

My husband, Tom, has served for 19 years. Currently, he’s a full-time pilot in the Air National Guard, and he previously spent more than a decade as an active-duty member of the Air Force.

Military life comes with plenty of challenges: frequent duty-station relocations, irregular work schedules and overseas deployments, to name a few that we’ve been through. But servicemembers also have access to some significant financial benefits. In recognition of Veterans Day this November, I’m sharing below a few that are impactful for my family.

1. Housing allowance

One helpful perk is a tax-free subsidy, known as the basic allowance for housing, that covers all or part of your monthly rent or mortgage payment if you don’t live in government-provided housing on a military base. The amount you receive depends on the location of your duty station, your rank and whether you have dependents. You can use the BAH calculator to look up the value of your subsidy based on those factors.

2. Free college

The Post-9/11 GI Bill covers the full cost of in-state tuition and fees at public colleges for up to 36 months (four academic years). Or, if you go to a private or foreign college, you get up to a certain amount per year; for the current academic year, the rate is $29,921. The Post-9/11 GI Bill also provides money for housing, books and supplies, and tutors, among other expenses. Those who served on active duty for at least 36 months or meet certain other requirements are eligible for the full GI Bill benefit.

One of the best features is that if you’ve served for at least six years and commit to four more, you can transfer your benefits to your spouse or children. Tom has done that, splitting his benefits so that our two young sons will someday be able to use them for their educational expenses.

3. Retirement security

Military members can use the Thrift Savings Plan, a tax-advantaged retirement plan that’s similar to a 401(k). The TSP has low fees, with the expense ratio on its funds recently ranging from 0.036% to 0.051%. Under the military’s blended retirement system (BRS), which went into effect in 2018, servicemembers get an automatic TSP contribution from the government equaling 1% of their basic pay, plus a matching contribution of up to an additional 4% of pay after you’ve served for two years.

Pensions have become rare in the private sector. But military members who complete at least 20 years of active-duty service are eligible for a lifetime pension, and the payments start when they exit the military. If you retire at the 20-year mark, the government calculates the average of your highest 36 months of basic pay, and under the BRS, you receive a pension equal to 40% of that amount. For each year you serve beyond 20, you get an additional 2%. (Servicemembers who joined before 2018 and did not opt in to the BRS are eligible for a 50% pension when they reach 20 years of service, with 2.5% added on for each year past 20 — but they don’t get government contributions to the TSP.)

4. Low-cost life insurance

Servicemembers’ Group Life Insurance provides coverage at a low rate regardless of the servicemember’s age or health. To get the maximum $500,000 in coverage, servicemembers pay $26 a month in premiums. Spouses can also get coverage of up to $100,000 through Family SGLI; rates vary by age. A spouse between ages 35 and 39 can get $100,000 in coverage for $4.70 a month.

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

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