Stocks were volatile Thursday as market participants weighed mixed signals from the tech sector. Wall Street also sifted through the latest inflation data, which came in better than expected, but is unlikely to change the trajectory for interest rates this year.

At the close, the blue-chip Dow Jones Industrial Average was up 0.1% at 51,920, while the broader S&P 500 was fractionally lower at 7,357 and the tech-heavy Nasdaq Composite was down 0.5% at 25,358.

Caterpillar (CAT) was the best Dow Jones stock today, adding 6.3% to bring its daily win streak to seven. The industrial stock is also the best-performing Dow component of the year, up nearly 85% so far, on expectations that the heavy equipment maker will capitalize on demand for the artificial intelligence/data center buildout.

UBS Global Research analyst Steven Fisher thinks power generation opportunities will remain strong in the U.S. "until either grid investment ramps up materially or large turbine production capacity ramps up."

And this should support Caterpillar's "earnings growth, along with continued dealer inventory build in construction, a pickup in the mining cycle, and more oil & gas customer investments."

However, Fisher has a Neutral (Hold) rating on the blue chip stock and a $900 price target — below its current price — noting that its upside potential is likely limited from here given CAT's strong run up the price chart.

Apple sinks on MacBook, iPad price hikes

Apple (AAPL), on the other hand, was the worst-performing Dow stock on Thursday, sinking 6.2% on news the company will be hiking prices on several of its products, including the MacBook and iPad.

Earlier this month, outgoing CEO Tim Cook warned that "price increases are unavoidable" given higher costs for components such as memory chips. And the company implemented the hikes today, raising prices for most of its products by $100 to $200.

For instance, as Tech Radar reports, the new MacBook NEO is now priced at $699, up from $599. And the 12-inch MacBook Air costs $1,299 to start, up from $1,099 previously.

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Passing these "increased costs onto consumers is emblematic of the substantial expenses associated with AI technologies, which have raised concerns about the capital-return prospects of the initiatives," says José Torres, senior economist at Interactive Brokers. "Also, the need to increase prices is undermining hopes that related projects will offer deflationary relief."

Micron soars 16% on memory chip demand

One company that is benefiting from higher semiconductor costs is Micron Technology (MU), which soared 15.8% — and gained $186 billion in market value — after the memory chipmaker reported its fiscal third-quarter results.

For the three months ending May 28, Micron said earnings rose to $25.11 per share from $1.91 per share in the year-ago period. Revenue surged nearly 350% to $41.5 billion. Analysts expected earnings of $20.05 per share on $35 billion in revenue.

"Micron's record fiscal Q3 financial results and even stronger outlook for Q4 reflect the strategic value of memory in the AI era," said Micron CEO Sanjay Mehrotra in the earnings release.

For fiscal Q4, the company guided for earnings of $31 per share at the midpoint and revenue of $50 billion.

"MU delivered another strong quarter, reinforcing our constructive view on memory's role in AI and the increasing supply-side discipline supporting a more durable cycle," says BofA Securities analyst Vivek Arya.

Even with the tech stock up more than fourfold for the year to date, Arya believes its "valuation remains compelling," and raised his price target to $1,550 from $1,500 — representing implied upside of 27% from current levels.

PCE comes in better than expected, but keeps rate cuts out of reach

In economic news, the Bureau of Economic Analysis (BEA) this morning said the Personal Consumption Expenditures Price Index (PCE) — the Federal Reserve's preferred measure of inflation — rose 0.4% from April to May and was 4.1% higher from the year prior.

Core PCE, which excludes volatile food and energy prices, was 0.3% higher month over month and up 3.4% year over year.

"Oil prices are heading lower but the inflation problem remains, as core PCE is up 3.4% since last year and showing no signs of abating," says Sonu Varghese, chief macro strategist at Carson Group. "This isn't about energy and tariffs either, as AI-related bottlenecks are also pushing inflation higher."

Varghese believes that the Fed's job only gets harder from here, especially as the labor market continues to improve. "But we think the committee will avoid rate hikes this year as a majority wait for inflation to pass, allowing the economy (and markets) to run hot."

Futures traders, however, expect the next move to be a rate hike. According to CME Group FedWatch, betting odds are for the Fed to raise the federal funds rate by a quarter percentage point by year's end.

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Is your wealth manager invested in your goals or the next commission? It's an essential question every investor should ask.

Finding the right fit amid the crowded landscape of options can feel overwhelming, especially when choosing the right partner to grow your wealth. Thankfully, some of our readers have already done the heavy lifting for you.

For the Kiplinger Readers' Choice Awards, over 4,000 readers ranked the best wealth managers based on overall satisfaction, quality of advice, retirement planning services and more categories in an online survey conducted this past winter on Kiplinger.com.

Among the standouts this year, UBS Wealth Management was the overall winner for wealth managers. Here are the reasons why our readers chose UBS as the best wealth manager.

1. A personalized approach to financial planning

Some wealth managers like to employ a one-size-fits-all strategy, tailoring solutions around higher commissions than taking your needs into account.

However, UBS takes a much more personalized approach to getting to know you. It aims to learn what wealth really means to you by asking you these five questions:

1. What do you want to accomplish in life?
2. What do you want your legacy to be?
3. How do you plan to achieve your life's vision?
4. Who are the people that matter most to you?
5. What are your main concerns?

This begins the UBS Wealth Way conversation. Once you answer these questions, UBS works with you to establish direct goals that align with your answers. Doing this gives you confidence that you have a trusted partner who not only takes the time to listen to you but who also tailors solutions that match your goals and values.

2. Expert service and advice at every life stage

Some wealth managers help you set goals, and that's where their work stops unless you contact them. UBS, on the other hand, is there to take a proactive approach in helping you reach your goals, even as your life changes. The main theme among readers' comments was how exceptional the service was, and the advice they received was excellent.

Their team of wealth experts can help you craft a full suite of goals and adjust them as your life changes. Whether you're a new investor, catching up on retirement savings or receiving a wealth transfer, their team can help you make sense of your finances and plan strategies to help you reach your goals, even after they change.

In turn, you gain a trusted partner who can scale strategies as you build your wealth.

3. Research and digital tools that empower your decisions

UBS invested in digital tools to make managing your wealth convenient. Once you become a client, you can access the online portal 24/7 to monitor your accounts.

This is essential if you're a hands-on investor who wants to review your portfolio regularly, access liquidity or pull up important tax documents. Use the UBS Advice Compass for portfolio assessments and actionable recommendations.

One way UBS excels is in its research offerings. To demonstrate, the UBS Evidence Lab is a sell-side team of research experts that collects data across more than 50 countries and 5,000 companies. In turn, their experts convert this data into actionable insights, providing you with the information you need to make informed investment decisions confidently.

While UBS took the top spot in overall satisfaction, these firms also earned high marks from our readers for their exceptional services and commitment to client success:

• Morgan Stanley Wealth Management
• Raymond James
• Fidelity Wealth Management
• Vanguard Personal Advisory Services
• Bank of America/Merrill Wealth Management Services
• Fisher Investments

Ultimately, not all wealth managers are the same. When it comes to planning for your future and maximizing wealth, lean on the experts our readers recommend the most. UBS offers the tools, resources and personalized guidance that help you feel confident about the road you're on and the direction you're heading.

Eager to see how our readers ranked your wealth manager? Visit our Kiplinger Readers' Choice best wealth managers to see the full ranking and what our readers liked about each one.

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For many people, estate planning starts with a will, a durable power of attorney and a healthcare proxy.

These documents are important. They help determine who receives your property, who can make decisions for you and how your wishes are carried out if you are no longer able to speak for yourself.

But in some situations, they may not be enough.

A trust can be an important part of an estate plan, but it is also one of the most commonly misunderstood estate planning tools. As an estate planning attorney with several years of experience, I have heard a number of assumptions.

Some people assume a trust is only for the very wealthy. Others think a trust is only about taxes. Some believe that if they have a will, they have already avoided probate.

None of those assumptions is necessarily true. My job is not only to ensure an efficient and orderly transition of assets for my clients, but also to ensure that they understand why I am recommending certain documents, including a trust, as part of their estate plan.

What is a trust?

At its most basic level, a trust is a legal arrangement. Think of it as a contract between the person creating the trust and the person responsible for administering it.

The person creating the trust may be called the grantor, settlor or donor. The person responsible for managing the trust is the trustee. The people who benefit from the trust are the beneficiaries.

The trust says, in effect:

• Here are the assets
• Here are the people I want to benefit
• Here is how I want the assets managed and distributed
• And here is the person I am trusting to carry out those instructions

That trustee has a fiduciary obligation to administer the trust according to its terms and in the best interest of the beneficiaries.

Trusts are not just about avoiding probate

One of the most common reasons people consider a trust is to avoid probate. That is a valid reason, but it is not the only one.

Probate is the court-supervised process for administering assets that are part of someone's probate estate.

In Massachusetts, for example, the probate process requires forms to be filed with the court, reviewed and approved. A personal representative must be appointed.

There is also a one-year creditor period during which creditors can file claims against the estate. If assets are distributed too early and a valid creditor claim later appears, the personal representative can be responsible for that claim.

Probate can add time, expense and administrative burden at a point when families are already dealing with a loss. A trust can help avoid that process for assets that are properly transferred into the trust.

For example, if a house is owned by the trust, the trustee can administer or distribute the property according to the terms of the trust, rather than requiring the family to go through probate for that asset.

But a trust is not the only way to avoid probate. Beneficiary designations can also do a significant amount of work. A checking account, savings account, retirement account or other financial account may be able to pass directly to a named beneficiary outside of probate and accomplish much of what is needed in some circumstances.

A will does not avoid probate

Another common misconception is that having a will means your family avoids probate.

A will is important, but it does not keep you out of probate. In many cases, the will is the document that gets filed with the probate court to begin the probate process.

What a will does is provide direction. It tells the court and the personal representative how you want your probate assets distributed. It can reduce uncertainty and clarify your wishes. But the will still has to be accepted by the court, and the personal representative still has to be appointed.

A trust works differently. A revocable trust, often called a living trust or inter vivos trust, is created during your lifetime. It can hold assets while you are alive and provide instructions for how those assets should be administered after your death.

A common estate plan may include a health care proxy, durable power of attorney, pour-over will and revocable trust. The pour-over will acts as a backup, directing any assets that end up in the probate estate into the trust. The trust itself typically contains the detailed instructions for administration and distribution.

When does a trust make sense?

A house is often one of the major reasons people create a trust, because transferring the house into the trust can allow it to be administered without probate. A trust may also make sense if you want to leave assets to a minor child, niece, nephew or grandchild. Most people would not want an eight-year-old to receive a large sum outright. They also may not want the child's parent or guardian to have unrestricted control over the money.

In that situation, the trust can provide that funds be used for the child's education, health, support or other needs. It allows the person creating the trust to provide for the beneficiary while putting guardrails around how the money is managed.

Trusts can also help when a beneficiary is not great with money, has creditor issues or struggles with dependency issues. The goal is to protect the assets and provide structure. A trust can also be amended during your lifetime, if it is revocable, to reflect changing circumstances.

What about blended families?

Trusts can be especially helpful for blended families.

A person in a second marriage may want to provide for a surviving spouse while also ensuring that children from a prior relationship ultimately receive an inheritance. If everything is left outright to the surviving spouse, the surviving spouse may later change their estate plan, remarry, spend the assets or leave the remaining property to different beneficiaries.

A trust can create more clarity and help avoid conflict. It can allow assets to be used for the surviving spouse during the spouse's lifetime, while preserving what remains for children or other beneficiaries after the spouse's death.

Are trusts only for people with more than $2 million?

No. Tax planning is one of the more common reasons to use a trust, but it is not the only reason.

In Massachusetts, the state estate tax threshold is $2 million. For married couples whose combined assets exceed that amount, trusts may be used to shelter assets and defer or reduce estate tax exposure. Assets can include cash, a home, retirement accounts, bank accounts, brokerage accounts and business interests.

But many people who are below the estate tax threshold may still benefit from a trust for non-tax reasons, including probate avoidance, privacy, real estate planning, minor beneficiaries, family complexity or beneficiary protection.

What does a trust cost?

The cost varies by region, law firm and complexity. Some firms charge a flat fee. Others charge hourly. A straightforward trust may cost a few thousand dollars, while more complex planning can cost more. While that upfront cost can feel significant, for many families, it is often less than the expense and delay of probate later.

The key is to start with your goals. What do you own? Who do you want to benefit? Are those beneficiaries ready to receive assets outright? Are there family dynamics that could create conflict? Are there tax, probate or creditor issues to consider?

A good estate plan should not be more complicated than it needs to be. But it should be thoughtful enough to accomplish what you actually want. A trust can provide that structure when a will or beneficiary designation alone does not go far enough.

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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.

Something is happening in advisory practices across the country. The clients who once fit neatly into a financial planning model have changed, and the gap between what they expect and what most firms deliver is getting harder to ignore.

This trend is showing up in client conversations and retention numbers. It's also recurring in conversations I'm having with advisers who sense the model that got them here may not be enough to carry them forward.

While this shift might be concerning to some, I see it as a real opportunity — at least for advisers who are willing to see it that way.

The client has changed

The wealth management industry is in the middle of what may be the most significant client reset in decades. Clients today are approaching wealth differently than they did even a few years ago, and their expectations of the advisory relationship are evolving just as quickly.

Clients are no longer solely focused on portfolio performance. Instead, they want advice that reflects their values, goals, time horizon and definition of success. Generic strategies and one-size-fits-all portfolios are becoming increasingly out of step with what today's clients expect from a financial relationship.

Many clients are also looking for what I call Return on Time Invested, or ROTI. They want advice that buys back hours and funds experiences, not just accumulation. They're less interested in being managed and more interested in being understood.

This shift creates a meaningful challenge for advisers whose practices were built around a model designed for a different type of client. It's also a great opportunity for a reset of the adviser-client relationship itself.

Firms that don't adapt risk losing those relationships as client expectations continue to rise.

Client expectations have outpaced what most firms deliver

For most of the industry's history, the advisory model has been transactional: Win clients, manage portfolios and compete on performance and service. That model no longer matches what clients expect.

Today's clients don't experience their financial lives in silos. They don't separate their investment portfolio from their insurance coverage, estate plan or tax situation. They want someone who can see the whole picture and advise accordingly. They're looking for a better client experience.

The most successful firms are consistently delivering that experience, starting when a client first says yes and lasting throughout the duration of the relationship. They're offering proactive communication rather than reactive. They're providing tax-aware portfolio construction rather than performance-first allocation.

These firms deliver advice that is tailored to the individual, even across a large and growing client base.

Until recently, that kind of capability required infrastructure that only the largest firms could afford. While that's no longer true, it does require the right partners and a willingness to build something more intentional than most advisory practices have been in the past.

From transactions to relationships

The advisers who will thrive over the next decade aren't necessarily the ones with the most clients or highest assets under management (AUM). They're the ones who have built a systematically personalized client experience and the infrastructure to deliver it consistently.

The defining opportunity for independent advisers right now is the shift from transactions to teamwork — and it's one that plays directly to the strengths that independent firms already possess.

Independent advisers aren't steered toward proprietary products. The advice they give is genuinely theirs, and the relationships they build belong to them. As consolidation continues to reshape the industry, that clarity of purpose becomes a differentiator clients notice and value.

The question is how to build the experience that clients are looking for without losing what makes the independent model work. At AE Wealth Management, here's how we're helping advisers understand and make the shift:

• Whole-picture planning is the new standard. Clients expect their adviser to understand the full picture, not just their investment portfolio. Tools that integrate market-correlated and non-market-correlated investments, life insurance and annuities into a single planning view give advisers the ability to deliver comprehensive advice without doing all the heavy lifting themselves.
• Personalization is within reach. Direct indexing, tax-aware portfolio construction and preference-based customization used to require resources most independent firms couldn't access. The right platform partner can change that, putting sophisticated personalization tools in the hands of advisers who want to compete on depth of service rather than just breadth of offering.
• Systematization must be personal. The firms that are growing consistently have one thing in common: A repeatable, disciplined approach to the client experience. However, that doesn't mean it's generic. These firms are building processes that deliver a high-quality, personalized experience to every client, not just the top tier.
• Succession and continuity are part of the experience. Clients who trust an adviser want to know the relationship is protected over time. Advisers who think proactively about succession and preemptively design internal equity tracks and leadership development programs send a signal about the kind of firm they're building.

Consolidation is changing the competitive landscape

As I previously wrote in the article You Don't Have to Sell Out to Grow: A Case for Staying Independent as an RIA on Your Terms, private equity is reshaping the RIA competitive landscape at a speed that was hard to predict even a few years ago. Consolidation is creating real pressure on independent firms, but it's also clarifying something.

Clients are beginning to understand the difference between an adviser who is independent and one who operates inside a structure built for someone else's exit timeline. As that distinction becomes more visible, independent advisers who can clearly articulate their value and back it up with a consistently excellent client experience are gaining an edge that is difficult to replicate.

The advisers who will benefit most from the current opportunities are the ones who stop treating independence as a default and start treating it as a strategy.

Start with the client in front of you

These changes in wealth management can feel abstract until you zoom in on a single client relationship.

• What does that client expect from you today that they didn't five years ago?
• What does their next chapter look like?
• Does your practice have the tools and infrastructure to support it?

The advisers who are asking those questions and acting on the answers are the ones building something that lasts.

The client has changed. The model is shifting. The opportunity is real. The only question is what you will do with it.

This content is for informational use only and not intended as financial advice or advice designed to meet the needs of any particular situation.

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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.

Another big rebound on the other side of the world suggested stocks would rise in the U.S., too, and that's what happened early on Wednesday. But investors, traders and speculators remain wary about the speed and scale of the artificial intelligence (AI) buildout.

South Korea's KOSPI Index bounced back in a big way after a sharp sell-off from new highs, just as it did in March and April, rising as much as 4.6% and finishing with a gain of 3.3%.

More than half of the KOSPI's value is tied to Samsung Electronics (SSNLF) and SK Hynix (HXSCL), which were up 9.8% and 1.0%, respectively, on their local exchange.

Fellow semiconductor stocks such as Nvidia (NVDA, -0.5%) enjoyed some stateside follow-through, as tech- and AI-related names attracted dip-buyers through midday. Selling pressure returned after lunch.

Industrials, utilities and consumer discretionary stocks — most notably big box retailer Home Depot (HD, +5.7%) — paced the rally over here at a sector level.

"The recent volatility in AI-related names — particularly chip stocks — has been widely described in terms of 'technical exhaustion'," observes Daniel Skelly, head of Morgan Stanley's wealth management market research and strategy team.

Skelly sees evidence of weakness in the fundamental story, too, "including possible AI-model pricing wars and increased sensitivity about spending among AI hyperscalers."

By the closing bell, the tech-heavy Nasdaq Composite had slipped 0.4% to 25,476, and the broad-based S&P 500 was down 0.1% at 7,358. But the blue-chip Dow Jones Industrial Average held on for a 0.4% gain to 51,848.

Warsh has a legendary act to follow

That the front-month West Texas Intermediate crude oil futures contract was down another 4.3% to $70.06 per barrel on Wednesday will relieve consumers and policymakers worried about inflation. That the 2-year Treasury yield backed off from 52-week highs today to 4.148% vs 4.200% on Tuesday will comfort anyone watching interest rates.

That they're calling what happened in South Korea yesterday "Black Tuesday" is a reminder that new Federal Reserve Chair Kevin Warsh has a tough act to follow. But so did Ben Bernanke, Janet Yellen and Jerome Powell.

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Indeed, Alan Greenspan, who passed away on Monday, is the model for the modern Fed chair.

Whether you need to know how to run a central bank (or you're forming a jazz band), the old Fed chair has answers for you.

Here are five lessons (we can all learn) from Alan Greenspan.

Papa Dow trades VZ for GOOGL

Alphabet (GOOGL, -0.2%) will be the latest Magnificent 7 stock to join the Dow Jones Industrial Average, S&P Global announced on Tuesday.

The Google parent will replace Verizon Communications (VZ, -2.1%) in the price-weighted index before the opening bell this Monday, June 29, with the swap reflecting a divergence among communication services stocks at a moment defined by AI.

As S&P Global notes, adding Alphabet will "broaden and strengthen" Papa Dow's exposure to AI, as well as advertising, cloud infrastructure, hardware, autonomous mobility, healthcare technology and media distribution.

"Its larger market capitalization and share price, together with the breadth of its businesses, make it a more representative Communication Services constituent in the DJIA," the data provider says.

S&P Global also said Honeywell (HON, +2.3%) will remain one of the 30 Dow Jones stocks after it completes the spinoff of Honeywell Aerospace on June 29.

Micron is reporting earnings right now

Micron Technology (MU, -0.4%) hit a new all-time high on Monday, but the tech stock put up red numbers during the two trading sessions ahead of its post-closing-bell turn on the earnings calendar today.

Of course, a year-to-date gain of 268.7% through Tuesday means expectations are still sky-high; indeed, Wall Street expects management to report earnings growth of 950% on revenue growth of 276%.

Those are big numbers. And they make sense, according to Wedbush analyst Matt Bryson.

"With numbers moving higher, demand for AI seemingly set to remain robust through CY2027 (if not 2028), limited likelihood of oversupply over the next 18 months, and finally a strong likelihood MU exceeds our estimates," the analyst argues, "we see no reason to shift our positive view on the name."

Bryson reiterated his Overweight (Buy) rating and raised his 12-month target price on MU stock from $550 to $1,300 in a preview of management's fiscal third-quarter report.

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New Federal Reserve Chair Kevin Warsh has a message for his fellow central bankers: You talk too much. Indeed, a change has already come to Federal Open Market Committee (FOMC) communications with the first monetary policy statement under his leadership.

But policymakers of that kind of prominence are public figures. That's just the way it is in the information age.

And Warsh knows as well as anyone that, as the 20th century bridged the 21st, Alan Greenspan established a model for the modern Fed chair, under chief executives of both parties, for better and for worse.

The new Fed chair wants "regime change." But he's confronting the work of an old Fed chair who remains an icon on Wall Street and whose legend trickles down even to Main Street.

Greenspan, who was the top policymaker at the world's most important central bank from 1987 until 2006, died on Monday at 100 years old.

Nominated by Ronald Reagan, he led the Federal Reserve under four presidents, through historic macroeconomic and geopolitical events, and was there longer than anyone but William McChesney Martin.

George H.W. Bush nominated him again in August 1991. Bill Clinton did it twice, in February 1996 for a third term and January 2000 for a fourth. George W. Bush nominated him for his fifth and final term in May 2004.

A lot has changed in the 20 years since Greenspan left the Fed. But Ben Bernanke, Janet Yellen and Jerome Powell stayed communicative throughout. And they stuck hard to the main objective: to stabilize the system.

Greenspan is survived by his wife of 29 years, the journalist Andrea Mitchell of MSNBC, with whom he formed one of the most prominent power couples of the era.

Here are five lessons we can learn from Fed Chair Alan Greenspan, a modern central banker of broad and deep experience.

1. Fedspeaking in tongues

Use your words… to the best of your ability… for the purpose you have defined.

"Since becoming a central banker," he testified to Congress in September 1987, "I have learned to mumble with great incoherence. If I seem unduly clear to you, you must have misunderstood what I said."

It's a little bit ironic, but Greenspan instilled confidence, despite himself.

There's no question the guy was clever. And he certainly understood rhythm and timing. In his performance, Greenspan demonstrated a real grasp of where the science and the humanity of economics meet.

His actions during the dot-com era and the housing boom-bust cycle that followed suggest maybe he was a little too clever.

Something you may not know, however, is that Greenspan's Ph.D. thesis, which was compiled from some of his previously published articles and was withheld from the public at the author's request when he joined the Fed board, highlighted the impact of higher housing prices on consumer spending.

2. Black Monday

Be ready on Day One.

Little more than two months into his new order, shortly after taking his oath on August 11, 1987, Greenspan was forced to manage Black Monday, when the Dow Jones Industrial Average fell 22.6%.

That's still the biggest single-day decline in Papa Dow's 130-year history.

From October 19, Greenspan guided Washington, D.C., Wall Street and Main Street into a historic rally and an economic boom that lasted, almost uninterrupted, through the 1990s.

The Dow recovered 288 points and regained more than 57% of its Black Monday loss within two trading sessions. Papa Dow posted a 0.6% gain in 1987, and it got back to its pre-crash all-time high within 23 months, by September 1989.

3. Fed man in the bathtub

Take a bath.

Later, in December 1996, he wondered, "But how do we know when irrational exuberance has unduly escalated asset values, which then become subject to unexpected and prolonged contractions," as the dot-com era unfolded.

Now, here's the rest of the story, as told by the late Fed chair himself in his 2007 memoir "The Age of Turbulence: Adventures in a New World":

The concept of irrational exuberance came to me in the bathtub one morning as I was writing a speech. To this day, the bathtub is where I get many of my best ideas. My assistants have gotten used to typing from drafts scrawled on damp yellow pads–a chore that got much easier once we found a kind of pen whose ink doesn't run. Immersed in my bath, I'm as happy as Archimedes as I contemplate the world.

4. Everybody wants to rule the world (but few are chosen)

And you have to be flexible.

Greenspan, Treasury Secretary Robert Rubin and Treasury Deputy Secretary Larry Summers famously formed what Time magazine called the "committee to save the world" in February 1999.

Indeed, it was like they had the whole planet on their back, like the main character in the main work of Greenspan's favorite author, Ayn Rand, who celebrated Atlas and warned what would happen should he shrug.

Greenspan was an objectivist committed to hard-and-fast free market principles when he was tapped to chair the White House Council of Economic Advisors by President Gerald Ford in 1974.

By the time he was perhaps the key figure in the "age of turbulence," Greenspan was an activist focused on practical means to stabilize an ever-more complex global financial system.

5. The accountant from Ipanema

Know who you are.

Bob Woodward of The Washington Post titled his 2000 biography "Maestro: Greenspan's Fed and the American Boom."

Woodward's book was published well before Greenspan stepped away from the central bank in 2006. It also preceded the global financial crisis/Great Recession of 2007-09, a series of events that earned Greenspan another nickname, "Mr. Bubble," bestowed upon him when he no longer held any real power.

For a long time, though, Greenspan seemed to conduct financial markets and global economic activity.

"Maestro" was also a nod to Greenspan's career as a jazzman. Before he saved the world in the '90s, the future central banker played with Stan Getz and Woody Herman in the '40s. He even attended Juilliard in 1943-44.

Greenspan, who was actually from the Washington Heights neighborhood of New York City, realized he was a better bean-counter than sax-player, so he started keeping his band's books.

Held back from serving in the military during World War II because of a spot on his lung, the son of a single mother earned B.A. and M.A. degrees in economics from the New York University Stern School of Business in 1948 and 1950, respectively, and completed his Ph.D. in 1977.

As the global financial crisis devolved into the Great Recession, investors, traders, speculators and consumers started to wonder whether we need less "superhero" in our central bankers and more supervision from them.

Certainly, though, what Greenspan leaves is a worthy demonstration that a whole lot of competence and little likability can go a long way.

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A lot of investors use bonds for one simple reason: to generate income with lower volatility than stocks. One of the most common ways to structure this is through a bond ladder.

A basic Treasury bond ladder might look something like this: an investor splits capital evenly across Treasury securities maturing in one, two, three, four and five years. As each rung matures, the proceeds can either be spent or rolled into a new five-year Treasury.

Bond ladders can help match future liabilities or spending needs, such as retirement withdrawals or tuition payments. They can also improve cash-flow planning and liquidity management because investors know exactly when principal is scheduled to return.

The issue is that building a ladder yourself can be cumbersome. For Treasuries, many investors use TreasuryDirect.gov, the U.S. government's platform for buying bonds directly. The website, however, has developed a reputation for its dated interface, clunky navigation and poor user experience.

Some investors may instead seek higher yields through corporate bonds issued by companies rather than the U.S. Treasury Department. While these can be purchased through brokerages, individual bond trading comes with its own challenges.

Unlike stocks, bonds largely trade over the counter rather than on centralized exchanges. Pricing can be opaque, spreads can vary significantly, and retail investors are often dealing with institutional bond desks that have more information. There is also more complexity involved. Looking at the coupon and current market price alone is not enough because bonds can trade above or below their face value.

Investors also need to understand metrics such as yield to maturity, which estimates the annualized return if the bond is held until maturity. Duration is another key concept. It measures interest rate sensitivity. All else equal, rising interest rates hurt bond prices while falling rates help them.

To simplify things, asset managers packaged bonds into exchange-traded funds (ETFs), that benefits such as monthly distributions, diversification and stock-like liquidity with transparent bid and ask pricing throughout the trading day.

Traditional bond ETFs, however, come with one major limitation. Most hold evergreen portfolios designed to maintain a constant maturity profile. As holdings age and fall outside the desired maturity range, they are replaced. That means investors cannot simply hold the ETF to maturity and automatically receive principal back the way they would with an individual bond.

To bridge this gap, ETF issuers launched target maturity bond ETFs. These income-building funds are designed to mature in a specific calendar year, similar to an individual bond, while still retaining the diversification, transparency and liquidity advantages of ETFs.

What is a target maturity bond ETF?

Target maturity bond ETFs are usually easy to identify because the maturity year is included directly in the fund's name. You will commonly see labels such as 2026, 2027, 2030 or 2040.

Unlike traditional bond ETFs, which hold an evergreen portfolio spanning many maturities, target maturity bond ETFs hold bonds designed to mature in the same calendar year. That structure makes them behave more similarly to an individual bond ladder.

When you buy one of these, you still receive the standard benefits of a bond ETF. The fund pays periodic monthly distributions rather than semi-annual coupon payments, and the ETF itself trades throughout the day with a net asset value (NAV) that fluctuates based on the value of the underlying bonds.

The key difference appears as the ETF approaches its maturity year. Instead of continuously replacing bonds to maintain a constant duration profile, the portfolio gradually winds down. The bonds mature, proceeds shift into cash and cash equivalents, and eventually the ETF itself liquidates.

From there, investors receive a final distribution based on the fund's NAV after liabilities. This process is designed to mimic the principal repayment of an individual bond at maturity. For example, according to BlackRock and its iShares iBonds lineup, an investor's total return (represented by yield to maturity) comes from two components:

1. Periodic monthly income distributions; and
2. The final end-date distribution upon ETF's termination.

These two components interact with each other. All else equal, if the ETF distributes more income along the way, the final payout tends to be smaller. Conversely, if periodic distributions are lower, more value remains for the end-date distribution.

For iShares specifically, most iBonds ETFs terminate toward the end of the designated maturity year, typically around October through December. Once the underlying bonds mature and the portfolio transitions to cash, the ETF is liquidated and shareholders receive the remaining NAV.

Importantly, target maturity ETFs can still vary substantially depending on the underlying bonds they hold. Most providers offer lineups for U.S. Treasuries and investment-grade corporate bonds, but some also offer high-yield bonds, municipal bonds and Treasury Inflation-Protected Securities (TIPS).

These categories differ in terms of credit quality, yield and volatility, allowing investors to tailor a bond ladder around their own risk tolerance. Even so, target maturity bond ETFs are still exposed to duration risk. A fund maturing in 2040, for example, will have a higher duration than one maturing in 2027.

That means changes in interest rates can still significantly impact the ETF's price before maturity. Falling rates can boost prices, while rising rates can hurt them. Matching the ETF's maturity profile to your actual time horizon for income needs remains important.

Finally, unlike owning an individual bond directly, you will pay an ongoing expense ratio. This annual fee is deducted from the fund's returns and directly reduces yield and total return over time.

For example, a target maturity ETF charging a 0.50% expense ratio would create roughly $50 in annual fee drag on a $10,000 investment. Since the 30-day SEC yield is quoted after expenses, keeping fees low is especially important for income-focused investors.

How we picked the best target maturity bond ETFs

Bond ladders are composed of multiple bonds with staggered maturities. The same principle applies when building one with target maturity bond ETFs. Because investors will typically need several ETFs rather than just one, it was not really practical to crown a single "best" ETF in this category.

In many cases, the primary distinguishing feature between funds is simply the maturity year itself. Instead, we chose to profile four of the largest providers in the space and focus on the part of each lineup that stood out the most.

1. For iShares, we focused on the iBonds Treasury target maturity bond ETFs.
2. For Invesco, we focused on its BulletShares high-yield target maturity bond ETFs.
3. For State Street, we focused on its MyIncome municipal bond target maturity ETFs.
4. For Vanguard, we focused on its investment-grade corporate bond target maturity ETFs.

For every ETF discussed, we also highlighted key metrics such as the 30-day SEC yield, expense ratio, assets under management and liquidity. For each provider, we also selected a group of ETFs that could hypothetically be combined into a three-year bond ladder suitable for an investor starting today.

Remember, this is simply an illustrative example designed to demonstrate how these ladders can be structured in practice. Actual portfolio construction will vary depending on an investor's time horizon, risk tolerance, income needs and interest rate outlook.

One advantage of this category is that many providers now offer dedicated ladder-building tools. For example, iShares offers an iBonds ladder calculator that helps investors estimate metrics such as weighted average yield to maturity and acquisition yield, while also showing how factors like premium or discount pricing and expense ratios affect expected returns.

iShares iBonds Treasury ETF Ladder

• iShares iBonds Dec 2027 Term Treasury ETF (IBTH)
• iShares iBonds Dec 2028 Term Treasury ETF (IBTI)
• iShares iBonds Dec 2029 Term Treasury ETF (IBTJ)

The Treasury component of the iShares iBonds lineup is notable for its low costs and strong liquidity. All three ETFs charge a 0.07% expense ratio, or $7 per year for every $10,000 invested, and each currently trades with a relatively tight 30-day median bid-ask spread of roughly 0.04% to 0.05%.

The funds are also well capitalized. IBTH currently holds $2.2 billion in assets under management, IBTI about $1.8 billion, and IBTJ roughly $1.3 billion. That scale materially reduces concerns around premature closure due to lack of investor interest. In terms of income, as of June 23, IBTH offered a 3.8% 30-day SEC yield, IBTI 4.0%, and IBTJ 4.0%.

U.S. Treasury securities held by these ETFs remain among the safest fixed-income instruments globally. While U.S. government debt has been downgraded from AAA to AA by some ratings agencies, Treasuries are still generally treated as effectively risk-free in practice from a default perspective.

Treasury interest also receives favorable tax treatment. Income from Treasuries is generally exempt from state and local taxes, whereas corporate bond income is typically taxed as ordinary income at both the federal and state level.

Learn more about IBTH, IBTI and IBTJ at the iShares iBonds provider site.

Invesco BulletShares High-Yield ETF Ladder

• Invesco BulletShares 2027 High Yield Corporate Bond ETF (BSJR)
• Invesco BulletShares 2028 High Yield Corporate Bond ETF (BSJS)
• Invesco BulletShares 2029 High Yield Corporate Bond ETF (BSJT)

High-yield corporate bonds, also known as junk bonds or non-investment-grade bonds, are bonds carrying ratings below BBB. Credit ratings are assessed by the three major agencies: S&P Global, Moody's and Fitch Ratings. Within the high-yield market, the highest-rated segment starts at BB, followed by single-B and then CCC or CC-rated securities lower down the spectrum.

These bonds carry materially higher credit risk than investment-grade debt. There is a greater possibility that issuers may fail to make coupon payments or repay principal at maturity. One way to measure this risk is through cumulative default rates.

According to S&P Global, BBB-rated bonds, the lowest rung of investment grade, historically showed a three-year cumulative default rate of just 0.91%. Move down to BB-rated bonds and that figure rises to 4.17%. For single-B bonds, it climbs further to 12.41%. At the CCC/CC level, the three-year cumulative default rate reaches 35.67%.

Investors are compensated for accepting that higher risk through materially higher yields. Currently, the Invesco BulletShares lineup offers sizable 30-day SEC yields: BSJR at 5.6%, BSJS at 5.7%, and BSJT at 6.5%. The longer maturities generally contribute to the higher yields in the later-dated funds.

Investors using the BulletShares high-yield lineup should also pay attention to fees and taxes. These ETFs charge a 0.42% expense ratio, which is reasonable for riskier credit exposure, but notably higher than Treasury or investment-grade target maturity ETFs.

Tax efficiency is another consideration. Because these ETFs hold corporate bonds, distributions are generally taxed as ordinary income at both the federal and state levels. For investors in higher tax brackets, particularly in states such as California and New York, this can materially reduce after-tax yield.

Liquidity is also worth monitoring. Under normal market conditions, these ETFs trade efficiently, but during periods of stress, high-yield corporate bonds can become materially less liquid than Treasuries. Investors should expect wider bid-ask spreads during periods of market turmoil.

Learn more about BSJR, BSJS, and BSJT at the Invesco BulletShares provider site.

State Street MyIncome Municipal ETF Ladder

• SPDR My2027 Municipal Bond ETF (MYMG)
• SPDR My2028 Municipal Bond ETF (MYMH)
• SPDR My2029 Municipal Bond ETF (MYMI)

For some investors, particularly those in higher tax brackets, tax efficiency can matter more than headline yield. Investment-grade corporate bonds are generally the least tax-efficient option discussed so far because their distributions are taxed as ordinary income at both the federal and state levels. Treasury bonds offer some improvement because interest is typically exempt from state and local taxes.

If your goal is avoiding federal income taxes while building a bond ladder, municipal bond ETFs may be more appealing. One option is the State Street MyIncome municipal bond lineup. A simple three-year ladder could be built by allocating evenly across MYMG, MYMH and MYMI.

These ETFs charge a 0.20% expense ratio, placing them roughly midway between the lower-cost iShares Treasury iBonds lineup and the more expensive Invesco BulletShares high-yield ETFs. Liquidity remains reasonable, as all three ETFs currently trade with 30-day median bid-ask spreads of 0.08%.

The funds are relatively new and currently modest in size, with MYMG and MYMH each holding just under $10 million in assets under management, while MYMI sits closer to $14 million. Despite the lower AUM, the risk of liquidation appears limited given State Street's scale, distribution network and brand recognition, which should support future inflows.

Headline 30-day SEC yields currently stand near 3% for all three target maturity bond ETFs. On the surface, those yields may appear lower than taxable Treasury or corporate bond ETFs, but municipal bond investors should instead focus on the tax-equivalent yield.

The tax-equivalent yield estimates the yield a taxable bond ETF would need to generate to match the already tax-free income from a municipal bond ETF. Using the highest marginal federal tax bracket, State Street estimates tax-equivalent yields of 4.8% for MYMG, 4.8% for MYMH, and 4.9% for MYMI.

Learn more about MYMG, MYMH and MYMI at the State Street MyIncome provider site.

Vanguard Target Maturity Corporate ETF Ladder

• Vanguard Target Maturity 2027 Corporate Bond ETF (VBCA)
• Vanguard Target Maturity 2028 Corporate Bond ETF (VBCB)
• Vanguard Target Maturity 2029 Corporate Bond ETF (VBCC)

Vanguard is one of the newest entrants to the target maturity bond ETF space, and so far, its lineup has focused exclusively on investment-grade corporate bonds. These are loans issued by companies rated at least BBB by the major credit agencies.

In practice, however, Vanguard's portfolios also carry substantial allocations to higher-quality A-rated debt, along with smaller allocations to AA and even some AAA-rated securities. Notably, only two U.S. companies currently maintain AAA credit ratings: Microsoft (MSFT) and Johnson & Johnson (JNJ).

In terms of yield, Vanguard's target maturity corporate bond ETFs generally sit between Treasuries and high-yield bonds of similar maturity. Currently, VBCA offers a 4.2% 30-day SEC yield, VBCB yields 4.4%, and VBCC yields 4.6%. The increase in yield across the ladder reflects the additional maturity risk investors take on with the later-dated ETFs.

This segment tends to sit in a "Goldilocks zone" for many investors. Compared to Treasuries, investment-grade corporate bonds provide meaningfully higher income. Compared to high-yield bonds, they carry materially lower default risk. That combination makes them more of a balanced, jack-of-all-trades option for ladder construction.

The trade-off is tax efficiency. Like other corporate bond funds, distributions are generally taxed as ordinary income at both the federal and state levels. While the yields are lower than high-yield bonds, taxation can still meaningfully reduce after-tax income in taxable accounts.

In classic Vanguard fashion, however, the lineup remains very inexpensive. All three ETFs charge a 0.08% expense ratio.

Learn more about VBCA, VBCB and VBCC at the Vanguard Target Maturity provider site.

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Here at Kiplinger, we want to ensure that you have the best financial advice at your fingertips — and that you can understand the specialized terminology often used for complex topics such as investing.

That's why we put together this short quiz to test your knowledge on a handful of key investing terms. Knowing what these words and phrases mean will help you stay a step ahead in those big decisions you have to make about what's in your portfolio and why.

And don't worry if you miss an answer or two. You can follow the links below the quiz to review these investing terms and more.

More on investing from the Kiplinger team:

• Why ETFs Are One of the Easiest Ways to Start Investing
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• What Is an Initial Public Offering (IPO)?
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"Do I have enough to retire?"

It's the question nearly every pre-retiree asks — and it's often answered with: "Do you have $1 million?"

Sometimes it is $1.3 million, and occasionally, it is even higher.

But if you have a pension, these benchmarks likely don't apply to you. In fact, retirees with pensions are in a stronger position than they realize and may not need anywhere near $1 million to retire comfortably.

Or, if they do, then they may need to find ways to spend more in retirement.

Here's why.

The $1 million rule leaves out a key piece

Most retirement guidelines are built for people without pensions. They assume your savings must generate income to replace your paycheck, which is where figures like $1 million or more can come from. These types of retirement plans are designed to produce enough annual income to support your retirement lifestyle.

A pension already does that, so when you apply the same savings target to someone with a pension, you're essentially double counting. (I wrote a book for those with pensions that you can request here.)

What is your pension really worth?

To understand how much you actually need to retire if you have a pension, you have to reframe your thinking — not in terms of account balances, but in terms of income.

Let's say you have a $70,000 annual pension. If you took $1 million and tried to replicate that same guaranteed income stream through an immediate income annuity, you may end up in a similar place: Roughly $70,000 per year for life.

A pension can be thought of as an equivalent to having a $1 million investment portfolio dedicated to producing income.

If your pension includes a cost-of-living adjustment (COLA), it may be even more valuable.

How does Social Security affect the math?

Now, let's layer in Social Security with a simple example:

• Pension: $70,000 per year
• Social Security: $36,000 per year

You're already over $100,000 in annual income before touching your investments. That's a level of income many retirees aim for with $1 million or more in savings alone.

So, the question becomes less about "Do I have enough saved?" And more about "How much do I actually need from my portfolio?"

Why retirees without pensions need more

This contrast highlights just how powerful a pension is. Without one, retirees must rely heavily on their investments, often withdrawing 4% or more annually.

That introduces real risks, especially early in retirement: Sequence of returns risk is the danger that poor market performance early in retirement, combined with ongoing withdrawals, will prematurely deplete a portfolio and jeopardize long-term financial security. I call it a double loss.

A pension helps protect you from those risks by covering a significant portion of your essential expenses with guaranteed income.

This is a main reason why studies consistently show retirees with pensions report higher confidence and even greater happiness in retirement.

So, do you actually need $1 million?

Not necessarily. If your pension and Social Security already cover most (or all) of your lifestyle needs, your investment portfolio becomes a supplement, not a necessity.

That could mean:

• You can retire with less saved than you thought
• You may be able to retire earlier
• You could have more flexibility in how you use your money

On the flip side, if you do have $1 million or more and a pension, you may be in an even stronger position than you realize.

What happens if you have both?

Let's revisit that earlier example:

• $70,000 pension
• $36,000 Social Security
• $1 million portfolio

You're already looking at more than $100,000 of guaranteed income. If your portfolio generates an additional $40,000 to $70,000 annually, you could be looking at $140,000 to $170,000 per year in retirement income.

For some people, this could be the same or more than their working income. That raises a different question entirely: "What are you going to do with all that money?"

The real shift: From accumulation to purpose

For many "Midwestern millionaires," who are hardworking, disciplined savers who didn't earn massive incomes but built their wealth steadily (I wrote a book on this that you can request here), retirement requires a mindset shift.

You've spent decades saving, and now you must decide how to use your hard-earned dollars. This mostly comes down to three choices:

• Spend it (travel, experiences, lifestyle)
• Gift it (help children or family now)
• Give it (charitable impact)

Most people haven't put a lot of thought into this, as they have been heavily focused on accumulation.

Also, remember to plan for taxes, as they are one of the biggest concerns for people in this crowd.

Don't ignore taxes and strategy

One important caveat: Having more income, especially from pensions, often means higher taxes in retirement than expected, and strategies like Roth conversions, tax diversification and income timing can help you:

• Maintain control over your tax bracket
• Reduce required minimum distributions (RMDs)
• Increase after-tax income over time

Without a plan, even strong financial positions can become inefficient.

The bottom line

If you have a pension, the traditional $1 million retirement target may not apply to you.

You may already have more than enough. The real opportunity isn't just retiring comfortably, but recognizing the strength of your position and using it intentionally.

Once your income is covered in retirement, it becomes less about hitting a number and starts being about what that number can allow you to do.

Related Content

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

The investing road to retirement can be invigorating.

You make regular contributions to an IRA or a 401(k), buy individual stocks or find other investments for your money, and you watch your portfolio's value grow.

There might be times when growth halts or you lose money. But you hold steady with your aggressive approach, a rebound happens and the dollar figure trends upward once again.

As you near retirement, however, you begin to wonder: Will I eventually run out of money?

That's a legitimate concern. Unfortunately, it's more likely to become reality if you continue the aggressive investing decisions that helped you accumulate that hefty dollar amount for your retirement. And that's all thanks to sequence of returns risk.

What is sequence of returns risk?

Put simply, sequence of returns risk is the fact that, in retirement, the overall return on your investment is less important than the order in which those returns happen.

If the market soars during your first years of retirement, you likely can withstand market losses later. But if your investment losses happen in the first five to 10 years of retirement and you are making withdrawals to live on at the same time, your portfolio balance can evaporate quickly.

When the market eventually rebounds, you could have little or nothing left in your portfolio that would allow you to capitalize on that recovery.

In other words, you are a victim of the order in which returns on investments happen.

Two retirees with the same portfolio balance, the same withdrawal rate and the same average return over a 20-year span could have very different results.

The retiree who has a strong market performance in the early years likely could weather a poor performance later. The retiree who had a poor performance early might never recover.

Where will money come from in retirement?

One way to mitigate sequence of returns risk is to ease up on your investing when you're about five years from retirement and begin planning how you can turn at least a portion of your savings into retirement income. That way, in a market downturn, you aren't forced to sell some of your investments at a loss.

The first thing to do is determine your income needs.

Someone who earned $6,000 a month during their final working days might want to continue to have that amount available in retirement. Others might decide they can get by on a little less than their final salary — say 80% or 90%.

Then you need to determine where the money will come from.

Social Security is a main source of retirement income, but it typically equals about 40% of someone's final salary. Unless you have a pension, you will need to make good use of your savings to make up the difference between that amount and your income goal.

That's where wise investing comes into play.

Previously, I mentioned that when nearing retirement, you should ease up on aggressive investments so that you don't see a volatile market swallow everything you worked so hard to save. But you can't ease up entirely. Going too conservative also has its drawbacks.

Take CDs, for example. Long ago, they could generate ample income. In the mid-1980s, you could have lived off the interest on CDs because rates rose into double figures. In those days, $500,000 deposited into a one-year CD might have generated 11% in interest, giving you $55,000 a year.

That opportunity is long gone. These days, CDs barely keep up with inflation — if that. Putting a portion of your money into CDs is fine, especially since your principal is protected, but don't count on them to produce a large amount of income for you.

The diversified income strategy

Another option is a fixed index annuity with lifetime payouts. With a fixed index annuity, you pay a premium to an insurance company, and in return, you receive a regular, guaranteed income.

Other potential income sources in retirement include dividend-paying stocks, U.S. Treasury securities, bonds and real estate investment trusts.

Ideally, you should have a diversified income strategy that balances guaranteed income sources with investment income. But don't create a strategy and think you're done. Revisit your plan about once a year to see how things are working and whether you need to make adjustments.

If you're unsure about the best investing strategy for your retirement needs, a financial professional can discuss your goals with you and help you review the options.

Ultimately, the goal is for your savings to continue to work for you, no matter how long your retirement lasts.

Ronnie Blair contributed to this article.

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

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

A steep sell-off in South Korea spread to Europe and the U.S. on Tuesday, as investors, traders and speculators asked hard questions about the sustainability of capex plans amid what so far has seemed to be an ever-expanding artificial intelligence (AI) boom. Meanwhile, the Trump administration is talking up another cutting-edge corner of the stock market.

The KOSPI Index, which includes South Korea-based semiconductor stocks such as Samsung Electronics (SSNLF) and SK Hynix (HXSCL), fell 910 points, or 9.99%, to 8,203 on Tuesday. The two chipmakers, which account for more than half of the KOSPI's value, had led the index past the 9,100 level for the first time ever on Monday.

By the closing bell, the tech-heavy Nasdaq Composite was off 2.2% at 25,587, the broad-based S&P 500 had declined by 1.4% to 7,365, and the Dow Jones Industrial Average was down 0.1% at 51,666.

"There is a great near-term buying window for many of the high-flying memory and other technology stocks," Louis Navellier of Navellier & Associates observes, noting that memory stocks showed relative strength on Monday as the Nasdaq sold off late, "but lost their mojo" because of what happened overseas.

Indeed, Navellier expects Micron Technology (MU, -13.2%) to announce record top- and bottom-line results after the closing bell on Wednesday. "The last correction in AI-related stocks this month only lasted four trading days," he writes, "so every dip should be viewed as a buying opportunity."

Looking for more timely stock market news to help gauge the health of your portfolio? Sign up for Closing Bell, our free newsletter that's delivered straight to your inbox at the close of each trading day.

The front-month West Texas Intermediate crude oil futures contract was down 0.7% to $73.34 per barrel and has now retreated almost 40% from its wartime highs near $120, as inflation pressure from the Strait of Hormuz continues to ease.

Meanwhile, the 2-year Treasury yield ticked up to another new 52-week high on Tuesday before settling at 4.200% vs 4.219% on Monday, as markets continue to price in a path for short-term interest rates under new Fed Chair Kevin Warsh.

Big Blue gets a quantum bounce from the White House

International Business Machines (IBM, +5.0%) was No. 1 among the 30 Dow Jones stocks on Tuesday, as markets bid up the old-school technology firm on word from the White House of two new executive orders designed to accelerate quantum innovation and to protect against cryptographic attacks.

D-Wave Quantum (QBTS, +2.2%) showed green numbers, too. But quantum computing wasn't immune to broader selling pressure in the tech space, with Rigetti Computing (RGTI, -0.5%) and IonQ (IONQ, -0.8%) lower for the day.

Infleqtion (INFQ, +12.0%), which completed its initial public offering (IPO) in February, and Quantinuum (QNT, +13.5%), a former subsidiary of Honeywell (HON, -2.5%) that debuted as a standalone public company on June 4, did post big gains.

"Quantum technologies represent the next generation of innovation across computing, sensing, and networking, with enormous significance for our country's economic growth, scientific research, and cyber security," President Donald Trump said on Monday. "It's really a big deal that we're doing."

ARK is buying more SPCX

SpaceX (SPCX, +1.0%) enjoyed its first positive session since last Tuesday after ARK Invest revealed through its trade notification system that it purchased a total of 210,121 SPCX shares.

The ARK Innovation ETF (ARKK, -2.1%) added 131,837 shares, the ARK Autonomous Technology & Robotics ETF (ARKQ, -2.8%) 43,486. The ARK Next Generation Internet ETF (ARKW, -2.0%) and ARK Space Exploration & Innovation ETF (ARKX, 1.7%) bought 21,506 and 13,292 shares, respectively.

On Monday, SPCX stock was down more than 16%, and its market cap declined by about $400 billion. According to Dow Jones Market Data, that's the second-biggest single-day loss for any company in stock market history.

Susquehanna analyst Charles Minervino initiated coverage of SPCX with a Neutral (Hold) rating and a $170 12-month target price. "The current valuation requires premium multiples on very aggressive revenue and EBITDA growth assumptions," Minervino says. "With some of the markets that SPCX operates in being relatively unproven, we believe a wide range of outcomes exist."

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If you have a modest nest egg, you might want to chase cheap listings so you can buy shares in larger lots. Buying stocks priced below $20 can be tempting.

But "dirt cheap" doesn’t always mean "good value." In fact, many low-priced stocks trade where they trade for legitimate reasons, among them weak earnings, heavy debt and/or broken business models that may never recover.

Still, if price alone isn't a sign of a good stock, then neither should price alone signal a bad stock. The important thing is to focus on fundamentals.

Solid companies with stocks that trade around $20 per share can generate reliable cash flows based on proven business models. Indeed, these are real reasons to invest, beyond price.

Our top picks for stocks priced under $20 per share are established are established companies with respected brands. They have market values greater than $1 billion. And their business models support stable dividends.

Ford Motor

• Sector: Consumer discretionary
• Market value: $59.6 billion
• Dividend yield: 4.3%

Ford Motor (F) is one of the oldest and most recognizable automakers in America, with a history stretching back more than a century.

Ford has invested heavily in electric vehicles and is selling almost 100,000 units annually. But business is still driven by traditional gasoline-powered models such as Ford's F-Series pickup truck, the best-selling vehicle in the U.S. regardless of powertrain.

While not immune to volatility, the consumer discretionary stock offers long-term exposure to onshore manufacturing and transportation trends that have wide support by consumers and policymakers alike.

With a generous dividend of more than 4%, there are multiple reasons to stay patient and buy and hold this low-priced stock for its long-term potential.

Huntington Bancshares

• Sector: Financials
• Market value: $34.6 billion
• Dividend yield: 3.7%

Huntington Bancshares (HBAN) is an Ohio-based regional bank that serves consumers, small businesses and commercial clients across the Midwest.

The company offers a wide range of services, including checking and savings accounts, mortgages, auto loans, credit cards and wealth management, as well as business lending.

Huntington is not exposed to global risks like Wall Street megabanks with proprietary trading desks. Like most regional banks, it generates revenue by making practical loans to households and businesses.

This is no small-fry financial stock, however, with current assets of nearly $300 billion. That's enough scale to support a reliable dividend and make HBAN a top stock trading below $20.

Newell Brands

• Sector: Consumer staples
• Market value: $2.1 billion
• Dividend yield: 5.7%

Newell Brands (NWL), a small-cap stock, isn't the most recognizable name on our list. But its products–such as Rubbermaid storage containers, Sharpie markers, Coleman camping gear, Yankee Candle scented accessories, Paper Mate pens and Graco baby gear–are very well known to consumers.

Indeed, a diversified product line is Newell's biggest strength, as it generates revenue from a collection of everyday goods rather than resting on a one-dimensional business model.

Multiple moving parts with varying exposures to the consumer economy can make it hard for the company to deliver breakneck growth.

But Newell offers a generous dividend yield, and management has spent recent years streamlining operations and reducing debt to provide long-term stability.

Nokia

• Sector: Information technology
• Market value: $80.7 billion
• Dividend yield: 1.4%

Nokia (NOK) is best known for its former dominance in mobile phones.

Today, the tech stock provides the equipment supporting fiber-optic and cloud-computing networks, as well as hardware essential for 5G infrastructure.

With a customer base that includes telecom providers, governments and large enterprises, Nokia has deep relationships with clients and expertise that's hard to match.

As demand for faster and more reliable data networks continues to grow, this telecom infrastructure company will only be more important in the years ahead. Stability makes NOK a solid low-priced stock.

Ambev

• Sector: Consumer staples
• Market value: $48.9 billion
• Dividend yield: 1.2%

Ambev (ABEV) lacks name recognition in the U.S. But the large-cap stock is one of the biggest beverage companies in Latin America. Ambev is also a majority-owned subsidiary of global brewing giant Anheuser-Busch InBev (BUD).

Ambev produces and distributes beer, but it's also licensed to make soft drinks such as Gatorade, Lipton iced tea and other products owned by PepsiCo (PEP).

Legacy soda and beer brands face headwinds in the U.S. because of changing consumer tastes. But growth is strong south of the border.

The dividend has grown more than 40% over the last five years, and Ambev is well-positioned to continue to support a generous yield.

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For decades, wealth management conversations largely centered on the question, "How much is enough?"

Today, many high-net-worth women are asking a different question: "What is this wealth ultimately for?"

That shift is helping redefine modern financial planning. Women are viewing wealth not simply as a measure of financial accumulation, but as a tool to support wellbeing, family, values and impact.

As head of Wealth Strategies & Solutions at RBC Wealth Management, I've come to call this evolving mindset "inner wealth," which describes the integration of financial success with personal fulfillment and emotional alignment.

Our recent Women and Wealth survey found that 81% of high-net-worth women prioritize values tied to "body, spirit and soul," while 80% emphasize ethics, trust and social responsibility. In other words, wealth today is increasingly being defined beyond the balance sheet.

I don't feel that this is a rejection of financial performance. Rather, it reflects a more holistic understanding of success that integrates financial security with quality of life, meaningful relationships, philanthropy and intentional living.

A new definition of wealth

Historically, wealth management often focused on returns, tax efficiency and asset growth. Those fundamentals still matter deeply. But today's clients, particularly women, want financial plans that also reflect who they are and what matters most to them.

In RBC Wealth Management's research, 58% of women identified "contribution, impact and legacy" among their most important personal values. Many also said they define financial freedom less by luxury and more by flexibility, peace of mind and the ability to spend time with loved ones.

One respondent described financial freedom as "having control over your money so it serves your life goals, not the other way around." That perspective is reshaping financial decisions across investing, estate planning and lifestyle spending.

As more women step into the role of the sole manager of their wealth, whether they are divorced, widowed or never partnered, we are seeing them shift the way they think about their wealth. They think more about the purpose and outcome of their wealth. They want to understand and have meaning in what they invest in. They want to know why they are holding the investments they own and go beyond the numbers.

Values-based planning is moving into the mainstream

Perhaps the clearest evidence of this shift is that clients are aligning money with values in tangible ways.

For some, that means incorporating philanthropy into long-term planning earlier in life. RBC's survey found that 52% of Millennial women say charitable giving is an important priority, which is nearly double the rate of Gen X women.

Many are embracing "giving while living," choosing to support causes and family members during their lifetime rather than waiting to transfer wealth later.

For others, it means pursuing investments that align with personal convictions around sustainability, governance or social impact. Investors are increasingly seeking portfolios that reflect both financial objectives and broader principles.

In daily life, intentional spending is becoming more common. Rather than spending simply for status, many wealthy women are directing resources toward experiences, wellness, family connection and personal growth.

RBC's research showed particularly strong spending interest in adventure travel, luxury travel and hobbies tied to enrichment and wellbeing.

But values-based planning does not necessarily mean sacrificing returns. That misconception has faded considerably in recent years as investors recognize that disciplined diversification, strong risk management and long-term strategic planning can coexist with purpose-driven goals.

How to align your financial plan with your priorities

For readers looking to incorporate more purpose into their own financial lives, the process often starts with reflection before action.

Ask yourself questions like:

• "What does financial freedom actually look like for me?"
• "What experiences or relationships matter most?"
• "How do I use my wealth for better outcomes for my family?"

From there, you can work with an adviser to build strategies that integrate both performance and purpose. That may include creating a philanthropic giving strategy, updating estate and legacy plans, or reviewing investment allocations through a values lens.

It could mean prioritizing wellness and lifestyle goals in retirement planning and structuring family conversations around financial values that are linked to wealth transfer along with financial education, among other important planning elements based on your life.

As women continue reshaping the financial landscape, the concept of "inner wealth" offers an important reminder: True wealth is not only measured by what we accumulate, but by how well our resources align with our values, relationships and sense of purpose. That may become the most valuable return of all.

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

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.

Shannon Saccocia, the Chief Investment Officer–Wealth at Neuberger, an investment management firm, spoke with Kiplinger about what she's predicting for the rest of 2026, resiliency for the market and consumers, and where she sees opportunities for investors.

Kiplinger: What’s your outlook for the second half of 2026? Do you have a target for the S&P 500?

Saccocia: We don’t have price targets, but with the U.S. stock market recently trading below the peak in its price-earnings multiple, while earnings estimates have risen, could we see the S&P 500 up another 5% to 7% by the end of the year? It’s possible, even with the threat of greater market vola­tility. If you just apply the current P/E multiple to the estimated earnings for companies in the index, that translates into a potential double-digit return for the S&P 500 this year.

The broad market declined nearly 10% and then was back to record highs in no time. What accounts for the resilience in the face of a lot of geopolitical and other uncertainty?

Geopolitically driven sell-offs tend to be short-lived, with stronger returns afterward, whether you measure by three months, six months or a year. We’ve seen a very nice rebound, but there are more buyers that could come into this market. Some of the larger buyers — institutions — haven’t gotten fully back to where they were last year. But first and foremost, we remain strong on the market from a U.S. economic perspective. We came into this year anticipating 2.5% growth in gross national product, and potentially higher.

We’ve seen resiliency in the U.S. consumer for several years. Now we’re seeing manufacturing, which had more of a recessionary tone, starting to strengthen. We’ve had support from fiscal spending, increased tax refunds and lower withholding rates from the One Big Beautiful Bill Act. And our view is that the Federal Reserve will cut interest rates twice this year, a quarter point each time.

Back to consumers — can they remain resilient if oil prices stay elevated?

If that happens, perhaps the tailwind that higher tax refunds were expected to deliver to the economy won’t be as pronounced. But they’re acting as a cushion. Even though consumers were already fatigued by higher prices over the past couple of years, we haven’t seen a meaningful tick down in consumer spending.

Our view is that we’ll bump along here and start to see pressures ease on energy prices. But consumers can’t digest these higher energy prices forever.

Are you sticking with your economic growth forecast of 2.5%?

Maybe a touch lower, 2.3% to 2.5%. The risk that our original forecast was not high enough is what’s been taken off the table. We’ve seen incremental, modest pressure on discretionary consumer spending — and the consumer component is such a big part of the GDP cal­culation. But we anticipate meaningful capital-spending growth from companies this year, and at the end of the day, we don’t see evidence of widespread deceleration in economic activity.

Considering that backdrop, where do you see opportunities for investors?

Our biggest change has been to upgrade U.S. large-company stocks, based on a combination of stronger and accelerating earnings growth, along with a compression in P/E multiples. We’d already been overweight in small-cap stocks, and we remain overweight. But our view on large-cap and small-cap is now about balanced. We’ve also been constructive on global equities in general.

When I tell people that we upgraded large caps, they say, “Well, you must like technology today more than you did yesterday.” And that’s probably a justifiable conclusion given the size of the tech sector. We thought tech-stock prices were vulnerable coming into 2025; now they’re more attractive.

Energy stocks are also interesting at this juncture. There’s a bit of a war premium built into energy prices, and some of that will remain even if there’s a cease-fire and an opening of the Strait of Hormuz. We don’t feel that energy stocks have fully incorporated this longer-term impact on energy prices.

We’ve had the call on small caps for some time. But it’s no longer a “buy small caps because they’re cheaper” story, it’s an improvement-in-earnings story, and those earnings are likely to continue to accelerate through the back half of the year.

Has the war short-circuited a move toward international stocks?

I think there’s been a pause, but not a short circuit. There could be some short-term strength in the dollar, but it’s still likely to be flat-to-weaker as we move into the back half of the year, and that supports investing outside the U.S.

But the war has been a reminder of the energy dependence that many of these markets have. Europe and Japan are very dependent on energy imports, and the ability for their consumers to digest those higher prices is pretty limited. There’s a pronounced fear in the market that European central banks could make a policy mistake by raising rates — European response to prior inflationary shocks has been poor.

In international developed markets, we’re underweight Europe and more positive on Japan. Japan is clearly energy-reliant, but it has already started to see the benefits of equity market and shareholder reforms, and wage growth in Japan is supporting the consumer.

In emerging markets, we like China, where a significant amount of spending on artificial intelligence is offsetting challenges from higher energy prices and a burst real estate bubble; India; and Brazil, which is actually on the other side of the energy trade and could perhaps benefit from this environment.

What do you like in the fixed-income market?

We like Treasuries, mostly around the two-year mark. We think they’re mispriced because of an expectation for higher rates, which we don’t see. [Bond prices and interest rates move in opposite directions.] We like investment-grade corporates across the range of maturities.

We like municipal bonds and also some non-U.S. bonds from Germany and the U.K. We like emerging-markets debt, but it has performed well, so valuations are not as attractive. But it’s a great diversifier. We are neutral on high-yield bonds in the U.S.

We’ll all be talking about the midterm elections soon. What’s the likely impact on financial markets?

There’s a typical cadence to the elections. Going into July and August, we could see another pickup in volatility, which typically spikes in the weeks leading up to the election. Returns in this time frame tend to be a bit weaker, then stabilize in September and move higher through the end of the year. I don’t expect a lot of change in the policies from the Trump administration’s second term.

Tariffs are still going to be in the dialogue in some way, shape or form — there’s a need for that revenue to lessen some of the impact from increased fiscal spending. There might be some changes on the margin with a switch of party in the House, whether it’s something like funding for the Department of Homeland Security or Medicare re­imbursement rates.

I will say this: We came into this year with affordability already one of the biggest concerns. The affordability challenge is what will drive voters to the polls, and the current situation in the Middle East is complicating that challenge.

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

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The main equity indexes were mixed on Monday, as market participants continued to monitor negotiations between the U.S. and Iran and the status of the Strait of Hormuz. Investors, traders and speculators also observed the passing of Alan Greenspan, who led the Federal Reserve for almost 20 years and was among the most important central bankers of our time.

At the closing bell, the blue-chip Dow Jones Industrial Average was up 0.3% to 51,712, but the S&P 500 was down 0.4% to 7,472, and the tech-heavy Nasdaq Composite had shed 1.3% at 26,166.

Communication services stocks were the worst-performing group, with the sector weighed down by recent addition SpaceX (SPCX, -16.4%) posting a third straight daily decline less than two weeks after the biggest IPO ever.

The front-month West Texas Intermediate crude oil futures contract fell by 2.0% to $74.35 per barrel. WTI has retraced about 86% of its surge to $119.48 on March 9, the intraday peak amid war in the Middle East.

The 2-year Treasury yield ticked up/down to 4.232% from 4.179% on Thursday, with the market-based barometer of short-term interest rates hitting another 52-week high on Monday.

Following its two-day meeting last week, the Fed held the federal funds rate steady at 3.50% to 3.75%. You can catch up on news and developments around the FOMC meeting at our June Fed meeting blog.

Alan Greenspan, the 'Maestro' of the modern Fed

Whether you deem the development positive or negative, and even if it's just the way things have always been in your experience, it's fair to say Alan Greenspan is the template for the modern celebrity Fed chair.

Greenspan, who led the world's most important central bank from 1987 until 2006, died on Monday at 100 years old.

Nominated by Ronald Reagan to succeed Paul Volcker, a historical figure in his own right, he led the central bank under a total of four presidents, including Reagan, George H.W. Bush, Bill Clinton and George W. Bush.

After assuming leadership of the Fed on August 11, 1987, Greenspan guided Washington, D.C., and Wall Street out of Black Monday that October and into an economic boom that lasted, almost uninterrupted, through the 1990s.

"Since becoming a central banker," he testified to Congress in September 1987, "I have learned to mumble with great incoherence. If I seem unduly clear to you, you must have misunderstood what I said."

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Later, in December 1996, he wondered, "But how do we know when irrational exuberance has unduly escalated asset values, which then become subject to unexpected and prolonged contractions," as the dot-com era unfolded.

Greenspan, Treasury Secretary Robert Rubin and Treasury Deputy Secretary Larry Summers famously formed what Time magazine called the "committee to save the world" in February 1999.

Bob Woodward of The Washington Post titled his 2000 biography "Maestro: Greenspan's Fed and the American Boom." That was well before his retirement from the central bank in 2006.

It also preceded the Global Financial Crisis/Great Recession of 2007-09, a series of events that earned Greenspan another nickname, "Mr. Bubble," bestowed when he no longer held any real power.

MU sees strong demand

Micron Technology (MU, +6.8%) extended its 2026 rally on Monday as markets prepared for the tech stock to report fiscal third-quarter results after the closing bell on Wednesday.

MU is up nearly 300% so far this year, the semiconductor stock rising along with demand for the memory and storage hardware essential to the still-accelerating artificial intelligence (AI) infrastructure buildout.

Indeed, Susquehanna analyst Mehdi Hosseini is on the lookout for cracks in Micron's big gross and operating margin numbers: "While the durability of GM above 80% remains a central question," he writes "we believe the more important issue is whether OM can sustain a 70%-75% range over a multi-quarter — or even multi-year — period."

Hosseini's model shows normalization for margins beginning in fiscal 2028. "Nonetheless," the analyst concludes, "with annualized EPS potentially reaching $160 in FY27, we continue to see meaningful upside to the stock relative to our $1,750 price target."

What will FDX deliver on Tuesday?

FedEx (FDX, +1.2%) hasn't put up year-to-date gains quite like MU's, but it is among the top 10% of S&P 500 stocks so far in 2026 with a total return of greater than 40%. That performance through Monday was supported by recently raised guidance, as well as the completion of much of its corporate restructuring.

"While the market will naturally look for forward commentary," Stifel analyst J. Bruce Chan writes in a preview of FedEx's post-closing-bell turn on the earnings calendar this Tuesday, "we believe this print will be centered around: whether FedEx can deliver against its updated FY26 framework."

Chan, who reiterated his Buy rating and his $442 12-month target price for the industrial stock, will focus on the core Federal Express (FEC) parcel business and whether strength from last quarter carried through a more normalized non-peak quarter.

"Although the near-term print still includes several moving pieces," he concludes, "the larger outlook has improved materially, especially with the parcel business showing evidence of better revenue quality, stronger yield management, improved network efficiency, and more disciplined cost execution."

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Disappointed with the performance of the Dow Jones Industrial Average, I decided in 2023 to reinvent the index to reflect the changing nature of the U.S. economy. I kept 11 of the Dow's 30 components and added some choices from among personal favorites, old 10 Best lists and the Wired Index, concocted by the tech magazine in 1998.

Top 30 is beating expectations. Over the past 12 months, it returned 27%, compared with 24% for the Dow itself. Total cumulative return for three years: 69% for Top 30, 54% for the Dow.

Investing lessons from the Top 30

Performance, however, isn't the only story Top 30 tells. A review of the past 12 months provides a few broad lessons on investing:

1. Even when your portfolio has a great year, you will have a lot of losers

Among my Top 30 stocks, 10 declined, four of them by more than 20% each. The Dow had seven losers in 2025 and eight in 2024. Losing is part of the game. The S&P 500, for example, has declined in 13 of the past 60 calendar years. A churning stomach is the price we all pay for the substantial returns that stocks provide.

2. Diversification is essential

When some sectors fall, others rise, mitigating losses. As I wrote when I introduced Top 30, the Dow is more akin to a quirky managed portfolio than an index. For instance, it lacks enough technology stocks, and it has no real estate or transportation stocks at all.

Top 30 better reflects the U.S. economy. Over the past year, many retailers, packaged goods and software firms suffered, but their declines were offset in Top 30 by the gains of energy companies and internet platforms.

3. Reversion to the mean is a powerful force

In its first year, Top 30 beat the Dow by 13 percentage points. Now, my aggregate lead is much thinner — and I expect it to get thinner still — but I am hoping I'll remain ahead.

4. Trust your instincts

In last year's review of the Top 30's performance, I had considered making three changes. I was worried about “management failures” at UnitedHealth Group (UNH) and had concerns about Nike (NKE) and Lululemon Athletica (LULU) because of tariffs, stronger competition and tired brands. But I decided to stay the course. That turned out to be a mistake. All three stocks declined, two by double digits, and Lululemon was my biggest loser.

Top 30 changes

1. Traded Caterpillar for Deere

My biggest winner, Caterpillar (CAT), nearly tripled in price over the past 12 months. The company increased sales of building equipment thanks to the construction boom triggered by federal infrastructure bills and data center demand. But the stock makes me nervous. Its price-to-earnings ratio (P/E) is too high, and investment research service Value Line sees revenue growth slowing from an annual average rate of 8.5% over the past five years to 6% for the next five.

I'm going to trade Caterpillar for Deere (DE), another large equipment manufacturer. It's smaller, less pricey and has been harmed by a cyclical downturn in agriculture that will inevitably reverse.

2. Swapped Lululemon for Costco

I was in love with Lululemon years ago, but its style of yoga wear now has too many imitators. Also, my list needs a big-box giant retailer. The obvious choice is Costco Wholesale (COST), a brilliantly managed company with $275 billion in revenues.

Costco keeps its prices and operating costs low and its customers happy. The stock is not going to do anything spectacular, and it's not cheap. You're paying for consistency and the ability to ride out any storm — valuable characteristics in a portfolio.

3. Substituted Nike for NextEra Energy

I actually like Nike and continue to recommend it, but I realized that I have a huge gap in the portfolio at a time when demand for electricity is rising sharply. So I am substituting a utility, NextEra Energy (NEE), with an all-of-the-above strategy to generate electricity using the gamut of resources, including renewables.

NextEra's talented CEO, John Ketchum, is projecting 8%+ annual growth in earnings over the next 10 years. No one can accurately predict that far ahead, of course, but demand for electricity is nearly insatiable. Shares are priced higher than the typical utility, as they should be.

4. Replaced UnitedHealth with McKesson

Finally, I need a large healthcare company to replace UnitedHealth. I'm shunning politically vulnerable insurers and hospitals and instead choosing a well-run company with burgeoning sales and profits and low capital-investment requirements. It's McKesson (MCK), one of three firms that control 90% of the market for the distribution of pharmaceuticals and medical and surgical products. Shares have quadrupled in five years, but when you consider that earnings are growing at 12% annually, the P/E remains reasonable.

Top 30 non-movers

Three of the four stocks I am eliminating were components of the Dow: Caterpillar, Nike and UnitedHealth. That leaves eight on the Top 30 list, and the most timely for investors is Microsoft (MSFT), which, unlike other tech trillionaires, trades at about the same price today as it did two years ago — despite revenues that rose 17% in the most recent quarter. Earnings have increased in what I call a beautiful line, up every year for more than a decade. Investors worry that Microsoft is spending too heavily on artificial intelligence and that it laid off 15,000 employees in 2025. I see an underpriced tech giant getting its house in order for a new era.

Among the other keepers, I'm especially pleased with Amphenol (APH), a maker of critical components for the telecommunications sector. It's hardly a household name, but it's the 54th-largest U.S. company in the S&P 500 by market capitalization (price times shares outstanding) and it roughly doubled in the past year.

I was also glad to see Starbucks (SBUX), under new leadership, moving up again. Alphabet (GOOGL) remains my top tech-platform choice because of its adaptation to AI and the growth of YouTube, the online video-sharing platform.

Netflix (NFLX) was among the losers this year, but never, ever sell it. Salesforce (CRM) and Automatic Data Processing (ADP) fell sharply on concerns that AI would make their services less valuable or even obsolete. I believe the negative sentiment is overdone.

The Dow is weirdly weighted by the prices of its components; a 1% move in Goldman Sachs (GS), at $927 a share, has nearly 20 times the impact of a similar move in Verizon Communications (VZ), at $47. Top 30 is equally weighted. I don't expect readers to own all 30 stocks, buying and selling to maintain a 3.33% proportion for each one in the portfolio. A smart asset manager may turn Top 30 into a fund someday, but until then, you'll likely want to use the list to glean ideas for your own purchases rather than buying the whole thing.

A final note: Readers ask from time to time why I don't own most of the stocks I recommend. Rest assured that I am not being hypocritical or unenthusiastic about companies I write about. Instead, I have grown uncomfortable with the potential conflicts in writing about what I own, so I am sticking almost exclusively to index funds. You don't have to.

James K. Glassman chairs Glassman Advisory, a public-affairs consulting firm. He does not write about his clients. His most recent book is Safety Net: The Strategy for De-Risking Your Investments in a Time of Turbulence. He owns shares in Netflix and Microsoft. You can reach him at JKGlassman@gmail.com.

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

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Editor's note: This is part two of a two-part series about estate planning. Part one is These Are the 3 Pillars You Need Before You Build Your Estate Plan.

In the first article in this two-part series on estate planning, I shared the three foundational financial pillars you need to have in place before creating your estate plan. This article also comes in threes — the three-step process for executing an effective estate plan.

When most people think about estate planning, they picture it as signing a will or trust and checking the box as complete. The documents are drafted, notarized and filed away, and it feels like the job is done.

In reality, estate planning is not a single event. It's a three-step process: design, structure and funding. While the first two steps get the most attention, the third is often overlooked. That's the problem, because without funding, even the most carefully drafted trust might not accomplish what it's supposed to.

Understanding how these three steps work together can mean the difference between an estate plan that functions as intended and one that only exists on paper.

Step 1: Estate design: Deciding what to do with your assets

The first step in estate planning is design. This is the vision-setting stage at which you determine what you want to happen with your assets and how you want them managed.

These conversations should focus on questions such as:

• Who should receive your assets?
• When should they receive them?
• Should distributions happen all at once or over time?
• Do you want to provide protection for beneficiaries?
• Do you want control of how money is used after you're gone?

This stage is less about legal language and more about understanding goals. It also requires a broader look at your financial life. Your investments, retirement accounts, tax considerations and long-term care planning all influence what type of estate plan makes sense.

For example, if you're someone who wants to control how assets are distributed over time, you might need a trust.

On the other hand, if you're comfortable with direct transfers, you might want to rely more heavily on beneficiary designations. These decisions shouldn't be made in a vacuum. They depend on how assets are structured and the outcomes you're trying to achieve.

Step 2: Estate structure: Putting legal documents in place

Once the estate design is in place, the next step involves how to properly structure your estate. This is typically when an attorney is called in to create the legal documents that support your goals and wishes.

These documents could include a will, a revocable living trust, powers of attorney and healthcare directives. This step puts your wishes into a definitive written plan, translating your goals into legal instructions that can be executed later.

This is also when many people must decide between a will and a trust. Though frequently used together, there are distinct differences between the two.

A will directs how assets should be distributed after death, but it must go through probate, which is the legal process that oversees the division and distribution of assets among beneficiaries.

A trust is a separate legal entity that can own assets during or after your lifetime, often avoiding probate and allowing more control of how assets are managed.

Because trusts offer additional flexibility and control, many people choose to go that route when creating their estate plans. But this is also where a common misconception begins: Signing trust documents doesn't automatically place assets into the trust.

That leads to the most critical and often overlooked step.

Step 3: Estate funding: Putting the plan into action

Funding your estate is the process of transferring assets into your trust or aligning beneficiary designations so your estate functions as intended.

Without funding, a trust can exist legally but have no authority over any assets. If that's the case, the estate plan may default to probate or distribute assets in ways that don't reflect your wishes.

Unfortunately, this happens more often than people realize. Someone might go through the effort of creating a trust, only to leave their home, bank accounts and investments titled in their individual name. When that happens, the trust doesn't control those assets. It essentially becomes a document sitting on a shelf.

Don't let missteps ruin your estate plan. Work with a financial professional who can protect and preserve your assets and help you leave a legacy for the next generation.

Funding requires action. Depending on the type of asset, this could involve changing ownership or updating beneficiaries. Assets commonly found within a trust include real estate, after-tax brokerage accounts and bank accounts. For example, if you want your home governed by your trust, the deed must be updated so the trust becomes the owner instead of you.

Other assets, such as an individual retirement account (IRA), cannot be owned by a trust. These accounts must remain in an individual's name while they're living. However, they can name a trust as a beneficiary in certain situations, allowing assets to flow into the trust upon death.

A complete estate plan requires coordination

Estate planning is most effective when all three steps — design, structure and funding are completed one after the other. The design clarifies your goals. The structure puts legal documents in place and funding is what makes the entire plan work.

Without it, your wishes might not be carried out the way you intended.

If you've already created a will or trust, it might be a good idea to review it alongside a professional to determine whether your assets are properly aligned with your wishes. A trust that owns the right assets can help ensure your plan is executed without heartache and financial hardship.

At Blue Ridge Wealth Planners, we believe everyone deserves to have their wishes respected and legacy preserved. A thoughtful and well-coordinated estate plan will help you better protect your assets, not only for yourself, but for your loved ones and the causes closest to your heart.

Blue Ridge Wealth Planners is an independent financial services firm and uses a variety of different investment strategies. This is for informational purposes only and is not intended to serve as the basis for any financial decisions, nor should it be construed as legal or tax advice.

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

If you're like most people, you work hard not only to cover everyday necessities, but also to prepare for a day when you don't have to work anymore.

Sadly, comprehensive retirement planning is a challenge for many workers. More than 56 million Americans don't have access to an employer-sponsored retirement plan like a 401(k),according to a 2024 Pew Charitable Trusts survey.

The good news is that a lack of an employer plan doesn't mean you can't retire successfully—you just need to take a different approach.

Why doesn't your employer offer retirement plans?

Many employers assume that offering a 401(k) is prohibitively expensive. The reality is much more encouraging. Retirement plans designed for startups are often charged on a per-participant basis, making them scalable and affordable.

Smaller businesses also may not realize they have access to SEP IRAs and SIMPLE IRAs. These plans come with lower administrative costs and fewer management burdens. They also allow business owners to make contributions toward their own retirement.

Even if you don't have employees, you have options. A Solo 401(k) allows you to invest in your retirement, potentially saving more than you could with an IRA alone.

Which self-funded plans are available?

Regardless of why a plan isn't offered, the more important question is how individuals can take control of their own retirement savings. The first place my mind goes is to individual retirement accounts, or IRAs.

Unlike a 401(k), which is always tied to your employer and offers a limited menu of investment options, an IRA can be opened and managed on your own, while providing considerably more investment options.

The tradeoff is that contributions are capped, limiting how much you can save each year.

Another excellent choice for self-funding is a taxable brokerage account. These accounts allow you to invest in mutual funds, stocks, bonds and other securities without the contribution limits of an IRA. You'll pay taxes on dividends and capital gains, but the flexibility and uncapped contributions can make a brokerage account a valuable complement to tax-advantaged retirement savings.

Beyond choosing the right accounts, consistency matters just as much. While working with clients, I've found it helpful to set up automatic contributions to their IRAs and brokerage accounts. This replicates the "pay yourself first" approach of a 401(k)—you are less likely to miss what you don't see.

Are there any non-retirement plan options?

Beyond traditional retirement accounts, other financial vehicles can bolster your retirement readiness. Health savings accounts (HSAs) are worth considering if you have a high-deductible health plan. HSAs offer three tax advantages:

• Contributions are tax-deductible
• Growth is tax-free
• Withdrawals for qualified expenses are tax-free

While you're young, these benefits can help offset healthcare costs, allowing you to shift funds toward retirement savings. After age 65, you can withdraw HSA funds for any purpose—although you'll pay taxes on nonmedical withdrawals. I like to think of it as a stealth retirement account.

Annuities can be another source of retirement income. This financial tool is a long-term contract with an insurance company—you pay money now in exchange for guaranteed, tax-deferred income later.

Annuities provide steady cash flow for a set period or for life. However, they are complex financial instruments with varying fee structures and features, so they require careful evaluation to ensure they align with your specific needs.

How can working with an adviser help?

Even with all these options, deciding how to combine them can be challenging, which is where partnering with a financial adviser can help. An adviser can help you navigate the full range of options and provide guidance to pick the strategies that work best for your situation.

Consulting with an adviser is especially important 10 years before your desired retirement. This decade-long window allows you to make meaningful adjustments to your savings strategy and investment allocation based on where you stand versus where you need to be.

If you're 50 or older, you can also take advantage of catch-up contributions that allow higher annual limits for both IRAs and 401(k)s.

What should you do first?

The absence of an employer-sponsored retirement plan is a challenge, not a dead end. Multiple paths can lead to a secure retirement.

For example, you could start by building an emergency fund to cover six months of expenses, then fund an IRA up to the annual limit and finally direct additional savings to a taxable brokerage account or HSA.

Whatever direction you take, the important thing is to explore your options as soon as possible to allow your money more time to grow. With the right mix of planning, discipline and guidance, preparing for retirement without a 401(k) isn't just possible, it can be powerful.

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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 last time we checked in with Brown Capital Management International Small Company (BCSVX), the fund was reeling from a 2.3% decline in 2025 — a year when the MSCI ACWI ex USA Small Cap Growth Index gained 26%.

The fund is heavy in tech stocks, which sank, and it's light on materials and industrials shares, sectors that fueled much of the rally in 2025.

And now? Over the first four months of the year, BCSVX, a member of the Kiplinger 25, our favorite no-load mutual funds, declined another 12%, compared with an 11% climb in the aforementioned index.

That's not the whole story, however. Early 2026 has been a tale of two periods, the managers say: before the Iran war started and after.

Before hostilities began in late February, a rally in cyclical companies and a collapse in tech shares continued — and so did the fund's laggardly performance compared with the MSCI ACWI ex USA Small Cap Growth Index.

After the conflict started, though, investors did an about-face, snapping up quality companies that deliver mission-critical products and services to customers, the fund's bailiwick.

A sentiment switcheroo for this small-cap fund

In the roughly two months following the start of the conflict, International Small Company has held up better than its bogey.

Sectra AB, a Swedish medical-imaging tech company, and U.K.-based online investment platform AJ Bell have gained 27% and 21%, respectively, since late February. Camtek, an Israeli semiconductor capital-equipment firm, has been a big contributor, too. All are among the fund's top 10 holdings.

After just two months, we're wary of calling this a turnaround. But we're also a little weary of this fund's yearlong slump.

Brown Capital's International Small Company fund holds just 36 stocks. Tech and healthcare stocks make up 60% of the portfolio combined. It's a reminder that focused funds can be riskier than those that hold a bigger selection of stocks. We've identified a few potential replacements for it in the Kiplinger 25, but we're holding on for now and will check in with the fund again in a few months.

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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If there's one question that keeps pre-retirees up at night, it's this: Will my money last?

For decades, the financial industry has leaned heavily on rules of thumb, such as the 4% rule, to answer that question. But real life rarely follows a straight line.

Markets fluctuate, inflation rises and falls, and unexpected expenses — especially healthcare — have a way of showing up at the worst possible times.

A more reliable approach to retirement income planning doesn't depend on guesswork. Instead, it starts with structure.

I like to think of retirement income in three distinct layers: Need, want and grow. When built correctly, this framework creates stability, flexibility and long-term resilience, regardless of market conditions.

It may not be flashy. In fact, it's intentionally a bit boring. But that's the point: A boring portfolio supports an exciting retirement.

Here's how it works.

Step 1: Guarantee your 'need'

The foundation of any successful retirement plan is ensuring that your basic living expenses are covered — no matter what happens in the markets.

Your "need" income is the amount required to maintain your core lifestyle. Think housing, utilities, groceries, insurance and other essential expenses. These are non-negotiable. They must be paid whether the market is booming or in a downturn.

The key here is certainty.

To guarantee this level of income, retirees should rely on sources that are dependable and, ideally, last for life. These typically include:

• Social Security
• Pension income (if available)
• Interest from high-quality, long-duration government bonds (such as 30-year Treasuries)
• Annuities with lifetime income riders

Each of these sources shares a common characteristic: They provide income that isn't directly tied to stock market performance.

A practical strategy is to carve out a portion of your retirement savings specifically to fund this layer. Once your need is covered by guaranteed or highly predictable income streams, you've eliminated the biggest risk in retirement: The inability to meet your basic expenses.

This step alone can dramatically reduce financial stress. When retirees know their essentials are covered, they can approach the rest of their portfolio with greater confidence and clarity.

Step 2: Protect your 'want'

Once your foundational needs are secured, the next layer focuses on enhancing your lifestyle.

Your "want" income is what allows you to enjoy retirement — not just survive it. This includes:

• Travel and vacations
• Dining out
• Hobbies and entertainment
• Gifting to family
• Experiences that make retirement meaningful

While these expenses are more flexible than your needs, they're still important. After all, retirement should be about enjoying the life you've worked hard to build.

The goal in this step is protection with moderate flexibility.

Unlike step one, this layer doesn't need to be fully guaranteed — but it should still be relatively stable and low risk. Appropriate tools often include:

• Government bond portfolios
• Fixed index annuities
• Other conservative income-oriented investments

These options typically offer a balance between safety and modest growth potential, helping preserve principal while generating income.

Again, the strategy is to allocate a portion of your retirement savings to fund this layer after step one is complete.

By doing so, you create a buffer between your lifestyle spending and the volatility of the stock market. Even during market downturns, your ability to enjoy retirement isn't immediately compromised.

Step 3: 'Grow' the rest

With your needs guaranteed and your wants protected, the remaining portion of your portfolio can be positioned for growth.

This is where you invest for:

• Inflation protection
• Future healthcare expenses
• Legacy goals
• Emergencies and unexpected costs

This portion of your portfolio is typically invested in a diversified mix of market-based assets, such as:

• Stocks
• Exchange-traded funds
• Mutual funds
• Other growth-oriented investments

The exact allocation should align with your personal risk tolerance, time horizon and financial goals.

Because your essential and lifestyle income needs are already addressed in steps one and two, this growth portion can be invested more strategically — without the pressure of needing to generate immediate income during unfavorable market conditions.

This is a critical advantage.

In traditional retirement strategies, retirees often draw income directly from market-based portfolios. When markets decline early in retirement — a phenomenon known as sequence of returns risk — this can significantly damage long-term outcomes.

By separating income needs from growth assets, you give your portfolio time to recover and compound over the long term.

How the pieces fit together

In practice, most retirees will allocate:

• 50% to 60% of their portfolio to steps one and two combined
• Up to 70% at most in more conservative income and protection strategies
• The remaining portion to growth investments

This balance creates a structured yet flexible approach to retirement income.

It's also fundamentally different from relying solely on the 4% rule.

The 4% rule assumes a consistent withdrawal rate from a market-based portfolio, regardless of market conditions. While that rule can work in favorable environments, it offers limited protection during prolonged downturns or periods of high inflation.

In contrast, the need-want-grow framework is designed to work in both good markets and bad markets.

In strong markets, your growth portfolio can flourish, supporting future needs and legacy goals.

In weak markets, your essential income remains intact, and your lifestyle is largely protected.

This reduces the emotional and financial strain that often leads retirees to make poor decisions — such as selling investments at the wrong time.

Why 'boring' works

It's easy to be drawn to complex strategies or high-return opportunities, especially after decades of saving and investing.

But retirement is about maximizing reliability and peace of mind, not maximizing returns.

A structured, layered approach may feel conservative, even boring, but that's exactly what makes it effective.

When your income plan is predictable:

• You worry less about market volatility
• You avoid emotional decision-making
• You gain the freedom to actually enjoy retirement

And that's ultimately the goal.

While an exciting portfolio might look good on paper, it's a boring, dependable one that supports an exciting life.

Final thoughts

Creating a rock-solid income in retirement doesn't require complicated formulas or blind faith in market performance; it requires clarity.

By breaking your retirement income into three distinct steps — guaranteeing your needs, protecting your wants and growing the rest — you can build a plan that is resilient, adaptable and aligned with how real life actually unfolds.

And perhaps most importantly, you can replace uncertainty with confidence. Because in retirement, the best plan isn't the one that promises the highest return; it's the one that lets you sleep at night — and wake up excited for the day ahead.

Centennial Advisors, LLC is an Investment Adviser registered with the U.S. Securities and Exchange Commission ("SEC"). Registration as an investment adviser does not imply a certain level of skill or training.

Dan Dunkin contributed to this article.

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

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

Most financial plans are created with good intentions. When they're made correctly, they account for the client's goals, spending habits and savings patterns. But financial problems rarely come from a bad financial plan. They're usually the result of a plan not being implemented consistently.

Making financial changes isn't easy. Behavioral changes take time, and daily life can be distracting. Clients usually understand the recommendations being made, especially when they have a good relationship with their adviser.

But actually following the guidance requires the client to look inward and confront financial habits that may no longer work — and that can be uncomfortable.

The tasks that commonly get delayed aren't the hardest, but rather the ones that feel the least urgent. Updating beneficiaries, funding trusts or investing for retirement can easily be pushed to the side thanks to a false sense of security.

People think the future is guaranteed and waiting to act doesn't have consequences — until the unexpected happens.

Tomorrow isn't guaranteed

Earlier this year, I worked with a couple to create both a retirement and estate plan. The legal documents were drafted and a strategy was in place. The husband and wife just needed to continue funding the trust. They understood this, but it never felt urgent, particularly for the husband. He was 68 and simply thought he had more time. But he didn't.

One morning he was brushing his teeth when he suffered an aneurysm that killed him. As the trust wasn't fully funded, the estate went through probate. The wife was left with unexpected legal costs, delays and stress while mourning the sudden death of her husband.

This is a situation no one wants to go through, but believing the future is guaranteed can increase its chances of happening. Helping clients stay engaged after their financial plan is created is the most effective way to maintain momentum.

Start small

People often struggle to follow through because seeing everything that may be required to achieve their goals all at once can be overwhelming. Every recommendation, task or new strategy becomes intimidating, which feels uncomfortable. When these feelings go unaddressed, action is delayed entirely.

Rather than focusing on everything at once, pick one objective to tackle, and start with small, manageable steps. Crossing smaller action items off the list will create a sense of progress, making long-term goals feel more achievable.

Financial planning is most effective when it's viewed as an ongoing process instead of a one-time event. And progress rarely comes from one major decision. Most often, achieving long-term goals requires you to consistently follow through on the smaller ones.

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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 standard 401(k) playbook leaves high-income professionals and business owners with a planning gap that's larger than most realize. Cash balance plans, when used correctly, can help close it.

For most American workers, a 401(k) and an IRA cover the retirement bases. For successful professionals and business owners earning far above the median household income, those same vehicles may provide less retirement savings capacity and current-year tax efficiency than other qualified plan structures.

The shortfall isn't a flaw in the traditional plans but rather a planning gap — a missed opportunity to select a plan that better fits their unique circumstances.

One potential tool for addressing that gap is the cash balance plan, which remains surprisingly underused, even among households that would benefit most.

How cash balance plans work

A cash balance plan is an IRS-qualified defined benefit pension plan, but it's designed to feel and function more like a defined contribution account. Each participant has a hypothetical "account" that grows in two ways each year:

• A pay credit (a percentage of compensation or a flat dollar amount set in the plan document)
• An interest credit (a guaranteed rate, often tied to the 30-year Treasury)

The employer makes annual, actuarially determined contributions to fund those credits, and those contributions are tax-deductible for the business.

The reason the structure is attractive is the contribution ceiling. A standard 401(k) plus profit-sharing combination caps total annual employer-plus-employee contributions in the low-to-mid five figures. A cash balance plan stacked on top of that 401(k) may allow age-weighted contributions ranging from roughly $100,000 to north of $400,000 each year for older owners and key employees depending on age, compensation, plan design and actuarial assumptions.

The older the participant, the more compressed the funding window, so the IRS permits larger annual contributions to reach a defined retirement benefit. As a result of the higher limits, the tax deferral impact may exceed that of traditional plans for certain high-income households.

Is there an income threshold where these strategies start to make sense?

There's no statutory minimum, but a practical one. We generally start exploring cash balance plans when a household has consistent, predictable taxable income above roughly $400,000, has already maxed a 401(k) and profit-sharing plan, and has cash flow that can support a meaningful pension contribution for at least three to five years.

Below that level, the design and administrative costs eat into the benefit, defeating the purpose. Above that starting level, particularly above $750,000, the potential tax savings may become substantial, and the plan's tax savings may outweigh the plan's design and administrative costs for some high-income business owners.

Why these strategies tend to be underused

If cash balance plans are this effective, why don't more eligible business owners use them? In our experience, the answer is rarely about the math but rather about who's at the table.

Many advisers and firms are organized around investment management, not plan design. A cash balance plan requires coordination among an adviser, a third-party administrator, an actuary, the business's CPA and often an ERISA attorney.

That coordination is real work and falls outside the day-to-day workflow of advisers who don't specialize in business-owner planning. The path of least resistance is to recommend a SEP-IRA or a slightly larger 401(k) match and call the conversation finished.

There's also a generational gap. Defined-benefit plans developed a reputation in the 1980s and 1990s for being inflexible, expensive to maintain and risky for the sponsor.

Modern cash-balance plans have addressed many of those issues because interest credits can be structured to match plan assets and because plans can be amended or terminated when circumstances change, but the legacy perception lingers.

Overlooked advantages and common misconceptions

The first misconception we hear is that a cash balance plan "locks up" money permanently. It doesn't. Once a participant terminates participation in the plan, balances may generally be eligible to be rolled over to an IRA, just like a 401(k), subject to plan terms and applicable distribution rules.

The plan itself can also be amended, frozen or terminated if the business's situation changes, provided the IRS rules on plan permanence are followed.

The second is that these plans are "only for huge companies." In fact, the sweet spot is the opposite. A solo physician, a four-partner law firm, a small dental practice or a consulting firm with a handful of professionals can often capture more relative benefit than a large enterprise because contributions can often be weighted toward owners while still satisfying applicable nondiscrimination requirements.

The third misconception is that cash balance plans are speculative. They are not standalone investment products. They are funded pension obligations, although plan assets are invested and subject to investment risk.

The investment portfolio is typically managed to a conservative target return that matches the interest credit, which may help reduce funding volatility for the sponsor.

Professionals consistently underestimate the benefit on the tax side. A $200,000 cash-balance contribution for an owner in a combined 45% federal and state bracket isn't a $200,000 retirement deposit.

It's potentially about $90,000 in current-year tax savings plus a $200,000 retirement deposit, depending on the taxpayer's specific circumstances.

Over a five- to 10-year funding window, the cumulative effect can materially affect retirement accumulation and long-term financial planning outcomes.

Who benefits most

The strongest candidates share three characteristics:

• High, stable income
• A closely held business or professional practice
• Owners who are typically older than the rank-and-file employees

We see this structure deployed most often in medicine and dentistry, law, engineering and architecture, accounting and consulting, independent investment management and family-held operating businesses with strong free cash flow.

Solo practitioners and 1099 professionals can also use this structure. For instance, a one-participant cash balance plan is administratively simpler and often has a dramatic impact.

At the other end, partnerships and professional corporations with multiple owners can design tiered benefit formulas that direct the bulk of contributions to the partners while still meeting coverage and nondiscrimination requirements.

How to know if it makes sense for your situation

A good first conversation answers four questions:

• What is your taxable income today, and how stable is it over a three- to five-year horizon?
• Are you already fully funding a 401(k) and a profit-sharing plan?
• What does your workforce look like? Specifically, how many non-owner employees are there? What are their ages and their compensation levels?
• What is your investment return assumption, and is it compatible with the conservative funding portfolio a cash balance plan typically requires?

Those answers, paired with a feasibility study from a qualified actuary, can often determine relatively quickly whether a cash balance plan can move the needle for your household and business. They will also tell you if it doesn't make sense, which is just as valuable, since not every high earner is a fit.

The bottom line

Cash balance plans aren't a loophole, a gimmick or a one-size-fits-all answer. They are an established, IRS-qualified planning tool that may be underused or less frequently discussed in the standard retirement planning conversation.

For the right business owner facing persistent high tax bills, they may help accelerate retirement funding and reduce current-year tax liability. They may also bring clarity to the rest of their financial plan, including estate, business succession and charitable giving.

If your income has increased beyond your retirement plan, consider consulting an adviser who specializes in implementing wealth management strategies to help mitigate the tax exposure that comes with that growth.

Cash balance plans are long-term retirement vehicles that involve investment risk, ongoing administrative and actuarial costs, and required annual funding obligations. Actual tax benefits and retirement outcomes depend on factors including investment performance, business cash flow, employee demographics, actuarial assumptions, and future tax law changes. These plans are not appropriate for every business owner or high-income professional.

Investment Advisory Services are offered through Mariner Platform Solutions (MPS), an SEC-registered investment adviser. Imperio Wealth Advisors and MPS are not affiliated entities.

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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.

Many bond strategists are cautious about high-yield debt these days. It's fully valued, they say, relative to other pockets of the fixed-income market. But the Pimco 0-5 Year High Yield Corporate Bond ETF (HYS) has been a standout among exchange-traded bond funds in the Kiplinger ETF 20 in recent months.

HYS has held up well since the start of the year, and its 8.8% return over the past 12 months outpaced 59% of its high-yield bond fund peers, as well as the Bloomberg U.S. Aggregate Bond Index. (All returns are through April 30.)

The ETF's tilt toward short-term debt and its robust 6.4% yield helped. Pimco 0-5 Year High Yield boasts a short, two-year duration (a measure of interest rate sensitivity). That has been a plus in recent months as rates have inched up amid a multitude of worries, including the war in Iran and persistent inflation, says comanager David Forgash.

Bond prices and interest rates move in opposite directions; a two-year duration implies that if interest rates rise by one percentage point, the ETF's net asset value will fall by 2%. Sizable exposure to the energy sector, one of the top-performing junk sectors over the past year, has also been a boon.

HYS fund managers have a smart investing strategy

This Pimco ETF is technically an index fund, but its four comanagers combine proprietary quantitative models and the firm's big-picture views to actively select sectors and bonds for the portfolio to outperform the benchmark.

"It's about getting ahead of the market," says Forgash, adding they also "dig in deep," researching the securities they invest in to "avoid potential blowups."

Recently, the managers have been buying selectively in battered industries, including software, which cratered amid artificial-intelligence disruption worries, and building materials, which declined as rising construction costs and affordability concerns weighed on investor confidence in the sector earlier this year.

Over longer hauls, this short-term high-yield fund outpaces its peers. Its five-year return, 5.1% annualized, beat 92% of its competition.

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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For decades, older Americans could count on their monthly Social Security check arriving in the mail. But in 2025, the Social Security Administration (SSA) was ordered to move to electronic payments.

The SSA plans to complete the full transition to electronic payments for all beneficiaries this year. Payments will be delivered electronically, either through direct deposit to a bank or credit union account, or through a Treasury-approved prepaid debit card. Checks will be sent in the mail only as a last resort, and for that you'll need a government waiver.

The SSA says the goal is to improve speed, security and reliability, and the change is part of a broader, government-wide move to electronic payments.

But for those who still rely on mailed checks, the shift away from paper raises practical questions. Vulnerable older adults will now have to consider banking access, fraud prevention, family involvement, digital literacy and their comfort level with an electronic payment system.

Why this matters now

For many retirees, Social Security is their only source of income. It is the income that pays the rent, mortgage, utilities, groceries and prescriptions. Even a short delay or disruption can create real hardship.

That is why this issue deserves more attention than it has received. The end of paper checks is not simply a "technology upgrade." It is a consumer protection issue.

The people most likely to be affected include:

• Older beneficiaries who do not use online accounts
• Individuals in rural areas
• People without traditional bank accounts
• Those with cognitive decline
• Widows or widowers who relied on a spouse to manage finances
• Beneficiaries who are wary of scams or uncomfortable sharing banking information

In other words, the beneficiaries who still receive paper checks may be among those least prepared to navigate a fast-moving digital payment system without help.

What replaces the paper check?

Beneficiaries have two electronic payment options.

The first is direct deposit into a checking or savings account. Beneficiaries can sign up:

• Through their personal "my Social Security" account at ssa.gov
• On the Treasury's Go Direct website
• By calling the Treasury's Electronic Payment Solution Center (1-800-333-1795) or the SSA's national phone number (1-800-772-1213)
• At their financial institution

The second option is to use the Direct Express® Debit Mastercard®, a Treasury-sponsored prepaid debit card for people who do not have a bank account. With Direct Express, the federal benefit payment is deposited onto the card account on the payment date.

The card can be used to make purchases, pay bills or get cash, and it doesn't require a bank account.

That second option is especially important because requiring every older beneficiary to "just use direct deposit" is not always possible.

Some people are unbanked because they've had negative banking experiences or live where transportation to a bank branch is limited.

Others may be unable to maintain a bank account because of fees, overdrafts or confusion managing the account.

The identity-proofing issue

While paper checks are being phased out, the SSA has tightened identity-proofing requirements around certain benefit and payment changes:

Individuals who cannot use their personal "my Social Security" account may need to visit a local Social Security office to prove their identity for certain actions, including changing direct deposit information.

People receiving payment by paper check must visit an SSA office before changing their mailing address.

SSA is using additional fraud-prevention measures to verify bank account information connected to direct deposit changes.

Direct deposit fraud can be devastating. If a scammer diverts a retiree's Social Security payment into another account, the beneficiary may not discover the problem until the money does not arrive. By then, rent may be due and automatic payments may fail. Recovering the funds can take time.

But stronger identity rules also create friction for legitimate beneficiaries.

• A frail 89-year-old widow who no longer drives may find it difficult to visit a field office
• A beneficiary without internet access may not be able to complete online identity proofing
• A family caregiver may know exactly what needs to be done but may not have legal authority to act

That is the heart of the paper check problem: The government is trying to reduce fraud and modernize payments, but some of the people most in need of protection may also face the greatest barriers to compliance.

Watching for scams during the transition

Major government changes create openings for scammers.

Families should be alert for calls, texts, emails or letters claiming that a beneficiary's Social Security payments will stop unless they immediately provide a Social Security number, bank account number, debit card number, PIN or password.

Direct Express warns that it will never contact cardholders by phone, email or text to ask for a card number, password, PIN or security code.

The safest approach is simple: Do not respond to unsolicited messages. Instead, contact SSA, the Treasury's Go Direct program, your financial institution or Direct Express directly, using known, official contact information.

Older adults should also be warned about "helpers" who offer to set up direct deposit but ask to use their own bank account. Social Security benefits should be deposited into an account that properly belongs to the beneficiary or to an authorized representative payee.

What families can do to help

The most important first step is to identify whether an older parent, relative or client still receives a paper check. Many family members assume payments are already electronic because most beneficiaries converted years ago. That assumption may be wrong.

Next, confirm where the payment should go. If the beneficiary has a safe, low-cost checking or savings account, direct deposit may be the simplest option. If not, review the Direct Express card as an alternative.

Families should also help beneficiaries create or secure their personal "my Social Security" account, where appropriate.

This should be done carefully. The beneficiary should not share passwords casually, and family members should avoid taking over an account unless they have proper legal authority or the beneficiary is capable and has clearly asked for help.

For individuals with cognitive impairment, serious illness or declining ability to manage money, families may need to explore SSA's representative payee process.

A power of attorney may be useful for many financial matters, but SSA generally does not recognize a power of attorney for managing Social Security benefits in the same way a bank might.

When a beneficiary cannot manage benefits, SSA's representative payee rules become important.

Finally, the beneficiary should build a payment calendar showing their expected Social Security deposit date, what bills are tied to that payment, and whom to call if money does not arrive.

Electronic payments reduce mail delays and stolen checks, but they do not eliminate every possible problem.

The bigger lesson

The end of mailed Social Security checks is not just about how money moves. It is about whether older Americans can safely access the benefits they earned.

For many beneficiaries, electronic payment is faster, safer and more convenient. But for the small group still dependent on paper checks, this transition requires planning, communication and trusted support.

Families, advisers and caregivers should not wait until a payment is missed. The time to review payment arrangements, banking access, identity-proofing options and scam protections is before there is a crisis.

Social Security has always been more than a monthly benefit. For millions of retirees, it is the foundation of their financial security. Making sure that benefit arrives safely, reliably and in the right hands is now an essential part of retirement 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.

In the early 1980s, the 30-year Treasury yield topped 15%. Bond traders who had the foresight to lock in those coupons made the trade of a lifetime.

While everyone else chased the dot-com boom a decade later, those traders didn't need the market to cooperate. Their bonds just kept paying.

So, when the stock market went essentially nowhere from 2000 to 2013 (a flat market), many retirees who were in the market, focused on growth, struggled to maintain their lifestyle, while those who bought those bonds were able to sail through.

They didn't win because they predicted the future, but because they recognized a good rate when they saw one and acted on it.

That same logic applies to annuities today. But it didn't always.

Why I couldn't stand them (around 2015)

When I entered the financial planning industry over a decade ago, the 10-year Treasury was hovering around 2%. That's one of the benchmarks that heavily influences what insurance companies can offer in lifetime income payouts. And at 2%, the payouts were, frankly, uninspiring.

For example, I remember seeing payout rates around 4% to 5%. With inflation risk and the time needed to feel like you'd get your money back at a reasonable rate, it didn't make sense to me.

It was difficult to rationalize putting a client's money into a product that generated negligible income when other strategies could do more with less restriction (see my article 10 Ways to Generate Income in Retirement).

The math, in my opinion, didn't work. So I avoided suggesting lifetime income for years.

What changed

Today, the 10-year Treasury sits around 4.5%, which is more than double where it was a decade ago. That shift isn't cosmetic ... It's structural. The underlying rates that support lifetime income payouts have fundamentally changed what annuities can offer.

Higher rates mean higher payout factors. A product that once generated a modest income stream from a given deposit now generates a meaningfully better one. For pre-retirees concerned about outliving their money, that changes the entire conversation.

Today, I'm seeing payouts around 7% (some more, and some less). Rates are obviously subject to change, but that seems like a good deal.

This isn't about being bullish on annuities. It's about recognizing that the tool has become more effective in today's rate environment, much like those bond traders recognized a historically favorable rate and acted accordingly.

A product that finally grew up

Beyond rates, the annuity itself has evolved. The early versions of lifetime income products were clunky. High fees, restrictive surrender schedules, limited flexibility and opaque terms made them difficult to recommend.

That's no longer the case. Modern innovations like guaranteed lifetime withdrawal benefit (GLWB) riders, lower internal costs, index-linked crediting strategies and more have made today's annuities a fundamentally different product category than what existed even 10 years ago.

The industry matured, and the products improved with it.

Not all annuities are the same

One of the biggest misconceptions is that all annuities work the same way. They don't.

Here's a quick breakdown of some that are available today:

Variable annuities seem to be the poster child of what people believe an annuity is. They have higher fees, limited options and so on. Yes, they have "more upside potential," but they also have downside risk.

The fees can put a drag on the performance every year. This is where many of the horror stories are found, in my experience.

Fixed annuities offer a guaranteed interest rate for a set period, kind of like a CD. When it matures, you get your money back plus interest. This is probably the simplest annuity.

Fixed-indexed annuities offer upside potential with downside protection. Some are designed more for cash growth as a bond fund alternative, while others offer better lifetime payouts. It just depends on what you want.

Immediate annuities (SPIAs) convert a lump sum into income payments that start right away, often used for pensionlike income.

Each serves a different purpose. And none of them is universally right or wrong.

It's just a tool

Let me ask you a question: How do you feel about hammers? Probably indifferent. You like them when you need one, and you only hate them when you use one wrong, like when you miss the nail and hit your thumb.

Annuities are no different. The people who hate them usually had a bad experience with the wrong type, at the wrong time, for the wrong reason.

The people who love them sometimes overlook the tradeoffs. Both sides would benefit from a more neutral starting point.

That's exactly why I wrote The DIY Annuity Guide. I wanted to help people move past the love-it-or-hate-it reflex and figure out whether the tool actually fits their situation.

The rate environment has changed. The products have changed. Give yourself permission to check your assumptions and explore whether an annuity belongs in your plan or not.

Either answer is a good one, as long as it's informed.

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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.

Financial anxiety does not always end at retirement. For many people, it gets louder. Without a paycheck coming in, every withdrawal can feel permanent.

What separates calmer retirees from constantly worried ones is often less about how much they have and more about how they manage decisions, expectations and trade-offs.

Feelings of security are strongly linked to planning behaviors and habits, not just portfolio size.

Below are seven money habits that can help retirees feel more in control of spending.

1. They separate money into time buckets

Instead of treating their portfolio as one big pile of money, confident retirees often organize assets by when the money will be used.

Near term (one to three years). Cash and cash alternatives such as high-yield savings, money market funds and short-term CDs

Middle term (roughly years four to 10). More conservative investments such as high-quality short- or intermediate-term bonds and balanced strategies

Long term (10-plus years). Growth-oriented investments such as diversified stock exposure meant to ride through market cycles

The practical advantage is simple. If markets fall, the "spending money" for the next few years is not forced to participate in that decline.

The behavioral advantage is often bigger: It can reduce the urge to sell long-term investments at the wrong time.

One way to pressure-test this habit is to ask a basic question: "If the market dropped 20% this year, how much of my next 24 months of spending is already set aside?"

When that answer is clear, the rest of the portfolio can be managed with a longer view.

2. They follow a consistent withdrawal strategy

Stressed retirees often make withdrawals reactively: "We will take what we need and hope it works out." Confident retirees tend to choose a repeatable framework.

A common starting point is the 4% rule, which suggests withdrawing about 4% of a portfolio in the first year of retirement and then adjusting the dollar amount for inflation each year. For example, a $1 million portfolio would generate about $40,000 in year one.

The exact method matters less than the presence of a method. A withdrawal policy (whether a fixed percentage, a guardrails strategy or an approach informed by required minimum distributions) reduces second-guessing because the decision rules are clear before emotions get involved.

It also creates better conversations. When spending decisions are tied to an agreed-upon policy, choices feel less like guesses and more like trade-offs you intentionally accept.

3. They spend deliberately on what matters

Confident retirees usually do not "cut everything." They identify what makes retirement feel meaningful, then spend intentionally in those areas.

Common examples include:

• Travel that supports relationships
• Hobbies that are deeply valued
• Health and wellness spending that preserves independence

At the same time, they regularly remove spending that no longer fits their life. Subscription creep, unused memberships and maintaining a home that is too large can quietly erode confidence.

A practical habit is a simple annual "spending values" review: Keep the top three categories that genuinely improve life and challenge at least one recurring expense that has become automatic.

4. They plan for healthcare costs realistically

Healthcare uncertainty is one of the most common retirement stressors. Fidelity estimates that a 65-year-old retiring in 2025 may need roughly $172,500 for healthcare costs in retirement, not including long-term care.

Confident retirees tend to:

• Understand the basics of Medicare (Parts A, B and D)
• Compare supplemental coverage options (Medigap vs Medicare Advantage)
• Budget for premiums and out-of-pocket costs

They also address long-term care risk proactively. The "plan" might be insurance, a hybrid policy or earmarking assets, but it is rarely "we will deal with it later."

Removing uncertainty is often the biggest driver of reduced anxiety.

Even if the numbers are imperfect, a written estimate plus a funding approach is usually more calming than avoiding the topic.

5. They maintain financial flexibility

Rigid plans break when life changes. Confident retirees usually build flexibility into both income and spending.

That flexibility can look like:

• Maintaining the ability to earn some income (consulting, part-time work, seasonal work)
• Separating spending into "needs" and "wants," so discretionary categories can be adjusted in a down market
• Keeping a liquidity backstop, such as an unused home equity line of credit, to avoid selling investments during a market decline

Even if these options are never used, simply having options can reduce stress.

Flexibility can also include timing. When markets are down, delaying a large discretionary purchase, adjusting travel plans or shifting gifting schedules can protect the plan without feeling like deprivation.

6. They separate identity from net worth

A surprisingly powerful habit is psychological. Retirees who struggle often treat account balances like a scoreboard. When markets drop, it feels personal.

Confident retirees usually define what "enough" looks like in practical terms: An income plan that supports their lifestyle with an acceptable margin of safety. Once that goal is clear, day-to-day market noise carries less emotional weight.

This does not mean ignoring risk. It means remembering that money is a tool to fund life, not a measure of worth.

A helpful reframe is to focus on income durability rather than portfolio highs. The question becomes: "Is our plan still on track to fund the life we want?" Not: "Did we beat the market this quarter?"

7. They review and adjust regularly, but they do not obsess

Confident retirees tend to be consistent, not compulsive.

A reasonable rhythm might include:

• Periodic check-ins (quarterly or semi-annually)
• Rebalancing when allocations drift meaningfully from targets
• Updating the plan after major life changes (health events, relocation, widowhood, major gifts)

In contrast, constant monitoring can create anxiety and can tempt people into emotional decisions. A set review schedule and a simple dashboard of the metrics that matter (withdrawal rate, spending vs plan, asset allocation, cash reserves) is often more helpful than watching daily market moves.

If checking accounts daily is a habit, consider putting guardrails around it. For many retirees, the goal is not less awareness. It is less reactivity.

Building these habits

If retirement spending feels stressful, confidence often comes from structure:

• Organize savings into time buckets
• Choose a repeatable withdrawal policy
• Align spending with what matters and cut what does not
• Plan realistically for healthcare
• Build flexibility so you are not locked into one path

Working with a financial adviser can help connect the technical plan (cash flow, taxes, investment risk) with the behavior that makes the plan sustainable.

There is no guarantee that a diversified portfolio will enhance overall returns or outperform a non-diversified portfolio. Diversification does not protect against market risk.

Related Content

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

Exchange-traded funds have been around for more than three decades, but if new fund launches are any clue, growth in the category is still strong. A record 1,490 exchange-traded products opened from the start of 2025 through April 2026 — bumping up the total of listed ETFs in the U.S. today to more than 5,100.

And investors are piling in. More than 15 of the newly minted ETFs each have more than $1 billion in assets already. “For a new fund to get even close to $1 billion in assets in its first year is rare,” says Todd Rosenbluth, head of research at TMX VettaFi, a data research firm that focuses on ETFs. Another 25 new ETFs are well on their way to that mark, with more than $600 million in assets each.

For that reason, we’re taking a closer look at several of the new ETFs that have gathered the most interest and what their launches might portend. To be clear, this story is meant to update you on trends in the ETF industry rather than to supply specific investment recommendations. The short track record of these new funds precludes us from making a call, at least for now. That said, a few show some promise, while others seem unlikely to become Kiplinger favorites. Returns and data are through April 30 unless otherwise noted.

Old strategies, new ETF wrappers.

Mutual-fund-to-ETF conversions are not new. But most have come from big fund firms, including Dimensional Fund Advisors, Fidelity and JPMorgan. Now boutique investment firms are choosing to go down this path. The trend points to the wider acceptance of ETFs as investors’ vehicle of choice.

The growth-stock mutual fund Akre Focus, for instance, fully converted to an ETF in October 2025 and now trades under the symbol AKRE. The mutual fund iteration was once a member of the Kiplinger 25, the list of our favorite actively managed no-load funds. In recent years, its rankings have slipped, and in step with other actively managed mutual funds, Akre Focus has seen a steady march of assets exit the fund.

The conversion was made to offer existing and prospective shareholders all of the benefits that come with an ETF structure: lower capital gains distributions, lower expense ratios and greater transparency. Instead of the mutual fund’s 1.32% expense ratio, for instance, the ETF charges 0.98%. And generally speaking, ETFs tend to be more tax-efficient than mutual funds because of the way ETF sponsors create and redeem shares, exchanging baskets of securities with specialized market makers instead of selling shares for cash. That means, relative to mutual funds, ETFs tend to generate fewer capital gains distributions to existing shareholders. (You still owe taxes on any gains you’ve made in the ETF when you sell your shares.)

Now comes news that venerated asset manager Primecap Management is finally embracing ETFs. The investment firm, which runs six mutual funds (three under the Primecap Odyssey banner and three with Vanguard), filed plans with regulators in early April to launch its first ETF, Primecap Odyssey Discovery. “If there was any doubt about where the puck is headed, consider it settled: Even Primecap is entering the ETF arena,” says Jeff DeMaso, editor of the newsletter The Independent Vanguard Adviser.

The new ETF will invest primarily in midsize-company stocks, according to the filing. The move acknowledges both that investors are shifting to ETFs, says DeMaso, and that “Primecap’s mutual funds have been throwing off capital gains as investors have been pulling their money from the funds. The ETF wrapper solves both problems.” We are awaiting key details about the ETF, including its symbol, expense ratio and who will be managing it.

Meanwhile, Primecap has just applied to regulators to issue ETF share classes of its existing Odyssey-branded mutual funds. We’re big Primecap fans. One of its mutual funds, Primecap Odyssey Growth, is a member of the Kiplinger 25. So we’ll be watching closely.

Primecap’s foray into ETFs comes after Dimensional Fund Advisors received the regulatory okay for DFA U.S. Micro Cap Portfolio ETF Class (DFMC), which was listed in March. It’s the firm’s first ETF share class of an existing mutual fund, in this case the 44-year-old, $7.3 billion mutual fund DFA U.S. Micro Cap Portfolio (DFSCX).

Tapping into money markets.

Better interest rates have attracted yield-starved investors to money market funds lately. It’s little surprise, then, that money market ETFs have recently materialized.

Eight exchange-traded money market funds have launched since February 2025. Among them are iShares Prime Money Market (PMMF), Schwab Government Money Market ETF (SGVT) and State Street Prime Money Market (MMK). These ETFs and their peers charge lower annual expense ratios — 0.21%, on average — than their mutual fund counterparts, which charge an average of 0.53%. And the ETFs yield more, too: 3.5%, on average, compared with 3.2% for the typical government money market mutual fund, according to Morningstar.

So far, demand for these ETFs has been driven by money managers and advisers, especially those that offer ETF-only portfolios, says TMX VettaFi’s Rosenbluth. “I think money market ETFs will gain in popularity,” he says, “but money market mutual funds are highly entrenched.” In other words, the mutual funds are unlikely to shed much in assets over the near term.

What explains, then, the billions of dollars already sitting in two particular new money market ETFs? ProShares GENIUS Money Market ETF (IQMM) has more than $22 billion in assets, and Simplify Government Money Market ETF (SBIL) holds $4.8 billion.

In both cases, the bulk of the assets represents cash positions of other funds run internally at each firm. Roughly 90% of the money in Simplify’s money market, for instance, is the cash sitting in Simplify’s 39 other ETFs. Similarly, the cash positions in ProShares’ 160-odd other ETFs make up a large chunk of the assets in ProShares’ money market ETF. “Instead of each fund managing its own cash holdings, that exposure is centralized in a single, conservative strategy,” says Mo Haghbin, the managing director of strategic products at ProShares.

But individual investors are starting to trickle in to the money market ETFs, too. For example, roughly 10% of the Simplify fund’s assets belong to individual investors, says James England, a Simplify portfolio manager and fixed-income strategist. The draw: a 3.6% yield and a low, 0.15% annual expense ratio. The ProShares money market ETF also charges 0.15% in fees, and it yields 3.5%.

You might be wondering about the “GENIUS” in the ProShares money market ETF name. The ETF is a typical government money market fund, in that it holds high-quality short-term U.S. Treasuries — hence its appeal to some individual investors. But it’s also designed for firms, such as Tether, Circle and Paxos, that issue and manage stablecoins, a type of cryptocurrency that is pegged to a more stable asset, such as the dollar.

Stablecoin issuers must meet certain thresholds for cash in reserve, as detailed in the 2025 GENIUS Act, and this ETF helps stablecoin issuers in that regard. “It’s the first money market ETF built for that purpose and is now the largest money market ETF in the world,” says Haghbin.

A hedge fund for everyone.

The slam-dunk success of a new hedge-fund ETF may point to a new chapter in opening up strategies once reserved for the wealthy to mom-and-pop investors.

State Street Bridgewater All Weather ETF (ALLW) marries State Street’s ETF trading prowess with the asset manager Bridgewater’s “all-weather” investment approach, designed to perform reasonably well in any economic environment.

Bridgewater makes the portfolio-allocation calls, deciding how much to devote to U.S. and foreign stocks, bonds and commodities, and State Street executes them. Over the past 12 months, the fund’s 24% total return outpaced 61% of its tactical-allocation fund peers. That’s a promising start; we’ll keep an eye on it until it has more of a track record.

Plenty of investors aren’t waiting; the fund has gathered $1.2 billion in assets since its March 2025 launch, making it the largest tactical-allocation ETF in the U.S. “A lot of advisers are interested in this product because they know Bridgewater. They’re getting access to a strategy they didn’t have access to earlier,” says Aniket Ullal, head of ETF research at CFRA Research.

Another options-linked option.

Calamos Autocallable Income ETF (CAIE) launched in June 2025 and already has more than $870 million in assets. For a new options-linked ETF strategy “to gather that much money that fast is pretty successful,” says Rosenbluth. The ETF’s distribution rate hovers in the mid-teen percentages, and the fund charges 0.74% in annual expenses.

The fund invests in autocallable yield notes. An autocallable note generates income in a strategy that employs options, typically linked to a market index. The note will pay a high rate of interest (the coupon rate) as long as the market benchmark doesn’t crash. “Think of it like a bond whose income and principal depend on the stock market not falling too far,” says Matt Kaufman, a senior vice president and head of ETFs at Calamos.

But there are conditions. If the stock index plummets below a certain threshold, you’ll lose the monthly coupon payments until the bogey recovers, surpassing the threshold on the way up. If, after a set period, the benchmark outstrips its starting value, the note is “autocalled” and paid off early, with your principal returned.

But in the Calamos fund, multiple notes with varying maturities help smooth out this dynamic; any returned principal is automatically reinvested. The fund invests in a weekly ladder of at least 52 autocallable yield notes, each expiring in five years. “Every week, you’re issuing a new note. The fund’s coupon rate can’t go to zero,” Kaufman says.

In a steeper, prolonged market decline, your principal is at risk, but again, the fund holds multiple notes, and the stock market loss would have to be sizable, says Kaufman — akin to the Global Financial Crisis, when the S&P 500 lost 57% in price from peak to trough.

It’s early days. The Calamos ETF is a compelling income strategy, but it’s a complex one for individual investors. There are six other listed autocallable ETFs, and more are likely to come. We’ll be watching from the sidelines for now.

A basket of crypto.

Finally, for those with a speculative streak and a sky-high tolerance for risk: Instead of pinning your star toa fund that holds just a single cryptocurrency, you can buy an ETF of multiple cryptocurrencies and thus potentially lower the risk that comes with investing in just one of these notoriously volatile digital assets.

“These multi-coin ETFs represent the natural evolution of the crypto-ETF universe,” says CFRA’s Ullal, and offer investors the opportunity to move beyond bitcoin and ethereum.

Well, kind of. Take Bitwise 10 Crypto Index (BITW), new in ETF form since December 2025 (it was previously a closed-end trust). It holds the 10 largest cryptos weighted by market value, as determined by Bitwise. But it’s heavy in bitcoin (78% of assets) and ethereum (14%). Other multi-coin ETFs exist, but after Bitwise 10, which has $756 million in assets at last report, the next-largest multi-crypto ETF is Hashdex Nasdaq Crypto Index US ETF (NCIQ), with $109 million in assets.

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If you're in the home stretch of saving for retirement, you'll generally hear that your shift into more stable assets like bonds should be gradual, and that you should continue to lean on stocks for the strong returns they've historically been known to deliver. In fact, if you're about a decade away from retirement, you may be inclined to keep a good chunk of your money in a broad mix of stocks to hit your target savings number and wrap up your career with a clear head.

But investors hoping for an upcoming period of strong returns may be in for disappointment. Some experts have been sounding the alarm that the stock market is in for a lost decade — meaning a decade of flat or considerably lower-than-average returns.

If you're banking on stock market growth to get to your retirement finish line, that's clearly bad news. Let's explore why the fear of a lost decade exists and whether you should or shouldn't believe the hype.

Stock values are super high

In late 2024, Goldman Sachs estimated that over the following 10 years, the S&P 500 would deliver an annualized nominal total return of 3%. When adjusted for inflation, that 3% drops to 1% in real terms.

Since then, experts have been on high alert for a decade of stagnant returns. And recent CAPE ratio values do paint a somewhat alarming picture.

The cyclically adjusted price-to-earnings (CAPE) ratio, also known as the Shiller P/E ratio, measures the value of the S&P 500 relative to the average of the previous 10 years of reported earnings, with those earnings adjusted for inflation. In contrast to the traditional P/E ratio, which relies on a single year of earnings, the CAPE ratio reduces the impact of short-term fluctuations, providing investors with a more stable and reliable view of the market.

In a nutshell, a higher CAPE ratio suggests the market is overvalued. A lower CAPE ratio suggests there's room for growth.

As of this writing, the CAPE ratio sits at roughly 42. The last time it rose that high was in the late 1990s, ahead of the dotcom peak.

Many investors remember the stock market imploding in 2000. But what's equally significant is that, following that crash, investors experienced a "lost decade" during which the S&P 500 produced little to no net growth. And given where the CAPE ratio is today, there's fear of a repeat.

Some of the fear may be unfounded

The idea of seeing little or no growth in your retirement portfolio can be scary. But before you panic, it's important to dig deeper.

Matthew Dicken, founder and CEO of Strategic Wealth Designers, makes the important point that concerns about high market valuations aren't exactly new, yet the market has continued to gain value.

"High valuations increase risk and may lower future returns, but they don't tell us when markets will reprice," he says.

Dicken also points out, "Markets rarely move in a straight line… A decade that ultimately produces average or below-average returns can still include periods of significant gains, corrections, and recoveries."

Frank Davis, President at New Era Financial, points out that while the CAPE ratio has historically been a useful indicator of future long-term returns, today's market is different from the one investors experienced in 2000.

"Many of the companies driving today's market gains are highly profitable businesses with strong balance sheets, substantial cash flow, and competitive positions, unlike the technology companies of the dotcom era, which were overhyped on the speculative immediate need," he explains.

Think back to the year 2000, when Pets.com became the symbol for burning millions on marketing without a clear path to profitability. The company went from a multi-million dollar Super Bowl ad to liquidation in under a year.

"Today's market leaders are generating real earnings and returning capital to shareholders," Davis continues, making them far less speculative than the internet darlings of the late 1990s.

What to do if retirement is 10 years out

A potentially overvalued stock market doesn't necessarily change the game plan for retirement savers who are only a few years or even a decade or so into their investing journeys. If you're roughly 10 years away from retirement, it's a different story.

But that doesn't mean you should resign yourself to a decade of absent returns or, worse yet, dump your stocks in a panic.

"The danger is that investors hear 'lost decade' and make drastic allocation changes that end up causing more harm than the risk they're trying to avoid," Dicken says. "No one has a crystal ball that works, so investors should focus on being properly diversified."

Davis agrees.

"Investors should not ignore today’s current valuation concerns," he says. "Too often, savers who are within 10 years of retirement lack diversification and are taking more sector risk than they should. The greatest risk may not be a major market crash, but rather a prolonged period of mediocre returns after a correction in one sector."

Dicken recommends constructing a portfolio that goes beyond stocks and bonds across various market sectors.

"Proper diversification includes other assets such as alternatives like private equity and private credit, annuities, precious metals, cash, and sometimes real estate," he says.

Dicken also says investors who are about a decade out from retirement may benefit from exposure to areas of the market that are trading at more reasonable valuations, including international stocks.

A holistic approach is best

If you're banking on your stock portfolio to deliver returns that mimic the past decade, it may be time to reset some expectations, Dicken says.

"Retirement plans built on 10% annual returns may need to be stress-tested using more conservative assumptions," he insists.

That said, Dicken thinks the best approach for the next 10 years isn't to predict market performance so much as to control the variables you can.

"That includes increasing savings rates, reducing unnecessary debt, maintaining adequate cash reserves, and ensuring [your] portfolio diversification extends beyond a handful of stocks and bonds," he explains.

Dicken also highlights the importance of preparing for an early market crash, known as the sequence of returns risk.

"A major downturn in the years immediately before or after retirement can have an outsized impact on portfolio longevity," he explains. "That's why investors should gradually build a portfolio designed not just for growth, but also for resilience."

Davis agrees, and thinks it's wise to maintain a reserve of conservative assets that could help reduce the impact of poor market performance.

Don't assume all is lost

All told, Davis says, there's no reason to assume the next 10 years will be a wash for stock market investors. Though history suggests that periods of lower returns are a normal part of the investment cycle, particularly when starting valuations are overly high, that doesn't mean the market is guaranteed to grossly underperform.

That said, Davis insists that successful retirement plans are not built on forecasts.

"Rather than attempting to predict the market's next big win, retirement savers are often better served by building a financial plan capable of weathering both strong and weak market environments," he says.

Read More

• 10 Years Until Retirement? Here Are 5 Investing Rules to Follow
• You’ve Mastered Asset Allocation — Now It’s Time for Asset Location
• I'm a Financial Planner: If You're Within 10 Years of Retiring, Do This Today
• 10 to 15 Years From Retirement? Time to Scale Back Risk

The Nasdaq Stock Market might be America’s second-largest stock exchange, behind only the 234-year-old New York Stock Exchange. But it's increasingly becoming the exchange of choice for Wall Street's best stocks.

Just take a quick glance at the S&P 500. The eight largest holdings are listed on the Nasdaq. Among them are Nvidia (NVDA), Apple (AAPL) and Microsoft (MSFT), a murderer's row of multitrillion-dollar firms and some of the market's top-rated equities.

In fact, if you homed in on the best Nasdaq stocks at any given moment, you'd be looking at companies in some pretty rarified air. And you'd probably also be a little surprised.

Although some of the Nasdaq's best stocks are the mega caps that have carried the broader market for some time, others are lesser-known names that attract fewer headlines but are nonetheless swarming with bulls.

Nasdaq ascendant

Another massive initial public offering (IPO), another feather in the cap for the Nasdaq.

Recent years have seen it capture some of the biggest IPOs of all time, including Rivian Automotive (RIVN), Cerebras Systems (CBRS) and Arm Holdings (ARM).

In June, it landed the greatest lunker of them all: SpaceX (SPCX). At $75 billion raised, the SpaceX IPO was the largest offering ever.

And it's not just new companies adding to the Nasdaq's appeal. Many of the world’s largest stocks are already aligned with the stock exchange.

The Nasdaq has managed to lure numerous mega-cap NYSE listings, including tech-related names such as Palantir Technologies (PLTR) and DoorDash (DASH) and also consumer staples stocks like Walmart (WMT), Kimberly-Clark (KMB) and Campbell Soup (CPB).

In other words, while the Nasdaq is still heavily concentrated in tech stocks, tech-adjacent companies and biotechnology names, the exchange has more breadth than you might appreciate.

How I picked the best Nasdaq stocks

First things first, I needed to whittle the Nasdaq's 4,000-plus equities to a more digestible universe.

To do that, I screened for stocks with the following characteristics.

• Trade on the Nasdaq Global Select Market, Nasdaq Global Market or Nasdaq Capital Market. These are three different tiers of the Nasdaq Stock Market covering large-cap stocks, mid-cap stocks and small-cap stocks, respectively.
• Have a market cap of at least $250 million. While I'm including large-, mid- and small-caps, I'm excluding micro- and nano-caps.
• Are incorporated in the United States. This is more for simplicity's sake—companies that report in different currencies can provide false positives in certain screens.
• Meet a few basic financial-quality criteria. We include companies that grew earnings last year, are expected to grow earnings at least 5% annually on average over the next three to five years and have a debt-to-equity ratio of less than 1.5.
• Have a consensus Buy rating. All of the stocks have an average broker recommendation of 2.5 or lower within the ratings scale established by S&P Global Market Intelligence.e. Anything with a score of 2.5 or lower is considered a Buy.
• Have at least 10 covering analysts. This ensures there's plenty of information and analysis available for these companies, and that consensus earnings estimates and ratings aren't skewed by one or two professionals.

From there, I identified the five highest-rated stocks across five different sectors. I didn't sacrifice quality to do so, either.

All five of the best Nasdaq stocks we talk about enjoy consensus "Strong Buy" ratings and fall within the 20 best-rated stocks on the entire exchange.

Data is as of June 14.

Amazon.com

• Sector: Consumer discretionary
• Market value: $2.6 trillion
• Dividend yield: N/A
• Consensus rating: 1.34 (Strong Buy)

Amazon.com (AMZN) is categorized as a consumer discretionary stock, but it's easily the most diversified company on this list, with hands in several sectors.

Amazon's businesses include its sprawling e-commerce empire, Amazon Web Services (AWS) cloud computing, Amazon Prime Video and Amazon Music streaming programming, Amazon Pharmacy, Kindle tablets, Echo smart speakers, Whole Foods grocery stores, Ring home security, Amazon MGM Studios production and distribution and so, so much more.

"We believe that AMZN merits a premium … given the company's growth in high-end offerings such as Prime and Prime Video; superior growth in AWS, digital advertising, and subscription services; and unmatched volume and vendor leverage,” says Argus Research analyst Jim Kelleher, who has a Buy rating on the stock.

Amazon is also getting involved with artificial intelligence (AI) through its AWS unit. Its Bedrock service, for instance, helps developers build generative AI applications.

As Wedbush analyst Dan Ives notes, Amazon's annual recurring revenue from AI has grown by approximately 260 times to more than $15 billion since Bedrock's launch.

"While AWS AI continues to see incremental demand," Ives writes, "customers are also leveraging AMZN's non-AI services for multiple capabilities including compute, storage, databases, analytics, security amongst others with AWS being named a leader across all cohorts."

Those are merely two of the 63 Buy calls on Amazon's stock, making it one of the largest bull camps on Wall Street. The only remaining calls are a quartet of Holds; no one, at least at the moment, is willing to call AMZN a Sell.

And despite Amazon's enormous size, at well more than $2 trillion in market cap, the pros still see the company generating robust average annual earnings growth of more than 20% over the next three to five years.

Meta Platforms

• Sector: Communication services
• Market value: $1.4 trillion
• Dividend yield: 0.4%
• Consensus rating: 1.31 (Strong Buy)

Meta Platforms (META) is the social media company, responsible for Facebook, Instagram, WhatsApp, Messenger and Threads. At the end of 2025, the company boasted 3.58 billion "daily average people" across its family of apps.

Meta, like Amazon, is one of the most-covered stocks on the planet, and those analysts are similarly bullish: Fifty-eight Buys dramatically outweigh a mere six Holds and no Sells. Projected long-term earnings growth of more than 20% a year backs those optimistic calls.

Noting that Meta has relied on ads to drive a compound annual growth rate for revenue of approximately 45% over the last 15 years, Truist analyst Youssef Squali emphasizes management's focus on building additional revenue sources so it can grow faster for longer. "These additional revenue sources are also meant to support the company's massive capex investment in pursuit of AI superintelligence," Squali observes.

But the communication services stock is down by double digits so far in 2026, most recently slipping on news that it also might be considering a multibillion-dollar sale of new shares to help finance those AI ambitions.

Indeed, META might represent the biggest question mark among the Nasdaq's best stocks right now. Argus Research analyst Joseph Bonner, for instance, has a Buy rating on the stock, but he also shares numerous reasons for caution.

"The year 2026 may be a make-or-break time for Meta's GenAI ambitions," he says. "The company has spent for talent, and the commitment of CEO Mark Zuckerberg and the company as a whole is palpable. However, Meta has yet to deliver a truly breakthrough model and will probably need to do something at least close to a breakthrough this year to maintain credibility in the AI space."

Allegro MicroSystems

• Sector: Information technology
• Market value: $9.3 billion
• Dividend yield: N/A
• Consensus rating: 1.25 (Strong Buy)

The Nasdaq's best-rated names are expectedly thick in technology stocks broadly and semiconductor stocks specifically–many of them bigger, more broadly known and better-covered than the top-rated stock in the space.

Allegro MicroSystems (ALGM) is a chipmaker that specializes in sensing, motion control and power management in electromechanical and power conversion systems. And it's increasingly focusing its efforts around four growth areas: advanced driver assistance systems (ADAS), robotics, electrification and industrial datacenters.

"The March-quarter print and June guide drive little change to numbers but reinforced the datacenter business as the most compelling growth pillar in the story," says Jefferies analyst Blayne Curtis. "The segment reached a record ~14% of total company revenue in Q4 and is tracking to grow 20%+ sequentially again in the June quarter to 16%-17% of total company sales, representing one of the highest relative exposures of Analog companies in our coverage."

Curtis also cites "one of the highest exposures to ADAS and xEV" in his bull thesis, and notes that while the automotive and industrial segments might have a little more weakness ahead, the company should "return to a [double-digit] revenue growth rate with increasing margins, given improving mix and efficiencies."

UBS's Timothy Arcuri says that after an in-line first-quarter report he still sees strong growth prospects and looks for fiscal 2027 and 2028 revenue growth in the mid-20s.

Jefferies and UBS aren't alone in their upbeat views. All 12 of ALGM's covering analysts call the stock a Buy, expecting the company to deliver 29% average annual bottom-line growth over the next three to five years.

Remitly Global

• Sector: Financials*
• Market value: $4.0 billion
• Dividend yield: N/A
• Consensus rating: 1.20 (Strong Buy)

Remitly Global (RELY) is an international money transfer company that provides digital financial services in the U.S. and roughly 170 other countries. The financial stock went public in September 2021, and it's spent the past couple of years expanding its offerings.

In 2025, it launched the Remitly One membership plan providing access to a host of products, including Remitly Flex, a no-interest "send now pay later" cash-advance product allowing for remittances up to $250; Remitly Wallet, a store-of-value product; Remitly Card, a digital debit card; and cash-back rewards. And it’s expected to launch a credit-building line of credit, Remitly Credit, this year.

RELY has been focused on expanding existing customer segments, too. June 2025 also saw the launch of Remitly for Business, a platform enabling businesses to pay employees, vendors and invoices that is predominantly focused on micro-businesses.

"Remitly has a small share of a massive, highly fragmented market; there are over 300 million immigrants and the global consumer-to-consumer cross-border payments market exceeds $2 trillion annually,” say William Blair analysts Cristopher Kennedy and Marc Feldman. "Market-share gains should be driven by expanding its presence into new geographic markets and by adding new users."

Remitly's stock has already climbed nearly 40% in 2026. However, Wall Street remains extremely bullish on the name, in part because of its potential long-term earnings growth, which analysts peg at 64% annually on average. All 10 covering analysts say RELY is a Buy, putting it among the Nasdaq's best stocks right now.

* The Global Industry Classification Standard (GICS), which publishes S&P Dow Jones Indices like the S&P SmallCap 600, classifies Remitly as a financial company. However, other data providers, such as Morningstar, classify it as a technology firm.

BrightSpring Health Services

• Sector: Healthcare
• Market value: $12.4 billion
• Dividend yield: N/A
• Consensus rating: 1.12 (Strong Buy)

The Nasdaq is known for hosting highflying biotech stocks whose novel treatments can trigger massive share spikes. However, the exchange's top-rated healthcare stock, while highflying, has nothing to do with developing drugs in a lab.

BrightSpring Health Services (BTSG) is a home- and community-based healthcare services company. Its Pharmacy Solutions platform includes pharmaceutical care to long-term care and assisted living facilities, at-home pharmaceutical care to oncology patients and specialty infusion services.

Its Provider Services arm offers home health care, hospice services, behavioral health, neuro-rehabilitation, a variety of personal care services, and even family and youth services such as counseling and foster care.

Wall Street believes its adjusted bottom line will jump by 68% this year, and that long-term earnings growth will come in around 46% annually on average. A team of Morgan Stanley analysts says growth is being driven by "a consistent playbook—strong volume underpinned by execution and quality, efficiency gains from scale and disciplined M&A," and management is applying it in large, underserved markets.

"Longer term," they write, "BTSG sees meaningful runway across a diversified set of end markets—including Oncology, Infusion, Behavioral and Home & Community—while maintaining a dual focus on driving core growth within each segment and increasingly integrating capabilities (e.g., VBC, tech-enabled solutions) to unlock incremental value across the platform."

Valuation has become a concern thanks to shares’ 70% year-to-date ascent, but the pros remain undeterred. All 17 covering analysts call BrightSpring a Buy.

"Shares trade at about 15.5 times our 2027 adjusted EBITDA estimate, toward the high end of healthcare services peers," William Blair's Jared Haase and Ryan Daniels wrote on June 3. "We believe the stock still presents an attractive risk/reward equation based on the growth momentum across the business and potential for further upside revisions to estimates."

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• Kiplinger's Investing Playbook for the Second Half of 2026

What is the best way to save money for children?

I get this question quite a bit from new and existing clients alike. It usually gets brought up by parents, but sometimes it comes from aunts, uncles, grandparents and other guardians.

The answer, as it is to so many financial questions, is: It depends on the financial goals and wishes of the saver.

While it can be hard to determine what a newborn will be interested in at age 18, opening pathways with a nest egg is a good start. Some of the most common account types to save for children:

• 529 plans
• Roth IRAs
• Uniform Gifts to Minors Act (UGMA) accounts
• Coverdell Education Savings Accounts (ESAs)

Each have a different set of benefits, depending on your priorities.

529 plans

529s are tax-advantaged savings vehicles for guardians to save for higher education. Depending on where you live, your state might offer a specific tax benefit for savings efforts.

Some states offer a tax benefit for both in-state 529 plans and plans from other states so you'll need to confirm what regulations apply to you.

Similarly, some states also recapture the benefit if the money is used for noneducation purposes. As you're considering what choice to make, one important piece of the puzzle is confirming your state tax benefits with 529 plans.

With rising higher education costs, 529 plans are becoming more impactful. The passage of the Secure Act 2.0 expanded options for those funds by allowing the rollover of funds to a Roth IRA and a change in beneficiary.

Roth IRA rollover

After an account has been open for 15 years, money within a 529 can be repurposed as Roth contributions, as long as the funds are at least five years old.

For example, if you have $10,000 in a 529 and contributed another $5,000 during year 15, that deposit must remain in the 529 account for five years before it can be moved to a Roth IRA. The initial $10,000 can be transferred during year 15.

While a minor can't sign Roth IRA account paperwork, adults can open a custodial or guardian Roth on their behalf.

I also often hear clients say, "I want to open a Roth IRA for my child." If the minor has a W-2 for wages earned, you can.

I once worked with a grandmother who opened one for a granddaughter who had a minimum wage summer job as a pool lifeguard. Once a year, the two would come in to contribute the amount in the granddaughter's W-2 to a Roth, typically a few thousand dollars.

While the granddaughter spent the money she earned on other things, her grandmother would gift her an equal amount in her Roth contribution. At 18, the grandchild was able to re-register the account in her own name.

Nonqualified distributions

While a 529 account is ideally used for education expenses, nonqualified distributions might also be an option for noneducational uses for 529 funds.

Even if used for other purposes, principal contributions can be withdrawn without tax or penalty, although earnings are charged a 10% penalty to the IRS.

If the account is started for a newborn and the nonqualified withdrawal is completed on or by their 18th birthday, the owner can still enjoy 18 years of state tax benefits and tax-deferred growth.

I sometimes get savers who put their personal experiences first when making decisions for their children's savings. I've heard many times, "I did not have a 529 to pay for higher education, and I made it work."

Other times, the saver might be concerned that a 529 could influence a child's decision to pursue higher education.

In those cases, Uniform Transfers to Minors (UTMA) and Uniform Gifts to Minors Act (UGMA) custodial accounts might be better alternatives.

UTMA and UGMA accounts

As an alternative, these types of accounts let you save for a child without the expectation that the funds will be used for education.

Instead, deposits are an irrevocable gift to the child, and the adult custodian manages investments until the child reaches the age of maturity.

Coverdell Education Savings Account (ESA)

One of the final ways to save for a child's education is with a Coverdell ESA. During my 15-plus years in the industry, I've seen few of these.

In my opinion, 529 accounts are often preferable, given their flexibility. ESAs have low contribution limits, and the assets must be used by age 30.

High-income earners are also ineligible for these accounts and others can only contribute to the account until the child's 18th birthday.

So many choices — what should you do?

I have children and reviewed the same options for my family. For our circumstances, I found the best options to be an UTMA and 529.

The benefits of the 529 shine the most in my opinion, and I have automatic monthly contributions to a 529 for each of my children. As they become comfortable making their own financial decisions, I'm onboard with Roth contributions for unused 529 assets or even cashing out the accounts to give the cash to my children.

I can even transfer an unused 529 for one child to another, without tax or penalty while replacing the funds with personal savings.

For the UTMA account, I deposit any gifts of cash my children receive for holidays or birthdays. To encourage good financial values, I let them decide how much to save.

For those trying to pick the best option for their family, whichever path you choose, you're working toward a goal. We don't know what the future holds, but rest assured you helped your loved one in some way with your savings efforts.

Related Content

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Oil and gas investing has always been tied to geology, engineering and price cycles. But today, investors also need to understand something else: Geopolitics.

A well in Texas, Oklahoma or North Dakota may be drilled on American soil, but its value is still shaped by decisions made in Riyadh, Moscow, Tehran, Beijing, Brussels and Washington. The oil market is global.

• A barrel taken off the water in the Middle East can change the economics of a barrel produced in the Permian Basin
• A sanction written in Washington can redirect tankers halfway around the world
• A refinery bottleneck, shipping disruption or political conflict can move prices before a single rig changes direction

That is why global-minded investors should not look at U.S. oil and gas only as a commodity play. They should look at it as a strategic asset class influenced by policy, security, infrastructure and capital discipline.

OPEC+ still matters, but its power is changing

For decades, OPEC, and later OPEC+, have played a major role in balancing global oil supply. When the group cuts production, the market often tightens. When it adds barrels, prices can soften.

But the influence of OPEC+ is not what it used to be. U.S. shale changed the world by adding flexible, private-sector supply outside the traditional producer cartel. At the same time, internal politics inside OPEC+ have become more complicated.

The group has to balance national budgets, market share, spare capacity, geopolitical alliances and long-term demand concerns.

Recent OPEC+ decisions show that the group is still trying to manage supply carefully. In May 2026, several OPEC+ countries announced another output target increase for June, continuing a gradual effort to add barrels while navigating a disrupted market.

For investors, the takeaway is simple: OPEC+ is still important, but it is not the only force that matters. U.S. producers, sanctions policy, shipping routes, global inventories and demand from Asia now all share the stage.

Geopolitical risk is a valuation factor

When investors value an oil and gas asset, they often focus on reserves, decline curves, operating costs, acreage quality and expected commodity prices. Those are all critical.

But geopolitical risk can change every one of those assumptions.

• If global supply is interrupted, U.S. barrels become more valuable
• If sanctions remove supply from Russia, Iran or Venezuela, the market may need more reliable production from North America
• If shipping routes become unsafe or expensive, buyers may prefer barrels from politically stable regions
• If global inventories fall, the value of near-term production can rise

The U.S. Energy Information Administration's June 2026 Short-Term Energy Outlook forecast that global oil inventories would fall by an average of 6.3 million barrels per day in the second quarter of 2026, with Brent crude averaging around $105 per barrel in June and July under EIA's assumptions.

However, as of June 18, oil prices had moved lower following U.S.-Iran ceasefire and Strait of Hormuz reopening developments, with Brent settling at $79.85 per barrel and WTI at $76.60 per barrel.

That matters because oil and gas valuations are not based solely on today's spot price. They also depend on expected future cash flows, the forward curve for Brent and WTI, risk-adjusted discount rates, operating costs, geopolitical risk and confidence that production can be developed, transported and sold into the market.

In plain English, uncertainty can either hurt or help valuations. It hurts when it raises costs, delays projects or scares capital away.

It helps when secure U.S. production becomes more valuable compared with barrels trapped behind sanctions, war risk or transportation chokepoints.

Sanctions are reshaping supply flows

Sanctions have become one of the most powerful tools in global energy policy. They do not always remove barrels from the market completely, but they can change who buys them, how they are transported, what discount they trade at and which companies are willing to touch them.

Russia, Iran and Venezuela are the clearest examples. Each country has significant hydrocarbon resources, but sanctions and political risk affect how those resources move into the global market.

The U.S. Treasury's Office of Foreign Assets Control continues to issue energy-related guidance and licenses tied to sanctioned countries, including Iran and Venezuela.

For investors, sanctions create both risk and opportunity.

The risk is compliance. No serious investor wants exposure to assets, counterparties or transport routes that create legal or reputational problems.

The opportunity is scarcity. When sanctioned barrels become harder to finance, insure or move, compliant U.S. production can command a stronger strategic position.

That does not mean every U.S. oil and gas investment automatically becomes attractive. It means investors should pay closer attention to where production is located, who operates it, how it is financed and how it connects to pipelines, refineries, export terminals and buyers.

Supply chain shocks now hit the oil patch directly

Energy investors sometimes think of supply chain risk as something that affects technology or manufacturing. That is a mistake.

Oil and gas production depends on steel, pipe, sand, rigs, pumps, compressors, chemicals, labor, trucking, pressure-pumping crews and specialized equipment. If those inputs become scarce or expensive, drilling costs rise. If costs rise faster than oil prices, margins shrink.

The Dallas Fed Energy Survey reported that oil and gas activity in its region increased in the first quarter of 2026, with the business activity index rising from negative territory to 21.0. But executives also continued to operate in an environment of elevated uncertainty.

That is the real world of energy investing. Higher oil prices do not automatically translate into higher returns. A strong operator still has to control costs, execute drilling plans, manage service contracts and avoid overpaying for acreage.

This is where discipline matters. In my view, investors should favor operators and projects that use conservative price assumptions, have clear cost controls and do not rely on perfect conditions to work.

Friend-shoring is coming to energy

The term "friend-shoring" is usually used to describe manufacturing, semiconductors or critical minerals. It means moving supply chains toward countries that are politically aligned, commercially reliable and less likely to weaponize trade.

Energy is becoming part of that same conversation.

Countries do not just want cheap energy anymore. They want secure energy. They want supply from partners they trust. They want LNG, crude oil, refined products, uranium, minerals and equipment from places that will still be available during a crisis.

That trend can support the long-term strategic value of U.S. oil and gas. The United States has private mineral ownership, deep capital markets, advanced drilling technology, established infrastructure and a legal system investors understand.

Those advantages matter more in a world where security of supply is no longer taken for granted.

The International Energy Agency recently noted that global natural gas investment is expected to rise in 2026, while upstream oil investment is projected to decline for a third straight year. That combination is important. The world still needs energy, but capital is becoming more selective about where it goes.

What this means for portfolio strategy

For large portfolio managers, policy analysts and global investors, oil and gas exposure should not be treated as a simple bet on the next price move.

A better framework is to ask five questions:

• Is the asset located in a politically stable region?
• Does the operator have a cost structure that works at conservative oil and gas prices?
• Does the project have access to infrastructure, including pipelines, processing, water handling, storage and export capacity?
• Are the cash-flow assumptions based on realistic decline curves and operating costs?
• Does the investment improve portfolio resilience, or does it simply add more volatility?

Direct oil and gas investments can play a role in a diversified portfolio, but they are not for everyone. They are illiquid, operationally complex and exposed to commodity risk.

Investors should review tax considerations, risk disclosures, sponsor experience and suitability with their own advisers before committing capital.

That said, the strategic case for U.S. oil and gas is not going away. The world may debate the pace of the energy transition, but it continues to consume large volumes of oil and natural gas.

Demand may change over time, but security of supply is moving higher on the priority list.

Tomorrow's wells are being shaped today

The wells that get drilled tomorrow are being shaped by today's conflicts, sanctions, shipping lanes, interest rates, service costs and policy decisions.

That is why energy investing requires a wider lens. The investor who watches only the oil price is missing the bigger picture.

The investor who studies geopolitics, capital discipline, supply chains and U.S. production quality has a better chance of understanding where value may be created.

In my opinion, the future of oil and gas investing will not be won by chasing headlines. It will be won by owning quality assets, partnering with experienced operators and respecting both the opportunity and the risk.

Geology still matters. Engineering still matters. Cash flow still matters.

But in today's world, geopolitics matters, too.

Related Content

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• High Earners Who Choose Direct Energy Investing Can Reap Tax Advantages and Other Wins: Here's How
• Energy Investing Is a Long Haul: How You Can Prepare the Road Ahead for Your Heirs
• 3 Niche Oil and Gas Investments for Next-Gen Wealth Builders
• Tax Advantages of Oil and Gas Investments: What You Need to Know

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.

Today's couples often build deeply intertwined lives long before, after or without marriage. They share homes, combine expenses, raise children, support aging parents and make long-term financial decisions together.

What often lags behind is the planning structure to support that life. Day-to-day systems can work smoothly for years, obscuring the fact that many legal and financial defaults still hinge on marital status, formal ownership and written authority.

LGBTQ+ couples have long navigated this gap firsthand, offering a clear example of why intentional financial planning matters.

Who has legal and financial authority?

One of the most overlooked planning gaps is authority during incapacity. Without explicit documentation, an unmarried partner may have no legal right to receive medical information, make treatment decisions or manage finances — even if they share a life in every practical sense.

LGBTQ+ financial planning frameworks underscore the importance of healthcare proxies, powers of attorney and account access as foundational elements of a sound plan.

For modern couples, these documents help ensure the most trusted person can act when decisions need to be made quickly, rather than defaulting to state law or next-of-kin rules that may not reflect reality.

Do beneficiaries match intent?

Beneficiary designations often override wills and estate documents, yet they are easy to overlook during major life changes. Career moves, new relationships, children or second marriages can leave outdated beneficiaries quietly in place for years.

LGBTQ+ planning conversations consistently highlight this risk because beneficiary alignment is one of the simplest ways to avoid unintended outcomes.

Regular reviews of retirement accounts, insurance policies and payable-on-death accounts can help ensure assets pass as intended — without confusion, delay or conflict during emotionally charged moments.

How is property actually owned?

Modern couples often co-own homes or contribute differently to shared property. One partner may provide the down payment, while the other covers monthly expenses or renovations.

Without clarity, it can quickly become unclear whether those contributions should be treated as gifts, reimbursements or equity.

A more disciplined planning approach aligns property titling with written agreements, such as cohabitation or marital agreements, so ownership and exit terms are clear.

LGBTQ+ households often adopt this discipline early, recognizing that intent alone does not determine legal outcomes when property must be divided or sold.

Are insurance and liquidity aligned with risk?

Life, disability and liability insurance are often purchased reactively — or not revisited as circumstances change. Yet, for modern couples, particularly those with children, businesses or income asymmetry, insurance plays a critical role in protecting both partners.

Insurance supports continuity, not just loss replacement. Adequate coverage can reduce the risk of forced asset sales, protect surviving partners and create breathing room during periods of loss or transition. Maintaining liquid reserves serves the same purpose.

Does the estate plan reflect the family?

Estate planning gaps are amplified for modern couples because default intestacy laws — which govern asset distribution when someone dies without a will — rarely account for blended families, unmarried partners or chosen-family structures.

These laws typically prioritize legal spouses and biological relatives, not the people most involved in daily life. Delaying planning can result in outcomes that conflict sharply with a couple's values and expectations.

LGBTQ+ planning checklists place particular emphasis on coordinating wills, trusts and guardianship provisions so that children, partners and extended family members are treated intentionally.

For modern couples, estate planning is not just about wealth transfer but also about clarity, dignity and control.

Turning intent into protection

What LGBTQ+ households demonstrate especially clearly is that good intentions are not a substitute for structure. A disciplined planning approach creates a repeatable way to align how couples live with how financial and legal systems recognize them — and turns abstract conversations into concrete decisions.

For modern couples, this process is not about anticipating failure. It is about reducing uncertainty when life changes — through illness, career shifts, separation or death — and ensuring decisions reflect shared values rather than outdated defaults.

Planning for the life you're already living

Modern couples are redefining partnership, commitment and family. LGBTQ+ households, having navigated these realities without built-in protections for years, offer a useful lesson: Planning works best when it is intentional, documented and regularly revisited.

A simple, disciplined framework can close the gap between how couples live and how outcomes are determined — protecting both partners and the life they have built together.

Related Content

• Three Financial Planning Tips for the LGBTQ+ Community From an LGBTQ+ Financial Adviser
• Protect Your Family's Future: Avoid These 12 Common Estate Planning Mistakes
• I'm a Wealth Planner: These 3 Steps Can See You and Your Heirs Through a Wealth Transfer
• An Estate Planning Attorney's Guide to the Importance of POAs
• Is Spring Fever Compelling You to Refresh Your Portfolio? 3 Ways You Could Be Acting Impulsively

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

Stocks gapped up at the opening bell on Thursday and ended a holiday-shortened week on an upbeat note after the U.S. and Iran reached an agreement that opens the Strait of Hormuz on a provisional basis for 60 days.

The prospect of peace in the Middle East and relief from an energy shock revived animal spirits dulled by Federal Reserve Chair Kevin Warsh's hints of higher interest rates during the press conference after the first Fed meeting of his tenure.

By the time the closing bell rang, the blue-chip Dow Jones Industrial Average was up 0.1% for the day and 0.7% for the week at 51,565, good enough for another new all-time weekly closing high.

The S&P 500 had added 1.1% at 7,500, bringing the broad-based index to a 0.9% gain for the week. The tech-heavy Nasdaq Composite was up 1.9% on Thursday and 2.4% for the four days at 26,517.

The front-month West Texas Intermediate crude oil futures contract declined by 0.4% to $75.71 per barrel. WTI was down more than 10% this week and is now just 13% above its closing price on February 27, the day before the war in the Middle East began.

The 2-year Treasury yield ticked up to 4.177% from 4.163% on Wednesday. This market-based barometer of short-term interest rates hit a 52-week high on Thursday.

Following its two-day meeting this week, the Fed held the federal funds rate steady at 3.50% to 3.75%. Its short statement concluded with a firm commitment to the inflation half of its dual mandate: "The Committee will deliver price stability."

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As Louis Navellier of Navellier & Associates notes, Warsh "was perceived as more hawkish than hoped for" during his first (and maybe last) FOMC press conference.

"The commentary Warsh gave made it clear that, currently, unless inflation falls much closer to the 2% target, which he made clear would not be changed, a rate hike was likely by year's end," Navellier concludes.

You can catch up on news and developments around the FOMC meeting at our June Fed meeting blog.

Apple and Intel are making a deal

Intel (INTC, +10.6%) was among the top-performing S&P 500 stocks on Thursday, and Apple (AAPL, +0.7%) was higher, too, after President Donald Trump posted about a big deal between the two iconic American companies early Thursday morning.

"Apple has agreed to work with Intel to design and build its Chips in America," Trump said in a lengthy post on Truth Social. "The Technology the World relies on was invented in America," he began. "We all remember 'Intel Inside.'"

Indeed, we do, and the president wants to undo the work of his predecessors who allowed "Taiwan and others [to] steal our Semiconductor Factories" and "forgot to protect our Industries with TARIFFS."

Neither Intel nor Apple confirmed the president's post, though The Wall Street Journal reported on May 8 that the companies had reached a preliminary chipmaking agreement.

Elsewhere in an otherwise rapidly expanding tech universe, SpaceX (SPCX, -3.6%) posted a second straight down day amid the afterburn from the biggest IPO ever.

Big Blue has no bounce

International Business Machines (IBM, -5.1%) was the worst-performing Dow Jones stock on Thursday, sliding along with Accenture (ACN, -16.3%) after the fellow IT services provider shared worse-than-expected top-line guidance for its full fiscal year, citing operating conditions in the Middle East.

CEO Julie Sweet said during the tech stock's conference call that the war was impacting spending plans for many of its clients. Management also noted market concerns about the impact of artificial intelligence (AI) on its business.

Accenture now expects to see revenue growth of 3% to 4%, down from an estimate of 3% to 5% in March. ACN stock had its worst day on record on Thursday.

Related content

• Earnings Calendar and Analysis for Next Week (June 22-26)
• 3 Ways Kevin Warsh Will Change the Fed
• Kiplinger's Investing Playbook for the Second Half of 2026

Imagine spending 40 years meticulously building a legacy, only to have it dismantled in 40 days because of a single, outdated signature.

For many high-net-worth individuals (HNWIs), their estate plans are often their "set-it-and-forget-it" documents, and only a few realize that this is a remarkably costly oversight.

It's true that the initial signing of a will or trust feels like the end game, but a legacy plan actually functions like a high-performance engine that requires consistent tuning so it remains operational.

Ultimately, the plan's legal power is only as effective as your most recent and updated signature.

When we look at American wealth management, the gap between life changes and legal updates is jarring. A 2024 survey sponsored by Bank of America found that only 27% of legal and financial clients update their plans every one to four years.

What's even more concerning is that 39% of the demographic do so only every five to nine years.

This delay creates a dangerous administrative lag between your current status and your legal instructions.

As we get older, family dynamics shift rapidly, but the documents governing life transitions often remain frozen. If your plans aren't current after a major milestone, you are proactively leaving behind a ton of legal disputes and increased tax burdens to your loved ones.

That could even lead to the very real possibility that your hard-earned wealth could end up in the hands of the wrong people.

Protecting your youngest heirs from 'accidental' probate

The birth of a child or grandchild is a moment of profound joy, but it also fundamentally changes the math of your estate. A common mistake many make is assuming that "natural heirs" are automatically covered under general language.

However, unless your plan is specifically updated to reflect a new beneficiary, that child may not have the legal protections they deserve.

This is especially critical for naming guardians. If your plan is not current, the decision about who raises your child may be left to a judge, and that is every parent's nightmare.

An updated estate plan should also lay out how and when a child receives an inheritance. For younger beneficiaries, that may mean naming a trustee to manage assets until they reach the legal age of majority. Normally, that age is 18, though it can vary by state.

For adult children, a structured distribution plan can offer added protection from lawsuits or other financial risks.

The necessity of a post-divorce estate audit

Divorce can change an entire estate plan in a lot of surprising ways, and they aren't always immediately obvious.

Technically, the court decree divides marital property. The problem is, it does not always automatically update every individual account or legal instrument.

That means any non-probate assets, including insurance policies and certain bank accounts, often pass outside the probate process and go directly to the beneficiary named on the account or policy.

In that case, you would need a comprehensive review as soon as possible. If beneficiary forms remain unchanged, an ex-spouse could maintain a valid legal claim to some of your most significant assets, regardless of what your current will states.

In many jurisdictions, a single forgotten designation can legally override your intended distribution.

The risks extend to your primary decision-making documents as well. For instance, an outdated power of attorney or healthcare directive can still give an ex-spouse the legal authority over your finances or medical care when you become incapacitated.

Outdated guardianship provisions can create the same kind of risk.

In a nutshell, if every designation still reflects your life before the divorce, they can trigger legal conflict and cause emotional and mental distress to your children at the very moment they need stability the most.

Why remarriage needs a plan overhaul

Remarriage certainly introduces a distinct set of complexities that can trigger "accidental disinheritance."

Without immediate and precise revisions, a new spouse might be left with no legal claim to your estate, and that often results in sudden financial hardship.

Conversely, when your entire estate is left to a current spouse, it can inadvertently disinherit children from a prior marriage.

Let's say that the spouse passes away later without their own updated plan, or is not on good terms with your kids — those assets may never reach your children as you originally planned.

In these blended family scenarios, assets are frequently distributed unevenly or unfairly, and that happens in real life.

So, an immediate review allows you to establish trust structures, such as a QTIP trust, that provide for a surviving spouse during their lifetime while ensuring the remaining principal eventually goes to your biological children.

Also, this secures that the new branch of your family tree is nurtured without starving the original roots.

The urgency of alignment

The moment a child is born, a marriage dissolves or a family blends, your existing estate plan becomes a historical document instead of a functional legal shield. Failing to act immediately creates a dangerous window where your legacy is governed by outdated (or malicious) intentions.

Life is unpredictable, so if a crisis occurs before your designations are updated, the law will not take your current intentions into account. It will follow the signature on file, even if that signature belongs to a life you no longer recognize.

The urgency here is not merely administrative. You want to ensure an ex-spouse does not inherit a retirement account by default, or a newborn is not left without a court-vetted guardian, or a new partner is not sidelined by rigid probate laws.

These life transitions move with incredible speed, and your legal framework must move faster to ensure your wealth serves your current family and circumstances.

Utilizing modern tools ensures that these vital updates are both signed and immediately accessible.

In estate planning, the only thing more costly than a mistake is a delay.

I would urge you not to wait for the "perfect time" to reconcile your documents with your life. By then, it may already be too late.

Related Content

• What Really Happens in the First 30 Days After Someone Dies (and Where Families Get Stuck)
• The 4 Estate Planning Documents Every High-Net-Worth Family Needs (Not Just a Will)
• An Attorney's Guide to Your Evolving Estate Plan: Set-It-and-Forget-It Won't Work
• Wills Gone Wild: How to Avoid Estate Planning Disasters
• Choosing Your Trustee: These Are the Common Options

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.

"Fiduciary" may be one of the most overused words in the world of financial advisor marketing.

Consumers hear it everywhere: Advisor websites, television ads, matching services, professional designations and trade association campaigns. The message sounds reassuring: "Trust me. I am a fiduciary."

But consumers should slow down. The word "fiduciary" does not always mean what you think it means.

A legal fiduciary relationship for investment advisers is governed by federal or state law. The SEC says an investment adviser's fiduciary duty under the Investment Advisers Act of 1940 includes both a duty of care and a duty of loyalty.

But many advisors and marketing platforms use the word more loosely, blending legal obligations, professional ethics and marketing language into one trust-building slogan.

That creates confusion.

Three different kinds of 'fiduciary'

Consumers should understand that the word can be used in at least three different ways.

A moral fiduciary is someone who tries to do the right thing because of personal character.

An ethical fiduciary is someone who agrees to follow a professional code, oath or set of standards.

For example, the National Association of Personal Financial Advisors (NAPFA) has a Code of Ethics that requires its fee-only financial advisor members to act with honesty, objectivity, competence, confidentiality and fiduciary responsibility by always placing the client's interests first.

Certified Financial Planners also must act as ethical fiduciaries when providing financial advice under the CFP Board's standards.

A legal fiduciary is someone subject to fiduciary obligations under federal or state law, typically because they are acting as an investment adviser or investment adviser representative.

Those three fiduciary obligations are not the same thing.

Credentials do not automatically create a legal fiduciary relationship

A financial advisor may have completed fiduciary training, signed an oath or earned a professional designation. That may be valuable. But it does not necessarily mean the advisor is acting as a legal fiduciary at all times, for all advice, for all clients.

For example, the Accredited Investment Fiduciary® designation reflects fiduciary-related training, an exam and an ethics requirement.

That education provided by the Center for Fiduciary Studies may be useful, but consumers should not assume a professional designation alone creates a legal fiduciary relationship.

The same caution applies to other professional credentials. Passing an exam, joining a professional association or signing an ethics statement may indicate training or commitment. It does not automatically answer the consumer's most important question: What legal fiduciary standard applies to this advisor's advice to me?

The better question: How are you paid?

Consumers should not stop at, "Are you a fiduciary?"

Ask instead: "Are you legally required to act as a fiduciary at all times, for all advice, for all clients?"

Then ask: "How are you compensated?"

That second question may be even more revealing. Fee-only financial planners are paid directly by clients and do not receive sales commissions or compensation tied to the sale of financial products.

NAPFA defines fee-only advice as compensation paid solely by the client, with no commissions, referral fees or other compensation contingent on product sales.

That is a much clearer consumer test than vague fiduciary marketing.

Don't be sold by a marketing buzzword

The financial services industry has discovered that fiduciary is a powerful marketing word. But a consumer should treat that word the way they would treat a car salesperson saying, "Trust me, I'm giving you a great deal."

Maybe true. Maybe not. Verify it.

Before hiring an advisor, ask for written answers to these questions:

• Are you fee-only as defined by NAPFA?
• Do you sell financial products?
• Do you receive sales commissions, referral fees or revenue sharing?
• Are you legally required to act as a legal fiduciary to me at all times?
• Will you put that legal fiduciary commitment in writing?
• Do you provide comprehensive financial planning, or only investment management?

The word fiduciary still matters. But it is not enough.

Consumers need more than a marketing slogan. They need clear answers, transparent compensation and objective financial advice.

Related Content

• The Financial Fiduciary Standard Explained
• Three Ways Fiduciary Financial Planners Put You First
• Objective Financial Advice vs a Product Pitch: How to Ensure You Hire the Right Financial Expert Rather Than a Salesperson
• If You're Looking for Financial Advice, Start With This Question (It Isn't About Fees)
• I'm a Financial Adviser: This Is Why I Became an Advocate for Fee-Only Financial Advice

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 main equity indexes were moving sideways through midday on Wednesday, as markets awaited word from the new leader of the world's most important central bank about inflation, interest rates and economic growth. All three fell sharply following the release of the first FOMC policy statement under the leadership of new Fed Chair Kevin Warsh.

Maybe it's a little too simple, maybe it's not when the new chair is as loudly committed to keeping a tighter lid on Fed communications as this one is, but the Federal Open Market Committee used 344 words to announce a historically split decision following its April meeting, the final one under Jerome Powell's leadership.

Today, the FOMC approved a 132-word statement to announce a unanimous 12-0 decision to hold the target range for the federal funds rate steady at 3.50% to 3.75% "in support of the Federal Reserve's dual mandate." The FOMC also "reaffirmed its policy of maintaining ample reserves in the banking system."

Economic growth is solid "despite elevated uncertainty that owes, in part, to the conflict in the Middle East," with strength in productivity and capital investment. Job growth is keeping up with labor force growth, and the unemployment rate is steady.

Noting that inflation is above the Fed's 2% target "in part reflecting supply shocks that have driven price increases in certain sectors, including energy," the Warsh Fed delivered a terse conclusion: "The Committee will deliver price stability."

You can catch up on news and developments around the FOMC meeting at our June Fed meeting live blog.

Will the Fed raise the federal funds rate?

Market-based interest rates were up across the maturity spectrum, with the 2-year Treasury yield, widely watched as a gauge of short-term policy, rising to 4.216% from 4.047% on Tuesday.

CME FedWatch, which tracks the probability of rate cuts and rate hikes based on 30-day fed funds futures prices, indicates the Warsh Fed could raise interest rates as soon as October.

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Continuing uncertainty about the details of a memorandum of understanding between the U.S. and Iran that would open the Strait of Hormuz lifted the front-month West Texas Intermediate crude oil futures contract by 0.3% to $75.49 per barrel.

By the closing bell, the blue-chip Dow Jones Industrial Average had declined by 1% to 51,493, despite reaching another new all-time high on an intraday basis. The broad-based S&P 500 was down 1.2% at 7,420, and the tech-heavy Nasdaq Composite was off 1.3% at 26,021.

AVGO is an 'aggressive buy'

Broadcom (AVGO, +4.3%) led a rally for semiconductor stocks after Morgan Stanley analysts Harlan Sur and Mayur Ramdhani reiterated their Overweight (Buy) rating and said they'd be "aggressive buyers at current levels."

Indeed, the analysts see potential upside of 47.6% from AVGO's closing price on Wednesday based on their 12-month target price of $580. And it'll get there because of its "significant dominance" in advanced chip packaging and design.

Sur and Ramdhani note that Broadcom has helped Alphabet's (GOOGL, -2.5%) Google unit develop 14 advanced chips during a decade-long partnership, though markets have questioned the durability of that arrangement given Alphabet's ambitions to take chipmaking in-house.

AVGO was down 21.8% from its all-time closing high of $481.57 on June 2 through June 16, trimming its year-to-date gain to 9.1%. But Broadcom's trailing-12-month return is back well above 50% after today's price action.

Did a defensive stock take a SPCX hit?

Verizon Communications (VZ, -1.8%) is one of the best defensive stocks amid elevated uncertainty, but it does face rising competitive pressure from one of the hottest names in the market: SpaceX (SPCX, -5.0%).

UBS analyst John Hodulik framed the problem at a conference in December in a three-part question to CEO Greg Sankey of Verizon's "terrestrial" mobile service peer AT&T (T, -3.0%) about "low Earth orbit" service providers.

"Do you see LEO infrastructure as a complement or a substitute to terrestrial networks? How do you expect the business model of the LEO providers to evolve over time? And is it something that we should worry about as terrestrial mobile investors?"

AT&T and Verizon aren't staying Earth-bound, but they are using AST SpaceMobile (ASTS, +3.9%) rather than SpaceX unit Starlink to pursue their extraterrestrial ambitions. And AST lacks launched satellite capacity right now.

Hodulik reiterated his Neutral (Hold) rating on VZ stock and a $48 12-month target price after management introduced new service and device plans on June 15, as well as a loyalty program focused on customer retention.

Verizon expects the plans and the program "to be accretive to revenue and EBITDA growth and drive continued churn reduction." Management also confirmed its full-year financial guidance.

SPCX stock, meanwhile, had its first down day as a publicly traded company, three trading sessions after it debuted with the biggest IPO ever.

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• 3 Ways Kevin Warsh Will Change the Fed
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• Kiplinger's Investing Playbook for the Second Half of 2026

In TV and movies, retirement magically falls into place. After years of loyal work for one company, an employee signs off for a carefree retirement of traveling, golfing and spending time with grandchildren. The end.

It's debatable whether this was ever an accurate depiction, but one thing is certain: Retirement has clearly shifted over the past few decades. People are working longer and hold several jobs over the course of a lifetime.

According to the Bureau of Labor Statistics, late Baby Boomers (those born between 1957 and 1964) will hold an average of 12.9 jobs from age 18 to 58. Younger Americans are expected to have even greater job mobility.

These changes can pose hidden costs in the form of increased tax liabilities.

However, the good news is, even though work and retirement may have grown more complex, Americans have a lot of options at their disposal.

Here are five strategies that will help you keep more of what you've earned over your lifetime.

1. Start planning early

It's never too early to start planning for retirement. But ideally, you should start having extensive discussions with your adviser roughly 10 years before you expect to stop working.

The more time you give yourself, the more carefully you can consider cash flows and ways to optimize your tax liabilities throughout retirement.

2. You can't 'set and forget' a 401(k)

For most people, the biggest ticking time bomb in their retirement is their pretax 401(k)s. Many people assume they'll be in a lower tax bracket when they retire. But because a growing number of retirees are taking part-time work, consulting, starting businesses or growing their other investments, they often find themselves in their highest-earning years right when they hit the required minimum distribution (RMD) age, which is 73 (rising to 75 for those born in 1960 and later).

Though you can avoid taking RMDs if you're still employed by the company where you have your 401(k), this only postpones the inevitable. Also, since people tend to move jobs throughout their lives, there's a good chance that you may also have IRA rollovers that will require RMDs.

3. Consider a Roth conversion

Financial advisers often urge young people to invest in a Roth IRA, as this strategy leverages their longer time horizon to achieve tax-free growth. But the Roth IRA strategy is also effective for older people who may have graduated into higher income through their RMD years.

Your financial adviser can use a tool to measure all income sources — RMD and non-retirement withdrawals, Social Security income, qualified distributions and Roth conversions — over a projected 25-year retirement to determine how to deliver the greatest tax efficiency. This can help save retirees tens of thousands in lifetime taxes.

4. Avoid inheritance complications

The ticking time bomb element of a pretax 401(k) not only affects retirees, but can also pose problems for their heirs. Once portfolios are passed on, children must take minimum distributions and then deplete the full account by the end of year 10.

This can create further complications for heirs who are often at their peak earning years, forcing them to withdraw at a higher tax bracket. When you convert into a Roth IRA, heirs also inherit tax-free.

5. Maximize different phases of retirement

Retirees should consider converting to a Roth IRA in the early years of their retirement, before RMDs are in effect, as this can allow you to leverage a lower tax bracket.

For example, some people decide to take early retirement (at 60 to 62) before they are eligible for Social Security. They may have some savings on the side coupled with a part-time job that they use primarily for health insurance.

You can leverage this early period to complete the Roth conversion while your income is still low.

Your Hollywood ending

If you're invested in a 401(k) plan, congratulations. Only 59% of U.S. adults are invested in some form of retirement account. But investing into a 401(k) without planning for retirement could mean you're setting yourself and any heirs up for a potentially hefty tax bill.

By starting the planning process well before your 65^th birthday and then taking advantage of the different phases of retirement, you can keep more of what you've earned, enjoy a long and fulfilling old age, and even leave a legacy to your loved ones. That's the real happily ever after.

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• We've All Heard the Buzz About Roth Conversions, But Not Everyone Will Like the Reality
• 8 Factors to Consider When Considering a Roth Conversion
• Where a Trump Account Might Fit in Your Financial Strategy for Your Newborn (Agree With Him or Not, Your Child Stands to Benefit)
• Important Planning Considerations: Insurance & Long-Term Care

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

By the time many real estate investors buy their last property, they are no longer chasing opportunity. They are chasing a tax deferral.

That may sound harsh. But after years as a financial professional working with investors selling appreciated real estate, I have noticed something important: Many people do not actually want another property. They simply do not want the tax bill.

So they buy something anyway.

A few years ago, a man walked into my office who had done extraordinarily well in real estate. Over several decades, he had built a portfolio of roughly 160 single-family rental properties. He had appreciation. He had cash flow. He had equity most investors only dream about.

He was also exhausted.

As we sat down, I expected the usual conversation: Cap rates, depreciation, financing, 1031 exchange timelines. Instead, after a few minutes, he leaned back and said something I have never forgotten.

"I don't think I want another property," he said. "I think I just want relief."

Then we moved on to the conversation he actually needed to have.

The question most investors never ask

When investors approach a 1031 exchange, the conversation almost always begins with taxes.

• How much do I owe?
• How long do I have?
• What qualifies as replacement property?

These are important questions. The 1031 exchange remains one of the most powerful tax-deferral tools available to real estate investors.

But there is a bigger question that rarely gets asked: What role do I want real estate to play in the rest of my life?

For many investors, the answer to that question has changed, often without them fully realizing it.

The problem is that the 1031 process does not pause long enough for them to notice.

The 45-day clock changes behavior

Once a property closes, the investor has just 45 days to identify a replacement property. That clock creates a particular kind of pressure worth understanding.

Under pressure, people optimize for the immediate problem in front of them. In a 1031 exchange, the immediate problem is almost always taxes.

For many investors, the potential capital gains tax bill is large enough to change behavior. So instead of asking bigger questions about lifestyle, concentration risk or long-term goals, the focus narrows to one thing: How do I avoid paying taxes right now?

That is how a person who quietly wants fewer responsibilities ends up buying another property.

The replacement property often looks reasonable on paper. It may be newer, larger or located in a stronger market. It may promise fewer headaches than the property being sold.

But six months later, many investors realize something important: They solved a tax problem and created a lifestyle problem.

The last property is often different from the first

Most successful real estate investors built wealth through concentration, patience and hard work.

They bought properties when others would not. They dealt with tenants, vacancies, repairs, financing issues and economic cycles. They accepted the burdens of ownership and benefited from appreciation over time.

But eventually something changes.

The investor who once enjoyed operating properties begins valuing simplicity more than expansion. The appeal of another roof replacement fades. Retirement becomes less theoretical and more real. Children often do not want to inherit management responsibilities.

And quietly, many investors begin asking themselves a question they never expected: Why am I still adding to a portfolio I would rather be exiting?

That is a completely different objective than the one that built the portfolio in the first place.

Yet many investors continue buying replacement property as though nothing has changed.

When relief becomes the goal

There is nothing wrong with wanting relief.

• It is not laziness
• It is not failure
• It is not a lack of ambition

It is simply the recognition that the goals driving wealth accumulation are not always the same goals that serve wealth preservation.

That distinction matters because a 1031 exchange is not just a tax decision. It is often a life decision.

Investors who recognize this early usually have more options.

Structures like Delaware statutory trusts (DSTs) and 721 exchange strategies were created for investors who want continued real estate exposure without remaining active landlords.

They are not appropriate for everyone, but they reflect a broader trend: Many investors eventually transition from operating properties to allocating capital.

That is a fundamentally different conversation than cap rates and closing timelines.

Freedom has value, too

One of the most overlooked ideas in financial planning is that simplicity, flexibility and time all have value.

Not every decision should be evaluated exclusively through the lens of tax minimization.

The investor who aggressively defers every dollar of capital gains sometimes ends up trapped in a portfolio that no longer fits their life.

Meanwhile, the investor who accepts some tax in exchange for flexibility and peace of mind may end up in a much better place emotionally and financially.

There is no universally correct answer.

But investors should at least be honest about the trade-offs.

The man with 160 rental properties eventually found a path that gave him what he was actually looking for. It was not another lease agreement. It was a different relationship with his capital entirely.

The better question

A 1031 exchange can be an excellent strategy. It has helped countless investors preserve and compound wealth over time.

But investors should be careful not to let the tax tail wag the investment dog.

Before the next exchange begins, it is worth sitting quietly with a question that has nothing to do with cap rates or closing timelines: What do I actually want from here?

For many investors, especially those who have spent decades building real estate portfolios, the honest answer to that question may surprise them.

It surprised the man with 160 properties.

But once he finally said it out loud, he already knew the answer.

Related Content

• A 1031 Exchange May Look Great for You on Paper, But It's Not Just About Taxes
• Counting on Real Estate to Fund Your Retirement? Avoid These 3 Costly Mistakes
• How to Turn Your 401(k) Into A Real Estate Empire — Without Killing Your Retirement
• Don't Defer Retirement if You're a Landlord, Defer Taxes Instead
• DST Exit Strategies: An Expert Guide to What Happens When the Trust Sells

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

Blue chip stocks emerged as the clear winners Tuesday, with strong gains in several high-priced names sending the Dow Jones Industrial Average to a new record high. But weakness in the tech sector kept pressure on the S&P 500 and Nasdaq Composite.

After trading above 52,000 in intraday trading, the Dow closed up 0.6% at 51,999, its highest settlement ever. JPMorgan Chase (JPM, +3.7%) and Visa (V, +2.9%) were the best Dow Jones stocks today. With JPM trading at $331 per share and V at $333 per share, these two have an outsized influence on the price-weighted Dow.

Today marks the Dow's first foray above 52,000 — which happened just 12 trading days after it climbed above the 51,000 level for the first time. According to Dow Jones Market Data, this is the shortest amount of time the 30-stock index has taken to cross two 1,000-point thresholds since March 2021, when it took five days to rise from 32,000 to 33,000.

But the broader S&P 500 fell 0.6% to 7,511 and the tech-heavy Nasdaq slumped 1.2% to 26,376 as several of the market's recent highfliers sold off.

Intel (INTC), for one, slumped 8.5%, but remains 220% higher for the year to date. Lumentum Holdings (LITE, -8.6%) and Marvell Technology (MRVL, -9.8%) also closed with sizable losses, but have still tripled in price this year.

SpaceX briefly rockets past Amazon's market cap

One notable tech stock that finished in positive territory today was SpaceX (SPCX). Shares jumped 4.8% on news that Elon Musk's satellite and space exploration company is buying AI coding startup Cursor for $60 billion. SPCX stock is now trading nearly 50% above the $135 initial public offering (IPO) price.

The stock went public last Friday in the biggest IPO ever, and its first-day surge gave the company a market valuation of more than $2 trillion. Today's pop puts its market cap at $2.642 trillion — just below Magnificent 7 stock Amazon.com (AMZN, -0.04%) and its $2.646 trillion valuation. (SPCX briefly topped AMZN's market cap intraday.)

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SpaceX remains the sixth-largest U.S. company by market cap.

Oil prices continue to drop ahead of U.S.-Iran peace deal

While technology (-2.3%) was the biggest decliner of the 11 S&P 500 sectors today, energy (-0.3%) also saw notable losses as oil prices continued to decline.

Front-month West Texas Intermediate crude futures fell 5.8% to $76.05 per barrel — their lowest close since March 3.

This comes after the U.S. and Iran agreed to sign a peace plan this Friday, and President Donald Trump said that the Strait of Hormuz will reopen.

"The persistent slide in crude oil prices, which accelerated this week following positive U.S.-Iran developments, is incredibly bullish for markets," says José Torres, senior economist at Interactive Brokers.

He adds that the sharp decline in energy costs ahead of this week's Federal Reserve meeting — the first for new Chair Kevin Warsh — "offers favorable first-impression dynamics and raises the likelihood of an increasingly patient central bank willing to look through the current short-term inflation as a one-time shock."

How will markets react to a Warsh-led Fed?

If Warsh is "perceived as more dovish than expected, it should be bullish for stocks," says Louis Navellier of Navellier & Associates. "If he's hawkish, it could bring volatility."

It's all but expected that the Federal Reserve will keep interest rates unchanged tomorrow, given that the labor market remains steady even as inflation has accelerated.

But market participants will be eyeing the Summary of Economic Projections (SEP) and dot plot to see where the Warsh-led Federal Open Market Committee (FOMC) expects the federal funds rate, unemployment rate and inflation rate to be over the short and long term.

You can follow along with the latest news and updates on the June Fed meeting on our live blog.

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For most of my life, I've worked as an innovator in the financial services space, with a particular focus on life insurance and annuity products.

For 40 years, that was my job and specialty. One of my "first of a kind" product inventions — the Accumulator — offered downside protection on the income that a variable annuity could provide and eventually created a $1 trillion industry.

In my current role as an investment adviser focused on retirement planning, my innovations address the current needs of retirees regarding greater longevity, concern about Social Security, high inflation, taxes and increasing medical and long-term care costs. As this survey of retirees by Schroders details, those are the top concerns of many people in retirement.

The concerns about costs of long-term care are about to increase even further, with a new federal Medicaid rule that, beginning in 2028, will cap allowable home equity at $1 million. This will most directly affect middle-class homeowners in high-cost markets.

Under current rules, states set the amount of equity that a homeowner could maintain and still qualify for Medicaid LTC coverage. It ranged from about $750,000 to $1.13 million — and it was adjusted every year for inflation. In 2028, the allowable equity will be $1 million for everyone (except farm families), and it will not be indexed for inflation.

Of course, there are other related costs that Medicaid will not cover, like assisted living or services like a home aide, unless the retiree satisfies a means test.

Change in retirement planning is necessary

As it happens, I've been working on a new design for retirement planning that addresses long-term care costs. It does require, among other things, a breakdown of the silos between investments, annuities and housing wealth.

This design change doesn't focus on wealthy or lower-income retirees, but rather, the broad group of so-called mass affluent. The most popular planning approach for this group of retirees is to invest in different investment portfolios and withdraw 4% to 5% per year, increasing by inflation.

Intuitively, most retirees know that they can do a lot better not only in the level of income, but also in the reduction of risk and taxes, and in greater liquid savings.

On the other hand, most don't fully appreciate the potential costs of long-term care. Not surprisingly, those who live longer are more likely to need long-term support and services like nursing home care.

One interesting statistic is that 50% of retirees age 85 and over will need long-term-care services, which are in the $80,000-to-$150,000-per-year range, with a historical increase rate of 3% to 5% per year.

Our analysis suggests these costs may represent nearly 25% of the average $2 million in net worth split between a rollover IRA and value of a home. Without planning for those costs in advance, the sale of the home, with the related closing costs and taxes, may be required.

Here are the retirement planning design changes we developed.

Consider all major asset classes, including housing wealth and lifetime annuities

In figuring out a solution to these retirement challenges, whether or not Medicaid is an option, it made sense to look at all of a client's net worth. That struck a chord when housing wealth was reported as 50% of our sample retired client's wealth.

Importantly, the innovations needed to be doable with no regulatory change or product refinement — and simply in the retirement planning space. It had to be accomplished through our planning algorithm and executed by an adviser through partnering with different product providers.

The first step was how to include housing wealth in the planning. The second was the integration of the most logical but underutilized retirement product — lifetime annuities.

The key for me was to consider them together rather than separately. Why together?

That togetherness answers the following key objections that often are raised about each product individually (also, see my article Transform Your Retirement Plan With This Powerful Combo):

Housing wealth. If using a reverse mortgage such as a home equity conversion mortgage (HECM) to unlock this wealth, the objections are the costs — and the risks if you borrow too much. (See my article How Your Home Can Fill Gaps in Your Retirement Plan.)

Lifetime annuities. A qualifying longevity annuity contract (QLAC) can help define a better retirement by deferring taxable IRA distributions and delivering guaranteed lifetime income at an age you select. (See A QLAC Does So Much More Than Simply Defer Taxes.)

Despite a lifetime payout for a 67-year-old man of, say, $50,000 per year on a $100,000 premium, retirees often object to the lack of liquidity.

In our development phase, we said, "HECM, meet QLAC." Individually, both HECM and QLAC can be helpful in their own ways.

Together, we call it HomeEquity2Income, and the combination can help you stay in your home as you build liquidity for possible long-term care costs, as well as boost income.

It also means you don't have to spend down the savings in your rollover IRA to qualify for Medicaid.

Here's how we put them together:

1. Set up a line of credit through HECM and purchase QLAC from rollover IRA savings:

2. Analyze standard configurations under HECM and QLAC and why they may not work for your retirement plan. The charts below demonstrate results from both a HECM and a QLAC on a stand-alone basis, as often presented to retirees.

In our view, while both are reasonable designs, they are not used most effectively for retirement purposes.

3. Use a new algorithm for a combination of a HECM and a QLAC (HomeEquity2Income, or H2I) to meet twin retiree objectives of increasing income and increasing liquid savings. At the same time, establish a building block for your retirement plan.

Testing H2I for legacy and historical rates

While income and liquid savings are two important elements of H2I, retirees may also consider the effect of H2I on the legacy they're providing to their spouse and other family members.

Also, the broad message for planning is not to try to predict the exact amount of savings or legacy for each homeowner, but to demonstrate the possible impact of the market performance on your own plan.

The illustrations above were based on industry standard fixed rates but, as covered in my article Treat Home Equity Like Other Investments in Your Retirement Plan: Look at Its Track Record, we believe it important to be able to Illustrate benefits based on historical performance.

By using historical rates, we are looking at the interplay of various product elements with real-world performance.

Looking at the expanded example of this combination, here's what we learned about each component:

• HECM's liquid savings grow dramatically when you stop drawing down from a line of credit and use a part of QLAC income to pay down the loan balance
• QLAC may be purchased in a laddered format to create increasing income before age 85. In limited situations, QLAC income may be accelerated before its original income start age
• And in combination, HECM and QLAC offer significant tax advantages, particularly in early retirement years

Use H2I as building block in a retirement plan with other savings

With H2I in place, the question becomes how we might further combine it with other retirement savings. Let's look at adding to H2I our sample retiree's rollover IRA savings ($800,000 after QLAC premium), personal savings ($1 million) and Social Security payments ($36,000 starting at 67).

While portfolio allocation is often a very personal decision, here's what our starting plan reflects:

• Allocation of $800,000 in IRA between stocks (growth) and bonds in a balanced portfolio
• Allocation of $1 million in personal savings among stocks (high dividends), bonds, and SPIA (single-premium immediate annuity)

What is the starting income this plan will support? Using H2I as a building block and the Go2Income planning algorithm, the starting income is $133,000. The plan assumes that income will grow at 2% per year.

With the $36,000 of Social Security benefits, the total starting income is $169,000. The retiree can, of course, refine the plan to increase income and lower the substantial amounts of legacy and liquid savings.

Long-term care scenario testing

The next step in the process was to test various H2I scenarios as they related to covering long-term care. That's particularly timely with greater longevity and increased responsibility of retirees, leading to coverage of more long-term care costs.

• The economic return for H2I in the 3.5% to 4.5% range is attractive, recognizing the major asset is the housing wealth, assuming a growth rate of around 4%. In one sense, the higher crediting rate on a QLAC is offsetting the higher HECM interest rate.
• In the scenarios above, we are able to generate additional income and cover $100,000 in LTC costs over five years from age 85 to 89. We would need to do some stress-testing for larger or different patterns of LTC expense. Of course, we should consider the resources from other retirement savings.
• The income tax effects are quite positive with all HECM drawdowns tax-free, QLAC income deferred until received and LTC costs being tax deductible. (See my article The 9% Solution: An Expert Guide to Retirement Tax Breaks That Could Cut Your Tax Rate Nearly in Half.)

H2I for this sample investor can cover a reasonable amount of LTC costs while delivering higher income. The final planning steps include further testing to confirm results. Including a measure of income taxes, market risk and IRR (internal rate of return) before and after tax, we look at three qualities of the plan in our evaluation:

• Inflation protection
• After-tax income
• Stock market risk

For retirees, it means they no longer need to keep an eye on new caps for home equity or spend down all their other assets to qualify for Medicaid's LTC benefits.

Even for those who never considered Medicaid as an option, H2I provides an easier way to create wealth from retirement savings while aging in place.

Unlike product innovation in the past, these design changes don't require regulatory change, product pricing or design changes, or special servicing. Just stack these building blocks and assemble them as the plan instructs. Visit Go2Income, where you can start building your own plan.

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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.

On a recent episode of his HBO Max show, Last Week Tonight, John Oliver leveled a brutal attack on JG Wentworth and other financial companies that promise "fast cash" for structured settlement injury victims.

His commentary has racked up 1.8 million YouTube views, so it clearly struck a nerve. Watch for yourself (Caution: Strong, but, in my opinion, appropriate language):

A fellow attorney and friend who's spent her career representing accident victims called me this week and asked if I'd seen Oliver's comments and wanted to know whether I thought he was too harsh.

After 30 seconds of talking about it, we realized we both had the same reaction: Oliver wasn't too tough on these financial predators. He wasn't tough enough!

Since 1982, federal law has recognized structured settlements as a voluntary option for accident victims who take a settlement in an annuity with payments exempt from federal and state income tax.

The system worked well until the late 1990s, which is when "fast cash" predators started fleecing accident victims of their financial security.

In response to this, Congress and most states, passed laws that mandated better disclosure, present-value calculation of future payment rights and judicial oversight with a "best interest" standard for the victim. Backers called these laws structured settlement protection acts, or SSPAs.

The takeaways

My attorney friend and I agreed that Oliver's commentary had two important takeaways:

One, attorneys and anyone who works with accident victims must warn clients about the dangers of these predatory "cash now" companies. And if the client has a brain injury, the court should be encouraged to appoint a guardian ad litem — basically, a part-time overseer who'll protect the client's interests.

As a longtime supporter of structured settlements, I can tell you that, without the presence of that "guardian," the sale of structured settlement payments or cashing in the entire annuity is seldom a good idea. Because of the losses that would be incurred — as the structured settlement is "sold" at a discount — rarely is it in the accident victim's best interest.

And two, any public official who thinks the federal 2002 "model protection act" solved this structured settlement problem is delusional. It required only court approval before the sale of the annuity, but did not require courts to evaluate the fairness of the transaction itself, only that the sale complied with individual state SSPAs.

For decades, I have represented accident survivors, often encouraging them to take annuities instead of a single lump sum. I can't recall a single instance when a client who wanted to sell future payment rights would have been better off to do so, with one exception: One of my clients became a paraplegic, and he spent the money helping his family out of poverty.

In the few others who ignored my advice, thousands of dollars went to buying cars for girlfriends, making loans to friends and family that were never repaid and, in one case, buying a bowling alley that was in bankruptcy. So much money, just squandered.

After watching Oliver's show and speaking with my fellow trial attorney, I wanted a perspective from inside the structured settlement industry. So I called Peter Arnold, a certified structured settlement consultant in Maryland who has organized successful grassroots lobbying efforts for the structured settlement industry.

"The most telling aspect of today's structured settlement protection laws," he said, "is that they were supported by the same predatory companies who were abusing injury victims. That should've been a huge red flag that the law was toothless, but Congress and even many in the insurance industry ignored it. Congress just wanted a fig leaf to let them pretend they did something."

My recommendations

So what should you do if you or someone you know is considering selling structured settlement payment rights to one of these predators? Here are a few suggestions:

Check with an attorney. If an attorney negotiated the settlement, see whether they will evaluate the proposed contract, including how much the company will pay for the rights it receives to the annuity payments. If it's a sham deal, the attorney should be able to spot it quickly.

Don't let the "cash now" company railroad the agreement through a judge. Federal law encourages court approval of these transactions, but some judges see themselves as rubber stamps.

At a minimum, make sure the judge has full knowledge of all medical issues, including anything that might affect the injury victim's judgment. Be clear about this even if the company buying payments says to downplay it.

Get multiple bids and make sure these bids come from separate buyers. JG Wentworth does business under multiple names, and according to Arnold, they may not tell you this even when they know you already have a bid from a sister company.

"It's an underhanded way to make you think you're getting a second bid when you're not," Arnold said.

If you're still negotiating your injury settlement, get your structured settlement broker's corporate policy on sharing your data. Most brokers who work with accident victims to design future payments are fine people. But every group has a few sleazebags.

For years, there have been indications that some brokers discreetly sell client information to companies like JG Wentworth. This could include the size of your settlement and your payment schedule.

If you find out this has happened, you may have a legal claim for violation of your right to confidentiality.

I'll say again that, in my entire career as a legal advocate for accident victims, I have almost never seen someone with a structured settlement who would be better off by doing a "cash now" deal.

I wrote this story years ago that is right on point, and each time I read it, I feel so angry, so disappointed.

If you or someone you know feels like there is no other way than to sell their payment rights on a structured settlement, then, at the least, don't fall for someone pushing you into a quick sale — and make sure to get independent advice.

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.

Every May, Small Business Month shines a spotlight on entrepreneurship. Just as the coverage slows down in June, so does visibility of small business ownership after launch.

The leap of faith, the ribbon cutting, the early momentum — these are all important moments. But they are only the beginning.

If a business' launch is the pilot, the real test is whether the business gets picked up for a second season. For most entrepreneurs, the real story is a tale of stabilization in the face of pressure — when and how they grow — and, ultimately, preparation for transition.

The data underscores just how complex that journey has become. Citizens' Q2 2026 Business Pulse survey showed that as global tensions increased, so did small business confidence.

Thirty-six percent of owners reported being extremely or very confident in the economy heading into the second quarter, up from 30% in Q1. The survey was fielded after the onset of war with Iran, making that rise in confidence reflective of a broader pattern: Small businesses are learning to operate and even plan for growth in uncertain conditions.

Resilience is the defining thread of today's small business. Small business ownership is not a moment; it is a lifecycle that changes with the seasons and is reborn with each generation.

At every stage, owners are making a different set of financial and personal decisions to position for what comes next.

What's possible

Every business begins with a bet on what's possible. Nearly half of small business owners (48%) expect revenue growth over the next three months, up from 43% the prior quarter, signaling an improvement in near-term expectations despite a volatile backdrop.

Business owners were largely confident that they could grow revenue and invest in their business; momentum at the outset is still driven by a belief in opportunity. That confidence trends upward quarter over quarter even in an uncertain environment.

But optimism at launch is only part of the equation. From day one, owners are navigating pricing decisions, cost pressures and access to working capital. Launch may be the moment that gets celebrated, but durability is what defines success.

That shift from starting to sustaining is where the real test begins. Broader economic conditions are felt most acutely during this stabilization stage.

Inflation remains the top concern for small business owners, cited by 43% of respondents, even after easing from 54% the prior quarter, while tariffs and global trade risks continue to layer additional uncertainty into decision-making.

Small business owners are managing pressure from both sides, as rising input costs compress margins while those same pressures reduce customers' ability to spend.

The result is a constant balancing act that defines what it takes to keep a business on solid footing.

For many businesses, stability is the foundation for the next stage. But growth today looks different than it did in the past.

Rather than scaling headcount or accelerating spending, many owners are taking a more measured approach, prioritizing efficiency and flexibility.

That shows up in steady hiring plans, stable investment levels and a focus on maintaining access to capital rather than expanding it aggressively.

In this environment, growth doesn't always mean getting bigger; it's about working smarter.

Succession planning

For all the focus on growth and resilience throughout a business' lifecycle, one stage of ownership remains underemphasized: Planning for the end.

Much of today's small business decision-making is anchored in the near term (working capital, immediate staffing needs, quarterly look-ahead). Owners are focused on a compressed planning horizon, which is still necessary, but comes at a cost.

When volatility dominates the day-to-day, long-term succession planning tends to slip. That makes sense in the moment. There is always another decision to make, another expense to manage, another short-term target to hit.

Over time, though, pushing that conversation off only raises the stakes. Succession is one of the most important decisions an owner will make, even if it rarely feels urgent.

Owners who plan for succession early tend to run differently. They develop employees and leaders who can step up and take on responsibility within the organization.

They put systems in place that do not depend on a single decision-maker. They think about how the business connects to their personal finances and what an eventual exit might look like.

Those choices shape how the business runs well before any transition is on the horizon. The lifecycle does not just lead to succession. It depends on preparing for it from the start.

The bottom line

As business confidence rises, small business owners are showing they can absorb shocks through unsteady times. There is a steady confidence in where their businesses are headed and what comes next.

Small businesses do not just open, they launch. That moment may get the spotlight, but success is not defined by the lift-off. It is shaped by everything that follows.

Owners must stabilize when conditions change, make disciplined decisions about growth and plan for the long term even when the near term demands their attention.

The strongest businesses are not built around a single moment. They are built over time, through the choices owners make across the full lifecycle — from launch to stability to growth and, ultimately, to what comes next.

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

Stocks jumped out of the gate and stayed higher through the close as market participants cheered news of potential peace in the Middle East. Oil prices, meanwhile, cratered as reports of a deal to end the months-long war circulated, though the Federal Reserve is still likely to stay on hold at this week's meeting.

Over the weekend, Pakistani Prime Minister Shehbaz Sharif announced on X "that the Peace Deal between the United States of America and Islamic Republic of Iran has been REACHED." President Donald Trump later confirmed the news.

"The Deal with the Islamic Republic of Iran is now complete," Trump wrote in a post on Truth Social. In a separate post, the president noted that the Strait of Hormuz will be open "upon the signing of the Deal on Friday."

Oil prices fell as a result, with front-month West Texas Intermediate crude futures tumbling 4.9% to $80.75 per barrel — their lowest settlement since early March.

Stocks, on the other hand, soared. The blue-chip Dow Jones Industrial Average was up 0.9% at 51,671 — a new record closing high — the broader S&P 500 was 1.7% higher at 7,554, and the tech-heavy Nasdaq Composite had jumped 3.1% to 26,683.

Sinking oil prices won't change the Fed's path this week

The Federal Reserve will kick off its June policy meeting tomorrow and deliver its first statement under the leadership of new Chair Kevin Warsh on Wednesday afternoon.

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Spiking oil prices as a result of the war in Iran have accelerated inflation, putting the chances for rate cuts this year at zero. And while energy prices are down from their wartime highs, it's unlikely the Federal Open Market Committee will lower the federal funds rate anytime soon.

However, what this does is quiet calls for rate hikes, which have increased in recent weeks.

Roku drops despite $22 billion buyout offer

In single stock news, Roku (ROKU) fell 1.9% even after Fox (FOX, -15.2%) said it will buy the streaming device maker in a cash-and-stock deal valued at $22 billion, or $160 per ROKU share — a more than 11% premium to the stock's June 12 close.

Typically, stocks rise to the per-share offer once the offer is announced, but Roku surged nearly 23% on Friday on rumors of a potential buyout so some of the premium was already priced in.

TD Cowen more than doubles its Micron price target

Micron Technology (MU) was on the positive side of the ledger today, surging 10.8% after TD Cowen analyst Krish Sankar reiterated a Buy rating on the red-hot chip stock and lifted his price target to $1,500 from $660. This new target price represents implied upside of 38% to current levels.

Sankar believes demand for the memory chipmaker's products will help pricing strength "persist into the second half of calendar year 2027." Additionally, he sees Micron's role in artificial intelligence as "structural, not cyclical," which will provide a tailwind for earnings over the next several years.

Micron will report its fiscal third-quarter results after the June 24 close and Wall Street is expecting revenue to rise nearly fourfold from the year prior and earnings to surge to $19.69 per share from $1.91 per share.

SpaceX soars in first full trading day

SpaceX (SPCX) also had a strong showing in its first full session. After closing Friday more than 19% above its IPO price, SPCX stock finished Monday up 19.6% at $192.50.

The SpaceX IPO "has reinvigorated the tech trade," says Louis Navellier of Navellier & Associates. "The success of such a huge IPO, now valued at $2.26 trillion, paves the way for the other outsized IPOs in the pipeline: Anthropic and OpenAI."

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The term "ticker-tape parade" originated from stock trading. In New York City, parades would be held to celebrate something, and people would throw the closest thing they had to confetti: the tape used to communicate stock prices.

On Thursday, the city of New York once again celebrated with a ticker-tape parade through the Financial District, this time in honor of the Knicks winning the NBA title for the first time in 53 years. The Knicks brought the city alive over the last two months as they worked their way through the playoffs with the steady determination of Jalen Brunson and the smart management of coach Mike Brown. Now, they're getting their flowers – or, more accurately, their piles of shredded paper.

In honor of the Knicks and the history of the ticker-tape parade, here are five lessons in investing gleaned from their championship run.

1. A hot IPO doesn't mean an immediate win

The San Antonio Spurs selected Victor Wembanyama as the No. 1 overall pick in the 2023 NBA draft. The Knicks' Brunson, meanwhile, was undrafted after the first round in 2018 and didn't end up making a team's cut until pick No. 33.

Compare this to a hot IPO. When a company first goes public, it can be a hotly anticipated and celebrated event. But the reality is that many, many IPOs do not result in quick returns for investors, particularly in the first few years. Data show IPOs on average underperform the market in their first three years (1980-2023), and a little more than half end up losing money in the first five years (1975-2021).

In many cases, it's a better idea to give a company some time to settle before deciding if you want to invest. You don't want to go all-in or set high expectations for an IPO.

Now, this doesn't mean Wembanyama (or the next IPO) won't be a winner in the future. Sometimes you need time and character growth. Just look at 2015's first overall draft pick, Karl-Anthony Towns, who lifted the trophy with the Knicks this week.

2. Be mindful of your portfolio allocation

The Knicks' championship didn't come out of nowhere; it came from years of careful roster building by team president Leon Rose. Rose signed Brunson in 2022. In 2024, Brunson signed an extension – and willingly left a reported $113 million on the table. Why did he do that? So that Rose would have money available under the NBA's salary cap to build out the roster.

The Knicks were then able to allocate funds towards signing Towns and Mikal Bridges, both of whom were instrumental to the championship run.

In investing terms, this is the equivalent of portfolio management. You want to make sure that any one factor of your portfolio doesn't become so outsized it's the sole portion you're relying on. This can even happen to ETF investors, who may not realize their portfolios are becoming overweighted in a given stock as its weighting in that fund grows.

And don't feel too bad for Brunson. Sure, he left $113 million on the table, but his deal was $156.5 million over four years, which many would consider enough to live comfortably on, right? Now, take that and add the endorsement deals he's going to get as an NBA champion. And the value of being named "King of New York?" Priceless.

Asked if the $113 million sacrifice was worth it after winning the championship, he told ESPN's Malika Andrews, "100%."

Read more: Is Your Portfolio Overweight? How to Rebalance and Diversify

3. Play the whole game

Say you're 50 years old, your investments are up 300% and your 401(k) reached $500,000 – more than double the average 401(k) balance among Gen X. You're planning to retire at 65 and feel on top of the world.

Sure, that's great, but you've still got 15 years left to take care of your investment portfolio. You can be happy and feel secure, but that doesn't mean you can now take your hands off the wheel and expect that the stocks you have will continue going up.

Just ask Wembanyama. The Spurs were ahead for about 72% of the NBA Finals, per Texas Public Radio, but they only managed to win one game. The Knicks came alive in the back half of nearly every game, overcoming deficits to secure the wins. An early lead doesn't mean you'll necessarily meet your goals. You need to play the whole game.

What else does that mean? That just because you feel like you fell behind doesn't mean you can't catch up. As long as there's time left on the board, you have the opportunity to develop a lead.

4. You don't have to fit a stereotype to succeed

"Coming out of Villanova, where Brunson won a pair of national titles, he was considered too small. Too slow. Not athletic enough. A defensive liability. He didn't get drafted until No. 33 overall, which makes him the second-lowest draft pick to ever win Finals MVP," wrote Brad Botkin at CBS Sports.

There is still an embedded belief that in order to invest in the stock market, you need to already be rich. While you do need to have enough money to be able to dedicate a portion to the stock market, that doesn't mean you need a million – or even a hundred thousand. You can begin investing with as little as a few dollars, if that's what you have available.

5. Have patience

What do each of these lessons have in common? Patience. The Knicks took time to build out their ideal roster; Brunson was steady in his professional growth after winning two college championships; the Knicks' comebacks came with an almost shocking calm in the players' demeanor – patient commitment, not panic.

Then of course, there's the city of New York. New York has waited 53 years to win an NBA championship. Tell that to anyone looking to get-rich-quick on the stock market. For a vast majority of people, it doesn't happen overnight. It takes decades of compounding and portfolio management.

But when it does happen, my goodness, celebrate it. Knicks in five!

Related Content

• 9 Warren Buffett Quotes for Investors to Live By
• Knicks vs Spurs NBA Finals Puts the 'Jock Tax' Back in the Spotlight
• PSA: Prediction Markets and Sports Betting Aren't Investing

The June Fed meeting concluded on Wednesday June 17, with the central bank's latest policy decision.

With energy prices still high and inflation accelerating, the Federal Reserve unanimously voted to keep the federal funds rate unchanged this time around.

Wall Street was also tuned into new Fed Chair Kevin Warsh's post-meeting press conference, where he unveiled new changes that are coming to the central bank.

The Kiplinger team reported on the June Fed meeting, bringing you the news and our expert analysis of what it could mean for the economy. Scroll for the latest updates.

How Does the Federal Reserve Work? | 3 Ways Kevin Warsh Will Change the Fed | How the New Fed Chair Could Impact What You Pay in Taxes this Year

Fed meeting schedule for 2026

The next Fed meeting, which runs from June 16 through June 17, marks the fourth gathering of 2026.

"The committee meets eight times a year, or about once every six weeks," explains Kiplinger contributor Dan Burrows.

The Federal Open Market Committee "is required to meet at least four times a year and may convene additional meetings if necessary," Burrows adds, noting that "the convention of meeting eight times per year dates back to the market stresses of 1981."

Fed meetings last two days and wrap up with the release of a policy decision at 2 pm Eastern Standard Time. This is typically followed by the Fed chair's press conference at 2:30 pm, though this could change under Warsh's leadership.

Here is the full remaining Fed meeting schedule for 2026:

June 16 to 17

July 28 to 29

September 15 to 16

October 27 to 28

December 8 to 9

The stock market is trading higher to start Fed week

Stocks are solidly in positive territory on Monday as market participants cheer signs of potential peace in the Middle East.

Over the weekend, Pakistani Prime Minister Shehbaz Sharif announced on X "that the Peace Deal between the United States of America and Islamic Republic of Iran has been REACHED." President Donald Trump later confirmed the news.

At last check, the blue-chip Dow Jones Industrial Average was up 1% at 51,928, the broader S&P 500 was 1.9% higher at 7,573, and the tech-heavy Nasdaq Composite had gained 3% to 26,667.

Over in the bond market, the yield on the 2-year Treasury note is down 3.3 basis points at 4.052%, and the 10-year Treasury yield is off 2.4 basis points at 4.461%.

- Karee Venema

Who is Kevin Warsh?

On May 13, the Senate voted 54-45 to confirm Kevin Warsh as the new Federal Reserve chair, replacing Jerome Powell, who had served in that position since 2018.

But who is Kevin Warsh?

Warsh previously served on the Federal Reserve Board from February 2006 through March 2011. He was Fed Chair Ben Bernanke's right-hand man during the 2008-09 global financial crisis and was his primary liaison to Wall Street, which earned him credibility he still retains.

Before his time at the Federal Reserve, Warsh was special assistant to the president for economic policy and executive secretary of the White House National Economic Council from 2002 through 2006, during the George W. Bush administration. From 1995 to 2002, Warsh worked for Morgan Stanley.

Prior to being confirmed as Fed chair, Warsh was a visiting fellow in economics at Stanford University's Hoover Institution, a lecturer at the Stanford Graduate School of Business and a member of the Panel of Economic Advisers of the Congressional Budget Office.

He is widely viewed as a "hawk" on monetary policy who generally favors higher interest rates rather than the risk of inflation.

At the same time, Warsh, who was said to be a candidate for Treasury secretary before Trump picked Scott Bessent, was on the short list because he has a great relationship with the president.

Warsh said in mid-2025 that "the independent operations in the conduct of monetary policy is essential," adding "that doesn't mean the Fed is independent in everything else it does."

Though he consistently took the hawkish line on inflation during his time inside the central bank, Warsh has more recently advocated for lower interest rates.

Read more: The New Fed Chair Was Announced: What You Need to Know

- David Dittman

Who gets to vote at the June Fed meeting?

The Federal Open Market Committee (FOMC) has 12 total members, eight permanent and four who rotate each year.

The eight permanent voting committee members include the Fed chair and vice chair, the five Fed governors and the president of the New York Fed.

Four regional Fed presidents are rotated in each calendar year.

The 2026 FOMC voting committee consists of:

Fed Chair Kevin Warsh

Vice Chair Philip Jefferson

Fed Governor Michael Barr

Fed Governor Michelle Bowman

Fed Governor Lisa Cook

Fed Governor Jerome Powell

Fed Governor Christopher Waller

New York Fed President John Williams

Cleveland Fed President Beth Hammack

Minneapolis Fed President Neel Kashkari

Dallas Fed President Lorie Logan

Philadelphia Fed President Anna Paulson

In 2027, the presidents from Chicago, Richmond, Atlanta and San Francisco will rotate in as FOMC voting members, according to the Federal Reserve.

- Karee Venema

What Kiplinger economist David Payne is expecting at this week's Fed meeting

Wednesday will be Kevin Warsh's first monetary policy meeting since taking over the chairmanship of the Federal Reserve from Jerome Powell in May. It is not likely that there will be any changes in rates.

The decline in crude oil prices following the agreement to stop the U.S.-Iran war is welcome news for Warsh and the Fed, but it will not be enough for the new chair to persuade his fellow committee members to cut. For the moment, at least, the agreement likely prevents any move to fight inflation by increasing short-term interest rates.

- David Payne

May CPI came in hot as energy prices kept climbing

The Bureau of Labor Statistics (BLS) released the May Consumer Price Index (CPI) report last Wednesday and it confirmed that energy prices continue to boost inflation.

According to the BLS, headline inflation was up 0.5% from April to May and 4.2% higher than the year prior. The monthly increase was slower than the 0.6% rise seen in April.

The annual rise signaled an uptick from the 3.8% increase from the month prior and was the highest yearly pace since April 2023. Both figures matched economists' estimates.

"The index for energy rose 3.9 percent in May, after rising 3.8 percent in April and 10.9 percent in March. The energy index accounted for over sixty percent of the monthly all items increase," wrote the BLS in its report.

Core CPI, which excludes volatile food and energy prices, was up 0.2% month over month, a downshift from April's 0.4% increase and slower than economists expected. Year over year, core inflation was 2.9% higher, slightly faster than the 2.8% increase from the year prior and in line with estimates.

Prices for airfare, medical care and recreation were all higher in May, while costs for new cars, household furnishings and car insurance were lower.

Ahead of the June Fed meeting, many are wondering if higher inflation readings mean the central bank's next move will be a rate hike.

But Skyler Weinand, chief investment officer at Regan Capital, doesn't see that happening any time soon. "It's clear that rate cuts are off the table, and while there is chatter about a potential rate hike, we believe it's unlikely that we'll see a rate hike before the midterm elections, and any such hike is likely a year away," he says.

Read more: May CPI Shows Inflation Rose at Its Fastest Pace in 3 Years

- Karee Venema

Iran peace deal has big implications for the Fed

Stocks are starting Fed week on a positive note thanks to news that the U.S. and Iran have agreed to a potential peace deal.

Daniela Hathorn, senior market analyst at Capital.com, says the deal has "major implications" for global central banks, given that higher oil prices have accelerated inflationary pressures — and have led many to believe the next moves from policymakers will be tightening rather than easing.

Indeed, CME FedWatch shows that futures traders aren't pricing in any rate cuts this year. At the start of 2026, many folks were anticipating at least two quarter-point rate cuts by December.

And while the recent decline in oil prices "does not eliminate inflation risks altogether," says Hathorn, "it does reduce some of the urgency surrounding them."

And while the Federal Reserve is likely to maintain a cautious stance this time around, the peace deal may give policymakers "greater flexibility to maintain a neutral stance rather than immediately leaning toward further tightening," she adds.

Hathorn believes Fed Chair Warsh's messaging "could prove critical," as markets look "for clarity on whether the Fed views current inflation pressures as temporary and manageable, or whether policymakers still see a need for tighter policy later in the year."

- Karee Venema

The June Fed meeting is historic, but will not bring fireworks, says Johnson Investment Counsel's chief economist

Kevin Warsh's first meeting as head of the Federal Open Market Committee (FOMC) will be "notable from a historic perspective," says Brandon Zureick, chief economist and senior managing director at Johnson Investment Counsel, considering he is just the 17th person to serve as Fed chair since the Federal Reserve was created in 1914.

But, Zureick adds, "the meeting itself is unlikely to produce substantive policy changes. The FOMC is widely expected to leave interest rates unchanged, extending the 'wait and see' approach it adopted earlier this year."

The economist will be watching to see if the Fed uses "this meeting to move away from its prior bias toward future rate cuts, reflecting a shift in its assessment of both inflation and the labor market."

While Zureick notes that higher energy prices have increased upward pressure on inflation, "labor market data has improved somewhat, reducing the urgency for additional policy easing." As such, the FOMC could decide that its most prudent course of action is to leave rates unchanged.

"Investors should pay close attention to any changes in the official FOMC statement, particularly language around 'the extent and timing of additional adjustments' to the federal funds rate," he adds.

The economist also points to the importance of the Fed's Summary of Economic Projections (SEP), particularly the dot plot. "When it was last revised in March, the median FOMC forecast still pointed to two additional rate cuts in 2026 — a path that may no longer reflect the Committee's current thinking," Zureick explains. "Instead, investors will need to look to the 2027 median projection for clues about the Fed's desired path for rates beyond this year."

Fed Chair Warsh is likely to encounter a wide range of questions, he says. "While reporters will likely press for clues about how policy may evolve under his leadership, Warsh is unlikely to reveal much. Instead, he will probably emphasize the Fed’s data-dependent approach and the need to preserve flexibility amid an uncertain inflation and growth outlook."

- Karee Venema

What Thrivent's CFO and CIO is watching for in Chair Warsh's first press conference

David Royal, chief financial officer and chief investment officer of Thrivent says Kevin Warsh's first press conference as Fed chair will give us insight into several things, including his policy framework and communication style. It will also show us "how he intends to lead the institution through a complex inflation, labor and rate environment."

Here are five things Royal will be watching for in the press conference:

1. How does Chair Warsh frame the inflation picture? "If he describes inflation as broadening beyond energy, that would read as hawkish. Core goods inflation has been flat for the last two months. If he simply notes that fact, it would be dovish, but if he attributes it to the tariff rollback (and especially if he observes that the rollback is a one-time effect), that would be hawkish as it would imply core inflation may rise due to underlying economic factors in coming months."

2. What does he say about forward guidance and the Summary of Economic Projections (SEP or "dot plot")? "Warsh has long been skeptical of forward guidance. The key question is whether he simply wants less of it or whether he is signaling a broader rethink of how the Fed communicates policy. I'll also be watching whether he sounds dismissive of the SEP and dot plot, even if he stops short of criticizing them directly. The dot plot still matters, especially if it points to a more neutral or even hawkish stance than markets currently expect."

3. What is Chair Warsh's communication style? "If Warsh is more terse than recent Fed chairs, markets will need to decide whether that reads as discipline or evasiveness. That distinction could matter for term premium and market confidence. His tone may also offer an early signal of whether he intends to lead as a consensus builder or as a reformer."

4. What does he say about Fed independence? "He is almost certain to get a question on Fed independence, and the strength of his response will matter. I'll be listening for whether he offers a routine defense of independence or signals a deeper personal commitment to it. Any sign of a weaker commitment could raise concerns in the Treasury market."

5. What does Chair Warsh say about the Fed's balance sheet? "Warsh has been outspoken about shrinking the balance sheet, so I'll be watching how directly he addresses quantitative tightening in his opening comments and Q&A. The bigger question is whether he sees balance sheet policy and interest-rate policy as separate tools or as moves that should be coordinated."

- Karee Venema

Stocks close higher ahead of the June Fed meeting

Stocks jumped out of the gate and stayed higher through the close as market participants cheered news of potential peace in the Middle East. Oil prices, meanwhile, cratered as reports of a deal to end the months-long war circulated, though the Federal Reserve is still likely to stay on hold at this week's meeting.

Front-month West Texas Intermediate crude futures tumbling 4.9% to $80.75 per barrel — their lowest settlement since early March.

As for stocks, the blue-chip Dow Jones Industrial Average was up 0.9% at 51,671 — a new record closing high — the broader S&P 500 was 1.7% higher at 7,554, and the tech-heavy Nasdaq Composite had jumped 3.1% to 26,683.

Read more: Dow Hits New High on Iran Deal: Stock Market Today

Futures show mixed open on first day of Fed's Warsh era

Equity index futures pointed to a mixed open on Tuesday, the first day of the first FOMC meeting under new Fed Chair Kevin Warsh. Stocks rallied on Monday after the U.S. and Iran appeared to reach an agreement that would open the Strait of Hormuz by Friday.

The 2-year Treasury yield, a proxy for short-term Fed policy on interest rates, ticked up to 4.066% from 4.064% on Monday. The 2-year yield was 3.990% on May 13, the day Warsh was confirmed by the Senate to succeed Jerome Powell as Fed chair.

The front-month West Texas Intermediate crude oil futures contract was down another 4% to around $76 per barrel early Tuesday after sliding almost 5% on Monday.

WTI rose from $67.02 on February 27, the day before hostilities in the Middle East began, to an intraday wartime peak of $119.48 on March 9.

Easing pressure from an energy shock will make Warsh's job a lot easier, with May data showing consumer inflation at a three-year high and producer prices at nearly four-year highs.

– David Dittman

Original 'Fed Whisperer' still doing his thing

Jon Hilsenrath was the first "Fed whisperer," a title he earned during a 26-year career at The Wall Street Journal covering the central bank and other economic and financial beats.

Hilsenrath is now a visiting scholar at Duke University, where he's still doing his Fed thing by collaborating with the economics department on a survey of former officials and staffers ahead of each FOMC meeting.

The one conducted between June 5 and June 12 included 34 former officials and staff members: six former board governors, six former regional bank presidents, and 22 former staff members from the board and regional banks.

Half of them think new Fed Chair Kevin Warsh may have to raise interest rates before the end of 2026.

Indeed, 17 of 32 former officials and staff who offered projections said an increase would likely be appropriate in 2026. Fourteen said no increase would be appropriate, and one person said the central bank should cut the federal funds rate.

"The survey panel foresaw little progress reducing inflation in the months ahead," the report said (pdf). "Already-elevated inflation was compounded by higher energy prices associated with conflict in the Persian Gulf."

The median estimate for year-end inflation based on forecasts provided by Hilsenrath's panel of former Fed officials for the Personal Consumption Expenditures Price Index (PCE) was 3.5%.

The Fed's policy target is 2%. Headline PCE printed at 3.8% last April.

– David Dittman

Papa Dow makes more new highs as Fed meeting opens

The Dow Jones Industrial Average traded up to a new all-time high on an intraday basis on the first day of the first FOMC meeting with new Fed Chair Kevin Warsh in charge.

Papa Dow was up 360 points, or 0.7%, as of late morning. The S&P 500 was down about 0.2%, while the Nasdaq Composite had shed 0.4%.

Both the front-month West Texas Intermediate crude oil futures and the Brent crude oil futures contracts were down about 4%, with WTI trading below $80 per barrel for the first time since March.

The 2-year Treasury yield was down to 4.060% vs 4.064% on Monday, as markets continue to price the implications of a Middle East peace deal.

As Deutsche Bank analyst Henry Allen notes of Brent crude, the futures curve is normalizing as longer-dated contracts move more in line with the front-end price.

“In other words," Allen explains, "investors are no longer pricing a sharp fall in oil prices over the next six months, as that was predicated on an agreement that’s now been announced.”

– David Dittman

Lawyer up: What Kevin Warsh and Jerome Powell have in common

Former Fed chair and current board member Jerome Powell was notable upon his nomination for the top job in 2017 for not being an academic economist.

In the early days of the world's most important central bank and through most of the 20th century, it was common for its leaders to have legal backgrounds before taking on the monetary policy-making role.

From the late 1970s, beginning with Paul Volcker, continuing with Alan Greenspan and including Ben Bernanke and Janet Yellen, it was all economists.

That is until President Donald Trump nominated Powell. Like Powell, new Fed Chair Kevin Warsh has a J.D., from Harvard Law School, no less, and is not an academic economist.

Whether a president widely considered the most litigious in U.S. history (in public and private) intended to put his bulldog in front of a central bank staff still heavy with PhDs is an open (and interesting) question.

For sure, though, Warsh will know how to marshal evidence and advocate for lower interest rates.

– David Dittman

'There's a lot at play' for Kevin Warsh

Kathleen Hays is a former economics reporter for Bloomberg, CNBC and CNN and is the current editor-in-chief of Central Bank Central.

Dennis Lockhart is the former president of the Federal Reserve Bank of Atlanta. His tenure at the Atlanta Fed overlapped with new Fed Chair Kevin Warsh's term on the Fed board from 2006 to 2011.

Today, Hays published an interview with Lockhart about Warsh and what he's looking for from Jerome Powell's successor amid his first FOMC meeting in charge of the central bank.

“Kevin, in my experience, which is four years of overlap, really was quite conservative in the sense that he feared the consequences of the balance sheet growth,” Lockhart told Hays. “He was an inflation hawk and I think was a big believer and respecter of Fed traditions and the modes of operation."

He also said Warsh will “work hard to be a consensus builder and collaborate with his colleagues.”

According to Lockhart, "The next few months will play out in a way that tells us whether inflation is going to be persistent above target or disinflation is going to resume, but it’s far from certain that prices are going to be restored to prewar levels.”

The former central banker says it's "probably far from certain that the Strait of Hormuz will operate the way it did pre-war," adding that the Iranians may continue to try to leverage their position.

Lockhart and Hays also talk about the Fed's independence. "So I think there’s a lot at play," Lockhart concludes, "much of which is not susceptible to monetary policy as a solution."

– David Dittman

A former Fed staffer talks about the new Fed chair's 'good family fight'

Claudia Sahm is a former Fed staffer who writes about central banking and other things that matter to the economy, working people and investors at Stay-At-Home-Macro.

(That's S-A-H-M, as in "Sahm," and speaking as a wordsmith who loves acronyms, that's clever…)

Today, of course, Sahm is previewing the in-progress Fed meeting ahead of tomorrow's anticlimactic decision on interest rates.

"The Fed faces a genuine challenge," she writes. "Inflation is rising, driven largely by an energy supply shock — and the textbook response to a supply shock is to look through it, since rate hikes can't fix a shortage and only squeeze families already paying more."

At the same time, inflation has been running above the Fed's 2% target for five years. As Sahm explains, more and more Fed officials think a half-decade of hot inflation "changes the calculus," and it amounts to "a real disagreement, not noise."

Sahm says the Summary of Economic Projections (SEP) and the dot-plot – "the one public window into the debate" – may show a hawkish shift, and she cites a survey of former Fed officials and staff we talked about earlier today indicating that kind of movement.

"The risk is that new Fed Chair Kevin Warsh, a longtime skeptic of the Fed's forecasts, might decline to submit his own dots or play down the SEP," Sahm says. "That would draw less attention to the dots — but it would also mask the range of views just as that range becomes the story."

As Sahm concludes, "Warsh says he wants a 'good family fight' on the committee. The dot plot is how the rest of us see it. Improve it, don't bury it."

– David Dittman

Fed Zeppelin: when whisperers aren't loud enough

Nick Timiraos of The Wall Street Journal, who has inherited Jon Hilsenrath's title as "Fed whisperer," writes about new Fed Chair Kevin Warsh and how he might change the way the central bank communicates with the public in his preview of this week's FOMC meeting.

"For more than a decade," Timiraos notes, "Warsh has argued that the Fed should say less. How much a central bank reveals about its thinking shapes mortgage rates, markets and the cost of borrowing for everyone."

Naturally, he concludes, "Wall Street will parse Wednesday's meeting, his first as Fed chairman, for any sign of where he'll take it." Indeed, that Warsh is holding a press conference tomorrow is significant.

Perhaps, though, instead of a bunch of "Fed whisperers" to describe things like this potential communication breakdown, the thing we really need right now is the "hammer of the gods."

Here are five Led Zeppelin songs that explain the biggest central bank in the world right now.

– David Dittman

Stocks are mixed on the first day of the June Fed meeting

The Dow Jones Industrial Average closed at a new all-time high, rising above 52,000 for the first time, but tech stocks slumped and weighed on the S&P 500 and the Nasdaq Composite during the first day of the first FOMC meeting with new Fed Chair Kevin Warsh in charge of the world's most important central bank.

The 2-year Treasury yield ticked down to 4.056% from 4.064% on Monday, and the front-month West Texas Intermediate crude oil futures contract was down 4%, finishing below $80 per barrel for the first time since March 4.

"Tomorrow," writes Louis Navellier of Navellier & Associates, "we get to hear Kevin Warsh's first comments as the new head of the Federal Reserve, when the FOMC releases its rate decision. If he's perceived as more dovish than expected, it should be bullish for stocks. If he's hawkish, it could bring volatility."

As Navellier notes and CME FedWatch confirms, there's almost zero chance the Fed cuts interest rates tomorrow. "Perhaps more interesting," he adds, "will be what he wants to do with the Fed's balance sheet."

Read more: Dow Notches New High as Tech Stocks Drop: Stock Market Today

Stock futures are mixed ahead of today's Fed announcement

Stock futures are signaling a mixed open ahead of this afternoon's policy announcement from the Federal Reserve.

At last check, futures on the Dow Jones Industrial Average are marginally lower, while premarket gains in several tech stocks have futures on the S&P 500 trading up 0.2% and futures on the Nasdaq-100 trading 0.6% higher.

What time will the Fed statement be released and what changes are expected?

The Federal Open Market Committee will release its updated policy statement at 2 pm Eastern Standard Time today, June 17.

"Recent indicators suggest that economic activity has been expanding at a solid pace," the FOMC wrote in its April policy statement. "Job gains have remained low, on average, and the unemployment rate has been little changed in recent months. Inflation is elevated, in part reflecting the recent increase in global energy prices."

The committee went on to say that "developments in the Middle East are contributing to a high level of uncertainty about the economic outlook."

As such, the FOMC voted to keep the federal funds rate unchanged at its current range of 3.5% to 3.75%.

This time around, Deutsche Bank economists expect the June FOMC statement to reflect improvements in the labor market and remove any bias toward easing, reflecting Chair Warsh's disapproval of forward guidance.

"While it is possible that Warsh could look to scrap the guidance language entirely, given his prior criticisms of the Fed's over-reliance on forward guidance, we expect change to come more incrementally, given that a rising chorus of the Committee wishes to signal the potential for monetary tightening amidst ongoing elevated inflation concerns," they note.

They anticipate the removal of the "extent and timing of additional adjustments" language, with this more neutral revision: "In considering any adjustments to the level of the federal funds rate, the Committee will carefully assess incoming data, the evolving outlook, and the balance of risks.”

- Karee Venema

May retail sales came in higher than expected

Retail sales came in higher than expected in May. According to the Census Bureau, retail sales rose 0.9% month over month, much higher than economists' estimate for a 0.6% increase.

It was also an improvement over April's retail sales, which were downwardly revised to +0.4% from the initial reading of +0.5%.

"Nominal retail sales rose again in May despite the weakness in consumer sentiment and higher energy prices," says Richard de Chazal, macro analyst at William Blair. "The resiliency is a function of a labor market that remains structurally tight, equity markets that continue to hit new highs (generating a wealth effect), a very strong tax refund season, and household cash levels as a share of total assets that are exceptionally high."

But de Chazal adds that consumers view the war in Iran as temporary, which has not impacted demand. "However, should the Strait of Hormuz remain closed much longer, the current memorandum of understanding not be agreed upon, or indeed the conflict escalate into other major global choke points, prices would rise further and more tangible demand destruction would be likely."

- Karee Venema

How well do you know the Fed?

Fed meetings have become key events as central bank officials try to balance high inflation and labor market hiccups against the White House's desire for lower interest rates.

But how well do you know the Fed?

With the next Fed meeting on deck, we decided to test your basic knowledge of the Federal Reserve with a quick quiz.

Master Your Fed Knowledge: Take Our Quick Federal Reserve Quiz

What time does Kevin Warsh speak today?

Fed Chair Warsh will host a press conference at 2:30 pm Eastern Standard Time today, June 17.

How Warsh frames answers to key market questions surrounding inflation, AI and the future path of interest rates during his press conference is more important than today's policy statement, says Gargi Chaudhuri, chief investment and portfolio strategist, Americas at BlackRock.

"Investors will be listening closely for his views on whether policymakers should look through tariff and energy-related inflation, how AI may affect inflation and whether he believes the neutral rate has moved higher," she explains.

Chaudhuri also says that the market will be watching for any comments on the Federal Reserve's future path for projections and guidance. "Warsh has previously been critical of the Summary of Economic Projections, making any comments on the future of the dot plot particularly noteworthy," she says. "In the past, he shared that he believed dot plots provide a false sense of precision, cause the bank to focus more on forecasts than reaction, and that too much forward guidance can become a policy tool of itself."

- Karee Venema

Stocks edge higher, bond yields barely budge ahead of Fed statement

Stocks are trading cautiously higher ahead of the June Fed statement, due out at 2 pm Eastern Standard Time.

The blue-chip Dow Jones Industrial Average is in the lead, up 0.4% on strength in financial giant Goldman Sachs (GS, +2.6%) and industrial stock Caterpillar (CAT, +2.5%). The broader S&P 500 is 0.03% higher and the tech-heavy Nasdaq Composite has edged up 0.08%.

Bond yields have failed to make any major moves, as well. The yield on the 2-year Treasury is up 2.1 basis points at 4.068%, while the 10-year Treasury yield flat at 4.428%.

Any post-Fed market volatility is a "buying opportunity," says Main Street Research's CIO

The June Fed meeting is the most important in recent memory, says James Demmert, chief investment officer, Main Street Research. "Investors will now have to get used to the new Fed Chair's communication style, which is an adjustment period for markets."

Demmert doesn't expect the FOMC to make any changes to the federal funds rate this time around, but considering lower oil prices could spur economic activity, he thinks Chair Warsh could "mention accelerating economic growth and the potential for higher rates going forward, even with the political pressure he is facing to cut rates."

The CIO adds that any Fed-induced market volatility represents "a buying opportunity" for investors as he believes "market fundamentals remain in place."

- Karee Venema

The Fed decision is in

The Fed decision is in. As expected, the FOMC kept the federal funds rate at its current range of 3.5% to 3.75%.

Unlike recent decisions, the vote was unanimous.

- David Payne

The June FOMC statement is much more terse than usual

The June FOMC statement looks very different than the ones we've become accustomed to. Given how barebones it is, there's really not much we can read into it — though this should be expected, given that Warsh is reported to be in favor of less communication.

The FOMC did release the Summary of Economic Projections and the dot plot, despite some indication that Warsh wants to get rid of it. Both show an expected gradual decline in the fed funds rate over the next several years.

The press conference should be interesting.

- David Payne

Where can I watch Fed Chair Warsh's press conference?

Fed Chair Kevin Warsh's press conference will begin at 2:30 pm Eastern Standard Time this afternoon.

The presser can be viewed on the Federal Reserve's website or on the Fed's YouTube channel.

The path to avoid rate hikes is narrow, says Kay Haigh of Goldman Sachs

"Today's meeting confirms that the Fed's recent hawkish shift was not just about higher energy prices," says Kay Haigh, global head and CIO of Fixed Income and Liquidity Solutions at Goldman Sachs Asset Management.

Haigh adds that despite the recent drop in oil prices, the dot plot shows that half of the committee members expect rate hikes as soon as this year.

This, he notes, reflects strong labor market and inflation data. "Our base case remains that the Fed can just about avoid hikes, but the path is narrow and there will be a high premium on the incoming inflation data," Haigh concludes.

- Karee Venema

Stocks turn lower after Fed announcement

The main equity indexes have turned lower after the release of the Fed statement. At last check, the Dow Jones Industrial Average was down 0.09% at 51,954, the S&P 500 was off 0.4% at 7,480, and the Nasdaq Composite was 0.6% lower at 26,230.

Meanwhile, the 2-year Treasury yield was up 10.8 basis points to 4.155% and the 10-year Treasury yield was 4.1 basis points higher at 4.469%.

Warsh promises price stability

"This committee will deliver price stability," Kevin Warsh emphatically announced in the opening statement of his first press conference as chair of the Federal Reserve.

He noted that inflation has been running well above the Fed's 2% goal for five years now, something that American consumers know well.

Whether Warsh can bring inflation back to a tolerably low level, and what it would take to do that, are the real questions.

- Jim Patterson

Warsh announces new Fed task forces

Warsh started his first press conference with a sweeping announcement of new task forces he has formed at the Fed to reconsider a range of the central bank's operations.

One will reexamine how much the Fed communicates about its future monetary policy decisions, suggesting that the Warsh Fed may be less forthcoming about signaling potential changes to interest rates and other monetary policy decisions.

Markets may have to get used to receiving less guidance from Warsh than they got from his predecessor.

- Jim Patterson

Warsh says the Fed is no longer promising forward guidance

"Inflation is a choice" for central bankers, Warsh said: A mantra he has harped on before. In other words, he believes that monetary policy is the main driver for inflation, not economic events. And by that logic, he indicated, the Fed can and will get inflation under control.

He declined to say how specifically it will do that, and whether he would contemplate raising interest rates soon, saying that under him, the Fed is dropping "forward guidance" about future rate decisions.

He noted that some of his colleagues on the FOMC have penciled in interest rate increases for later this year, but said those pencils come with erasers. In other words, nothing has been decided about rates later this year.

- David Payne

Warsh talks future press conferences

When asked whether he will continue with post-meeting press conferences, Chair Warsh said that pressers can be a useful way to communicate.

Citing his mentor George Schultz, Warsh said that when you have a press conference, you better have something important to say. Walsh noted that today he had something to say, about price stability and some changes that he's making to the Federal Reserve.

While Warsh did not commit to specific future press conferences, he did say that more changes are to come and those changes will be worthy of a press conference.

- Karee Venema

Warsh says the Fed will rely on different data sources, but did not give specifics

Warsh doesn't want markets to react too closely to economic data just because they assume those data releases will influence the Fed in one way or another. And he seems frustrated that the Fed relies heavily on government statistics that take time to collect and go through multiple revisions.

He intimated that under him, the Fed will be studying other data sources, and methods for analyzing economic data, to get a better real-time read on how the economy is doing. But he did not go into any details about what those new sources or methods could be, leaving markets to guess for now on what Chair Warsh will be looking at as he makes monetary decisions.

- Jim Patterson

Warsh is not concerned about the market's reaction to the Fed's limiting of communication

"This is a lot of change for financial markets to digest," Warsh said, referring to his plan to limit how much the Fed will be communicating about its future monetary moves. But he also indicated he's not concerned about how markets react to that change.

The main purpose of his inaugural press conference seems to be to drive home the point that he won't be foreshadowing any changes in Fed policy to the media, and that investors will have to get by without such hints.

"I don't have anything for you" was a recurring theme of his answers to questions from the assembled financial media. His message seems to be "Trust us to bring inflation down, but don't expect us to explain how we'll do that before we're ready to do it."

- Jim Patterson

Interest rates are having an "uneven" impact on the economy, says Warsh

A glimmer of a hint on how Warsh sees present interest rates: He said that they seem "restrictive" when it comes to the housing market, but not necessarily in other parts of the economy.

He referred to the present level of rates as "uneven" in terms of how rates are impacting the economy. That doesn't suggest he clearly favors either a rate hike or cut in the future. But considering that he was initially seen as a Fed chair who favored lower rates, the description of today's rates as having an "uneven" impact at least suggests he's not in a race to cut rates right now.

He did not indicate that today's rate level is holding the economy back and needs to be lowered.

- Jim Patterson

Fed may be waiting to see the impact the Iran deal has on oil prices

The dot plot shows that half of the committee members wanted to leave interest rates unchanged for the rest of the year, while the other half thought rates would need to rise a little. Yet Warsh notes that no one in the meeting brought up increasing the federal funds rate this time around.

This may be because the FOMC wants to see what the impact of the Iran deal will be on oil prices.

- David Payne

"Trends matter more than data points," says Warsh

"Trends matter more than data points," Warsh said in wrapping up his remarks. Commenting on the recent trends in the labor market, he indicated optimism, including on the potential for artificial intelligence to boost worker productivity.

That seems to be an important part of his overall approach to monetary policy: The idea that new technology like AI can help lower inflation by enabling workers to do more, thus easing cost pressures for businesses and enabling them to curb price increases. But, in keeping with the theme of his earlier remarks, Warsh did not go into specifics about what that trend could mean for Fed interest rate decisions.

Investors should get used to hearing less from the new Fed chair, rather than more.

- Jim Patterson

Beat inflation: the savings accounts that actually work

Inflation recently hit 4.20%, and most savings accounts aren't keeping up. It means if you have a savings account earning less than inflation, you're losing money — and as the Fed didn't raise rates today, you're not likely to see an increase in your current account.

We're tracking the high-yield savings accounts and CDs that are actually beating the curve, see them here: Inflation Is at 4.2%: These Savings Accounts Are Outpacing It

Stocks close lower after June Fed meeting

Stocks were choppy in the lead-up to Wednesday afternoon's shortened policy statement from the Federal Reserve, but made a decisive turn lower after it was released.

By the closing bell, the blue-chip Dow Jones Industrial Average had declined by 1% to 51,493, despite reaching another new all-time high on an intraday basis. The broad-based S&P 500 was down 1.2% at 7,420, and the tech-heavy Nasdaq Composite was off 1.3% at 26,021.

Market-based interest rates were up across the maturity spectrum, with the 2-year Treasury yield, widely watched as a gauge of short-term policy, rising to 4.216% from 4.047% on Tuesday.

CME FedWatch, which tracks the probability of rate cuts and rate hikes based on 30-day fed funds futures prices, indicates the Warsh Fed could raise interest rates as soon as October.

Read more: Dow Falls 507 Points as Fed Chair Warsh Speaks of Price Stability: Stock Market Today

The bar for rate cuts is higher, says Johnson Investment Counsel's chief economist

While the Federal Reserve's decision to leave interest rates unchanged came as little surprise to Wall Street, the statement and updated projections indicate a shift in the central bank's underlying policy framework, says Brandon Zureick, chief economist and senior managing director at Johnson Investment Counsel.

"Notably, the post-meeting statement was streamlined and sharpened in tone, emphasizing that inflation 'remains elevated' and explicitly highlighting the role of recent supply shocks — particularly in energy — in driving price pressures," he adds.

The FOMC statement also reinforced the diminishing urgency in lowering interest rates due to "solid" economic activity and a stable labor market. "Taken together, these adjustments mark a clear move away from the easing bias that defined earlier communication this year," Zureick explains.

 The updated Summary of Economic Projections, which shows a split between holding rates steady and raising rates this year, underscores this shift, the economist says. "In addition, the Fed revised its macroeconomic assumptions, suggesting an environment with higher expected inflation, somewhat slower growth, and a still-resilient labor market."

With Chair Warsh reluctant to offer forward guidance, Zureick says the overall message from the June Fed meeting is that "the bar for rate cuts has moved higher, and investors will need to look further out on the horizon — particularly to 2027 and beyond — for clarity on the eventual path of policy normalization."

- Karee Venema

The first half of 2026 will be a tough act to follow. In our 2026 full-year outlook, we were bullish on stocks, but we cautioned investors to dial back risk in their portfolios.

Right on cue, the broad market peaked on January 27, then sank more than 9%, a whisker below the 10% threshold that marks an official correction. But it’s the about-face from the market’s low at the end of March that has been truly stunning, with the S&P 500 Index taking just 11 trading days to set a new high — and subsequently notching six more by April 30, the date for prices, returns and other data in this story.

For context, consider that a pullback of that magnitude takes an average of 45 days to break even, according to financial research firm CFRA. "It’s funny," says Dan Phillips, chief investment officer at BMO Wealth Management. "People always say markets go down in an elevator [that is, quickly] and up on an escalator [more gradually]. This market is the exact reverse."

Another market adage says bull markets climb a wall of worry (and bear markets slide down a river of hope, goes the second part). This bull has plenty of worries to fuel its climb: Start with a war with Iran and an accompanying oil shock lifting Brent crude from about $71 a barrel to $114 recently, and gas prices in the U.S. from an average $2.98 a gallon to $4.30.

That in turn ignites fears of sticky inflation and other knock-on economic effects, including reduced spending by increasingly strapped consumers. Plus, unresolved worries from earlier this year linger, including the potential for artificial intelligence to upend the software industry and cut a wide swath through white-collar jobs, and whether the opaque private lending market is about to implode.

And yet, the bull marches on. The second half of the year presents a few sizable hurdles, including a changing of the guard at the Federal Reserve, the midterm elections and a historically weak period for stocks.

But investors who look beyond some choppy, volatile months and focus instead on the strong underpinnings of stellar corporate earnings and a resilient U.S. economy should be rewarded by the end of this year and into 2027, say the majority of market experts we’ve spoken to.

In our January outlook, we thought 7,500 was a realistic level for the S&P 500 at year-end. The median brokerage target is now a bit higher, according to S&P Global Market Intelligence, at a touch over 7,600. Let’s call it a roughly 5% price gain from the April 30 close of 7,209, or more than a 10% gain from the start of 2026.

Add in a dividend yield of just over 1.3%, and a total return approaching 12% for 2026 appears within reach.

Embrace uncertainty

You hear it all the time, says Andrew Slimmon, senior portfolio manager at Morgan Stanley Investment Management: Expect volatility; there’s a lot of uncertainty.

"When do you ever hear, ‘It’s full of certainty out there’? Markets do better when there are high levels of uncertainty," he says. "Embrace the uncertainty!" Investors seem to have heeded his advice, taking the war, rising inflation and the potential downsides of AI in stride.

In fact, given the strength of the spring snapback, Slimmon is a bit worried that investors are on their way from complacent to euphoric, which is a bad sign for bull markets. "I think it would be healthy to have a new worry — the more they crop up, the more it pulls down speculation and extends the life span of the bull."

For now, despite recurring threats of a stalemate in the Iran war, economists and investors continue to look past it, expecting an imminent de-escalation, which would imply a relatively limited impact on the U.S. economy.

For example, of the economists surveyed in April by Blue Chip Economic Indicators, a monthly survey of economic forecasts, 87% recently lowered their 2026 outlook because of the surge in oil prices, with the April consensus forecast for overall gross domestic product (GDP) growth in 2026 coming in at 2.2%, down from expectations of 2.5% growth in March.

But most of the slowdown is slated to occur in the second and third quarters, and the economy could be largely back on track in the fourth quarter, with the economists expecting a growth rate of 2.0% by then. Kiplinger’s outlook is for 2.1% GDP growth for the year, the same as in 2025.

All eyes, of course, are on the price of oil, the locus of the economic and financial cost of the war. Assuming exports from the Gulf normalize in the next couple of months, commodity analysts at Goldman Sachs see Brent crude at $90 a barrel by the fourth quarter, and U.S.-based West Texas Intermediate oil at $83 a barrel.

"Full normalization of energy costs could take well into 2027 because of extensive damage to energy infrastructure in the Middle East," says Kiplinger economist David Payne.

Inflation expectations have increased apace. In March, the government's inflation report showed that consumer prices rose 0.9% month over month, led by a 10.9% increase in energy costs, including a 21.2% jump in gasoline — the largest monthly increase since the series was first published in 1967.

That pushed the year-over-year increase in inflation to 3.3%, up from 2.4% in February. Kiplinger expects an annual inflation rate of 3.0% at the end of 2026 — 4.0% if oil prices stay where they are.

Not your father's oil shock

Why then, given the havoc wreaked in the oil patch, has this market remained so resilient? "We’ve been here before," says BMO’s Phillips, "and the economy has managed through it." Oil hovered in the $100-per-barrel range for months following the Russian invasion of Ukraine, he notes, and from roughly 2011 to 2015, oil prices similar to today’s "were the norm, and we did just fine," he adds.

It’s not that surprising, then, that the stock market tends to shake off oil crises, with the S&P 500 returning an average 12% in the 12 months after an energy shock, going back to 1990 (see the table on the facing page).

Structural changes in the U.S. economy have helped, notes Jeff Schulze, head of economic and market strategy at ClearBridge Investments. First, the U.S. is far more energy independent, having become a net producer of energy rather than a net consumer.

Consumers, meanwhile, are less exposed to the cost of energy goods and services, which represented 3.9% of consumption in March, says Schulze, not far off record lows. "The overall wallet of consumers has gotten bigger while the share spent on energy has gotten smaller," he says.

And we’re far more energy-efficient. Compare the current economy to the one nearly two decades ago, when West Texas Intermediate crude first neared $100 per barrel — equivalent to more than $150 in today’s dollars. Since 2007, the amount of economic output per barrel of oil has increased tremendously, says Phillips.

Back then, we got about $8 to $10 of economic output for each dollar of oil. Today, we get almost $30. Look at it this way, he says: "In 2007, for every dollar of oil you could get a Value Meal at McDonald’s. Today, you could go to a pretty nice restaurant and get yourself a steak."

It’s also fortuitous that tax refunds are rolling out as gas prices have started to soar. By Phillips’s calculations, drivers will end up having paid $25 billion more at the pump in March and April combined. That could increase if gas prices continue to climb and as peak-driving season arrives.

But an expected $100 billion increase in tax refunds this year compared with last year provides an ample cushion. "With near-full employment and tax refunds, we believe the U.S. economy can see its way through recently elevated oil prices," he says.

A more important question is whether the Federal Reserve can see its way through higher energy costs. After three back-to-back quarter-point cuts in the Fed’s benchmark target interest rate in late 2025, the Fed’s April meeting marked the third straight pause on rates, with the federal funds target range holding at 3.50% to 3.75%.

In his last press conference as chair, Jerome Powell said the Fed was moving closer to a neutral position on rates, although for now it retains a bias toward easing. (Powell also said he would stay on as a Fed governor, and he reiterated concerns about the potential for continued legal attacks on the central bank’s independence.)

Before the Iran war, markets were expecting at least two 0.25 percentage point cuts this year and saw a significant chance of a third. More recently, the majority of traders were looking for no cuts this year, according to the CME’s FedWatch tracker, with less than 13% expecting a quarter-point cut by year-end and nearly 9% expecting a quarter-point hike.

Shannon Saccocia, Chief Investment Officer–Wealth at investment management firm Neuberger, sees things differently. "The basis for a hike is difficult to find," says Saccocia, who still expects two quarter-point cuts this year.

Although the new Fed chair, Kevin Warsh, has pointed to AI-driven productivity gains as a potential source of disinflation, monetary policy "will more likely hinge on whether higher energy costs begin to feed into other components of the consumption basket, which could complicate the path toward further easing," says Jason Pride, chief investment strategist at investment management firm Glenmede.

Triple threat

The transition to a new Fed chair is one of a trio of challenges for the market that also include the run-up to midterm elections and a seasonally weak period for the market, says Philip Orlando, chief market strategist at investment firm Federated Hermes. This year marks only the seventh time in 90 years when the three have occurred together, and that could result in a rocky summer, says Orlando.

Start with the new Fed chair. Looking at market performance going back to when Eugene Black took the helm in 1933 to when Powell took over in 2018, the pattern is the same. After a bit of a honeymoon, the market stumbles some three to six months into a new chair’s tenure, with the maximum pullback for the S&P 500 in the first six months a median 10%.

"Historically, there’s volatility surrounding the Fed chair, and this year that volatility will be on steroids," Orlando says.

The second challenge is the midterm elections — the run-up to which is typically marked by a spike in volatility as political rhetoric and policy uncertainty intensifies, spooking investors.

Going back to 1945, average S&P 500 price returns for the second and third quarters of midterm-election years have been a negative 2.6% and 0.8%, respectively, with four of the five months from May through September showing losses, according to CFRA.

The good news is that the 12 months following midterms are usually rewarding, with stocks returning more than 15% on average, according to data going back to 1990 from investment management firm Capital Group.

If the House flips to majority Democratic but the Senate remains in Republican control — as many pundits expect — it should be fine for investors. That configuration under a Republican president has delivered an average annual return of 13.7% dating back to 1933, according to Orlando — the second-best average on record. (A Democratic House and Senate with a Republican president is the worst, returning just 4.9%, on average.)

Finally, you’ve probably heard the old Wall Street saw, "Sell in May and go away." It stems from a seasonal market malaise that typically dampens returns from May through October. Compare the 2.1% average return for those months (since 1945) with the average 6.7% delivered from November through April.

What should investors do with this forecast of a summer squall? "Play defense now," says Orlando, with bargain-priced small-company and international stocks, the latter with a focus on emerging markets. They are likely to be more resilient in a pullback, he says.

"Then look for an opportunity to put money to work in late summer or early fall in growth and tech names." Whatever you do, don’t give up on the bull. Federated’s 2026 year-end target for the S&P 500 is 7,500; for 2027, it’s 8,200.

"Suppose I’m right," says Orlando. "We hit an air pocket and the market drops 10%, then bottoms in October — you could be looking at a 25% increase through December 2027," he says.

Earnings to the rescue

Bulls like Orlando are betting that a phenomenally strong corporate earnings picture wins the day — and the year, and the year after that. And they’ve got good reason: The first quarter has been a blockbuster, and analysts are revising earnings estimates higher for the future.

As of the end of April, first-quarter earnings growth for companies in the S&P 500 was set to top 27% compared with the first quarter of 2025, according to earnings tracker FactSet. That would mark the sixth straight quarter of double-digit, year-over-year earnings growth if the number holds when all reports are in.

"What’s remarkable," says market strategist Ed Yardeni, of Yardeni Research, "is that industry analysts continue to raise their S&P 500 earnings-per-share growth rates for all four quarters of this year. The gains are all in the double digits."

Analysts are looking for average earnings per share of $331 this year for S&P 500 companies, compared with $271 in 2025, up more than 20%; they estimate earnings of $379 per share in 2027.

It’s no surprise energy companies are expected to see the highest earnings growth this year, up nearly 45%, followed by — again no surprise — technology stocks, up 39%. The sector expected to see the least growth is real estate, where earnings are forecast to increase just 5.0% in 2026. But the breadth of earnings growth is encouraging: The share of S&P companies with positive growth estimates for the 12 months ahead could reach 90% over the rest of the year, says Yardeni.

Another bullish fundamental: Net profit margins — the percentage of sales turned into profits after expenses — were tracking at an average 14.7% for the first quarter as of the end of April, the highest level since FactSet started logging the metric in 2009 and well above the high of 13.2% set in the fourth quarter of 2025.

And S&P companies are expected to spin even more revenues into gold as the year progresses, according to FactSet.

Where to invest now

The U.S. is the best house on the investment block for the back half of 2026, with the large-company, growth-oriented stocks that have powered much of the bull market back in favor after a several-month hiatus — and yes, that means technology and AI leaders.

That sounds like a bit of a shift away from a preference for the value-focused small-company and international stocks that many strategists recommended before the war, but the latter remain potent portfolio diversifiers and still offer attractive return potential, so a balanced approach is best.

Within tech, it’s important to be selective, as a wide dispersion of recent returns represents renewed bullishness about the continuation of massive AI-related corporate capital spending, as well as an increasing worry about AI’s existential threat to other parts of the sector.

For the year to date through late April, for example, semiconductor equipment makers were up 63%; IT consultants and software-application providers were down 28% and 24%, respectively.

Our favorite tech fund is T. Rowe Price Global Technology (PRGTX), a member of the Kiplinger 25, the list of our favorite no-load mutual funds. A good choice for exchange-traded fund investors is Kiplinger ETF 20 member State Street Technology Select Sector SPDR (XLK).

Arista Networks (ANET), a technology hardware and equipment company, makes a Goldman Sachs list of long-term growth stocks that have notched at least 10% revenue growth in each of the prior two years, and are expected to do so in the current and next two years.

Eaton (ETN) is on Goldman’s list of stocks likely to benefit from spending on AI and on buttressing power infrastructure.

Value-focused stocks are a good foil for the high-octane portion of your portfolio. Consider Dodge & Cox Stock (DODGX), a longtime Kip 25 constituent. The fund’s biggest sector holdings at last report are healthcare and financial services.

Be careful about running headlong into oil stocks. The sector is a hedge against continued political upheaval, and some strategists recommend it. But it also carries significant risk, according to analysts at CFRA. They downgraded the sector in April, despite expectations of oil prices averaging $100 a barrel in 2026.

"Beware of the sugar high," they caution, in a sector that appears overvalued currently and vulnerable to downward earnings revision in 2027, when CFRA sees lower oil prices.

Small-capitalization stocks have been on a tear, with the Russell 2000 small-stock index outpacing the S&P 500 over the past 12 months, for the year to date and since the market bottomed on March 30.

Small and midsize companies should benefit from moderating wage growth — a big line item for them — and will see other cost savings as AI becomes more broadly adopted across the economy, says Schulze, at ClearBridge.

Funds we like include Kip 25 members Oberweis Small-Cap Opportunities (OBSOX), a growth-oriented fund, and T. Rowe Price Small-Cap Value (PRSVX), which tilts toward bargain-priced fare.

Outside the U.S., strategists have largely soured on most developed markets, particularly Europe, where economic growth expectations are fading. "They’ve been hit harder by this war," says Keith Lerner, chief investment officer at Truist Wealth. "They’re not insulated from the energy part of it."

Japan remains intriguing, though, as it reaps the benefit of recent shareholder-friendly reforms. Fidelity Japan (FJPNX) ranks in the top 5% of its category so far this year through April. If you want to take currency swings out of the equation, consider the iShares Currency Hedged MSCI Japan ETF (HEWJ).

Emerging markets are the favored international play currently for many portfolio strategists. EM stocks were outperforming U.S. stocks on a one-year and year-to-date basis before the war, and since the war started have remained resilient, down just 0.3%, as measured by the MSCI Emerging Markets index.

We like Kip 25 fund Baron Emerging Markets (BEXFX) for active management; iShares Core MSCI Emerging Markets (IEMG) is our low-cost, indexed ETF pick, with an expense ratio of just 0.09%.

Consider capitalizing on surprisingly good earnings with FullerThaler Behavioral Small-Cap Growth (FTXNX), available with no load or transaction fee at brokerage platforms including Schwab and Fidelity.

The fund looks for firms reporting large earnings surprises, seeking to profit from behavioral biases that can cause markets to under-react to positive new information. There should be plenty of fodder: FactSet reports that at the end of April, companies reporting earnings surprises were coming in an average 20.7% higher than what analysts expected — above the five- and 10-year averages of just over 7%.

Our advice for fixed-income investors at the moment is short — as in short term. Worries about stubborn inflation and a growing federal budget deficit could keep upward pressure on long-term rates, and rates and bond prices move in opposite directions.

You can’t go very wrong with Vanguard Short-Term Treasury Index (VGSH), an ETF with an effective duration (a measure of sensitivity to interest rate movements) of just 1.9 years, implying a roughly 1.9% loss in value if rates move up a percentage point. But pay attention to possible inflection points: As yields on 10-year T-notes crest 4.50%, says Truist’s Lerner, they might be worth a look.

Lastly, you might be inclined to jump into Treasury inflation-protected securities, but proceed with caution. TIPS can help you maintain purchasing power and diversify your portfolio, but longer-duration issues can react sharply to interest rate swings, which means you could be surprised by a decrease in value if rates move higher, even if inflation expectations are rising.

Stick with a low-duration option such as Vanguard Short-Term Inflation-Protected Securities Index (VTAPX).

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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If you have retirement savings in an IRA or 401(k), Uncle Sam is your partner on that money because every dollar you pull out of it is taxed.

Consider this common scenario: One spouse in a retired household passes away and the surviving spouse becomes a single taxpayer, which affects their overall tax liability, even though their income goes down.

Let's say the couple's total income was $200,000 a year. While they were married, this meant they had an effective tax bracket of about 15%.

When the husband passes away, the wife's income goes down to $180,000 because she loses the smaller of their two Social Security checks. But going forward, she will file as a single taxpayer, so she is now in the 20% tax bracket.

Additionally, if her RMDs and her income grow each year, her tax rate could keep climbing. And that doesn't even factor in future tax increases. (It's unlikely taxes will stay as low as they are now, considering our nation's debt of $39 trillion.)

Proactive tax planning could have helped protect her from the impact of higher taxes after losing her partner.

For retirees in higher tax brackets looking to help their spouse (or adult children) avoid this kind of tax trap in the future, partial Roth conversions now can help.

1. Protecting the surviving spouse

If you're a married couple, you're in a joint taxpayer bracket. And once both spouses reach age 65, you become eligible for specific additional tax benefits.

For example, with a taxable income of $148,300, you fall within the 12% tax bracket for married couples filing jointly after the deductions.

The $148,300 figure includes a $32,200 standard deduction based on your filing status. You would also receive the $3,300 additional standard deduction for both being over age 65 – this consists of $1,650 for each spouse, as determined by the One Big Beautiful Bill for taxpayers over 65. On top of this, there is an additional $12,000 bonus deduction for those over age 65 (up to a certain income limit).

However, when one spouse dies, the surviving spouse (usually the wife) jumps up to the 24% tax bracket.

If your income is higher, it's an even larger jump in taxes for the surviving spouse.

For example, if your taxable income as a married couple is $250,000 a year, you can see on the chart below that you're in the 24% tax bracket because you're "married filing jointly."

However, if the husband dies first, the surviving spouse is now a "single filer" with taxable income of $250,000. You can see she has now jumped up into the 32% tax bracket.

A Roth IRA may help protect the surviving spouse from higher taxes as a single taxpayer because you already paid the taxes while you were both alive as joint taxpayers.

2. Protecting non-spouses

When you die and leave your IRA to your children, they only have 10 years to empty your IRA completely.

Let's assume the IRA you leave to your children will earn 4% annual returns over the 10-year period after you leave it to them. This means that your children will have to take out approximately 14% of the IRA balance every year.

This would allow them to take out the 4% annual earnings along with 10% of the principal, so the entire IRA is drained over that 10-year period without a potential big tax hit in year 10.

However, this 14% annual IRA withdrawal could put your heirs in a higher tax bracket.

While a Roth conversion would mean paying income tax now, that could be a bargain compared to the potentially higher income tax brackets your heirs might have to deal with after you're gone — and any state income taxes they may also have to pay.

Additionally, if your children live in a state that has a state income tax (such as New York, which has a 10.9% top state tax bracket), they may be subject to federal income taxes and up to an additional 10.9% in state income taxes as well.

We use software called Holistiplan that helps identify the maximum amount to withdraw year by year to take advantage of today's tax brackets, and will work alongside an accountant or a tax professional.

When appropriate, we recommend our Strategic Roth Integration (SRI) plan to clients so that they can take advantage of today's income tax rates and never pay taxes on their Roth IRA again.

If you'd like to learn more, check out my new book, IRA Owners: Help Defuse Your Ticking Time-Bomb, co-authored with Steven Kao.

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

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• Have a Retirement Bucket List? Don’t Hesitate to Dive In

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.

Editor's note: This is part one of a two-part series about estate planning. Part two will explore the three-step process for designing your estate plan.

When most people think about estate planning, they think about a will. It's often framed as a final step, a document that ensures your wishes are carried out and your assets are distributed properly.

While that's important, it misses a much bigger point: A will governs only what's left.

The real question is, will there be anything left to govern?

That's where many people get it wrong. They focus on planning for their death without fully planning for their life. The financial decisions you make while you're living — how you invest, how you manage taxes and how you prepare for major risks — are what ultimately determine the size and strength of your estate.

In other words, estate planning shouldn't start with documents. It should start with building a financial life worth protecting.

The difference between estate planning and life planning

At its core, estate planning is about transferring assets after death. Life planning is about making sure those assets last throughout your lifetime.

The distinction matters more than most people realize.

If your financial plan doesn't account for income needs, market risk, taxes and unexpected expenses, your estate plan might never have the chance to work as intended. A will can't fix a portfolio that runs out of money, and a trust can't undo years of unnecessary taxes or cover the cost of long-term care.

What happens during your lifetime directly impacts what you leave behind. That's why a strong estate plan is built on a solid financial foundation, one that prioritizes sustainability, efficiency and protection.

The three pillars that support every estate plan

Before drafting legal documents, it's critical to address three foundational financial areas: your investment strategy, your tax strategy and your long-term care plans. Together, these pillars determine whether your estate will be preserved and protected.

1. Investment strategy: Sustaining income without running out

Your investment strategy isn't just about growth; it's about sustainability.

Growing your assets matters, but as you approach retirement, the focus shifts. Your portfolio now has to do two things at once: Continue to grow and provide reliable income.

That balance is where things can become tricky.

If you take on too much market risk while also withdrawing more income than your portfolio can support, you create a scenario in which your assets can be depleted faster than expected. Market downturns combined with withdrawals can accelerate losses, increasing the risk of running out of money.

If that happens, your estate plan could suddenly be in jeopardy.

A well-designed investment strategy accounts for both growth and income, ensuring that your assets can support your lifestyle over time, not just in ideal market conditions.

2. Tax strategy: Keeping more of what you earn

Taxes are one of the most overlooked threats to retirement and long-term wealth.

Over the course of your lifetime, inefficient tax planning can erode a substantial portion of your assets. That's money that could support your lifestyle or be passed on to future generations, which is why tax planning shouldn't be reactive. It should be proactive and forward-thinking.

Strategies such as Roth conversions and tax diversification can help reduce your lifetime tax burden while also creating more flexibility in retirement. They can also improve the tax efficiency of what you leave to your heirs.

The key message is: It's not about how much you accumulate over your lifetime; it's about how much you get to keep. What you keep plays a major role in what you ultimately pass on.

3. Long-term care: The risk that can undo everything

Long-term care is one of the largest financial landmines people face in retirement and, unfortunately, one of the least planned.

Whether it's in-home care, assisted living or a nursing home, the cost can be substantial. Without a plan, those expenses often come directly from your assets, quickly reducing the value of your estate.

There are generally two approaches: Self-insuring by relying on your own assets or transferring some of that risk through insurance-based solutions, such as life insurance policies with long-term care benefits. Either way, the key is having a plan.

Without one, even a well-built portfolio and solid tax strategy can be undone late in life. Long-term care costs have the potential to drain assets when you least expect it and when you're least likely to recover from the impact.

Build the life first, and the legacy will follow

These three pillars don't just support your financial life; they determine the outcome of your estate plan. They answer some of the most important questions: Will your assets last? How much will be left? Will it be transferred efficiently?

Legal documents don't create wealth; they organize it. If the underlying financial plan isn't strong, even the most carefully drafted estate documents won't achieve their intended purpose. In many cases, a lack of planning during your lifetime can lead to the very worst-case scenarios people try to avoid in the first place.

Estate planning is often framed as preparing for the inevitable, but it's about something much bigger. It's about making thoughtful and intentional decisions throughout your life so that your money supports you the way it should, so that when the time comes, there's something meaningful to pass on.

A will can distribute your assets, a trust can control them, but neither can replace a well-planned financial life. If you want to leave a lasting legacy, start by building a plan around your life. The rest will follow.

Conversations around your finances and estate should never occur separately. At Blue Ridge Wealth Planners, we take the complexity out of financial planning, helping clients create a plan for everything, from investments, income, taxes, healthcare and your legacy.

In the next article of this series, I'll explain the three-step process (Design, Structure, Funding), highlighting the critical but often-missed "Funding" step to make a trust legally effective.

Blue Ridge Wealth Planners is an investment adviser registered with the Securities and Exchange Commission. SEC registration is not an endorsement by the SEC nor does it imply a certain level of skill or training.

Related Content

• 5 Estate Planning Things You Need to Do Now, From a Financial Planner
• Protect Your Family's Future: Avoid These 12 Common Estate Planning Mistakes
• I'm a Wealth Planner: These 3 Steps Can See You and Your Heirs Through a Wealth Transfer
• The Middle Wealthy Are the Goldilocks of Retirement, But Where Do You Find the Financial Advice That's 'Just Right'?
• With Your Investments, Think Location, Location, Location

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.

I've worked with enough successful business owners to know that almost every one has the same gap in their plans.

Take a scenario I see all the time: Dave built a widget company from nothing into a $30 million business. He's sharp, disciplined and completely focused on growth.

But when I ask him what his plan looks like after the company's sale, he stares at me like I've asked him to solve a riddle in an unknown language.

Dave isn't unusual. Most successful entrepreneurs pour every ounce of energy into building a business and almost none into planning for what happens when it turns into liquid wealth.

It's not carelessness. Building the company is the priority. If it doesn't succeed, there's nothing for which to plan.

The problem is that by the time the exit is real and there's a signed contract and a closing date, the biggest wealth-building opportunities have already passed. The cost of that timing gap can run well into the millions.

Three things business owners aren't considering

The same three blind spots come up again and again:

• The first is business structure. How the company and the owner's personal stake are organized for tax purposes. Whether you're a C corp, S corp, LLC or LLP affects not just annual income taxes but the tax treatment of any future sale. Get this wrong at formation, and you could be locked in for decades.
• The second is succession planning. For a business to command a strong valuation, it needs to be transferable. This means there is management in place, client relationships are institutional rather than personal, and operations can run without the founder. Buyers pay a premium for businesses they can take over immediately.
• The third is exit and estate planning. This one costs families the most money. A successful sale creates a massive tax event. Without years of advance planning, your options to reduce that burden shrink dramatically.

Why the math gets worse as the business grows

Valuation multiples expand as revenues grow. A company with $200,000 in EBITDA might sell for five times, or $1 million. Scale to $3 million in EBITDA and a 10-times multiple puts the value at $30 million. At $35 million in EBITDA, a 20-times multiple can push it to $700 million.

Industry and revenue quality directly impact these numbers, but the pattern holds: The bigger the exit, the bigger the tax event.

The federal estate tax rate above the exemption is 40%. The current lifetime exemption is $15 million per person ($30 million per couple), which is the most generous in U.S. history.

But Congress can change that number. A sale that pushes your estate above the exemption can trigger an enormous tax bill for your heirs if you haven't planned ahead.

What early planning looks like

If a business owner shows up with a signed purchase agreement and asks what can be done to reduce the tax hit, the honest answer is: Not much. The valuation is set. The structure is locked. The die has been cast, as we say.

The difference between the business owner who plans five years out and the one who plans five months out can easily be eight figures.

Let's revisit Dave's scenario. Five years before his planned exit, we started working on a strategy. Dave created an irrevocable trust for the benefit of his wife and children and transferred 50% of his company, valued at $15 million at the time, into that trust.

When the company sold for $60 million, the trust's half was worth $30 million, and that $30 million was outside Dave's taxable estate.

He paid long-term capital gains of 20% on the sale rather than ordinary income rates of 37%, and by moving assets out of his estate at a much lower valuation years earlier, he avoided what could have been $12 million in estate taxes on the growth alone. All told, early planning saved Dave's family north of $20 million.

Two types of trusts come up most often in these conversations:

• A spousal lifetime access trust (SLAT) is an irrevocable trust that names the spouse as beneficiary during their lifetime, then passes to children and grandchildren. It works well when the business owner might still need access to income or assets from the trust.
• An intentionally defective grantor trust (IDGT) skips the spousal access and goes directly to children and grandchildren.

Both of these options share the same critical advantage: The assets are valued when they go into the trust. For a growing business, that means transferring at a relatively low valuation years before the exit and letting all that appreciation happen outside the taxable estate.

Charitable strategies can strengthen the plan further. Donating appreciated stock to a donor-advised fund — or, for private company shares, to an organization that accepts them — delivers meaningful tax benefits over donating cash. These tools work best when built into the strategy early.

Four things to do now

If you own a business and think you might sell it someday (even if "someday" feels like a decade away) here's where to start.

1. Find the right wealth manager. Look for someone who works specifically with business owners and can help you build a long-term plan that connects your business goals to your personal financial picture. This isn't a one-meeting exercise, it's an ongoing relationship.

2. Assemble your full team and get them on the same page. Alongside your wealth adviser, you also need an attorney and an accountant, all working from the same playbook. These professionals shouldn't be operating in silos. The value comes from coordination. To ensure this, I encourage you to ask your team four questions:

• What is the plan?
• How are we going to get there?
• Who else needs to be involved?
• What are we not thinking about? This is the one most people forget.

3. Start three to five years before any potential sale. This is the window when the most powerful strategies, including trust planning, ownership restructuring, estate tax reduction, are still available to you. If you wait until a deal is on the table, most of those doors close.

4. Execute aggressively. An unexecuted plan is worthless. Once the strategy is in place, move on it. Every year of delay is a year that asset values grow inside your taxable estate instead of outside it.

The future will arrive faster than you think. Time is your single greatest ally in wealth planning but only if you use it.

The entrepreneurs who start early, build the right team and execute with urgency are the ones who keep the wealth they spent a career creating.

The ones who wait? They pay for it.

Related Content

• 4 Retirement Risks Business Owners Often Overlook
• When Starting a Business, the End Is a Very Good Place to Start
• The Entrepreneur's Exit: How to Sell (or Pass on) Your Business Without Losing the Family
• Planning to Leave Your Business? How to Find the Right Buyer
• To My Small Business: Well, I've Been Afraid of Changin', 'Cause I've Built My Life Around You
• The Most Important Number for a Business Owner Considering a Sale

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.