Of the $124 trillion in wealth expected to transfer hands during the next two decades, $54 trillion will move horizontally to the spouse, according to a 2024 Cerulli Associates report. Once the widow spends money on healthcare, travel and other expenses, what's left over will go to the younger generations.

Inheritance of any size may be welcome, given that many Gen Xers and millennials, based on a new survey conducted by Morning Consult on behalf of Kiplinger, don't expect any windfall at all. That's even though 47% of parents expect to leave a meaningful one.

This gap between expectation and reality highlights a crucial step in the wealth transfer process: The horizontal shift between spouses. Understanding why it occurs and how surviving spouses can plan for it is essential to preserving family wealth for the next generation.

Why the horizontal wealth transfer happens

Making sure your spouse is taken care of usually drives horizontal wealth transfer, but if that's not enough, the tax code offers incentives to stay motivated. The Unlimited Marital Deduction lets an individual transfer an unlimited amount of assets to the surviving spouse free of estate and gift taxes. If the wealth was passed to an adult child or children upon the first spouse's death, it could trigger estate taxes in certain circumstances.

"The typical process is you leave your money to your spouse, and after that it goes to the kids," said Derrick Longo, a wealth adviser at Exencial Wealth Advisors. "But there's no default right answer. It's very specific for every family and situation."

If you are a surviving spouse, do this

In the Great Wealth Transfer, surviving spouses will be the first to receive the wealth; they need to plan now to preserve it later.

Take the so-called widow's tax penalty for starters. This occurs in the year after a spouse dies and the surviving partner starts filing as a single taxpayer. At that time, their tax brackets are reduced by 50%, and the standard deduction is cut in half, forcing them to pay more taxes if they don't plan for it. But if they do prepare, they have options, including:

• If the surviving spouse has dependent children, they can delay filing as single for two years. After that period, they may choose to file as head of household.
• They can file a married filing jointly return for the calendar year in which the spouse passed away.
• Space out income-generating events such as retirement withdrawals and Roth conversions from the inheritance.

On the positive side, the surviving spouse gets a big tax break on inherited real estate, stocks and taxable investment and savings accounts. The value of the assets resets to the current market value on the date of death, erasing capital gains built up over the lifetime (known as a "step-up" in cost basis). If you sell soon after, you may owe little to no capital gains tax, depending on state property laws and how the assets were titled.

The surviving spouse can also roll an inherited IRA or 401(k) into their own name, delaying required minimum distributions (RMDs) until they turn age 73 or 75, depending on their birth year. If a child inherits that same account, the 10-year rule usually applies, requiring them to empty the account (and pay the taxes) within a decade.

Manage healthcare to preserve future wealth

Expected drains on future generations' inheritances include long-term care and healthcare costs. In Kiplinger's survey, 24% of parents fear these costs will erode their wealth.

It makes sense. Fidelity estimates the average 65-year-old will spend about $185,000 on healthcare in retirement, and that doesn't include any long-term care, which can get expensive. The average annual cost for a private room in a nursing home was $129,575 in 2025, while an in-home aide cost $80,080. Money once earmarked for the kids can quickly become money spent on aging without the proper planning.

When it comes to covering healthcare expenses in retirement, surviving spouses can take out long-term care insurance, self-fund future healthcare expenses from their savings, health savings accounts (HSAs) or investments.

Which option makes sense for you depends on your health, longevity and finances.

For instance, long-term care insurance may make the most sense if:

• You can afford the premiums.
• Your family or trusted friends can handle the paperwork and claims process for you.
• You crave peace of mind that comes with insurance.
• You are healthy enough to meet underwriting guidelines.

Meanwhile, self-funding your long-term care needs may make the most sense if:

• You're healthy.
• Your family health history is largely free of chronic or heritable debilitating illnesses.
• You've saved enough for your retirement.
• You have liquid assets you can access easily without triggering major tax consequences.

Figure out how to spend to keep the estate growing

An inheritance can bring a desire to spend more, but to ensure the surviving spouse has enough to go around, a retirement spending strategy is essential to the planning process. Spouses can use several withdrawal strategies beyond the traditional 4% rule, including the bucket approach, the flooring strategy and a delayed Social Security collection plan, among others.

If you need help staying disciplined and want to worry less because you know where your money is and how much you can spend, the bucket approach may be for you. If you want a steady monthly income or are hesitant to spend because of stock market fluctuations, the me-first or flooring method of spending might be for you. For surviving spouses who want to maximize cash flow later on, the delaying Social Security strategy could be the best approach.

The idea is to find a plan that matches you and stick to it. That will ensure you have enough money to live your ideal retirement and have some left over for the remaining heirs.

Plan today to preserve for tomorrow

The horizontal wealth transfer is the first stop of the Great Wealth Transfer, and it is set to benefit women primarily. With $54 trillion expected to pass to surviving spouses, that is a lot of money to protect, preserve and grow.

The good news is the next-in-line spouse doesn't have to wait until their partner is gone to prepare. A little foresight now can help ensure the windfall lasts for generations to come.

More Trillion Dollar Talk

• How Real Families Are Handling The Great Wealth Transfer
• The $124 Trillion Great Wealth Transfer: Fact vs Fiction Quiz
• Could You Handle a Sudden Windfall?
• Before You Leave Your Home to Your Children, Ask These Questions

Years of rising property values mean some homeowners have far more wealth tied up in their house than in retirement savings. The problem is that home equity isn't money you can easily spend.

This guide explains how retirees can use that equity, the options available and what to consider before turning housing wealth into retirement income.

If you sell your home

Selling clears the debt entirely, but it often returns less than homeowners expect because the listing estimate doesn't account for the costs of selling.

Alex Byder, founder of BD Homebuyer, buys residential property directly from sellers and regularly sees this gap. "Almost every seller I meet has anchored on a number they saw online," he says, "and that number has nothing subtracted from it. Cut 10% off the listing estimate before you plan anything around it.

"On a $650,000 sale, that is $32,000 in commission, roughly $12,000 in inspection items, and $4,000 a month in carrying costs for every month it sits. Sixty days on the market is normal, so budget for it."

The same arithmetic determines whether downsizing frees up much money. A smaller home in a newer or more convenient location may cost nearly as much, while sales fees absorb some of the difference.

If you borrow against your home

Borrowing lets retirees access equity without selling. There are three main options:

• A home equity loan provides a lump sum with fixed monthly payments. It suits a known expense, such as adapting a bathroom.
• A home equity line of credit (HELOC) provides an amount that can be drawn when needed. Interest is charged only on what is used.
• A reverse mortgage requires no monthly loan payments. Interest is added to the balance, and the debt is settled when the house is sold or the owner dies. It is available from age 62, with the most common version insured through the Federal Housing Administration (FHA).

Timing matters, however. Retirees can struggle to qualify for traditional loans, while opening a reverse mortgage earlier can provide advantages that waiting doesn't.

Why retirees can struggle to borrow against their home

Having substantial equity doesn't automatically make borrowing easy. Lenders are more interested in the income available to repay the loan.

Banks approve home equity loans and HELOCs partly by comparing monthly income with monthly debt payments, known as the debt-to-income ratio.

Equity doesn't count as income. Consider a homeowner with $700,000 in equity, no mortgage, $3,200 a month from Social Security and a pension, and $900,000 in retirement savings. They may be financially secure but still have relatively little qualifying monthly income.

One way around this is asset depletion.

The lender treats retirement savings as though they were being paid out monthly, often dividing the balance across 360 months. A $900,000 balance could therefore add $2,500 a month of qualifying income.

Not every lender offers this. Credit unions and smaller local banks may have more flexibility than large banks operating under stricter lending rules.

Why a reverse mortgage credit line works differently

If a home equity loan or HELOC is difficult to qualify for, a reverse mortgage offers another way to borrow. It can be set up as a line of credit rather than taken as a lump sum.

The homeowner draws on the approved amount only when needed, while the unused portion grows at the loan's interest rate plus half a percent.

Someone who opens a line at 62 with $200,000 available and leaves it untouched would have roughly $514,000 available by 77 at 6.5% annual growth.

Someone who waits until 77 gets an amount calculated from scratch based on their age, rates and home value. That gap is the cost of waiting.

A reverse mortgage credit line can also be more dependable than a HELOC. Banks can freeze or cut HELOCs, while a reverse mortgage credit line cannot be cut because of market conditions, as the Congressional Research Service's overview explains.

How a reverse mortgage can protect retirement savings

A reverse mortgage credit line can also help retirees avoid selling investments when markets fall.

Selling after a downturn means selling more shares to raise the same amount of cash, leaving fewer invested when the market recovers. Planners call this sequence of returns risk.

Barry Sacks, a tax attorney, and Stephen Sacks, professor emeritus of economics at the University of Connecticut, examined this strategy in the Journal of Financial Planning. They found that opening a credit line early and using it selectively gave retirement savings better odds of lasting 30 years than keeping the home as a last resort.

Say a $1 million portfolio falls 22% to $780,000 and the retiree needs $50,000. Taking it from investments means selling 6.4% of the reduced portfolio. Taking it from the credit line allows those investments to remain in place and potentially recover.

Note that borrowed money isn't considered as income, which can matter when retirement withdrawals would otherwise push income high enough to trigger higher Medicare premiums.

What a reverse mortgage costs and when it makes sense

Reverse mortgages are expensive to set up. Upfront government mortgage insurance premiums cost 2% [Ed note: should this be 'up to 2.5%'?] of the home's value, up to the FHA lending limit. On a $600,000 home, that's $12,000 before lender fees, appraisal and legal costs. Monthly mortgage insurance premiums then cost half a percent a year on the amount borrowed.

In return, the debt cannot exceed what the home sells for, the unused credit line keeps growing, and no monthly loan payment is required.

A reverse mortgage doesn't make sense for everyone. Someone planning to sell within about five years may not be able to justify the upfront cost, while using one for an optional lump-sum purchase can be expensive.

If you can comfortably qualify for a HELOC and only need occasional access to money, this lower-cost option may make more sense.

What to do this year

Anyone between 60 and 65 with substantial equity and modest savings can start comparing these options before they need the money.

Get a HELOC priced while income can still support the application. Then ask what a reverse mortgage credit line opened at 62 could be worth compared with opening one at 75.

The decision that protects a retirement is rarely made when the money runs short. It is usually made years earlier.

Related Content

• 10 Things You Should Know About Tapping Home Equity
• Turning a Reverse Mortgage into a Retirement Investment Tool
• Sell, Borrow or Stay? How to Use Home Equity in Retirement
• I'm a Financial Professional: Here Are Four Ways You Can Use Debt to Build Wealth
• Extra Cash? Should You Pay Off Debt or Invest?

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.

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

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

Leftover funds

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

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

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

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

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

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

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

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

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

Related Content

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

There’s no universal dollar amount or percentage general rule, and the deposit amount depends on your individual situation. To start, consider the money’s purpose and when you’ll need it. When you deposit money into a CD, it’s locked up for a fixed period, which could be several years, so your CD should generally contain money you won’t need to access soon for everyday expenses or emergencies.

Because CDs generally offer a guaranteed rate for a set term, they can be useful for money you know you won’t need right away. The key is deciding which savings you can comfortably lock up and which should remain easily accessible. Before putting money into a CD, make sure you have enough cash available for emergencies and other near-term expenses.

Keep your emergency fund out of a traditional CD

CD terms can range from several months to five years, though you might occasionally find terms as long as 10 years. If you withdraw your money before the CD matures, you'll usually pay an early withdrawal penalty.

Because of those restrictions, a traditional CD generally is not the right place for emergency savings. A high-yield savings account (HYSA) or another liquid account gives you easier access to your money without an early-withdrawal penalty.

Before opening a CD, make sure you have enough accessible cash to cover emergencies and upcoming expenses, such as insurance premiums, home repairs, taxes and medical costs. Once those needs are covered, you can consider putting additional savings you won't need right away into a CD.

Match the CD amount to a specific savings goal

If you have a specific savings goal in mind, you can use your CD to help you reach it. You could use a CD in several ways by depositing:

• $20,000 you’ve saved into a short-term CD for a car you plan to buy next year
• $50,000 you’ve saved toward a downpayment on a home you plan to buy in two years
• The cash you’ve saved for a major renovation you plan to start in three years

If you know you won’t use that money until a certain date, a CD can serve multiple purposes. It essentially puts a "do not touch" sign on the money, which could help you save it. At the same time, the money earns interest, helping it grow.

Calculate whether the return is worth locking up your money

Current 12-month CD rates average 1.71%, but shopping around can make a significant difference. Some of the top one-year CDs we have found currently offer annual percentage yields (APYs) of 4.20% to 4.25%. Minimum deposits vary, though, ranging from $1,000 at Accordia Bank to $5,000 at Colorado Federal Savings Bank.

At 4.25% APY, here is approximately how much different deposits could earn over one year:

• $5,000 = $212.50
• $10,000 = $425
• $25,000 = $1,062.50
• $50,000 = $2,125

Some of the top high-yield savings accounts currently offer APYs of 4% or more. For example, Newtek Bank currently offers 4.20% APY with no minimum deposit, while Poppy Bank offers 4.00% APY with a $1,000 minimum deposit.

That's competitive with today's top one-year CDs, but there is an important difference. High-yield savings account rates are variable and can change at any time, while a traditional CD typically locks in your APY for the full term. In exchange for that guaranteed rate, you give up some access to your money.

When CD and savings rates are this close, the difference in earnings might be relatively small. The table below shows how much you could earn at different deposit amounts and how much extra a slightly higher CD rate could put in your pocket.

Note: These are illustrative examples based on APY and assume the money remains in the account for one year. HYSA rates are variable and can change at any time, while a traditional CD generally locks in its APY for the term.

Don't overlook early withdrawal penalties

Before you deposit a large amount, check the CD’s early withdrawal penalties. If you need to access the money before it matures, it could cost several months of interest, depending on the bank and term. Penalties can be particularly steep for CDs with longer terms.

Some financial institutions offer no-penalty CDs as an alternative. You’ll still have a guaranteed CD rate, but you can avoid fees if you need to withdraw your money early. You’ll usually be required to withdraw the full amount, and the CD account typically closes once you make that withdrawal.

Rates, terms and early-withdrawal penalties can vary significantly by financial institution. Use the tool below to compare current CD rates and find an account that fits your savings timeline:

Consider splitting a large amount among several CDs

One downside of CDs is that your money is generally locked up until the CD matures. A CD ladder can help you balance earning guaranteed rates with having portions of your savings become available at regular intervals.

For example, say you have $50,000 to deposit. Rather than putting the entire amount into one five-year CD, you could divide it equally among five CDs with different maturity dates. You could put $10,000 each into one-year, two-year, three-year, four-year and five-year CDs.

With this strategy, one CD matures each year, giving you access to $10,000, plus the interest it earned. You can use that money if you need it or re-invest it in another CD to continue the ladder. This gives you more flexibility than locking the full $50,000 into a single five-year CD.

Watch the FDIC and NCUA insurance limits

The Federal Deposit Insurance Corporation (FDIC) and National Credit Union Administration (NCUA) generally insure deposits up to $250,000 per depositor, per insured institution, per ownership category. Some CDs offer additional insurance coverage beyond the standard $250,000 limit, so be sure to check your financial institution’s specific coverage policy.

If you’re considering making a six-figure deposit, you’ll need to verify and monitor these insurance limits to verify that all of your money is protected.

How much should you put in a CD?

Rather than starting with a specific percentage of your savings, consider how much cash you have beyond your emergency fund, when you will need the money and whether you can comfortably leave it untouched until the CD matures.

The right amount is one that allows you to take advantage of a guaranteed rate without leaving yourself short on accessible cash. Before opening a CD, account for your emergency savings, near-term expenses and other financial goals so you are less likely to need the money before maturity.

Deciding how much to keep in cash is just one part of your larger financial plan. If you want help balancing savings with investments, retirement goals and other priorities, a financial adviser can help you determine where your money might work best.

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

Related Content

• Are One-Year CDs A Smart Move Amid Rising Inflation?
• Maximize Your Savings: The Best Jumbo CD Rates to Lock In Now
• What Federal Interest Rates Mean for Your Grocery Bill

That instinct might make sense for other types of insurance. But it's the wrong instinct when it comes to your supplement plan, and it can cost you hundreds of dollars a year, sometimes for a decade or more, without you noticing.

The part nobody expects: Identical coverage, different price

Here's what most people don't know about Medicare supplement, or Medigap, plans: They're standardized by the federal government. A Plan G from one insurance company covers exactly the same things as a Plan G from every other insurance company selling in your state. Same benefits, same rules, no exceptions.

The only thing that changes from carrier to carrier is the premium, and that gap is often much bigger than people expect. It's common to see one company quoting around $140 a month for a Plan G in a given ZIP code, while another quotes $240 for identical coverage.

If you live in Massachusetts, Minnesota or Wisconsin, your state uses its own Medigap plan structure instead of the lettered system, but the same principle applies: Compare identical coverage across carriers.

That difference isn't a mistake in the system. It's simply how a heavily regulated product still leaves room for companies to compete on price. Once you understand that the benefits can't differ, price becomes the only variable worth comparing.

If it helps to see the price comparison laid out visually, this video walks through a similar rate check, including how identical Plan G quotes can vary by $100 or more depending on the carrier.

Why the same plan gets more expensive every year you ignore it

Insurance companies tend to price Medigap plans competitively when they're trying to attract new customers, then raise those rates gradually in years two, three and four.

Meanwhile, a different, equally reputable company may be offering the exact coverage you already have at close to what you originally paid. The result is a slow drift where loyal customers end up paying the most for the same benefits, simply by not looking elsewhere.

Consider this scenario based on real-life patterns I often see in my practice: Carol enrolled in a Plan G at 65 for $150 a month and never revisited it. Eight years later, she was paying $310 a month for the same coverage, on the same plan letter, that a different company was now selling to new customers for $165.

Nothing about her benefits had changed. What had changed was the price she was willing to keep paying without checking.

The catch: You need to shop while you're still healthy

Here's the part that makes this more than a simple money-saving tip. When you first become eligible for Medicare, you get a six-month Medigap open enrollment window where you can buy any plan, from any company, regardless of your health.

Once that window closes, switching companies generally means answering health questions. Depending on your answers, you can be charged more or declined altogether.

Several states (including New York, Connecticut, Massachusetts and others with "birthday rule" laws) require little or no underwriting to switch, but check with your State Health Insurance Assistance Program (SHIP) to see your state's specific rules before assuming this applies to you.

That's the trap in Carol's story. The money was there to be saved every year she waited, but the ability to make the switch wasn't guaranteed to still be there when she finally looked. The right time to compare pricing isn't when you're sick and need to. It's now, while you still qualify for whichever plan turns out to be the better deal.

The piece that isn't standardized: Part D

If you go the Medicare supplement route, prescription drug coverage isn't included. You'll need a separate Part D plan, and unlike Medigap, these plans aren't standardized.

Premiums, deductibles and which medications are covered can vary significantly and can change from one year to the next, even if you don't change anything yourself. This is worth reviewing every single year, not every few years, during the annual enrollment window that runs from October 15 through December 7.

Even people who aren't currently taking any medications are better off enrolling in a Part D plan rather than skipping it. Going without one, if you don't have other qualifying drug coverage, can trigger a penalty that gets added to your premium for as long as you're on Medicare.

What to do this fall

You don't need to wait until something feels wrong with your current plan to check whether it's still the right price.

Pull your current Medigap premium and compare it against current rates for the same lettered plan from other carriers licensed in your state, not just your existing company.

Do this while you're healthy. If your health has changed since you last shopped, ask an independent agent what your options are before assuming you can switch freely.

Mark October 15 through December 7 on your calendar every year, and use that window to review your Part D or Medicare Advantage plan, even if last year's plan still feels fine.

The takeaway

Medicare isn't a decision you make once at 65 and close the book on. Your health changes, insurance pricing changes, and the marketplace shifts every year whether you're paying attention or not.

Reviewing your coverage every two to four years, and your Part D plan every single year, can mean meaningful savings without giving up a single benefit. The only real risk is waiting too long to look.

Related Content

• The '100% Overwhelming' Decision: What Do You Do About Medigap?
• How Medigap Insurance Is Affected by Preexisting Conditions
• Watch Out for the ‘Medigap Trap’
• 11 Costly Medicare Mistakes You Should Avoid Making
• The Social Security Number Most Couples Never Calculate (and Should)

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

This silence carries a heavy price: It opens the door to misunderstandings that can fracture sibling relationships during times of grief. To protect your legacy and maintain family harmony, it is time to move beyond silence.

Proactive, collaborative planning is the key to preventing conflict. If you're unsure where to begin, here are actionable tips from experts to help keep your family on the same page.

1. Break the ice creatively

Talking about estate planning is weird, especially if you have other siblings. The last thing you want to contemplate is the loss of a loved one; adding financial logistics to the mix can make an already uncomfortable conversation feel even more daunting.

However, there are easy ways in. Lindsay Bryan-Podvin, licensed master social worker (LMSW), financial therapist and founder of Mind Money Balance, told Kiplinger, "Be creative when opening the door to that kind of conversation. One jumping-off point could be a friend dealing with a parent passing away and all the hoops they had to jump through to settle the estate."

"This can open the door to asking if everything is in place." Podvin also recommends this become a conversation you have with other siblings and parents multiple times. "Keep in mind that each person might remember things differently when you chat, so having multiple conversations ensures everyone is on the same page and concrete details are ironed out."

This checklist can help you get the talks started:

• Schedule a time to talk with all siblings and parents in a distraction-free environment
• Ask open-ended questions, like, "What is your vision for your legacy?"
• Discuss crucial details, such as payable-on-death beneficiaries, funeral arrangements and estate plans.
• Acknowledge the emotional weight — both yours and your parents'.
• Establish a regular check-in cadence to keep the conversation open.

Before beginning, knowing how generations view money can help you understand others' perspectives.

2. Understanding the generational disconnect

Maggie Baker, Ph.D., financial psychologist and author of Crazy About Money, told Kiplinger that she believes older generations used to think it was a taboo topic to discuss.

That generational divide becomes clearer in a Morning Consult survey commissioned by Kiplinger as part of our Trillion Dollar Talk campaign, which found that adult children would rather talk to their parents about almost anything besides inheritance, including politics, their parents' physical and mental health, and when they'd be getting married or having kids. The survey also found that parents plan to split the inheritance evenly, while kids prefer to split it differently.

Failing to discuss estate plans in concrete terms can create confusion later, especially when children are left to sort through documents and piece together their parents' wishes. What parents intend, and what they write down, can be difficult to parse.

An omission can be the focal point that drives division between siblings, where natural rivalries can already occur. That's why a change of approach can make all the difference when discussing inheritance. Instead of thinking of it merely in dollars and property, shift the focus to living legacy. What do you want your inheritance to communicate to your loved ones?

On this front, Baker recommends creating an ethical will. This ensures parents share their values about money with children so they can have trust and assurance.

Doing this can shift the focus away from talking about money only, which can be a taboo topic for older generations, and toward actionable strategies to ensure a living legacy they would be proud to bestow. Planning is vital now because when that day comes, grief can cloud clarity.

3. Prepare for the 'fog of grief'

Losing a loved one can be a surreal and extremely stressful experience. It impacts your physical, emotional, relational, spiritual and cognitive lives. It can make even simple things such as doing the laundry or cooking dinner seem like insurmountable tasks.

Another aspect that can add stress and sibling division, if not already planned, is end-of-life expenses. Podvin recommends, "Have a savings account earmarked for funeral expenses. Since it can take estates 12 to 18 months to settle, this prevents you or other siblings from going into debt to pay for the expense."

Here is my recommendation when searching for savings accounts:

Talk to your parents about designating one or more siblings as a payable-on-death (POD) beneficiary. Upon the loved one's death, the bank will release the funds to that beneficiary, who can use them to pay for funeral and other expenses as they arise without having to go through probate.

It's also important to take some time to heal. Grief can manifest itself in many forms, but so can comfort. One effective strategy is "body doubling" — asking a friend to accompany you on a walk or lunch. This simple presence can help you absorb their energy, reducing some of the stress and pain.

As you come together as siblings to make decisions, don't overlook this one component.

4. Address inequality and resentment directly

When you discover how your parents or older loved ones divided assets and cash, it could make one or more siblings feel overlooked. This is why it's important to share how you feel without attacking anyone else.

To demonstrate, if an aging parent falls ill, one sibling likely serves as a caretaker. One way to support someone who's already been stressed in that situation is for the other sibling(s) to acknowledge the caregiver's work.

Podvin recommends, "Make sure to give them a token of your appreciation. One way to do this could be paying for a trip so they can go away and relax after all the work they did or give them some money to help offset the work they missed while helping the loved one."

Regarding the difficulty of processing these feelings of missing out or anger, Baker suggests, "You should call on a financial therapist. Especially if you're hearing echoes from the grave. You can't resolve it because the person isn't there. With a therapist, they have an idea of how to stop the rumination."

Ultimately, direct communication between siblings and parents can help to eliminate many of the conflicts caused by inheritances. By finding creative ways in, ironing out concrete details in advance and sharing/acknowledging when one sibling has done more work than the other, it can reduce tensions from arising at a time when you should be coming together.

As parents, opening the door to this conversation also ensures you're leaving an inheritance that reflects your values and legacy.

If you expect to receive an inheritance, speaking with a financial adviser can help you make plans to maximize your wealth and achieve your financial goals while keeping in mind your relative's values, so you're not overwhelmed when you receive it.

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

More Trillion Dollar Talk

• Manage an Inheritance Like a Pro in Just 7 Steps
• Keep, Sell, or Rent? What Happens Tax-Wise When You Inherit a House
• What Happens When You Inherit a House — With Your Siblings
• Why Leaving an Equal Inheritance to Your Children Could Backfire

Eucalyptus proved to be poor wood for the purpose, so the company planted citrus groves to encourage "gentlemen farmers" to move to the area. In 1924, they built La Morada, a guesthouse in the new village, Rancho Santa Fe. The town and the hotel were designed by pioneering California architect Lilian Rice.

Rancho Santa Fe consistently ranks in the top 10 most expensive housing markets in the country, according to Realtor.com. Ten minutes from SoCal’s best surfing beaches, and 30 minutes to the San Diego Airport, it nevertheless feels secluded.

Ranch estates line the winding roads, but the intimate downtown retains Rice’s original white stucco structures and red tiled roofs, and echo the guesthouse that became, in 1941, the Inn at Rancho Santa Fe.

The hotel’s front walkway flows right into the village. During Hollywood’s Golden Age, the Inn became an escape for stars in search of R&R, including Bing Crosby, a founding partner of the nearby Del Mar Racetrack.

In 2023, the 84-room property underwent an estimated $40 million renovation, maintaining the original Spanish colonial architecture, with added aspects of a traditional equestrian homestead and elements of old Beverly Hills (rattan furniture and potted palms).

Some floors in the common areas came from French chateaus, and the modern furniture, covered in warm, soft fabrics, make the rooms feel fresh. As does, for example, an antique marble fireplace under a colorful print based on Andy Warhol’s Flower series in the lobby. Hand-painted murals pay homage to California flora, and appear throughout, including on the curved fireplaces in the rooms, one of many features that retain architect Rice’s original designs.

Laid-back glamour, California history, and modern luxury is the ambiance here, and the Inn was a delicious soul reboot after a tumultuous year for me. Here, I got exercise and caught up on much-needed rest. I walked through a golf course in town, and hiked a slot canyon (unfortunately, I did not rent a car at the airport, and it took three Ubers to finally find the trailhead). I had a terrific massage at Mila Moursi spa and rode a white bike through town and past the hotel’s four new pickleball courts.

The paths linking the rooms to the common areas feel like a flowing botanical garden. Bougainvillea, birds of paradise and thickets of white roses, alongside rosemary bushes, eucalyptus and lemon trees, make the 11-acre garden property smell divine.

"Always Summer in San Diego" is the hotel’s fall offer — with rates starting at $429 — designed for mid-week stays including a daily $60 breakfast credit, along with a one-time $100 resort credit. The Inn at Rancho Santa Fe is one of those rare hotels that inspired and refreshed me, and to which I will wholeheartedly return.

Oregon's Napa Valley North

It’s been a while since I’ve visited somewhere beautiful without the sensation that social media had already exploited every inch of it. During a recent visit to Applegate Valley (known as the Applegate and named for the eponymous river), an area of Southwest Oregon just north of the California border and sixty miles east of the Pacific Ocean, everything was a revelation.

Clean air and an outdoor lifestyle make it the kind of place that when people visit, they are simultaneously surprised and smitten. This scenic corner of the ninth-largest state has everything: art and culture, hikes along rivers and through oak-forested landscapes, and endless mountain vistas.

With its unique Mediterranean climate, similar to that of Bordeaux, and half the rainfall of Portland, Applegate wine country is lesser known than Oregon’s Willamette Valley, but, I predict, not for long.

Thirteen miles from Medford (home of Harry & David — remember their Royal Riviera pears?) is the boomtown of Ashland, and its internationally famous annual Shakespeare Festival that runs through October.

In the other direction is Jacksonville, a jaw-droppingly authentic slice of Gold Rush history, with an exciting farm-to-table food scene, the Britt Music & Arts Festival, handsome brick buildings from the mid-1800s, and at least one stunning new boutique hotel.

Kathleen and Brian Dunn fell in love with the small-town warmth in Jacksonville and relocated from Portland. With cool modern style, the couple meticulously refurbished a grand home built in 1860 to create Kubli Haus. Its tall, original windows invite Jacksonville’s plentiful sunshine into its spacious suites; rates start at $249 a night.

The town is the northern gateway into wine country, sitting in the Rogue River Valley west of Medford. Only a six-hour drive from San Francisco, Applegate is a cheaper, less-crowded, less pretentious Napa Valley, where, at a tasting, you can meet those who make the wine. The diversity of grapes is nothing short of remarkable.

Over seventy varieties are produced in only twenty vineyards, inspiring Wine Enthusiast to name it, in 2022, among the world’s top wine regions.

There is no central hub in wine country itself, so a car is a necessity. But the new hop-on-hop-off Jacksonville Wine Trolley is a convenient — and safe — alternative for visiting the wineries, several of which offer lunch along with a tasting.

At Red Lily Vineyards, I had carrot soup and charcuterie along with its superb Red Lily Rosé, and Wooldridge Creek Vineyards served house-made artisanal cheeses with a 2023 Tempranillo, among others.

The Applegate sits at the junction of three mountain ranges and the panoramas of pure, dramatic beauty struck me as I wandered the vines under a spring sun. And yet, almost everyone urged me to return in the autumn for the wine harvest, when the oaks along the Applegate River turn red and gold.

Fall colors in New England.

It is a complete delight that bucolic Litchfield County in northwest Connecticut is suddenly a white-hot destination for those in the know, with the Financial Times calling it the "Anti-Hamptons for the smart set."

For 24 years, this has been my home, and as much as I travel, I have always maintained that I live in one of the most enchanted places on earth. In the fall, I can be found most mornings on one of the estimated 367 miles of trails, breathing in apple-scented air, and stopping to photograph the gold-tinged autumn foliage.

Only two hours from New York City, the bad news is that there is no direct train to where I live; the nearest is over the New York state line. But that remoteness is also the good news.

This is a place to turn the volume down on our frenzied lives, to pick apples at local orchards such as March Farm in Bethlehem, or birdwatch at the 16-acre Ripley Waterfowl Conservancy, open through November, to observe over 90 endangered bird species.

Here, visitors (and I) can eat at world class restaurants, including Community Table in New Preston and the Mayflower Inn and Spa, which has just welcomed acclaimed chef Daniel Boulud for a residency lasting until the end of 2026.

The center of this renaissance is the historic, red brick town of Litchfield, where abolitionist Harriet Beecher Stowe was born, and where the nation’s first law school and first all-girls school were established.

Over a century since fire destroyed the original grand hotel, hospitality has made its triumphant return at Belden House Hotel and Mews.

Spearheaded by Litchfield resident Anthony Champalimaud, the restoration of the imposing 1888 North Street mansion and its mid-20th century mews addition was led by his mother’s Champalimaud Design firm.

The hotel is steps from Litchfield’s quintessential New England town green and its sophisticated shops. Here, you can bundle up in a cashmere sweater and lean into autumn fireside in the handsome lobby.

Original details such as sconces and mantles mix with chic, contemporary interiors, with added warmth from a Tiny Tini (a small cocktail) served at the hotel’s acid green bar.

The rooms are as warm and comfortable as the most stylish European inn; the starting rate is $455 per night, but book any three nights and receive 20% off the best available rate in this fall’s "Mini-Break" offer.

Come see what the fuss is about and maybe you will also want to make this New England idyll your home.

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

Related Content

• The Six Best Places to Retire in New England
• Worst Places to Retire in the US
• 5 Fall Trips That Are Even Better After You Retire

Some people need clear limits set for every dollar, while automating financial priorities and spending what remains works better for others. There’s no single "right" way to budget, and finding the best method for your goals and habits can increase your chances of success.

Let’s take a look at three distinctly different budgeting methods, including 50/30/20, zero-based budgeting and paying yourself first. You might have success with one of these approaches.

1. The 50/30/20 budget: Best for keeping things simple

If you're not up for tracking all of your spending or recording every purchase, the 50/30/20 budget offers a simpler approach. It gives you some financial guardrails without requiring you to account for every dollar you spend.

With this method, 50% of your income goes toward essentials, 30% toward wants and 20% toward savings and debt repayment.

These percentages are a starting point, not an absolute rule. Depending on your income, housing costs and financial goals, different percentages may be more realistic. You can adjust the framework to better fit your finances.

This percentage-based budget may be a good fit if you want a straightforward framework without constantly monitoring your spending.

2. Zero-based budgeting: Best for taking control of your spending

Zero-based budgeting provides a stricter framework that helps you account for every dollar you earn. With this method, every dollar of income is assigned a job, whether it goes toward bills, everyday spending, savings or investments.

Let's say you bring home $7,000 per month. You budget $2,000 for your mortgage, utilities and other housing costs, $500 for food, $1,000 for recurring bills such as internet and car insurance and $500 for health insurance and medical expenses. You set aside another $500 for wants, such as new clothes or dining out. Each month, you invest $1,500 and put the remaining $1,000 into savings.

$7,000 income - $7,000 assigned to expenses, savings and investments = $0 left unassigned

This method can help you see exactly where your money is going and spot areas where costs have crept up. For example, if you're spending more on groceries than you used to, your budget can make that increase easier to identify. You can then adjust other spending categories to account for the higher expense.

While zero-based budgeting can provide a clear picture of your overall spending, it requires more tracking and regular adjustments than other budgeting methods.

Zero-based budgeting may be best if you want tighter control over your cash flow or are trying to rein in your spending.

3. Pay yourself first: Best for prioritizing savings

The pay-yourself-first method puts saving ahead of spending. Instead of waiting to see how much money is left at the end of the month, you set aside money for savings, retirement, investments or another financial goal first.

Automatic transfers and retirement contributions can make this approach largely hands-off. It may be particularly useful if your expenses are already manageable but you want to increase your savings without maintaining a detailed budget.

However, paying yourself first won't solve underlying overspending issues. If you regularly don't have enough money left to cover your expenses, another method, such as zero-based budgeting, can help you identify where your money is going and where you may need to cut back.

Paying yourself first may be a good fit if you want to prioritize saving and prefer a low-maintenance approach to budgeting.

Which budgeting method is right for you?

The right budgeting method depends on what you want your budget to accomplish. Start by identifying the part of your finances that gives you the most trouble.

If you routinely wonder where your money went, zero-based budgeting can provide more visibility and control. If your spending is generally under control but your savings goals keep getting pushed aside, paying yourself first can make saving a priority. And if detailed budgeting feels like too much work, the 50/30/20 method can give you structure without requiring you to track every purchase.

You also don't have to follow one method perfectly. You might use the 50/30/20 framework to set your overall spending targets while automatically paying yourself first each payday. As your income, expenses and goals change, your budgeting strategy can change with them.

Whichever approach you choose, consistency matters more than following a particular formula. A budgeting method is only useful if it's realistic enough to stick with over time.

The best budget is one you can stick with

The best budget for you isn’t necessarily the most detailed or complex one; it’s the system you’ll actually use. Choose a budgeting method that provides enough structure to help you reach your financial goals without making managing your money an unnecessarily complicated chore that you’ll dread.

A budget can help you manage your money day to day, but you may want additional guidance when you're balancing bigger financial goals. A financial adviser can help you look at your budget as part of your broader financial plan, from building savings to investing for the future.

Use the tool below to connect with a financial professional who can help you evaluate your goals and next steps.

Related Content:

• The New 60/30/10 Budgeting Rule You Should Be Following
• 7 of the Best Budgeting Apps for 2026
• Divide and Conquer: Your Annual Financial Plan Made Easy, Courtesy of a Financial Adviser

Treasury yields represent the return investors receive for lending money to the federal government. The 10-year Treasury note gets particular attention because it serves as an important benchmark for longer-term borrowing costs, including mortgage rates.

Lately, yields have been moving higher. The 10-year Treasury yield reached 4.93% on September 18, up from 4.19% at the beginning of the year, according to U.S. Treasury data. Higher oil prices, inflation concerns and government borrowing have all contributed to pressure in global bond markets.

For consumers, however, a higher Treasury yield doesn't mean every interest rate will immediately rise. Mortgages, auto loans and credit cards respond to different parts of the interest-rate market. Here's what rising yields could mean for your money.

Higher Treasury yields could push mortgage rates up

If you're watching Treasury yields because you're hoping to buy or refinance a home, the 10-year Treasury is particularly important.

Thirty-year fixed mortgage rates tend to move in the same general direction as the 10-year Treasury yield. That's because investors generally demand a higher return for mortgage-backed securities than they do for relatively low-risk Treasuries.

That also means mortgage rates can rise or fall without the Federal Reserve changing its benchmark interest rate. The bond market is constantly adjusting to new expectations for inflation, economic growth and future Fed policy.

That distinction is especially important following the Federal Reserve's September meeting. The Fed raised its benchmark interest rate by a quarter percentage point to a range of 3.75% to 4%, its first rate hike since 2023, as inflation remains elevated. While the Fed doesn't directly set mortgage rates, its decisions and outlook can influence investor expectations and Treasury yields.

Currently, the average 30-year fixed mortgage rate is 6.95%, according to Freddie Mac. That's higher than the 6.26% average from a year earlier.

Even a relatively small increase can make a noticeable difference for borrowers.

For example, consider a $400,000, 30-year fixed mortgage.

• At 6.95%, the monthly principal and interest payment would be approximately $2,648.
• If the rate increased by 0.25 percentage points to 7.20%, the payment would rise to about $2,715, roughly $67 more per month.
• At 7.45%, or half a percentage point higher, the payment would be about $2,783, adding roughly $135 per month.

That's before accounting for property taxes, homeowners insurance or homeowners association fees.

For buyers already stretching their budgets, higher mortgage rates can reduce purchasing power even if home prices don't increase. And while you may be able to refinance your mortgage later if rates decline, there's no guarantee that will happen on your preferred timeline.

If you're preparing to buy a home or refinance, comparing rates from multiple lenders can help you see what's available now. Use the tool below to explore current mortgage rates and compare your options.

Car loan rates could remain expensive

The relationship between Treasury yields and car loans isn't as straightforward. Auto loan rates aren't directly pegged to the 10-year Treasury. However, lenders operate within the broader interest-rate environment, so higher market rates and borrowing costs can contribute to more expensive financing.

Consumers are already paying relatively high rates for auto loans. Average interest rates during the first quarter of 2026 were 6.39% for new-car loans and 11.19% for used-car loans, according to Experian.

Your actual rate can vary significantly. Auto lenders generally consider your credit score and history, income, existing debts, down payment, loan amount, loan term and whether you're purchasing a new or used vehicle when setting your rate.

That makes improving your credit and shopping around especially important. Let’s say you're financing $30,000 over five years. At 6.39%, your monthly payment would be about $585, and you'd pay roughly $5,126 in interest over the life of the loan.

Raise the rate by one percentage point to 7.39%, and the payment increases to approximately $600 per month, while total interest rises to about $5,974. That's nearly $850 more in interest.

Before accepting financing at the dealership, consider getting preapproved through a bank or credit union. The Consumer Financial Protection Bureau recommends comparing offers before visiting a dealer, and notes that borrowers may be able to find better rates or terms by shopping multiple lenders.

Credit card rates work differently

Rising Treasury yields aren't necessarily a sign that your credit card APR is about to increase. That's because most variable-rate credit cards are tied more closely to the prime rate than to longer-term Treasury yields.

Banks set the prime rate, which typically moves in step with changes to the Federal Reserve's federal funds rate. The prime rate is commonly used as a reference point for credit card loans and other types of borrowing.

A variable credit card might, for example, charge the prime rate plus a set margin. Federal regulations require card issuers offering variable rates to disclose the index or formula used to determine the rate. So, if the 10-year Treasury yield jumps tomorrow, your existing credit card APR won't automatically rise along with it.

There can still be an indirect connection. Persistently high Treasury yields can signal that investors expect inflation or interest rates to remain elevated. That could make meaningful relief for borrowers slower to arrive.

Either way, waiting for lower interest rates isn't much of a strategy if you're carrying high-interest credit card debt. Your interest charges continue accumulating while you wait.

Consider paying more than the minimum whenever possible, directing extra money toward your highest-rate balances or exploring whether a balance transfer or lower-rate consolidation option could reduce your interest costs.

What to do if you plan to borrow soon

Watching interest rates can be helpful, but trying to perfectly time the bond market is another matter.

Treasury yields can move quickly as investors react to inflation reports, economic data, geopolitical events and changing expectations about Federal Reserve policy. A better approach is to make sure a loan works for your budget based on the rates available today.

If you're planning a major purchase, compare quotes from several lenders rather than assuming the first offer is competitive. For mortgages, pay attention to both the interest rate and closing costs. For an auto loan, consider getting preapproved through a bank or credit union before heading to the dealership.

Your credit profile matters, too. Paying down revolving credit card balances, correcting errors on your credit reports and making payments on time can put you in a stronger position when you apply for financing.

Most importantly, run the numbers using today's borrowing costs rather than counting on a future refinance to make an expensive purchase affordable.

Rising Treasury yields don't guarantee that every consumer borrowing rate will move higher. But they are an important signal, particularly for longer-term borrowing costs. If you're preparing to buy a house, finance a vehicle or take on other debt, knowing what's happening in the bond market can give you a better idea of what borrowing could cost, and whether the payment fits comfortably into your budget.

If you're weighing a major purchase or wondering how higher borrowing costs fit into your financial plans, a financial adviser can help you look beyond the monthly payment. The tool below can help connect you with an adviser who can review your goals, budget and other financial priorities.

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

Related Content:

• How to Benefit From Rising Interest Rates
• How Does the 10-Year Treasury Yield Affect Mortgage Rates?
• How to Buy a Used Car from a Private Seller Without Getting Burned

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

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

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

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

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

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

See if you can optimize your current job

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

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

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

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

Look for work that works for you

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

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

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

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

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

Use your extra earnings wisely

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

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

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

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

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

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

Related Content

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

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

The right deal depends on whether you’re keeping your current phone, buying a new one or upgrading an existing Verizon line. Each option comes with different pricing, plan requirements and potential savings.

Before signing up, look beyond the advertised price. Comparing plan requirements, financing periods and the duration of promotional credits can help you understand the total cost and determine which Verizon deal could save you the most. Here’s how Verizon’s bring, buy and upgrade options compare and what to consider before choosing one.

Bring your own phone to lower your monthly cost

If you already have a phone you like, bringing it with you when you switch to Verizon could help keep your monthly costs down. Verizon's Simplicity plan normally costs $45 per line per month with Auto Pay, but new customers who switch to Verizon can currently get the plan for $30 per line per month with Auto Pay and the Switcher Discount.

The plan includes unlimited talk, text and smartphone data, access to 5G Ultra Wideband, 10 GB of high-speed mobile hotspot data per month and satellite texting. After you use the 10 GB of high-speed hotspot data, you can continue using your hotspot at speeds of up to 1 Mbps for the remainder of the billing cycle.

If you're looking for extra phone plan perks, Verizon also lets Simplicity customers add entertainment and other services. Options include Netflix and HBO Max, YouTube Premium and Apple Music Family, with some bundles costing less than purchasing the included subscriptions separately.

To qualify for the $30 promotional price, you'll need to switch to Verizon and enroll in Auto Pay. Taxes and fees are extra, so your actual bill will be higher. If you're bringing your own device, make sure it's unlocked and compatible with Verizon's network before switching. You can check your device on Verizon's compatibility tool.

For comparison, Verizon's Unlimited Welcome plan starts at $65 per month for a single line with Auto Pay and paper-free billing. At the current $30 promotional Simplicity rate, that's a difference of $35 per month, or $420 over a year. Keep in mind that the comparison depends on qualifying for the Simplicity promotional rate.

Buy a new phone when switching to Verizon

If you need a new phone, Verizon is currently offering discounts and financing on several popular smartphones. Here are a few deals to consider:

• Samsung Galaxy Z Fold8: Verizon is offering a $460 instant credit on the Samsung Galaxy Z Fold8, bringing the price down from $1,899.99 to $1,439.99. You can finance the phone for $29.99 per month for 48 months at 0% APR. New customers who qualify for Verizon's $30-per-month Simplicity promotional rate would pay about $60 per month for the phone and service, before taxes and fees.
• Apple iPhone 18 Pro: The Apple iPhone 18 Pro starts at $33.33 per month for 36 months at 0% APR. Customers who want to upgrade more frequently can choose the Phone + Flex Upgrade option for $50 per month. It allows you to upgrade after a year, or earlier once you meet the program requirements, and includes two monthly TravelPass Days, Premium Visual Voicemail and Global Choice.
• Samsung Galaxy S26 Ultra: Verizon is offering $340 off the Samsung Galaxy S26 Ultra, bringing the price down from $1,299.99 to $959.99. You can finance the phone for $26.66 per month for 36 months at 0% APR. Verizon also offers a $50-per-month Phone + Flex Upgrade option for customers who want the ability to upgrade more frequently.

As you compare these options, pay close attention to the financing and promotional requirements. Verizon offers multiple financing periods on some devices, so the advertised monthly payment can vary depending on how long you take to pay off the phone. While these financing options carry 0% APR for qualified customers, taxes and fees may be extra.

Also consider what happens if you leave Verizon before your phone is paid off. You may have to pay the remaining device balance, and any promotional credits tied to your service could end.

A discount of several hundred dollars on a new phone can be appealing, but the device price is only part of the equation. Compare the total cost of the phone and required service, and consider whether you will actually use the features included with the plan or upgrade option.

Upgrade your phone if you're already with Verizon

Verizon also offers upgrade and trade-in deals for existing customers. Eligible devices can include smartphones, tablets, smartwatches, basic phones, mobile hotspot devices and netbooks.

Depending on the promotion, Verizon may provide the trade-in value as an account credit, Verizon gift card or recurring bill credits spread over a specified period.

A large advertised trade-in value does not necessarily mean you'll receive the full amount upfront. If the value is provided through monthly bill credits, you may need to remain on an eligible plan for the entire promotional period to receive the full benefit. Before upgrading, review the offer terms, compare the trade-in value and consider whether the required plan and monthly cost make sense for how you use your phone.

Which Verizon option could save you the most?

How can you best save with Verizon deals? Bringing your phone may be best if you have a newer paid-off device and want to minimize your monthly costs with an affordable monthly plan. Buying a phone might be attractive if you’re planning to switch mobile providers, you need a new phone and you can qualify for a strong device promotional deal. Upgrading might make sense if you have a valuable trade-in, are already a Verizon customer and were planning to stay with Verizon.

As you explore the Verizon phone deals, be sure to compare the total cost that you’ll pay over the promotional period, not just the advertised phone price or monthly rate. Look for extra costs, like taxes and fees, that aren’t included, and make sure you’re choosing a plan that really makes sense for you.

Related Content

• A Dash Cam Could Be Your Best Defense on the Road (And Save Your Insurance Costs)
• The Overlooked Tool That Could Save You Hundreds on Your Next Phone
• Google Is Making Android Backups Count Against Your Free Storage

Ray is 65 and Diane is 63. Both are working and earning well, but they plan to retire soon. They live in California, and they are uneasy about how much of their portfolio rides on one stock. So they asked their adviser how to diversify out of it without losing a third of the value in capital gains tax.

She told them what most advisers would. A large gain can be trimmed at the edges, harvested against losses or spread across tax years, but each leaves you still owning the gain. Only two things eliminate it: Hold the asset until you die, so your heirs inherit it with a stepped-up basis, or give the asset to charity.

Neither one fit. Waiting decades for the step-up meant holding one undiversified position, and giving away a million dollars was not an option. So: Sell, pay the tax, reinvest the rest.

What nobody asked was how long the Kesslers were likely to live.

The IRS thinks you're average

There is a third option. You transfer the shares into an irrevocable trust, called a charitable remainder unitrust (CRUT), and the trust sells them. Because the trust is tax-exempt, no capital gains tax is due on the sale, so the whole amount stays invested and diversified at once.

The trust then pays you a set percentage of its value, recalculated each year, for life, for both lives or for a term of years. Whatever remains goes to the charity you named, and you take an income tax deduction up front for the calculated value of that future gift.

The IRS determines that gift value on the day of funding, using actuarial tables built from census data, currently Table 2010CM. Those tables describe the general population.

But the people who fund these trusts, like the Kesslers, are affluent, insured and longer-lived than average. Insurance companies know this and price annuities off a separate annuitant table.

The IRS assumes you will live as long as the average American. If you live longer than that, the trust runs longer than the deduction was calculated for, and every extra year compounds.

Why the mismatch pays

Both the deduction and your maximum payout are fixed on the day of funding. The trust runs on your actual life.

If the Kesslers sell, they realize a $998,500 gain and pay 33.1% in combined federal and California tax, leaving $669,496 to reinvest. In a CRUT, the full $1 million stays invested. At a 6% payout, that is $60,000 in the first year against $40,170 from an equal draw on the reinvested proceeds.

The trust doesn't make the tax disappear. The payments are taxable, and in year one both paths deliver similar after-tax spending money. What differs is that the tax is spread across decades while a larger base compounds.

Better than what, exactly?

A trust isn't good or bad on its own, only better or worse than what you would otherwise have done. There are three realistic alternatives:

• Sell and reinvest. Pay the tax now, rebuild in a diversified portfolio.
• Hold and leave it. Keep the stock, live on other money, pass it to the children with a stepped-up basis.
• Hold and live on it. Keep the stock and draw the same 6% from it.

In research published in the August 2026 Journal of Financial Planning, I tested a trust against all three, simulating 10,000 market futures and running the same family down both paths in each one. A "win" means the family finished that future with more spendable wealth, in today's dollars, from the trust. So a 66% win rate doesn't mean 66% more money. It means the trust came out ahead in about two thirds of the futures tested.

What longevity does to the numbers

The third alternative is the hardest for the trust to beat: It pays identical income and still passes a stepped-up estate to the children. Under IRS life expectancy, a couple aged 63 and 65 beats it with a trust 28.2% of the time.

However, give that couple seven more years and the number is 96.4%.

No other variable came close. The deduction was locked at the start on an average life. The years the trust actually ran were not.

Where this doesn't work

All of this assumes you have no charitable motive and are measuring nothing but dollars. If you do want to give, any asset at any basis will do.

For everyone else, basis moves the answer more than longevity does. The trust beats all three alternatives when basis is under roughly 11% of current value and loses to all three above 25%. Long life improves those odds without reversing them. The Kesslers sit at 0.15%.

Across 500 randomly drawn household situations, varying age, basis, payout and home state, the trust was the better choice in about a third of them. That is not a coin you have to call blind. Every one of those variables is knowable before anything is signed.

The up-front deduction is what most people ask about first, and it matters least. Tax legislation in 2026 added a 0.5%-of-AGI floor and capped top-bracket filers at 35 cents per dollar. Over a long trust, the tax on the payments takes back much of what the deduction gives.

Outcome

The Kesslers funded a two-life trust in November, with the full million still invested. Buy an annuity and the insurer prices your health. Fund a CRUT and the government prices it off a table that assumes you are average. Few advisers will raise it on their own, because it is filed under charity. Ask.

Related Content

• What Is a Stock Split and Why It Matters To Investors
• For High-Net-Worth Retirees, Tax Planning and Estate Planning Are the Main Events
• Give More But Pay Less: An Essential Guide to Tax-Smart Charitable Giving in 2026
• Four Clever and Tax-Efficient Ways to Ditch Concentrated Stock Holdings, From a Financial Planner
• Tied Up in Knots Over a Concentrated Stock Position? This Strategy Will Help You Unravel

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.

They're sharing how they did it and what they're doing with it.

This time, we hear from a married 68-year-old retired project manager in media who lives in Southern Maryland. He reports that his last salary was $98,950.

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

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

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

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

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

The Basics

How did you make your first $1 million?

Dogged persistence. We saved more than we spent, spent less than we made and gave more than we got.

We were in our early 40s when our net worth crossed $1 million.

We have always fully funded our IRAs, and we began aggressively funding our 401(k)s when they first became available.

What are you doing with the money?

When our children were in elementary school, we started to invest in SFD (single-family dwelling) rental real estate. At the time, we thought we would begin divesting when our children began college, selling properties as necessary to fund those expenses.

Turns out that by the time college came around, our portfolio was throwing off so much free cash flow that we didn't need to sell anything!

The Fun Stuff

Did you do anything to celebrate?

Nope. That's just a number.

What is the best part of making $1 million?

One million is just a number — doesn't mean a thing by itself.

Did your life change?

Our asset level allows my wife and me to weather the idiocy of whatever the current administration is, regardless of political party.

When the White House does something stupid and markets crash, I simply use that as an opportunity to do Roth conversions.

We were early devotees of Roth IRAs, but for many years, our income level did not allow IRA contributions. Nevertheless, I was an early advocate of backdoor conversions.

Does anyone know you're a millionaire?

Our two adult children are well aware and fully informed of our finances. That's both a learning experience for them and their spouses and an essential element of our estate plan.

We threw our rental real estate into an LLC many years ago, and we diligently gift our children's trusts interest in the LLC to the maximum allowable.

Did you retire early?

My wife retired in her mid-50s to start providing daycare to our grandchildren. My plan was to retire about 10 years later — my original plan was to retire in mid-March of 2020 (remember COVID?).

Our assets are such that we can easily be up or down in a day what we used to make in a year. That alone blows my mind!

Anyway, we were down almost $1 million after COVID hit, so I decided to push my retirement, which I hadn't yet communicated to my employer.

Ultimately, I delayed one year until I pulled the trigger — at that time, I was 63.

Looking Back

Anything you would do differently?

Nope, our aggressive investment philosophy has served us incredibly well, and we've always been self-directed.

Early in my career, I was between jobs during the spring, and we couldn't afford to make our IRA contributions, so we borrowed the amount — it was $1,500 each so we could fund our accounts for that year. We borrowed the funds in April and paid the loan off in September.

Early on, our IRAs were exclusively in bank CDs. In our 50s, we began shifting that philosophy to equity holdings.

After nearly three decades, I was laid off with a pension, and I had maybe a dozen options for the pension funds. Everything from "leave it alone" to "taking it." I chose to roll over the funds into a self-directed IRA with Schwab.

Then I moved it entirely into positions in Apple, Google and Amazon.

What advice would you give to your younger self?

Going all the way back to my teenage years, I've mapped out and recorded all relevant personal financial details. Until Excel came along, that was literally on accounting columnar pads. I can tell to the penny what I've invested, made, saved and spent, not to mention taxes, etc.

That diligence has enabled me to easily model the impact of different strategies.

If I were to give advice, I'd encourage people to exercise similar diligence in recordkeeping.

Realizing a number of years ago that our liquid assets exceeded the combined lifetime income we had earned blew my mind. That alone convinced me that our retirement would be comfortable.

Think about it — we've got in savings, retirement accounts, trading accounts, etc., as much money as we've earned in our entire lifetimes!

So, I figure if it took me 40 years to earn X, and I have that same X in the bank, then rough logic would say I've got enough to live on for the next 40 years. Give or take.

Do your own taxes! There is absolutely no reason why an adult early in their career can't do their own taxes, and the earlier you begin doing so, the more comfortable you will be with the numbers.

I still do my own personal taxes today. I use a CPA for our estate, LLC and trust taxes quite simply because they require complex knowledge of the tax code which I do not possess.

Did you work with a financial adviser?

No, we are entirely self-taught and self-directed. A couple of years prior to my planned retirement, I engaged Edelman to review our portfolio/plans and was flattered when the consultant told me he couldn't honestly recommend any changes to either.

The biggest surprise was his analysis indicated that we already had enough to fully fund our retirement at that point. That alone provided my wife with a heightened sense of comfort, even though I had separately arrived at the same conclusion.

We have all of our accounts with Schwab, and they've been a good partner. I opened my first Schwab account almost 50 years ago.

Did anyone help you early on?

My father was very influential. Upon his advice, I bought my first equities position (AT&T) when I was in the eighth grade.

Looking Ahead

Plans for your next $1 million?

We're typically up about a million a year — of course, there are down years. But I can track and trend all the way back to college, and our annual average return has been about 11%, and that factors in down years as well.

When I look at down years, I have learned to take a deep breath, because when I look at a down year and then include the year before and the year following, we're still up about 8%.

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

I read recommendations that you should invest in your 401(k) at least as much as you can to receive the company match. I think that advice is foolish — if you're not at the maximum allowable contribution, you should establish a strategy to get there.

Whatever you are saving, contributing, investing, up it. Even if it's only an increase of 1% a year, up it until you hit the maximum allowable.

When 401(k)s were first introduced, we couldn't afford the maximum contribution, so we followed the above strategy to slowly but surely get to the maximum allowable.

We also embraced an approach where typically any salary increase we got, we poured it into savings. I always have assumed that Social Security would not be available when I retired due to federal and congressional incompetence.

For that reason, all of my forecasts have never layered in the income that we are due from Social Security.

Do you have an estate plan?

Yes, we have established trusts for our children which we fund annually with interest in our LLC. Maryland allows something called a life estate with powers, so we've titled our main house into a life estate naming our daughters' trusts as the owners.

We envision our home to remain in the family after our deaths.

We've also acquired perpetual insurance for our homes. For a one-time payment, we're insured in perpetuity. These premiums are fully refundable, and for that reason, we carry the deposits as assets on our balance sheets.

What do you wish you'd known when you first started investing?

My first equity position was AT&T, which I bought when I was in the eighth grade.

When I graduated from college, I took out a $3,000 personal loan (which I paid off within a year) and purchased shares in a variety of local electric providers. Some of those holdings are still in my portfolio.

My entire life, I have been a proponent of dividend reinvestment plans. When I retired, I shifted the holdings in my trading account away from DRIPs and began using that dividend income to live off of.

Anything you'd like to add?

The success I've enjoyed is relatively easy to accomplish. All it takes is dogged persistence!

It absolutely boggles my mind that I can be up or down in a day what I used to make in an entire year!

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

Related Content

• Are You Rich? U.S. Net Worth Percentiles Can Provide Answers
• Compare Your Net Worth by Age
• Being Rich vs Being Wealthy: What’s the Difference?
• These 5 Rules Separate the Rich From Everyone Else
• Can Money Buy You Happiness? Yes, It Can. However…

On this note, Discover recently announced its 5% cash back categories for the fourth quarter for its Discover it® Student Cash Back and Discover it® credit cards. It's a good mix of categories that can help you save on expenses you were going to make anyway during a very expensive time of the year.

I'll break down which categories made the 5% and things to consider with these perks.

Discover's 5% categories revealed

Here are the 5% categories:

• Entertainment: This is the first time entertainment made Discover's 5% cash back list. Earn 5% back on movies, concerts and live sports.
• Restaurants: For the second time this year, Discover cardholders receive 5% cash back on dining in, takeout, delivery apps (Grubhub, DoorDash, Uber Eats) and catering. Restaurants located inside of or affiliated with another business, such as hotels or retail stores, and establishments classified as a bakery may not qualify.
• Utilities: Just as Super El Niño keeps energy bills high, these cards provide some relief by saving you 5% on recurring bills, such as electricity, water, internet and phone services.

*Redemption value is one cent per point, so $1 per $100 charged.

Overall, this makes the fourth-quarter lineup appealing. The 5% back on entertainment comes in handy with football season, holiday music tours and blockbuster movie releases all happening.

The holidays are a big time for dining out or using carryout services for gatherings. And the utility perks come in handy if you're looking to shave a few bucks off essential expenses.

Sounds good, but there's a catch, right?

Yes, there are a few things you should consider. First, you'll only earn 5% back on the first $1,500 charged for combined categories. That said, saving $75 on purchases you were going to make anyway isn't bad and can be a welcome relief at a time of the year when there isn't much.

If you plan to use it for utilities, many companies and municipalities charge a service fee for credit cards. My water company charges $2.95 to pay via credit or debit card. This can eat into the 5% back.

However, if you're using it for your internet or cell phone bill, you're less likely to encounter other charges. That's why I recommend planning now to prioritize which categories work best for your needs.

And don't forget you won't automatically earn this incentive just because you're a cardholder.

Don't forget to do this

You won't receive the 5% back automatically unless you activate it; here are the ways to do so:

• Online: Log in to your Discover account, find the Cashback Bonus page and click on Activate.
• Mobile app: Open the app, tap Rewards (at the bottom of your screen) and tap Activate.
• Phone: Call Discover at 1-800-347-2683.
• Email: If you receive a promotional email from Discover, click on it to activate the 5% bonus on your account.

I have this card and can tell you from experience that it's easy to do. My tip is to set a reminder on your phone a week or two before the 5% categories change quarterly and use only the categories you need. This helps you maximize your cash back and avoid making purchases just to earn the perk.

One of the best cards for simplicity

As I mentioned, this is one of the credit cards in my family's lineup. We like it because the first year you earn an unlimited dollar-for-dollar match on your cashback bonuses. With this perk, you could use it for regular expenses all year and earn a sizable bonus.

And the 5% categories are usually very good. While that $75 bonus might not seem like much quarterly, we've had the card for over five years and always hit the bonus cap, meaning we saved around $1,500 on expenses.

Therefore, the savings add up. Is it the best card for everyone? No. Avid travelers would benefit from the best travel rewards credit cards, and issuers like American Express offer better perks on streaming, shopping and dining. Also, you can't use your Discover card at Costco; some small businesses won't accept it either.

Still, if simplicity is your aim and you're looking to shave some money off holiday costs, the Discover it card is worth considering. And if you're looking to compare it to other of the best cash back credit cards, here are some of our top picks:

Related content

• Top Cash Back Credit Cards: Maximizing Your Rewards in 2026
• Your Discover Card Is Moving to Capital One. Here's What Changes and What Doesn't
• Kiplinger Readers' Choice Awards 2026: Best Cash Back Credit Cards

But when it comes time to settle your estate, your insurance policies are just as important as everything else.

There are four common insurance-related problems executors face, said Evan Farr, certified elder law attorney and retirement planner practicing in Virginia, Maryland, and Washington, D.C.

"These include failing to recognize that a policy existed; out-of-date beneficiary designations; lapse of coverage because premiums were not paid on time; and ambiguity surrounding whose responsibility it is to collect proceeds (the estate or designated beneficiary)," Farr said.

To help prevent these problems, your executor needs to know about all of the insurance policies you have, even those you might not think are relevant.

How overlooked insurance policies cause headaches for your executor

Some of the most obvious issues that can come up involve life insurance. Nearly half of parents said life insurance is a key piece of the estate their children will inherit, according to a survey of more than 5,000 Americans Kiplinger conducted in partnership with Morning Consult.

But if your heirs don't know that life insurance policy exists, they might not know to file a claim. If the life insurance beneficiary you designated years or even decades ago is still listed on the policy, the benefits might not go where you now want them to go.

Since a life insurance payout can represent a significant part of the financial legacy you leave behind, it's essential that you make your policy easy to find and make sure your beneficiaries know it exists. Otherwise, a payout could be delayed while your loved ones try to locate the policy or determine who is entitled to the proceeds.

That communication could be especially important. A Morning Consult survey commissioned by Kiplinger as part of our Trillion Dollar Talk campaign found that among adult children who knew their parents had a will, estate-planning documents or a designated beneficiary, 35% didn't know how to access them. Making sure your executor and beneficiaries know where to find important insurance information can help close that gap.

Executors can also run into problems with home or car insurance. While an estate is being settled, the executor generally needs to make sure its assets remain appropriately insured. That can mean contacting insurers and determining what coverage needs to remain in place.

For example, if a fire, theft or other covered loss occurs while a home is part of an unsettled estate, problems could arise if coverage has lapsed or the insurer hasn't been notified of changes affecting the policy.

Your death can also change how an insurer handles an existing policy and who has authority to make changes or file a claim. Rather than assuming existing coverage will continue unchanged, your executor should contact the insurer to report the death and find out what documentation or changes are required.

With home insurance, in particular, your executor might also need to notify the insurer if the home becomes vacant or unoccupied for an extended period. Vacancy can affect coverage because an empty home can present different risks, including vandalism, theft and damage that goes unnoticed. Depending on the insurer and policy, different coverage or an endorsement might be necessary.

Similar issues can arise with any cars that are part of the estate. Your executor should contact the auto insurer before someone begins regularly driving an inherited vehicle or before coverage is canceled or changed.

Who is covered to drive the vehicle and how long existing coverage continues after the policyholder's death can depend on the policy and insurer. Giving your executor the information they need to contact the insurer and handle coverage appropriately can help protect both the vehicle and the estate.

How to make sure your executor can find your insurance policies

Whether you keep paper copies of all your policies or you've gone digital, the easiest way to keep track of your insurance is to create a single sheet listing every insurance policy you own.

"A consolidated inventory of all of your insurance policies is perhaps the single most valuable thing you can leave for your executor," Farr said. That inventory should include the following details for each policy:

• Name of the insurance company
• Policy number
• Your agent or broker's name and contact information if you have one
• What the policy insures. This can be a broad label such as home insurance, car insurance or term life insurance. You should also mention any riders or supplemental coverage here, too.
• Your current premium amount and how frequently you pay it (i.e., monthly, quarterly, annually).
• Where to find copies of the actual insurance policies. If you have them downloaded as PDFs, you can link to those files in the spreadsheet where you're keeping this inventory. If you access them via an online portal, note where your executor can find those login details. If you keep paper copies, note where that paperwork is stored.

You can keep all this information in a spreadsheet on your computer. Farr recommends updating it annually, as details such as premiums and coverage types change. If you switch your home or car insurance for a better deal; however, make sure to update the inventory right after you make the switch.

Writing out this inventory isn't enough on its own. The next step is to make sure your executor knows it exists and how to find it.

"Ideally this document would be made available to your executor via a secure digital storage system (like a password-protected cloud-based file share or an encrypted digital safe)," said Farr.

The key is to make sure you store your financial documents, including insurance policies, in a way that's accessible enough to the person who needs the document, but secure enough that no unauthorized person can get your detailed policy information.

Related content

• How to Organize Your Financial Paperwork for Your Heirs
• Avoid These 12 Common Estate Planning Mistakes
• How Much Life Insurance Do You Need?
• What to Do When You're the Executor of an Estate

This transformation hasn't happened by accident — it's the result of years of strategic positioning as a wealth hub and a combination of several other factors, including capital inflows, technological innovation, favorable tax frameworks and lifestyle appeal.

The transformation is reflected in the growing influx of affluent individuals, institutions and private banks into Lisbon and greater Portugal.

Microsoft, for example, recently announced plans for a $10 billion investment in an AI computing data center in Sines, which the company describes as "one of the largest investments in AI computing capacity in Europe, positioning Portugal as a leader in the development of scalable, secure and sustainable AI."

Investors considering a move to Portugal, or making it part of a multi-jurisdictional wealth strategy, should examine its evolving tax and regulatory landscape before finalizing their decision. This will help ensure its financial environment aligns with their own wealth preservation objectives.

'Europe's Silicon Valley'

Microsoft's announcement coincides with Portugal's and Lisbon's growing importance as a tech hub, described by some as "Europe's Silicon Valley."

This reputation is being forged by tech-focused homegrown companies, such as Sword Health, which offers AI-enhanced physical therapy services and reached a $4 billion valuation in mid-2025, and Talkdesk, a global cloud call-center solution provider that was valued at $10 billion in 2021.

For entrepreneurs, venture capitalists and technology founders, Portugal's emerging AI ecosystem presents wide-ranging opportunities in cloud infrastructure, digital health and professional services supporting technology expansion.

Lisbon was ranked 26th on the global wealth map, the Savills HNWI Hotspot Index. Its popularity, alongside Portugal as a whole, confirms it's becoming a benchmark for those who value technological innovation, quality of life, security and opportunities for economic growth.

And for those involved in the tech industry in particular, this migration of tech talent owes a debt to the availability of Portugal's D8 Digital Nomad Visa, which offers remote workers and self-employed professionals with qualifying foreign income both short- and long-stay options in Portugal.

Lisbon's emergence as a center for wealth mobility

Lisbon is benefiting from a growing trend — international wealth mobility. But there's more to it than just the financial benefits. Lisbon, and Portugal in general, are ranked among the top global relocation destinations for affluent individuals.

Portugal has seen a rapid growth in foreign residents, and they now make up almost 1.6 million people, or 14% of the population — a figure which doubled between 2021 and 2025 according to Statistics Portugal (INE).

For many observers, this serves only to strengthen the perception of Portugal, and by implication, Lisbon, as an attractive landing point for globally mobile capital.

A beneficial fiscal environment

Portugal's fiscal environment has played a significant part in its rising popularity. It's introduced a range of residency, investment and tax incentives to attract international investors, global entrepreneurs and highly skilled professionals.

This has driven significant foreign direct investment and capital inflows into the economy and illustrates how the country has evolved from relying on volume to targeting high-end capital and talent.

Lisbon's emergence as a wealth hub owes much to the strength of its property market. It's proven to be highly attractive to affluent global investors, with 91% of respondents to 2025's Wealthy Expats in Portugal survey considering its real estate market as "highly appealing."

International buyers constitute a significant proportion of transactions, and CBRE predicted total real estate investment to surpass €2.5 billion (about $2.9 billion) in 2025, up 8% from the previous year.

Rising property values and a favorable lifestyle

Lisbon's prime districts, including Avenida de Liberdade and Chiado, now compete directly with global, well-established wealth centers. Its real estate is now recognized as both a monetary and lifestyle asset, with Eurostat reporting a 180% rise in Portugal's house prices between 2015 and 2025, compared to an EU average of 65%.

While this rise has been remarkable, investors need to consider property price inflation, regulatory changes and growing competition for prime assets and how it may impact long-term financial planning. It's also worth securing specialist tax advice before finalizing relocation decisions.

Lisbon's emergence as a tech and innovation hub is a major factor in its rising popularity. It's developing a burgeoning cluster of tech talent, innovative start-ups in high-value sectors and leading-edge digital infrastructure that's successfully attracted institutional investors. It's no surprise it's becoming renowned as a location where innovation meets lifestyle capital.

Burgeoning inward investment points to strong confidence

Another factor is the sheer volume of inward investment. Private banks, including Indosuez, Union Bancaire Privée and Julius Baer, have expanded their operations in Lisbon recently. RealEstate Lisbon reports that for the first half of 2025, foreign buyers' overall investment in residential property in Lisbon totaled more than €465 million.

While the evidence illustrates Portugal's ongoing popularity, industry observers will be closely monitoring whether it can maintain its current momentum. As competition grows from alternative wealth hubs, such as Dubai, Singapore and southern Europe, industry insiders will be hoping to see continued investment in infrastructure, innovation and talent attraction if Lisbon is to maintain its long-term upwards trajectory.

Lisbon has experienced a rapid growth in wealth management demand driven by high numbers of incoming high-net-worth individuals seeking capital preservation strategies. It's led to increasing competition for talent within the financial services sector and underpins Lisbon as an emerging European node for private wealth advisory services.

This burgeoning international community is also creating increased demand for specialist legal, tax, healthcare and wealth management services, which are contributing to a sophisticated ecosystem that supports globally mobile families and businesses.

Much more than just a financially beneficial option

While Lisbon's financial advantages are compelling, its culture and comparatively lower cost of living are also significant. Recent World Digital Foundation research highlighted the appeal of its climate, safety, healthcare access and rich culture. It underscores how Lisbon is becoming a byword for a redefinition of luxury — measured in time, well-being and security.

Lisbon is benefiting from a rare alignment of favorable government policies, inward capital investment, technological innovation and a growing reputation for a relaxed, safe and healthy culture and lifestyle. Lisbon's evolution presents opportunities far beyond its lifestyle appeal.

Its growing importance as a center for technology, wealth management and global mobility means those considering European expansion or relocation should be actively evaluating Portugal's place within their long-term strategic plans.

To reiterate. If your long-term wealth preservation strategy aligns with Portugal's financial landscape, you want to access a growing AI ecosystem, property valuations match your budget and you're prepared to seek advice from specialists that understand Portugal's regulatory landscape and its economy,

Lisbon could be the ideal location for securing your financial future — not just a lifestyle uplift.

Related Content

• U.S. Business Leaders are Quietly Plotting Their Escape to Europe: How Will They Get There?
• Want to Get in on the Golden Visa Trend? Here's How
• Considerations for Americans Who Want to Move to Europe
• 5 European Countries Welcoming US Expats
• Where to Retire: Living in Portugal as a US Retiree

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.

Visible Wireless is a mobile virtual network operator (MVNO) that runs on Verizon’s network. Visible Wireless is known for its lower-cost unlimited prepaid wireless plans and transparent, straightforward pricing. Switching to the mobile carrier might allow Verizon customers to save money while still keeping the network they’ve used for years.

But switching to Visible Wireless doesn’t make sense for everyone. Before you leave Verizon, it’s important to understand if switching could actually lower your bill and what you might have to give up to save money.

1. Compare the cost

Let’s take a look at how the most similar Visible and Verizon plans compare in cost. The Visible base plan and single-line Verizon Simplicity plan are the most similar plans, so we’ll start by comparing them.

Verizon’s standard Simplicity plan price is $45 per month per line with Auto Pay and paper-free billing ($55 without Auto Pay). The $30 price currently advertised requires a $15-per-month Switch & Save or Bring a Number discount. It includes 5G Ultra Wideband coverage, 10 GB of mobile hotspot data and talk, text and data to Mexico and Canada.

The base Visible plan normally costs $25 per month, though eligible new customers can currently get it for $19 per month with a promotional offer. The Visible plan includes unlimited talk, text and data on Verizon’s 5G and 4G LTE networks and unlimited talk and text in Mexico and Canada. While Verizon’s Simplicity plan limits mobile hotspot use to 10 GB per month, the Visible plan includes unlimited mobile hotspot use.

If you need multiple lines, you'll want to compare the total cost carefully. Verizon's Simplicity plan normally costs $45 per line with Auto Pay, though qualifying lines can receive a $15 monthly discount. Visible plans are designed for individual lines, so you'll need a separate account for each line you want to move to Visible.

This is just a base comparison, and you’ll need to compare your current Verizon plan to a comparable Visible plan to see how much you might save. Don’t forget to factor in any discounts you currently receive from Verizon when calculating your potential savings.

2. Consider coverage and data

Though Visible uses Verizon's network, the service experience isn't necessarily identical. Customers on Visible's base plan may experience temporarily slower speeds when the network is congested because their data can be deprioritized behind other traffic. Speeds return to normal once network demand eases.

Pay attention to data, hotspot access and other important features, too. The base Visible plan includes unlimited data, talk and text. Visible+ includes unlimited premium data on Verizon's 5G Ultra Wideband network, plus 50 GB per month of premium data on 5G and 4G LTE when Ultra Wideband isn't available.

According to Visible, premium data isn't slowed because of data prioritization, which can help customers avoid the congestion-related slowdowns that may affect the base plan.

Visible+ normally costs $35 per month, though eligible new customers can currently get it for $29 per month. At the promotional price, you'd save just $1 per month compared with Verizon's promotional $30 Simplicity plan.

Hotspot access is another difference to consider. The base Visible plan includes unlimited mobile hotspot data at speeds up to 5 Mbps, while Visible+ increases hotspot speeds to up to 10 Mbps. Verizon's Simplicity plan includes 10 GB of high-speed hotspot data, with speeds reduced to up to 1 Mbps after that allowance is used.

Consider how you typically use your phone, including how often you rely on mobile hotspot data, when deciding which plan offers the better fit and value.

3. Look at what else you're getting

Visible offers lower-cost plans, but they don’t include some of the perks that Verizon offers. Though Visible offers deals like savings on plans when you purchase a year of service upfront, Verizon offers a more extensive selection of deals.

Verizon generally offers a broader selection of phone promotions and upgrade offers. Visible also offers device deals and financing, but shoppers looking for promotions on the newest phones should compare both carriers before switching.

The mobile providers also differ in customer service. Verizon has brick-and-mortar locations where you can receive in-person help, plus you can get help by phone or chat. Visible’s customer service is limited to online and chat options. Visible doesn’t operate brick-and-mortar locations, but its SIM cards are available at Best Buy stores.

All in all, you’ll have more options with Verizon, including a broader selection of plans that often come with more perks, like free streaming services. That doesn’t necessarily mean that a move to Visible isn’t worth it, though, especially if you’re paying for phone plan perks that you aren’t using.

Is switching from Verizon to Visible worth it?

If your priority is to lower your monthly phone bill and save on your cell phone plan, switching to Visible might make sense. However, Verizon may still offer a better overall value for families or customers who use its discounts and perks, or who plan to upgrade their phones more often.

Take some time to compare your actual bill and your potential annual savings. Think about how you use your phone and the services that are most important to you before you decide to switch to Visible.

Related Content

• Ready to Upgrade? T-Mobile Has Samsung Galaxy Deals for Every Type of User
• Mint Mobile's Unlimited Plan Is Just $15 a Month Right Now
• The Overlooked Tool That Could Save You Hundreds on Your Next Phone

However, if you happen to live in one of these 10 states, your car insurance policy could cost you less than half the national average — even for full coverage.

Curious to see if your state ranks among those with the most expensive car insurance or the cheapest car insurance? Check the list below to see if you're in the lucky 10. While moving to one of these states just to save on car insurance may not make sense, if you've already been considering a move to one of these states, this could be one more thing to add to the "pro" column.

The 10 states with the cheapest car insurance

Based on the latest data from Insurify, the 10 states where car insurance premiums were lowest as of August are largely in the midwest and northern reaches of the country (with a few exceptions like Hawaii and North Carolina).

Of this list, three also boast the cheapest home insurance in the country: New Hampshire, Alaska, and Hawaii. For residents of these states, lower premiums for both home and auto insurance could help keep two major household expenses more manageable.

Whether you live in one of the cheapest states already or not, it's still a good idea to shop around ahead of every renewal to make sure you're always getting the best deal possible. To start, use the Bankrate-powered car insurance tool below:

Why is car insurance cheaper in some states?

If you don't live in any of the states above, you might be feeling like you are being unfairly overcharged for your premiums just because of where you live. But there are a few reasons that the state and even city that you live in can influence the premiums you pay to drive there.

Here are some of the factors that could be making it cheaper to insure drivers in the states listed above:

• Population density: Many of the states with the cheapest car insurance are also more sparsely populated (especially compared to the states with more expensive rates). Wyoming, for example, has the smallest population of any state while North Dakota and Alaska aren't far behind. With fewer drivers on the road, there are fewer chances for car accidents so insurers view these states as less risky.
• Coverage requirements: Some states have stricter minimum coverage requirements than others. This would primarily influence the cost of liability only car insurance, which is also generally cheaper than the national average in the states above.
• Cost of living: It's no coincidence that the states with the cheapest car insurance also tend to have a lower cost of living overall. Part of what goes into the rates insurance companies set is the cost of repairs. In lower cost of living areas, the labor costs for repairs can also be lower.
• Legal costs: Another factor companies consider is how likely they are to have to pay for legal fees and larger court-ordered payouts after serious accidents. Two of the states above are no-fault car insurance states which tends to result in fewer lawsuits — but also means you'll usually have to file a claim with your own insurance, regardless of who is at fault.

If you do live in one of these states but notice your bill is a little higher or lower than the numbers listed, that's because rates can be extremely localized. For example, someone inside Cheyenne, Wyoming — the state's largest city — might pay more than someone in a town an hour outside of the city because they're in the most densely populated part of the state.

You can use this information to make decisions about where you want to live if you're downsizing, finding the right balance between the lifestyle you want and the cost of living your retirement savings can comfortably bear.

Related content

• How to Switch Car Insurance the Right Way
• Is There a Downside to Switching Your Insurance Frequently?
• Is Your Car Model Driving Up Your Insurance Premium?
• These 10 States Have the Most Expensive Home Insurance in 2026

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

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

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

1. Figure out the real change in income and spending

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

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

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

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

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

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

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

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

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

2. Get your life insurance in order now

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

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

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

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

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

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

4. Do a trial run of your single income budget

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

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

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

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

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

5. Double your emergency fund

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Thinking about giving up a second income?

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

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

Related content

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

But it's still easy to fall into financial traps that slow down your progress toward your goals and put unnecessary pressure on your monthly budget.

From money behaviors that hold back financial success to those little purchases here and there that add up to a larger chunk of your cash than you realize, here are five common financial traps and some tips for pulling yourself out of them.

1. Keeping your emergency fund in a low yield savings account

There is a well earned sense of accomplishment you feel once you hit your target emergency fund number. But too often, savers get so focused on how much they're putting into savings each month that they don't think about how much they're earning on those savings.

But a high-yield savings account does a lot of important work for your emergency fund:

• A competitive interest rate can help your emergency savings keep pace with inflation. While it might not fully offset rising prices, earning more interest helps limit the loss of purchasing power over time.
• The interest you earn grows your emergency fund without requiring additional contributions. If you eventually need to withdraw money for an unexpected expense, that extra interest means you’ll have a little more available when you need it.
• Once your emergency fund is fully funded, the interest it earns can support other financial goals. You could leave it in the account as an extra cushion or periodically move the excess toward retirement, investments or another savings goal.

So if you just opened whatever savings account your current bank happened to offer, take a few minutes to compare your current interest rate to what you could be earning elsewhere.

You can start by using the savings tool below to search for some of the best high-yield savings accounts available right now:

2. Lifestyle creep

If you feel like you're living paycheck to paycheck despite your income growing over the past few years, you might be dealing with lifestyle creep. This happens when you start to spend a little more each month as you earn more because, technically, you can afford it.

But do you actually want that hard-earned raise you got to go toward a few extra nights of takeout or a more expensive car note? Or do you want it to go toward a more luxurious retirement and better protection from financial emergencies?

While there's nothing wrong with using some of your money to enjoy your life now, it's important to stick to a budget and be intentional about where each dollar goes, even when budgeting is no longer about just surviving to the next paycheck.

If you feel like your money is disappearing without knowing where it's all going, there are a lot of great budgeting apps that can help you regain control and figure out the best way to fund both your long term goals and your life today.

3. Piling up forgotten subscriptions

It seems like just about everything has a subscription now. It's not just streaming services or the gym you never go to — though those are a big part of the problem. It's also the subscription features in your car, the "subscribe and save" auto-ship orders you forgot about, the software or apps you forgot to downgrade to the free version after the free trial ended.

The average American now spends over $200 per month on subscriptions. That's $2,400 per year that could be going to your emergency fund, your 401k, or even just toward more valuable experiences like vacations or dining out at your favorite restaurant.

Taking just 30 minutes every year to do a subscription audit can potentially free up thousands of dollars each year to go toward more worthwhile purchases and goals.

4. Being too risk averse

Squirreling away all of your money in only the lowest risk assets doesn't feel like a financial trap. It feels safe. But there is such a thing as holding on to too much cash or having too much in your emergency fund.

For money you don't need to touch in five or more years, you should embrace at least a little more risk in order to maximize your wealth-building potential.

One of the easiest ways to manage your anxiety around risk while allowing yourself to allocate a little more of your cash to higher risk, higher yield investments is to work with a certified financial planner. With the right match, you can discuss your concerns and develop an investment strategy that takes advantage of higher return opportunities without pushing you too far out of your comfort zone.

If you don't have a financial adviser yet, you can start the process of finding one with our matching tool below, powered by Bankrate:

5. Letting one spouse make all of the financial decisions

Even if you've been vigilant about avoiding other common financial traps like lifestyle creep or forgotten subscriptions, this one can be especially hard to notice. Whether you're in a single-income or dual-income household, you should always make sure that both adults are equally involved in financial decisions.

Why is this a financial trap? Firstly, because it can cause a lot of strain in the relationship when only one partner fully understands the household's financial picture. It's not fair to expect your partner to help you achieve financial goals that they aren't really aware of.

Secondly, if the spouse who handled the money passes unexpectedly, the one who wasn't involved is going to be left with the monumental task of figuring out the finances while in the depths of grief over that loss.

Related content

• 7 Frugal Habits to Keep Even When You're Rich
• Where to Store Your Cash in 2026
• How We Manage Our Finances Together as a Married Couple
• 7 Habits Rich People Swear By to Build and Maintain Wealth

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

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

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

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

1. What do I want this policy to do?

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

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

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

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

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

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

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

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

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

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

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

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

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

5. What do I want to pass on?

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

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

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

Related Content

• 5 Smart Ways to Use Your Life Insurance While You're Still Alive
• Is Your Term Life Insurance Policy Expiring? 3 Paths to Consider Next
• Do You Need Life Insurance When You're Young?
• This Is How Life Insurance Can Fund Your Dreams Now

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.

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

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

1. What just happened?

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

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

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

2. Start small

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

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

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

3. Adapt and adjust

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

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

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

4. Don't dwell on the past

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

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

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

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

Related Content

• 8 Boring Habits That Will Make You Rich in Retirement
• 7 Money Behaviors That Can Hold Back Financial Success
• Gen Z's Biggest Money Mistakes (Plus, Small Wins That Fix Them)
• How Do You Pay off Credit Card Debt?
• 6 Steps to Quickly Build Your Emergency Fund

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.

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

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

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

What happens if you don't name a beneficiary?

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

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

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

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

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

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

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

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

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

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

To add a POD beneficiary to your savings account:

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

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

What your family should know

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

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

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

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

A checklist for heirs

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

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

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

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

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

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

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

Related content

• Why the 'Great Wealth Transfer' Could Leave Heirs With Less Retirement Money Than Expected
• Before You Leave Your Home to Your Children, Ask These Questions
• Estate Tax vs Inheritance Tax: Who Actually Pays the Bill?

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

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

1. Vermont for classic New England fall scenery

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Make your fall getaway easier

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

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

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

Related Content:

• Flying After 65? These Are the 11 Best Travel Hacks for Active Retirees
• 7 Gorgeous Train Trips to Enjoy Fall Foliage
• Do I Still Need Travel Insurance If I Have Coverage Through a Credit Card?

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

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

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

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

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

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

The Basics

How did you make your first $1 million?

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

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

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

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

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

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

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

What are you doing with the money?

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

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

The Fun Stuff

Did you do anything to celebrate?

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

What is the best part of making $1 million?

Financial freedom.

Did your life change?

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

Does anyone know you're a millionaire?

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

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

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

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

Did you retire early?

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

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

Looking Back

Anything you would do differently?

No.

What advice would you give to your younger self?

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

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

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

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

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

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

Having already made my first million made this decision easier.

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

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

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

Did you work with a financial adviser?

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

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

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

Did anyone help you early on?

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

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

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

Looking Ahead

Plans for your next $1 million?

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Other important considerations are:

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

Do you have an estate plan?

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

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

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

What do you wish you'd known …

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

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

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

Before you retired? How enjoyable and fun it is.

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

Related Content

• Are You Rich? U.S. Net Worth Percentiles Can Provide Answers
• Compare Your Net Worth by Age
• Being Rich vs Being Wealthy: What’s the Difference?
• These 5 Rules Separate the Rich From Everyone Else
• Can Money Buy You Happiness? Yes, It Can. However…

You don't need to make major financial decisions right away. Giving yourself time can help you understand what you've inherited, consider your priorities and decide what you want the money to do for you.

Where you ultimately put an inheritance will depend on your existing finances, when you might need the money and the type of assets you've inherited. The first step is making sure the money is protected while you figure out what comes next.

Start by putting the money somewhere safe

"Cash and savings" is the most popular asset that older parents say makes up their estate, a Morning Consult survey commissioned by Kiplinger found, above real estate, stocks and life insurance.

You can take your time to decide what to ultimately do with the money, but it's important to keep it safe in the meantime. If your inheritance arrives as cash, consider temporarily parking it somewhere liquid while you make a long-term plan.

Options include a high-yield savings account, a money market account or a short-term CD. These accounts can provide a safe place while you decide what to do next. Savings and money market accounts also keep funds easily accessible. With a short-term CD, you might pay an early withdrawal penalty if you take the money out before the term ends, so consider when you could need the funds.

If you've inherited a particularly large amount of money, pay attention to deposit insurance limits. Deposits are generally insured for up to $250,000 per client, per insured institution and per ownership category. If you've inherited more than $250,000, you might need to spread the money across multiple institutions or ownership categories to make sure the full amount is covered.

You might feel ready to put the money to work right away. Our survey with Morning Consult, part of Kiplinger's Trillion Dollar Talk campaign, found that 70% of adult children say they feel prepared to manage an inheritance, including 40% who say they're very confident. But being prepared doesn't mean you need to act immediately.

When you first receive an inheritance, your priority can simply be protecting the money while you decide what comes next. Once it's somewhere safe, you can take a closer look at what you've inherited, your financial priorities and any potential tax consequences.

Before investing, find out what you actually inherited

Tax rules surrounding inheritances can be confusing. The federal government generally doesn't tax beneficiaries for receiving inherited cash, though income generated by inherited assets might be taxable.

Federal estate tax, when it applies, is generally paid by the estate rather than the beneficiary. Some states, including Kentucky, Maryland, Nebraska, New Jersey and Pennsylvania, also impose an inheritance tax, with what you owe often depending on your relationship to the person who died.

Inherited IRAs, brokerage accounts, real estate and other assets can each come with different tax rules. For example, withdrawals from an inherited traditional IRA might be subject to income tax and distribution requirements.

It's important to understand what you've inherited before making major decisions, so don't automatically cash out investments or retirement accounts before learning about potential tax consequences.

The confusion around inheritance taxes is reflected in Morning Consult and Kiplinger's survey, which found that 34% of adult children expect to owe taxes on an inheritance, compared with 20% of parents who expect their children to owe taxes. If you're unsure about the tax rules surrounding inheritances, consult an estate attorney or tax professional before making any moves that could have tax consequences.

Decide what the inheritance could do for your financial life

Instead of focusing on where you can earn the highest return, consider how the inheritance fits into your overall financial picture and what you want to accomplish. That can help you decide how to manage your inheritance.

Your priorities might include:

• Paying off high-interest debt
• Building or replenishing an emergency fund
• Catching up on retirement savings
• Saving for a near-term goal
• Investing for long-term growth
• Setting aside a small portion for something meaningful or enjoyable

An inheritance can potentially help you achieve any of these goals, but your priorities will shape what you do with it.

Match where you put the money to when you'll need it

Once you've decided what you want to accomplish, think about when you'll need the funds. Money you'll need soon generally belongs somewhere stable and accessible, while cash you won't need for many years might have more opportunity to grow through investing.

Here's how your options might change depending on your timeline:

• If you'll need the money within the next year or two: Prioritize safety and easy access over growth. A high-yield savings account or money market account can work well for money earmarked for a home purchase, major expense or other near-term goal. A short-term CD might also be an option if you're confident you won't need the money before it matures.
• If your goal is a few years away: You have more flexibility, but you might not want to expose all the money to market swings. Depending on your timeline and comfort with risk, you could keep some of the inheritance in savings or CDs while investing a portion for potential growth.
• If you're investing for the long term: Money you don't expect to need for many years might be better positioned for long-term growth. A diversified portfolio of stocks, bonds and other investments can offer greater growth potential, although you'll need to be comfortable with market fluctuations along the way.

Whatever approach you choose, consider how the inheritance fits into your broader financial plan. A significant windfall could give you opportunities to rethink goals that once seemed years away.

If you're unsure how to balance those priorities, a financial professional can help you determine how an inheritance fits into your short- and long-term goals.

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

Consider whether this changes your bigger financial plan

An inheritance can reshape your financial plans in ways you might not have anticipated. It could allow you to retire earlier, pay off your mortgage, help your children or grandchildren, buy a home or give more to causes about which you care. Used thoughtfully, that final gift from a loved one can provide greater financial security and flexibility for years to come.

If the inheritance significantly changes your finances, consider talking with a financial planner and tax professional before making major decisions. They can help you understand how the money fits into your existing goals, identify potential tax considerations and develop a plan to use or invest it.

This might also be a good time to review your own estate plan and beneficiary designations. If your financial situation has changed, updating your plans can help ensure they still reflect your wishes and make things easier for your loved ones in the future.

More Trillion Dollar Talk

• Inherited IRA Rules Every Beneficiary Should Know
• 5 Questions to Ask a Financial Adviser About an Inherited Stock Portfolio
• The $124 Trillion Great Wealth Transfer: Fact vs Fiction Quiz

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

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

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

Know which accounts have beneficiaries

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

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

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

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

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

Check who is actually listed

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

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

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

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

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

Life changes that should trigger a beneficiary review

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

Some of the biggest reasons to revisit your beneficiaries include:

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

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

Don't assume your will fixes an outdated beneficiary

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

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

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

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

Make sure your beneficiary choices fit your broader estate plan

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

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

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

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

Make a beneficiary check part of your financial routine

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

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

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

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

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

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

Related Content

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

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

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

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

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

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

Confirm how you will be paid

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

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

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

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

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

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

Compare your withholding with your expected tax bill

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

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

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

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

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

Bring specific questions to payroll

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

Questions to clarify with HR or payroll:

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

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

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

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

Understand what a W-4 doesn't change

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

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

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

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

Moreover, many states do not recognize the FEIE.

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

Build the payroll plan before the move

A workable international employment arrangement has four connected parts:

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

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

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

Related Content

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

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

This is what makes Navy Federal's Flagship Premier Visa Signature^® Credit Card an intriguing option. This travel card has a $95 fee and offers a simpler and more expansive travel rewards structure than many cards I've covered.

But is it a great deal for you? I'll break down its strengths, who it works best for and eligibility requirements.

Are you eligible to join Navy Federal?

Before you can snag this card, you'll need to be a member of Navy Federal Credit Union. While they focus on the military community, their "family" is actually quite broad. You might be surprised to find you already qualify through one of these groups:

• Those currently serving: Whether you're Active Duty, in the Reserves, or part of the National Guard across any branch — Army, Marine Corps, Navy, Air Force, Coast Guard, or Space Force — you're in.
• Veterans and retirees: If you previously served in any branch of the U.S. military, you may be eligible to join Navy Federal, regardless of when you served.
• Department of Defense personnel: This includes DOD civilians, contractors and even government workers stationed at DOD installations.
• Household and family members: This is the big one. If you have an immediate family member who is a Navy Federal member (or eligible to be one), or even if you just share a home with one, you can join too.

Navy Federal has a section on its website with all eligibility requirements. If you qualify for membership, here are some of the perks I like about the card.

This card delivers simplicity and value

I like travel cards with a simple rewards structure that doesn't require you to enroll in rotating categories or keep track of monthly benefits, such as the Uber Cash offered by some American Express cards, that expire if you don't use them. That's where the new Navy Federal travel card stands out.

Qualifying travel purchases earn you four times the points on every dollar charged. Unlike most travel cards that cover only basic travel, this card is broader because it includes transit. Here's a breakdown of all the purchases that qualify for four times the points:

• Regular bookings: Airfare, car rental, online travel bookings, vacation rentals, cruises and timeshares.
• Transit: This is where the card differs from other travel cards; you'll earn the maximum points back on rideshare, parking, buses, tolls, and trains, giving even more value for city travelers.

You can also earn three times the points back on restaurant purchases (including delivery, fast food and carryout purchases), a $100 airline annual credit, a statement credit for Global Entry or TSA Pre✓^® and one point back per dollar spent on all other purchases.

Is the $95 annual fee worth it? I think so. Because the $100 annual airline credit effectively cancels out the fee, the card pays for itself before you even start earning rewards. Plus, with a 4x and 3x earning structure, reaching that break-even point is effortless for any regular traveler.

Is this the right travel card for you, though?

Here's where the card might fall short

While the card's simplicity and low annual fee are great for regular travelers, they won't appeal to everyone. Navy Federal's travel card doesn't offer airport lounge access, which is a sizable miss for luxury travelers. However, you also won't pay the higher annual fee for access either.

Another area where I find the card lacking is points redemption. Unlike other travel cards where you can transfer points to participating partners, such as hotels and airlines, with Navy Federal, you can redeem points for cash, use them in the travel portal or get statement credit. That isn't bad on its own, but you also miss the opportunity to transfer points, sometimes at a higher value, to other partners.

If you're looking for this perk, the Capital One Venture Rewards Credit Card might be a better fit. It has the same annual fee; you'll earn five times the miles on hotels, vacation rentals and car rentals when you book through Capital One's Travel Portal, and you can transfer points to over 15 travel partners.

Those factors aside, the new Navy Federal card holds up well when compared to its counterparts. Here's a breakdown comparing the two cards:

My verdict on Navy Federal's new travel card

As far as travel cards go, this is one of the better options. It fits the avid traveler who wants simple points redemptions without any hoops to jump through, a low annual fee and, most importantly, earning more from all aspects of travel, not just airfare and hotels. If you want a no-nonsense card that rewards your daily commute and travel habits without the headache of transfer partners, this is a contender.

That said, if you're an avid traveler who likes to transfer points to your favorite airline, other options like the Capital One Ventures Rewards card might be a better choice.

Related content

• Top Travel Rewards Credit Cards: Maximize Miles, Points, and Benefits
• How Much the Best Travel Credit Cards Can Save You on a $10,000 Trip
• This Might Be the Most Underrated Travel Card for Simplicity

According to the Bureau of Labor Statistics (BLS), headline inflation rose 0.4% from July to August, faster than the 0.1% increase the month prior but in line with economists' forecasts.

The August CPI was up 3.4% year over year, the same as July and matching estimates.

Higher gas prices were a major factor in the monthly inflation increase, with the index for gasoline rising 3.9% in August. Year over year, gas prices were up 27.4%. Shelter and food costs were also higher.

Rate-hike odds are notably higher after the results. CME Group FedWatch shows futures traders are pricing in an 85% probability the Fed will hike the federal funds rate by 25 basis points next week, up from 71% one day ago.

What is the CPI?

"CPI is a measure of the average price of that basket of goods and services over time," writes Kiplinger contributor Coryanne Hicks. "The specific goods and services within the CPI basket are based on information that around 24,000 families and individuals give the U.S. Bureau of Labor Statistics on what they buy."

The two primary measures of CPI are headline, which is the total inflation rate experienced by households, and core CPI, which excludes volatile food and energy prices.

Core CPI came in at 0.3% on a monthly basis in August, up from 0.2% in July. Year over year, core inflation was up 2.4%, slower than the 2.5% from the previous month and in line with economists' estimates.

Costs for communication, travel, education, and used cars and trucks were all higher in August, while prices dropped for medical care and motor vehicle insurance

With the August CPI report on the books, we looked at what economists, strategists and other Wall Street experts are saying about the data and what it means for the Fed and the economy. These outlooks, edited at times for brevity, are below.

Wall Street weighs in on the August CPI report

"Financial markets have been nervous about rising inflation pressures for weeks, and this morning's report on consumer prices will keep those concerns alive. Rising consumer prices increase the probability of a Fed hike next week that will likely kick off a series of hikes over the next 6 months. Broadly, Fed hikes in the middle of an earnings boom seem unlikely to dismantle the overall bull trend for stocks but may elevate volatility and weigh on segments of the market." - Gina Martin Adams, Chief Market Strategist at HB Wealth

"The August CPI release was the last piece of puzzle ahead of next week's FOMC rate decision and today's cements a hike as the base case. Underneath the hood, core inflation remained fairly mixed with modest goods inflation, continued shelter disinflation, but strong services ex-shelter inflation (aka Supercore). Taken together, the details of the report suggest that underlying inflationary pressures continue be sticky and the Fed will have to hike in order to help inflation return toward the 2% target." - Jeff Schulze, Head Investment Strategist at Franklin Templeton Institute 

"Unfortunately, there is a building narrative in the bond market that the Fed is behind the curve and the Treasury is powerless to drop longer-term rates from rising. This CPI report isn't going to help. In my view, the Fed absolutely needs to hike at the September meeting. Otherwise, these narratives really risk getting out of control, which could cause unnecessary damage to the economy." - Tom Graff, Chief Investment Officer of financial advisory firm Facet

"The survey period predates the latest move higher in energy prices, with Brent crude climbing above $100 as tensions around the Strait of Hormuz persist. It also comes before commodity strength broadened beyond energy into areas such as metals and agriculture. A clean inflation print today does not eliminate the possibility of stronger price pressures down the road. An in-line print keeps the Fed in play without forcing its hand, which is why investors are likely to remain focused on Warsh's communications, or lack thereof, energy prices, labor market data, and what comes next rather than what was released today." - Alexandra Wilson-Elizondo, Global Head and Co-Chief Investment Officer of Multi-Asset Solutions at Goldman Sachs Asset Management

"Core inflation isn't moderating. Categories like used car prices, airfares and shelter are all showing signs of sticky inflation. With the labor market tight, it's hard for the Fed to avoid hiking next week. The situation has gotten more inflationary since August. Big energy moves this week alone make last month's CPI a bit irrelevant. Price pressures have intensified and are passing through to core." - David Russell, Global Head of Market Strategy at TradeStation

"Friday's CPI print was in-line with expectations, but inflation is still too hot, and the Federal Reserve's hands are tied. A rate hike next week is all but assured. Consumer prices are going in the wrong direction, and remain significantly higher than the Fed's 2% target. We may see several rate hikes over the coming months in an effort to get short-term interest rates in line with where the market is pricing yields." - Skyler Weinand, Chief Investment Officer at Regan Capital

Related Content

• What Actually Works to Address Inflation in Retirement
• Beating Inflation: How to Protect Your Long-Term Investment Returns
• Why Is the PCE the Federal Reserve's Favorite Inflation Indicator and Not the CPI?
• Here's How to Prevent Inflation From Eating Your Savings

To build substantial wealth, you may have to say no even when you can afford to say yes. Getting rich may mean taking some calculated risks and sticking to a plan, even when you’d rather change course.

It’s not easy, and if you want to build wealth, you’ll need to be prepared to make some specific choices.

1. Live below your means even when you don't have to

Living below your means is different from simply being able to pay your bills. As your income increases, there’s pressure and a natural desire to upgrade your house, car, vacations and other lifestyle elements. Those large purchases can quickly erode the wealth that you’ve built up, setting you back from your goal.

What’s more difficult is letting that gap between your income and spending grow. Upgrading your lifestyle may be tempting, and you’ll need self-control to stay focused on your goals and to continue living on less than you make.

Avoiding lifestyle creep is key to building wealth, since it leaves more money available to invest and build your assets; that’s where the real wealth-building power lies. Compound interest, in which your earnings start to generate their own earnings, can accelerate your path toward becoming rich.

There’s nothing wrong with enjoying your money, and doing so periodically can help to keep you motivated to continue working and building wealth. The issue is letting every raise permanently increase your cost of living through an expensive upgrade like a larger house or a new car.

2. Get comfortable watching other people spend more than you

Your friends, neighbors and colleagues may have a bigger house, a new luxury vehicle or seemingly endless vacations, and you’ll need to get comfortable with that scenario for years. Trying to keep up or even using their situation to justify your own spending can divert money from investing and other long-term goals.

Remember that appearances can be deceiving and you can’t tell much about someone else’s financial situation simply based on what they own. A high-spending lifestyle isn’t necessarily evidence that someone’s wealthy, and they might be financing their lifestyle through debt.

If you’re patient and don’t try to keep up with others, you’ll make more progress toward your own financial goals.

3. Put a set amount of money away before you can spend it

It’s important to be intentional about saving money. Saving whatever happens to be left over at the end of the month often isn’t enough to build substantial wealth. To build wealth, you may need to treat investing as one of your biggest recurring expenses, which means setting aside a meaningful amount of money to invest each month.

As your income grows, revisit and increase your 401(k), IRA and brokerage contributions. Where appropriate, automate your contributions so they become a standard and recurring part of your monthly budget.

Prioritizing investing can be difficult, since the money is technically available to you today. When you invest, you’re choosing to give your future self first claim to the money, and that may mean that you need to cut your spending or go without a big purchase in the meantime.

Not every dollar you set aside needs to be invested. Money you may need sooner, including your emergency fund, can be kept in a savings account where it’s accessible and protected from market swings. And with competitive high-yield savings accounts paying attractive rates, it’s worth making sure your cash is earning as much as it reasonably can.

Use the tool below to explore and compare some of today's top savings account offers:

4. Take calculated risks with your money

Building wealth often requires taking some risk. Keeping all of your money in cash can feel safe, but you may need to accept some investment risk — and some potential loss — on a long-term path to getting rich.

That doesn’t mean investing on a whim in a business you have a good feeling about or on a tip you heard from a friend. Calculated risk is part of investing, and it helps minimize the chance of you losing your money.

Diversified stock investments, real estate or business ownership may fluctuate or fail to perform as expected, but going into those investment decisions well-informed can minimize the risk you’re assuming. Avoiding risk entirely has its own cost and may cap your earning potential.

You don’t need to chase hot investments or make enormous bets, but building wealth involves some uncertainty.

5. Be boring for a very long time

Though there are certainly exceptions, building wealth doesn’t usually come from one brilliant stock pick, side hustle or financial decision. It’s boring, and it’s the result of years or decades of investing, reinvesting, controlling spending and avoiding major mistakes.

Markets will fail, trends will change and you’ll make mistakes. You’ll question yourself and may be tempted to jump to a venture that appears to offer a faster route to wealth. What’s hard is resisting the temptation to question or change your strategy, allowing compounding and time to do their work.

Building wealth is boring, and you need the patience and faith to simply be boring.

Getting rich is often about what you don't do

Building wealth sounds simple on paper. It’s often much more difficult to put into practice. Building wealth often comes down to what you don’t do, rather than making some strategic action or jumping on the right stock at the right time.

You don’t necessarily have to pursue a lifestyle of extreme sacrifice, but you may need to become comfortable making choices that don’t always result in an immediate payoff. It’s hard work and will be uncomfortable at times, but if you’re dedicated and stay consistent, the sacrifices you make now can pay off later.

Building wealth takes consistency, but you don’t necessarily have to figure out every decision on your own. A financial advisor can help you create a strategy around saving, investing and other long-term goals, and adjust that plan as your finances change.

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

Related Content

• Average Net Worth by Age: How Do You Measure Up?
• These 5 Rules Separate the Rich From Everyone Else
• I'm a Financial Pro: This Is What No One Will Tell You About Getting Rich

"Schwab bank is perfect," raved one Kiplinger reader, adding that the internet bank "goes above and beyond and is absolutely the best in customer service hands down."

Whether you've been considering Schwab bank specifically or you're just exploring your options for moving your money away from your current bank, find out why Kiplinger readers voted Charles Schwab the best internet bank for the third time.

1. Manage all of your wealth in one place

One of the most cited reasons Kiplinger readers keep choosing Schwab as their favorite internet bank: the convenience of being able to manage all of their accounts at one institution.

"I like housing our checking, savings, brokerage and IRAs in the same place," wrote one reader. Alongside all the typical checking and savings account options you expect from any bank, Charles Schwab also offers various loan products, retirement accounts, brokerage accounts, money market funds and even a trading platform.

With all of your finances on one dashboard, it's easy to move money around and monitor your complete financial picture.

2. No unnecessary fees

No one likes getting nickel-and-dimed by their bank. At a time when just about every major financial institution seems to be charging everything from "maintenance fees" to ATM withdrawal fees, Schwab's fee-free checking accounts are a breath of fresh air.

A Schwab account "costs nothing and works well," said one reader. Not only will you not have to worry about getting hit with maintenance or inactivity fees at Schwab, but the internet bank also covers fees you might be charged elsewhere.

"They pay any fee on any ATM that I use," said one enthusiastic Kiplinger reader. Schwab is one of the few banks to offer unlimited ATM fee rebates. That's a relief when you need cash. There's no need to track down a Schwab location for a withdrawal. You can head to whatever machine is closest to you and grab the cash you need without worrying about fees.

Those fee rebates apply to any ATM fee anywhere in the world. Between that and the zero transaction fees, Schwab checking accounts are just as great for travelers as they are investors.

3. FDIC insurance and robust security features

When it comes to your cash, you don't want to cut corners with security. That's one area that sets Schwab apart from others. Many internet banks are technically fintech companies that partner with brick and mortar banks to offer banking services. As the 2024 bankruptcy of Synapse Financial Technologies revealed, fintech companies aren't FDIC insured because they aren't technically banks. That can leave your money vulnerable if the company goes under.

You don't have to worry about that here because Charles Schwab is a true member FDIC bank, so your checking account is insured up to the standard $250,000.

In addition to being FDIC insured, Schwab accounts come with other security features like fraud alerts, travel notifications and the ability to quickly and easily lock or unlock your debit card as needed to prevent theft.

Where you bank is just one piece of your financial picture. If you're looking for help bringing your savings, investments and retirement strategy together, a financial adviser can help you build a plan around your goals.

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

Related content

• 3 Reasons Fidelity is Kiplinger Readers' Favorite Full-Service Broker
• 3 Reasons UBS is Kiplinger Readers' Favorite Wealth Management Firm in 2026
• 3 Reasons Why Kiplinger Readers Chose Cash App as the Best Peer-to-Peer Payment Service
• 3 Reasons Kiplinger Readers Prefer the Capital One Venture Rewards Card

In our cover story this month, we've taken a deep dive into what the Great Wealth Transfer — the estimated $124 trillion of assets that will flow from older generations to heirs and charities through 2048 — means for families. While a good chunk of that transfer will come from a small slice of high-net-worth households, those who aren't among the super-rich are making plans to share their wealth over the coming couple of decades, too.

To gather insight into how families are handling this historic shift, Kiplinger commissioned an exclusive survey, conducted by research firm Morning Consult, of more than 5,000 older parents and adult children, asking for their knowledge and expectations surrounding the inheritance that parents will leave for their heirs.

Drawing from the survey's findings, the story you can find here offers advice on how families can successfully navigate this transition, from determining what information you may want to disclose to your children about their inheritance ahead of time to ensuring that you pass along your values, too. In another story, we outline some key takeaways from the survey.

And in a third story, we provide guidelines on having conversations with your adult children that will leave them well positioned to manage their inheritance and minimize conflicts and confusion among your heirs when the assets change hands.

How real families are handling this transition

As a complement to the stories in our cover package, we asked readers to send us their responses to this question: Are you giving away some of your money or assets to your heirs while you're still living, or do you intend to leave a larger inheritance later? I'm sharing a few responses here.

Many readers said they are offering some financial help while they're still around to see their children enjoy it, and at a stage during which their kids may most need the assistance. Says one reader, "My in-laws gave us money at a time in our lives when we were raising three children, and it was very helpful to our family. We feel that our retirement is secure and have started giving some money each year to our children while they are young adults, as they raise children and buy homes. I feel that it can benefit them more at this stage of their lives than later."

Another reader emphasized the importance of conveying financial lessons along with giving gifts. "Our philosophy for giving to children is to make their lives better, not remove the incentive for hard work and development of good spending habits," he says. He and his wife provided about 35% of the down payment for their son's home purchase, and they explained to him how paying extra on his mortgage can reduce total interest on the loan and shorten the time it takes to pay it off.

Several of you mentioned that you're helping your grandchildren, too, funding their retirement accounts and college-savings plans. One reader is contributing $5,000 yearly to each of his five grandchildren's 529 plans, with a goal of contributing $100,000 total per beneficiary.

"Because I was willing to start early, my family can benefit from the tax-free growth of these funds," he says. And, he notes, if any of the grandchildren don't use all the savings on education expenses, they can roll over as much as $35,000 from the 529 to a Roth IRA tax- and penalty-free, "giving that generation a head start on retirement savings."

A reader whose two oldest grandchildren are in college is boosting their retirement savings — and encouraging them to start thinking about investing—by contributing to their Roth IRAs. And, he says, "Once they begin their careers, we will offer to match their retirement-fund contribution."

More Trillion Dollar Talk

• The Great Wealth Transfer is Creating a New Generation of Family CFOs
• The $124 Trillion Great Wealth Transfer: Fact vs Fiction Quiz
• Could You Handle a Sudden Windfall?

A natural disaster has occurred. Do you want to donate to help out?

You're checking out at your local store and get a prompt asking if you want to round up for charity. Do you do it?

While many of us are basking in the hazy days of summer vs the cold reality of the months to come, the warm weather seems to bring a lot of "Giving Tuesdays." The asks for everything from swim teams to summer camps to walk-a-thons begin to add up, leaving me to ponder: "Am I giving enough?"

So, while the end of the year feels a long way away, this time of year is a good time to think about creating a giving plan for the rest of the year and identifying how you want to maximize the tax benefits for your gifts.

There are a few key components to unpack with this process. Some include:

• Is charitable giving important to your core values?
• What capacity do you have to give to charities?
• How much can you give to receive a tax benefit?

The causes

Every one of us, without too much trouble, could find, or be asked, to give to a charity every day. There are plenty of groups that need help (some we've never heard of) and plenty of people (some we've never met) looking to raise cash.

Psychologically, if I give to something in a reactionary way — maybe I got put on the spot to give — I'm most likely going to feel less connected to the outcome, and the feel-good nature of the gift will be fleeting.

So, how do conversations with my clients go? Especially with those who might have a significant capacity to give.

I always advise my clients who are charitably inclined to set an intentional giving plan. This means rather than scattering a few dollars here or there based on various fundraisers, pick one or two core causes that align with your personal values.

Local youth sports? Animal welfare? Your alma mater? A local house of worship? Take the time to see if these fit the legacy you want to leave. After determining the cause, spend the time to do the due diligence on the charitable options presented in that space.

Look at the mission and the impact measurements, as well as the financials of an organization so you feel more confident that your investment is going to be spent in a way that you feel good about and aligns with your own goals and values.

What's your giving capacity?

Once you've determined that you want to give to charity, it's important to look at your personal capacity to give.

Everyone has different demands on their bank account. If someone is in a position where they need to pay off high interest debt, build an emergency fund or saving for a large purchase or a college education, their capacity is going to look differently than someone who doesn't have any of those events looming, is fully funding their retirement plans and is in their peak earning years.

While charitable giving is initially driven by values and purpose, it's OK to also want to maximize the financial advantages associated with giving to nonprofit organizations.

By the numbers

It's important to address upfront that while giving your money to something you believe in can feel good, a dollar-for-dollar tax deduction is not guaranteed.

In truth, a deduction lowers your taxable income, rather than your final tax bill.

The next key thing to know is the level of deduction you are eligible for depends on whether you take the standard deduction or itemize.

The standard deduction for 2026 tax year is $16,100 for single filers and $32,200 for married couples filing jointly — leaving many Americans finding themselves in the standard-deduction camp.

For a long time, this meant that you wouldn't get any deduction for giving to charity. But, as a result of the One Big Beautiful Bill Act, passed on July 4, 2025, taxpayers utilizing the standard deduction will now be able to receive a deduction for charitable gifts up to $1,000 for single filers and $2,000 for married couples filing jointly.

For individuals who itemize, there is a new floor for deductions. The amount given to charity that is equivalent to the first 0.5% of adjusted gross income (AGI) is not deductible, and for taxpayers in the top tax bracket, the tax benefit of the charitable deductions is capped at 35% rather than 37%.

Meaning if you have $500,000 AGI and charitable contributions of $20,000, then the first $2,500 (0.5% of $500,000) is not deductible, but the remaining $17,500 is. But, because you're in the highest bracket, the benefit is capped at 35%. In this example, the gift produces about $6,125 of federal income tax savings.

For individuals who want to get more of a tax benefit, but don't give enough in a single year to make the most of these limits, there is an idea called "bunching." Instead of giving a small amount every year, they can bunch two or three years of giving into a single year.

As a reminder, in order for you to receive a charitable deduction for your donation, the charity you choose must be a registered 501(c)(3) organization. So, while giving money to a friend's GoFundMe page after they experience misfortune is kind, it's not tax-deductible.

Additionally, for gifts of $250 or more, taxpayers must receive a formal acknowledgment letter from the charity confirming the donation and making it clear that they didn't receive any goods or services in return for their largesse.

So, should you be giving more to charity? Well, many of us could probably give more.

But a better question — and one I always ask my clients — might be: Are you giving in a way that reflects your values and maximizes the impact you want to have?

When charitable giving is approached with intention rather than obligation, it becomes more than a tax deduction or a response to the latest fundraising appeal.

It becomes an expression of purpose, a reflection of personal values and an opportunity to create meaningful change for the causes and communities we care about most.

Having a plan in place for your charities and your taxes makes great sense — especially as peak giving season approaches.

Related Content

• Donating Complex Assets Doesn't Have to Be Complicated
• Give More But Pay Less: An Essential Guide to Tax-Smart Charitable Giving in 2026
• Five Ways to Maintain Charitable Giving in Volatile Times
• 3 Reasons Young People are Filled With Financial Anxiety — and How to Help
• Tending to Your Estate Plan? Don't Forget to Give Your IRA Some Love

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 the eve of what's expected to be a historic generational transfer of wealth in the U.S., Kiplinger set out to explore how families are navigating inheritance planning in their households — what they intend, what they hope for, what they worry about and how they've communicated with each other. Toward that end, we partnered with research firm Morning Consult to field a national survey asking 5,156 Americans — half adult children ages 25 to 60, half parents ages 55 and up — to share their views and circumstances.

Here is a look at what we learned.

Parents and adult children are not on the same page

When it comes to inheritance plans, the survey reveals a big gap in expectations and knowledge between the older and younger generations in many families.

For starters, adult children are far less likely to think they'll be getting an inheritance at all, compared with parents who expect to leave one. Some 42% of younger respondents say they don't expect to receive a meaningful amount, but just 15% of parents say they won't have any money to pass down. On the flip side, about twice as many parents, in fact, do plan on leaving a meaningful inheritance as adult children who anticipate they'll get one.

The kids generally aren't clear what assets will be involved, either. Nearly two-thirds of parents say they have money in cash and savings, but fewer than four in 10 children think those assets are part of the older generation's estate. Adult children are also far less likely to say that life insurance, real estate, an IRA or a 401(k), and other investments are part of their parent's holdings, compared with parents who say they own these assets.

There are also big generational gaps concerning how much financial help parents extend to their children now (parents consistently say they are helping more than children believe); whether it's better to split inheritances evenly among siblings or consider other factors such as financial need or past assistance (more kids favor "fair" over equal than parents, by a 21 percentage point margin); and whether they've discussed an inheritance plan (more parents report having shared information than children recall hearing).

"Both parents and adult children need to do a better job of understanding where the other side is coming from," says Kurt Supe, a certified public accountant and retirement planner at Creative Financial Group in Indianapolis and CFD Investments. "The key is better communication."

There's a gender gap when it comes to inheritances, too.

Sons are more confident about their ability to manage an inheritance than daughters, the survey results show. That's in keeping with other research showing men's greater belief in their financial acumen (although the studies don't necessarily indicate that faith is justified).

Sons are also more likely than daughters to expect an inheritance (30% versus 18%), to say their parents have shared plans for passing down assets, and to know how to locate Mom and Dad's will and other estate-planning documents. Daughters, by contrast, answered "not sure/don't know" to questions more frequently than sons — about how much they'll inherit, whether they'll owe taxes on the bequest, and even whether they prefer financial help from their parents now or a larger inheritance later.

When it comes to talking to the kids about inheritance plans, moms rule. Although both mothers and fathers express the same comfort level in talking to their children about money, dads in practice are more likely to have said nothing to their kids about their inheritance plans (45% of dads have stayed tight-lipped, compared with just 33% of moms).

Financial adviser Stephanie McCullough, founder of Sofia Financial, a financial planning firm for women in Berwyn, Pa., suggests that women who aren't confident about managing their finances may get past the hump if they connect with a friend they feel comfortable talking with about money or if they consult with a professional. Says McCullough: "Find a money buddy or an adviser to help. And if they make you feel stupid, find a different one."

Everybody has big questions about inheritance

Inheritance plans live largely in the dark, the survey shows. Two in five families have never discussed them, and three in 10 parents have no formal plans. Families rank inheritance next to last among topics they feel comfortable discussing — only sex and dating elicit more of a shudder.

And the less wealth parents have, the quieter things get.

It's not just that parents and kids don't communicate; it's that many don't even know what's at stake. More than one-third of adult children and nearly four in 10 parents aren't sure whether the older generation will have any assets left to pass down; just over one-fourth of parents can't estimate the size of their estate; and 43% of children and 38% of parents have no clue how much each of the kids will inherit.

The top reason parents stay silent: "There are too many unknowns about how long I will live or how much will be left." Inflation and other economic pressures top their list of concerns, along with possible long-term-care costs. Kids worry about those things on their parents' behalf, too, and some 16% are also anxious that their moms and dads will need financial help from them instead of the other way around.

Wealthier families — parents with incomes above $100,000 or estates worth $1 million or more — share those same top concerns. But they also keep quiet about estate plans because they do not want their offspring to count on an inheritance (cited by about one in three parents with estates estimated at $500,000 or more, for instance, compared with 19% of parent respondents overall).

That's understandable, says financial psychologist Brad Klontz, who notes, "You don't want your child's financial plan to be your death."

Love and good intentions are abundant

When asked what they'd want done or would do with an inheritance, both parents and adult children focused primarily on practical moves that would help the younger generation. Paying off debt. Buying a home. Saving to build wealth and a secure retirement. Providing a better life for the children of the adult kids and the parents' grandchildren.

Something else families agree on: Most adult children feel ready to manage an inheritance (70%), and nearly as many parents (67%) feel the same.

What would adult children ask their parents, if they felt comfortable? Sure, some (18%) were curious to ask, "How much?" But others wanted to know their parents' wishes for the money so they could respect those intentions (9%), and to understand more about the older generation's experiences (12%). As one adult child put it, "I would ask if they were truly happy in life."

David Chubak, head of wealth management and field management at Edward Jones, says families shouldn't keep questions, feelings and plans about wealth transfer inside. He encourages them to talk in advance of assets changing hands. "These are important conversations that touch every family and every level of wealth," he says. "My best advice is to start now."

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.

More Trillion Dollar Talk

• The Trillion Dollar Talk
• How to Talk to Your Adult Kids About Their Inheritance
• Why So Many Families Are Unprepared for the Great Wealth Transfer — and What You Can Do About It
• An Expert's Guide to the Estate Planning Documents Everyone Needs

Experts are calling it the greatest wealth transfer in history, and the drumbeat heralding its arrival grows louder every day.

To explore how American families are navigating this inheritance wave and offer smart advice to help them meet the challenge, Kiplinger commissioned an exclusive, national survey of more than 5,000 older parents and adult children, conducted by the research firm Morning Consult.

What we discovered is a mix of big hopes and deep uncertainty as the older generation prepares to pass down the assets they've built over a lifetime, the younger generation stands poised to receive them and concerns grow on both sides that outside factors could erode that wealth before it changes hands.

The results also make clear there is a big gap in expectations and knowledge between older and younger family members about the money and property at stake — in part because both sides are deeply reluctant to talk to each other about it. Among the survey's key takeaways:

• Nearly half of older parents expect to leave their kids a meaningful inheritance, but the majority of adult children don't think they're getting anything or aren't sure what might be left for them.
• The amounts involved for most families are not the life-changing windfalls recent headlines suggest but still have the potential for serious impact, from enabling the younger generation to buy a home to helping put their own kids through college.
• Many parents worry that a shaky economy and their own healthcare costs will upend their plans to pass down wealth — even as the children, facing big expenses of their own, wish their elders wouldn't wait so long to send money their way.
• Plans for gifting and inheritances live mostly in the dark because parents and kids would rather talk to each other about almost anything else — only sex and dating are more awkward topics.
• As a result, uncertainty casts a cloud over the inheritance process and keeps many families from taking the steps needed to make the most of these assets — moves that could also help parents and adult children forge an even closer bond.

"People are grappling with being asked to make important decisions that will impact their wealth and the assets they want to pass to future generations without having perfect information," says Valerie Galinskaya, managing director and head of the Merrill Center for Family Wealth.

"The individuals and families I see excel and do this most effectively don't wait for uncertainty to disappear. They build their plans and then adapt as life unfolds."

Here is what you need to know to ensure that you and the people you love plan for inheritance in a way that not only creates a smooth and effective transfer of wealth but also helps bring your family closer in the process.

The Great Wealth Transfer won't be great for everyone

Lest anyone feel bad that the assets parents intend to leave to children in their family can't be counted in eight or more digits, rest assured those megasize amounts that pundits are quoting about the Great Wealth Transfer aren't all they're cracked up to be.

More than half of the expected inheritances coming down the pike over the next two decades will be concentrated among the richest 2% of U.S. households, Cerulli estimates, leaving a lot less to be divided among everyone else.

How much less? About one-fourth of the parents who expect to leave an inheritance to their children estimate their estate will be worth less than $100,000, and about half put the total at less than $500,000, according to the Kiplinger–Morning Consult survey.

Just over one in 10 valued their estate at $1 million or more. Homes made up the greatest share of the wealth to be passed down, followed by life insurance, liquid savings and investments.

The numbers get whittled down even further when you consider that in many families these assets will be divided among more than one child. Roughly one in four parents thought each of their children would inherit less than $50,000 from them, with 44% estimating the amount per child would be less than $250,000.

Bequests in seven-figure territory were rare, cited by just 5% of the parents who expect to leave an inheritance. These findings are largely in keeping with Federal Reserve data, which shows that about half of heirs receive less than $50,000 and 30% of inheritances range from $50,000 to $249,000.

"That big, huge $124 trillion number is irrelevant to the vast majority of people — but it's not that there's nothing coming, either," says Teresa Ghilarducci, professor of economics at The New School for Social Research, who puts the number of adult children who can expect an inheritance at about 30 million.

That's a lot of potential heirs, but relatively few of them know what to expect. While nearly half of parents 55 and older expect to leave a meaningful inheritance for their children, only about one-fourth of adults ages 25 to 60 with at least one living parent think they'll receive one, the Kiplinger–Morning Consult study found.

Driving the disconnect: Relatively few families are talking about inheritance. Roughly two in five have never discussed the older generation's plans for passing along their assets, the survey reveals. And among those who have talked, it's mostly in generalities, such as whether the parents have a will or who will inherit something, rather than specifics, with details about the assets parents have, their value, or Mom and Dad's wishes regarding them.

"When families do not talk, everyone makes up a different story," Ghilarducci says. "That's when trouble starts."

"Parents may think they don't want to burden a child by talking about their death," says certified financial planner Douglas Boneparth, founder and president of Bone Fide Wealth, a New York City firm that specializes in advice for millennials.

"But not communicating a plan or conveying your wishes to the very person or people who ultimately will be responsible for settling your estate and dealing with your affairs will leave them in the dark and scrambling to figure things out while they're grieving over the loss of a loved one. It's an absolute kick in the pants and burdens them more than you could have imagined."

Lack of knowledge can also prevent the younger generation from making informed choices about their lives, financial experts say. That's especially true if the parents intend to gift money during their lifetime — say, to help with the down payment on a home or a grandchild's college education.

"Counting on nothing may seem like the safest approach for adult children, and the easiest emotionally," says adviser Stephanie McCullough, founder and CEO of Sofia Financial in Berwyn, Pa.

"But if knowing that your parents plan to leave you some money might help you breathe a little easier financially now or do a little more for your own kids, it would be good to have some sense of it."

Uncertainty prevails — and paralyzes estate planning

There are plenty of reasons why many families shy away from conversations about money generally and inheritances specifically.

For starters, no one likes to talk about their own mortality or think about their parents dying. Or about the possibility that illness or disability might drain the older generation's savings.

Then, too, many boomers and members of the Silent Generation grew up in homes where talking about money was considered impolite or taboo. (Our survey found that families would prefer to talk about almost anything else — politics, mental health, you name it — than inheritances. Only sex was a more awkward topic.) And, especially at greater levels of wealth, parents may worry that learning of an inheritance could be de-motivating for their children.

Adult kids also don't want to raise the subject and risk coming across to Mom and Dad as grasping. "Bringing up a parent's finances can feel like you're being greedy or morbid," Boneparth says. "Millennials want to know but feel like they shouldn't have to ask."

Yet the top reason families stay silent, the Kiplinger–Morning Consult survey shows, is uncertainty. More than one-third of parents who haven't discussed inheritance plans with their adult children say there are too many unknowns about how long they'll live or how much money they'll have left.

Overall, the top worries among parents about the inheritance they've earmarked for their kids are that, given inflation and other economic pressures, they might not have much left to give and that long-term care or other health costs might deplete their estate. And that was true even at higher levels of income and wealth.

Another source of uncertainty for many parents is whether and how long they may need to help their kids financially now, given sometimes shaky career paths, high housing costs and, for some, hefty student loans, says David Chubak, head of wealth management and field management at Edward Jones.

The Kiplinger–Morning Consult study confirms that lots of parents are providing that support: More than four in five say they have given their adult kids financial assistance, from helping with expenses or debt to regular gifting.

"The reality is we live in an age of financial uncertainty and anxiety like no other," Chubak says.

Bundle all of that uncertainty together and it can become paralyzing, stopping parents from crafting an estate plan or talking about any plans that have been made, says Joshua Morris, vice president of thought leadership and research insights at the Fidelity Center for Family Engagement.

Parents in the Kiplinger survey who were uncertain about the value of their estate, for instance, were half as likely to have a will as parents who were confident about leaving an inheritance, and even fewer had discussed estate-planning issues with their kids.

"The senior generation often feel they need everything completely buttoned up before they say anything to their children, so feeling uncertain about one or two things regarding estate planning shuts down dialogue about everything," Morris says.

"And if you're not having dialogue, that compounds the uncertainty both generations feel, because without conversation, there's no flow of information or talking about concerns and wishes."

What the "kids" really need to know about inheritance

When it comes to inheritances, parents are usually most reluctant to share specific numbers, such as how much money they have saved or expect to leave to each child, financial advisers say.

"Mom and Dad worry if they tell the kids they have, say, a million dollars, the kids will think they're rich — the gifts should be bigger at Christmas, they should be doing more for the grandkids, and why aren't they helping me more when I'm struggling to pay my rent?" says Kurt Supe, a certified public accountant and retirement planner at Creative Financial Group in Indianapolis and CFD Investments.

"Meanwhile, the parents are thinking, We don't know if we have enough to last our lives, and a long-term-care event could wipe out half of what we've got."

If you'd prefer to keep the amounts to yourself, or you just don't know what they'll be, that's fine, advisers say. And if you choose to disclose, keep it to broad ranges and possibilities, because circumstances can change.

More important than the numbers, though, is sharing practical details, such as whether you have a will and, if so, where you've stored it, as well as insight into the reasons for key decisions, such as who your executor will be.

"A lot of times people think about disclosure as a light switch — you're either on or off," says Galinskaya at the Merrill Center for Family Wealth. "We prefer a dimmer-switch approach."

New research from the Fidelity Center for Family Engagement suggests what younger family members most want to know are details that will bring them peace of mind, instead of anxiously wondering what to expect. While the definition of peace of mind differs from individual to individual, and from family to family, common themes pop up.

For instance, a separate Fidelity study found that 76% of the younger generation want to know whether they are named as beneficiaries — something that applies to retirement accounts and life insurance policies as well as being named in a will or trust — but only 35% of baby boomers have shared this information.

A Merrill report identified clarity around expectations as the top concern of younger family members, including whether parents have specific wishes for how any money they inherit should be used. Adult children with a special-needs sibling might be concerned about whether their parents have made provisions for care when they're no longer around to provide it.

The key is to identify the issues that might cause confusion or anxiety in your particular family circumstances. And if younger family members approach the subject respectfully, they don't have to wait for parents to initiate the talk.

Says Boneparth, "The best thing a millennial child can do is give their parents a reason to have a conversation about their estate planning that has nothing to do with money. It's asking about their wishes, their values and their worries."

One exception to the suggestion that parents can stay tight-lipped about dollar figures is if you intend to provide financial gifts during your lifetime, because that knowledge might affect the decisions and choices your children make.

"Let your adult children know whether they can expect financial help from you at key moments in their life when a lump sum would really help, such as when they want to buy a house, or when they graduate from college, get married or have a child," says Ghilarducci. "Be frank and up front about what you have budgeted."

How families can set up for estate transfer success

A smooth transfer of wealth requires a clear plan that lays out who your heirs will be and how you want your assets divided among them. It should also appoint individuals you trust to settle your affairs, with legal documents in place to ensure your wishes are upheld. Few families, however, have such a plan in place.

"Most people take the ostrich approach: I'm going to stick my head in the sand and hope I never have to deal with this," Supe says.

In fact, only four in 10 parents in the Kiplinger–Morning Consult survey say they have a will, just over one-third have designated beneficiaries on retirement accounts or life insurance policies, and a scant 14% have written a letter of instruction outlining their wishes.

Wealthier families are far more likely to have the legal paperwork drawn up, but large swaths of them still go without. About one-third of parents with estates worth more than $500,000, for instance, don't have a will, and nearly half haven't documented what they want to happen to their personal possessions.

"A will is not just for rich people," Ghilarducci says. "Even a modest estate can include a house, retirement accounts, a car and personal property. Somebody has to sort all that out. Parents usually need a will, a financial power of attorney, a healthcare directive and updated beneficiary forms. A simple letter explaining where everything is can save the family a lot of grief."

Once the documents are drawn up, you'll need to communicate that information to your children and other loved ones. Let them know where the papers are stored, whether you place them in a digital file, a physical binder or both.

And it's not a one-and-done exercise; you'll want to revisit and update, as needed, every few years and after major life milestones.

"The plans that worked for you in your fifties may need to be adapted in your sixties, as well as once you retire, when your children get married or you have grandchildren, and then again in your seventies and eighties," says CFP Marguerita Cheng, CEO of Blue Ocean Global Wealth in Gaithersburg, Md.

You will also need to consider how taxes may impact a planned inheritance — an issue that causes a lot of confusion for both generations, the Kiplinger survey shows. None but the ultra-wealthy will owe federal taxes, with the amount exempt from estate taxes now at $15 million for individuals and $30 million for couples.

However, about a dozen states have estate taxes of their own, including Oregon (exemption: $1 million), Rhode Island ($1,838,056) and Massachusetts ($2 million). If you live in one of those states and calculate your net worth in seven figures, you'll want to consult a financial adviser about ways to minimize the impact.

A more pressing issue for most families: If you plan to leave money in a traditional IRA or 401(k) to your children, they could be in for a big tax hit. Under a recent rule change, heirs other than a spouse now typically have to withdraw all the money in these accounts by the end of the 10th year after the original IRA owner's death rather than stretching withdrawals over their life expectancy, and they'll pay taxes on the money at their ordinary income tax rates.

A possible double whammy: Those withdrawals could push heirs into a higher tax bracket.

"The biggest threat to eroding the value of an inheritance for adult children who are beneficiaries of traditional retirement plans is the possible tax hit," Supe says.

What to do? Supe suggests you might convert all or a portion of a traditional IRA or 401(k) to a Roth account over time. You'll pay income tax on the amount you convert, but your children will then be able to withdraw the money tax-free when they inherit — a strategy that makes sense if you are in a lower tax bracket than your kids, as is the case for many retirees with offspring who are in their peak earning years.

You'll want to make sure, though, that your withdrawals from the traditional plan don't push you into a higher income tax bracket or income tier for Medicare, which could cause your premiums to increase sharply.

McCullough says some people are reluctant to do the conversion and pay taxes up front because they've been taught to defer, defer, defer, and it's hard to break that mind-set. She says, "Think of the taxes you'll pay as part of what you're gifting to your children, a way to maximize the value of what they inherit from you."

Issues that can topple your inheritance plan

One of the thorniest challenges that many families face in transferring wealth to younger generations: The great now-versus-later debate.

Nearly twice as many adult children in the Kiplinger–Morning Consult study say they'd prefer their parents help them financially now, when their biggest life expenses are upon them, as those who say they favor getting a bigger inheritance later.

With older generations now living longer, healthier lives, it could be a long wait — 10 to 20 years or more — and millennials and Gen Xers are buying homes, raising children and paying for college now. Indeed, Fed data shows that inheritances in middle-class and affluent families most commonly go to recipients in their early to mid-sixties, when those heirs are often closing in on retirement themselves.

Many parents, however, aren't on board — with good reason. The largest segment of parents in the survey (42%) intend to wait to provide an inheritance, most commonly because they want to be sure they have enough money to support themselves throughout their lifetime. Just 14% said they would rather give more now to see their children benefit from the money.

Then, too, a lot of parents are already providing a generous helping hand. Nearly half of the parents in the Kiplinger–Morning Consult survey report they have provided financial help to adult children on an as-needed basis, nearly one-third have helped with other expenses and one-fourth have assisted with major life events.

Similarly, recent Visa research shows that one in four millennial homeowners received help with the down payment from their parents, and about the same number said they couldn't have purchased the house without it.

How can families navigate the competing, compelling needs of both generations? "It's a balancing act," says Cheng. "While parents don't want to give away too much during their lifetime, the flip side is that if you wait until you're gone, did your money really have the greatest impact it could have?"

Cheng suggests putting parameters around the financial help you offer now. For instance, you might provide money for a specific purpose rather than ongoing, unrestricted gifts — say, supplying the money for a down payment, paying for a grandchild's music lessons or sleepaway camp, or contributing to a 529 college-savings plan.

If you do choose to gift annually — in 2026, you can give up to $19,000 per recipient, without filing IRS paperwork; couples can give up to $38,000 — make it clear that you'll revisit your strategy every year and that you may not always be able to give the amount you've been giving, or be able to give at all, if your financial circumstances or needs change.

The key, says Galinskaya, is to avoid binary thinking. In other words, do not consider gifting to be an all-or-nothing proposition and that you'll have to do it forever once you start, or that you'll always have to give the same amount to each of your children. "There's a spectrum of options," she says.

For parents with more than one child, the question of fairness is perhaps toughest of all. Typically, parents are eager to avoid discord among siblings. That's likely why the vast majority of them in the Kiplinger–Morning Consult survey — 71% in all —said they intend to divide their assets equally among their children.

Sons and daughters, however, are less convinced that's the best approach. Although half of the adult children in the survey preferred an even split with siblings, one in five thought inheritances should be based on factors such as how much each of them had helped their parents or gotten financial help in the past (11%) or each one's financial need (9%).

Many also anticipated trouble ahead, with one-third of the adult children respondents expecting an inheritance to create conflict with their siblings. And experts agree: The risk is high.

"Adult children will often view inheritances through the lens of unresolved issues and patterns in the family, especially if the way assets are divided between siblings comes as a surprise to them," says financial psychologist Brad Klontz, coauthor of Psychology of Financial Planning. "Someone feels hurt and thinks, Oh, Mom must have loved you more than me, or You influenced our parents behind my back."

For many parents, it's their worst nightmare.

The best way to avoid that outcome is for parents to talk with their children in advance about how assets will be divided and, critically, why. "Err on the side of equality unless there's a good reason not to — and sometimes there is a good reason not to. Maybe one child works in the family business, one puts in more effort, another has special needs," says Galinskaya.

"A good outcome is less about whether dividing things equally or fairly is best and more about how you communicate your actions and explain the intent behind them."

Leaving a legacy beyond money

Experts say that's generally true of inheritance planning. "The biggest mistake parents can make is passing down money without communicating the family values that drive your thinking," says Klontz. "That could be and should be the most valuable part of your legacy."

Make sure the conversations you have as a family about transferring wealth are two-sided and collaborative, not just parents delivering news and rendering decisions from on high, advisers say. "It's Mom and Dad's money, and they get to choose what to do with it. But children should have a voice, if not a vote, in the process," Galinskaya says.

Rather than a single big talk, think in terms of having a series of smaller chats over a long period. "One misconception about the Great Wealth Transfer is that it is a single point in time, the reading of the will, like the movie scene where everyone is in the room and you find out where all the money goes," says Joshua Morris of Fidelity.