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

This time, we hear from a 63-year-old advertising graphic designer who's working part-time in Avon Lake, Ohio. She's married and reports she was born outside Boston.

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?

I bought Apple stock in 2001. Divorced the husband who thought he was good at picking stocks, but sucked at it. The Apple stock provided me a nest egg.

I started researching, reading and listening to CNBC. I lost some money and made more.

I turned every loss into a lesson. The biggest lesson I learned was to trust my gut! Confidence goes a long way.

What are you doing with the money?

My first million is still invested. My second million, which came a lot quicker, is more for spending. I still live below my means.

This year, I bought my dream car, though. I deserve it ... a Porsche Panamera. :)

The Fun Stuff

Did you do anything to celebrate?

I cried. I was very surprised because this was never on my radar. I wiped my tears and asked myself, "How are you going to keep this?"

What is the best part of making $1 million?

I can remember crying in fear when I first got divorced, thinking I'd never have any money, that my retirement would be very difficult.

This money brings me security. I don't wake up in the middle of the night, wondering how I'm going to live.

The second part (and this is really big and unexpected) is the confidence it has given me. I'm good at money management.

Did your life change?

Yes. See my answer above about security and confidence.

Does anyone know you're a millionaire?

My wife knows because I manage her money, too. I also told my daughter because I want her to learn from me. I have her buying and selling stocks.

We're now working on the research part and what to buy and sell.

Any plans to retire early?

No. I like what I do with graphic design and want to keep doing it.

My money management is a daily job, too. I spend one to two hours a day at it.

Looking Back

Anything you would do differently?

Start earlier. I wouldn't have married the bad investor!

What advice would you give to your younger self?

My younger self would never believe I would have a million one day. I would say, START!

Did you work with a financial adviser?

Everything I have is at Charles Schwab. They have been very helpful with research and questions.

I check in with my dude at least once a year. We chat, share info and I listen.

Most of the time, I follow his suggestions.

Did anyone help you early on?

My aunt. Her husband died early. and she had to learn how to manage her money. She hated paying an adviser, so she learned how to do it on her own.

I wanted to be like her.

Looking Ahead

Plans for your next $1 million?

To make another. HA! I have everything I need. I don't need another million. No plans.

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

Start early. Even if you think you have nothing to save or invest, just start.

Knowledge! We all start at the beginning. If I can do this, anyone can. Put in the work — it will pay off.

Do you have an estate plan?

I did see a lawyer and updated my estate plans.

What do you wish you'd known …

When you first started saving? Everyone starts somewhere. Just start, no matter the amount.

When you first started investing? You will make mistakes. Just keep plugging away and learn something from every loss.

My favorite saying is "10% of $100 is $10. 10% of $10,000 is $1,000. 10% of a million is $100,000," and that is way more money than I need in a year's time.

Anything you'd like to add?

Having $2 million doesn't mean anything to me if I can't share the knowledge that got me there. My aunt shared tips with me. If she had said nothing, I'm not sure I would have known I could do this.

Sure, sharing money, paying for dinner or buying gifts is nice, but I'm teaching my daughter how to invest so she will have her own money.

Sharing the information is very important to me. I talk about it. Most people in my life know I'm an investor. And they know I will share information with them.

I tell them that investing isn't a pie that gets divided. There's money out there for everyone.

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

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

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

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

Your financial security has to come first

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

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

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

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

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

Decide how much flexibility you want

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

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

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

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

Account options to look at

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

Taxable brokerage accounts

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

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

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

529 plans

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

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

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

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

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

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

Custodial accounts

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

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

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

Trump Accounts

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

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

Share your plans so no one’s in the dark

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

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

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

Read More

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

On October 19, a new rule by the Department of Transportation (DOT) will narrow the definition of what kind of flight disruptions are categorized as "air carrier delay." What sounds like a minor technicality will have a major impact on what you're entitled to as a passenger when a trip goes awry.

Your ability to get a refund for a delayed or canceled flight hinges on whether or not the flight disruption is considered to be within the airline's control.

At a time when airfare prices are soaring and your travel budget is already stretched thin, it's worth understanding how this seemingly technical change in definitions will impact your next trip. Here's how your rights are changing and what you can do to protect your investment under the new regulations.

What's changing about your right to a refund?

Technically, the new DOT rule is simply changing how certain events are categorized. Airlines are required to report their on-time performance to the Bureau of Transportation Statistics (BTS) every month. That report includes a breakdown of delays, cancellations and interruptions into a set of predefined categories.

One of those categories is called "air carrier delay" and includes all delays that the BTS considers to be within the carrier's control. The new rule removed the following 10 events from the list of delays that fall under the "air carrier delay" category:

1. Medical emergencies that weren't caused by the carrier
2. Removing an unruly passenger
3. Airport closures caused by volcanic ash, wind or wind shear
4. Unscheduled maintenance that must be addressed before flight
5. Overheated brakes when caused by the use of those brakes in an emergency
6. A government shutdown or system failure
7. Cybersecurity attacks
8. Aircraft damage
9. Aircraft cleaning due to the death of a passenger
10. Baggage or cargo loading delay when it's caused by a system outage or other factors not controlled by the carrier or its contractor

For passengers, however, it's more than just a change in definition. According to the DOT, passengers are entitled to a refund of the ticket price "if the airline significantly delays a flight or significantly changes a flight and the consumer chooses not to travel or accept travel credits, vouchers, or other forms of compensation offered by the airline."

In other words, with these 10 situations removed from the definition of what constitutes a delay caused by the airline, you now have 10 fewer situations where you're entitled to a refund or other form of compensation, including hotels and food vouchers.

That is, in fact, the intention behind the rule change. In the full text of the new rule published in the Federal Register, the DOT wrote, "it is expected that the total value of amenities and compensation currently provided by air carriers to consumers will be reduced under this final rule."

The goal with this category change is to create fewer scenarios in which you are entitled to a refund. That puts the onus on you to find other ways to protect your investment when you fly.

How passengers can protect their money when traveling

The new rule will make it harder to get a refund from airlines. But you still have some rights and other means to fill the gaps created by the changing regulations.

• Check the DOT Airline Cancellation and Delay Dashboard to find out what compensation and guarantees your airline voluntarily provides. The page provides a clear breakdown of what major airlines have agreed to provide to consumers in various scenarios. As of this writing, it was last updated in September 2025, so you should double-check with your airline to see if the information is still current. But it's a good place to start, especially when booking, as you can see which airlines might provide the most protections if a flight goes wrong.
• Buy refundable tickets. If the delay is so long that you choose not to take the flight at all, it'll be less of a headache to get a refund on a ticket that's already refundable. These typically cost a little extra, but you won't have to worry about whether the delay you experienced qualifies for a refund or not under the new rules.
• Check your credit card for trip delay coverage. This is not the same as trip cancellation protection, which only kicks in if your flight is cancelled. Trip delay coverage will reimburse you for any pre-paid expenses lost (like the missed connecting flight or the lost night at the hotel from arriving a day late) as a result of a delayed flight. It may also cover the additional costs caused by the delay, like last-minute accommodations and meals while waiting for your flight.
• Ask for a refund anyway. The "air carrier delay" category still exists, which means there are still situations in which the delay is considered to be within the airline's control. In those situations, you are still entitled to a refund. Even if you're not sure of the reported cause of the delay in the moment, it doesn't hurt to call customer service and ask for a refund just in case. Typically, if you have travel insurance through your credit card or a separate policy, you need to try to get a refund from the airline as a first step before filing a claim anyway.

Between higher ticket prices and fewer ways to get that money back if something goes wrong, protecting your trip is more important than ever. If your card doesn't offer trip delay coverage, buy travel insurance that does. This is a good way to fill in the gaps and make sure you can get your money back if your trip is interrupted or ruined for just about any reason.

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I talk to a lot of 65-year-olds, and one of the biggest fears they have is making a mistake with Medicare. It's hard not to be afraid when you keep hearing well-intentioned, but conflicting advice such as:

• "You have to sign up for Medicare at 65."
• "You don't have to sign up for Medicare at 65."
• "You can change your Medicare insurance every year."

During my 20-plus years as a retirement-focused financial adviser, I've just about heard it all — some true, some false and just about all of it leaving near-65-year-olds wondering how they can figure it out in time.

Below are the five most common mistakes retirees make with Medicare and what you can do to try to avoid them.

What makes Medicare so different

Your health insurance choices used to be easy. Your work gave you two or three options and you chose the one that fit your family best.

Then you turn 64 and you get bombarded with advertisements in the mail touting how great a particular Medicare insurance plan is.

When I checked Medicare.gov's Plan Comparison Tool in September 2026, there were 81 different options near me in Wisconsin: 39 Medicare Advantage plans, 10 prescription drug plans and 32 supplement insurance (Medigap) options.

The number and types of plans available to you will depend on where you live.

With so much information and so many different plans, it's no wonder Americans keep making these five common mistakes.

Mistake No. 1: Assuming Medicare is automatic

Medicare feels automatic since many people enroll or get signed up for it at 65, but that feeling of "automatic" often turns into "I don't have to think about it" — and that's a big mistake.

Medicare enrollment generally is automatic if you've already been receiving Social Security retirement benefits for at least the four months before age 65. A few months before your 65th birthday, you'll get your Medicare card in the mail showing that you're enrolled for Part A and B.

If you have current employer-provided health insurance from a company with 20-plus employees, you may be able to delay starting Part B. Before you do, check with your employer to find out how your health coverage coordinates with Medicare.

If you're signed up for Part A and B automatically, that doesn't mean you automatically get signed up for other private Medicare insurance to pay for the gap between what Medicare covers and what Medicare pays.

You should still evaluate whether you're better off with Medicare Advantage or original Medicare with Medigap (supplemental) insurance — and you'll have to proactively sign up to get those coverages.

Mistake No. 2: Misunderstanding what counts as 'employer coverage'

Many people turning 65 think, "I don't need to sign up for Medicare. I already have insurance through my employer." It turns out they actually have retiree coverage, COBRA or even TRICARE from prior military service.

Retiree health insurance and COBRA plans are not coverage from your current employer. And TRICARE states that you need Part A and B to get TRICARE For Life.

If you have employer-provided health insurance based on your or your spouse's current employment with a company of 20-plus employees, you may be able to delay signing up for Medicare. That's true, and yet there's so much confusion around that.

Your "employer coverage" must be from active, current employment.

Retiree healthcare doesn't count as current employer coverage that could allow you to delay Part B. COBRA generally doesn't count either.

TRICARE states, "If you're eligible for both TRICARE and Medicare Part A, then in most cases, you must have Medicare Part B to keep TRICARE." (Emphasis added.)

Mistake No. 3: Confusing the different Medicare parts and choices

Medicare lists four different parts of Medicare, along with optional Medigap insurance, and points out the differences between Medicare and Medicaid. With similar names and so many parts, no wonder it's confusing.

Medicare Part A (hospital insurance) covers inpatient care in hospitals, skilled nursing facility care, hospice care and home healthcare.

Most people get Part A with no premium cost because they, or their spouse, qualified by working and paying Medicare payroll taxes for "40 quarters" — basically 10 years. Premium-free doesn't mean cost-free though. You can still have deductibles, copays and other out-of-pocket costs.

Medicare Part B (medical insurance) helps pay for doctor visits, outpatient care and preventive care, such as screenings, shots or vaccines, and yearly "wellness" visits.

Part B costs $202.90 a month, which is often a surprise to many retirees who think it's free. It can cost even more if you have a high enough income and must pay Income-Related Monthly Adjustment Amount (IRMAA) surcharges.

Medicare Part D helps cover the cost of prescription drugs.

Drug coverage is often part of a Medicare Advantage plan. But if you choose a Medicare Supplemental Insurance (Medigap) plan, you'll generally buy part D drug coverage separately, unless you have other creditable drug coverage.

Medicare Supplement Insurance (Medigap) helps you pay your share of the costs of original Medicare.

People often ask me, "What does Medicare Supplement cover?"

My answer is, "Medicare Supplement generally covers what Medicare covers, but it generally pays for many of the costs that Medicare makes you responsible for."

Medicare Part A has deductibles, coinsurance and copays that you are responsible for.

Medicare Part B has a deductible, after which you generally pay for 20% of the cost of the Medicare-approved amount for services Medicare covers.

That's where Medicare Supplement (Medigap) comes in, to help pay the costs of your healthcare that Medicare covers but doesn't fully pay. You could also choose a different route, called Medicare Advantage.

Medicare Advantage (also known as Part C) is an alternative to original Medicare. You get a "bundled" plan through a private insurance company that is Medicare approved and essentially brings your Part A, Part B and usually Part D coverages all together.

Many Medicare Advantage plans have low or even $0 monthly plan premiums, while Medigap policies generally charge a separate monthly premium.

However, those on Medicare Advantage generally must continue paying their Part B premium, along with deductibles, copayments and specific provider networks.

Mistake No. 4: Ignoring the potential extra costs of Medicare through IRMAA

Many people are surprised that Medicare Part B has a monthly premium. They expect the taxes they paid throughout their career to cover their Medicare in retirement.

What's even more surprising is when your income from two years ago causes you to pay extra for Medicare through the IRMAA.

I met a client recently who was upset that his Medicare premiums were higher this year than last year.

I discovered he had retired two years ago. His income from that year was high enough to go over the IRMAA threshold so that both his and his wife's Medicare premium was roughly double the normal amount.

Fortunately, you can appeal your extra Medicare costs through IRMAA, and "work stoppage" is one of the "life-changing" events Social Security will take into account.

My client had retired, and his income is now lower. So after the couple requested a new IRMAA determination based on his retirement and their reduced income, their combined Medicare premiums were reduced by roughly $5,000 for that year.

This client's IRMAA surcharge highlights how interconnected all the pieces of retirement are. Your added income in one year, from working or perhaps Roth conversions or stock sales, can affect your healthcare costs two years later.

Retirement isn't just about your Medicare decision and your investment decision, and your Social Security decision separately. It's about how each of these areas affect each other.

That's why I created a five-step retirement master plan to help all the pieces of retirement fit together, which you can find in my book Retire Today.

Mistake No. 5: Not re-evaluating your Medicare Advantage or drug plan each year

Each year during open enrollment from October 15 through December 7, I send a message to my clients encouraging them to review their Medicare Advantage or prescription drug plan for the following year.

By far, the most common response is, "Nothing changed for me this year, so I don't need to do this."

But here's the thing: Something may have easily changed. Your existing plan could have changed quite a bit.

Every year, your Medicare Advantage or Part D drug plan can change its cost, its network, its preferred pharmacy, its benefits, its provider list.

And even if your plan doesn't change one thing, all the other plans could change and you might be missing out on a better plan for you.

You may find another plan that better fits your healthcare needs, or your prescription drugs, providers and budget.

Whether you're on Medicare already, or getting ready for Medicare, follow these five steps to avoid big Medicare mistakes:

• File for Medicare at the right time
• Confirm how your current health insurance coordinates with Medicare
• Learn the different parts of Medicare and what they cover
• Understand how past income affects current Medicare costs — and whether you qualify for a reduction in those costs
• Re-evaluate your Medicare Advantage and drug plan options each year

Take these five steps before, and even after, you file for Medicare, and you'll feel much more confident in the Medicare decisions you make.

Related Content

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

AI became a larger part of our ordinary lives quickly.

We already had AI assistants like Amazon's Alexa and Apple's Siri. And in March, Amazon added a health assistant to its website that can read your medical records and book your appointments.

In May, Schwab gave retail clients a tool that summarizes why their portfolio moved. The technology turns up in the search bar and the banking app whether you asked for it or not. Schwab includes a disclaimer on their AI tool saying the output, "should not be construed as investment advice or recommendations and are for informational and educational purposes only."

A general-purpose chatbot like ChatGPT or Claude includes no such disclaimer when someone asks whether to pull $60,000 out of an IRA for a new roof and to replace windows.

Yet, people keep asking. A July J.D. Power survey found that 40% of respondents had sought help from AI to manage their personal finances. In the same survey, 34% said AI helps them make smarter financial decisions, 1 percentage point behind the 35% who said that about their own bank.

A chatbot answers in the same confident tone whether it has the facts or not, and it doesn't flag what might be left out.

The chatbot doesn't know:

• Your marginal tax bracket
• Whether the money sits in a traditional IRA, a Roth or a taxable account with a low cost basis
• How your state treats the distribution
• That a two-year lookback on your income sets your Medicare premium
• That your income will drop in 18 months when you move to part time
• If you have carryforward losses to utilize

None of those details, which can sway the answer completely, enter the conversation unless you introduce them. The chatbot answers the question that is asked, not necessarily the ones that are exclusive to your situation.

Sixty thousand dollars out of a traditional IRA arrives as ordinary income, and if the rest of your income already sits near a tax line, that money can push the total past an IRMAA threshold that resurfaces as a higher Medicare premium two years later.

The same $60,000 from a taxable account with a high cost basis might barely register on your tax return.

None of those details require the chatbot to be wrong. It's answering a loaded question for the general reader without the specificity and complexity of your personal situation.

Where AI helps

AI makes a good study partner and can prepare you for more productive meetings with your adviser.

For example, researching and learning about qualified charitable deductions (QCDs) at home saves time that doesn't have to be spent on explanations.

Other ways it can help include:

Translating documents. Paste in the section of your summary plan description that governs in-service withdrawals or the paragraph of an annuity contract that lays out the surrender schedule, and ask the chatbot to explain it in plain language. Those documents get written for compliance review rather than for you, the reader. Delegate the explanation to the chatbot.

Build a question list before the meeting. Provide the chatbot with three sentences about your situation and request questions you should ask your adviser. This will create an agenda for an efficient and productive meeting.

Argue the other side. Ask it to make the strongest case against a recommendation you've already received, including mine. The objections it raises are worth bringing to the person who made the recommendation.

Ask it what it does not know. Some version of "what would you need to know about my situation to answer this well?" returns insightful questions to consider.

One note to keep in mind. Account numbers, Social Security numbers and full statements don't belong in a general-purpose chatbot. Round numbers and account types give the tool everything it needs to be useful.

What's next

Forty percent of consumers have already taken a money question to AI, and that number is likely rising. There are smart ways to use these tools. Moving money on an answer that never had your full picture is not one of them.

The tools will keep improving, and more people will walk into meetings with better questions because of them.

Take the response for what it is, which is a starting point. Reading it against your own numbers is where we come in.

Related Content

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• If AI Is Doing More of the Work, What Are You Paying Your Financial Adviser For?
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This article was written by and presents the views of our contributing adviser, not the Kiplinger editorial staff. You can check adviser records with the SEC or with FINRA.

If you want guaranteed returns on some of your cash, it's hard not to consider a certificate of deposit. Some of the best CD rates offer higher APYs than high-yield savings or money market accounts.

This is essential, too, as persistent inflation and the possibility of future Federal Reserve interest rate hikes create an uncertain economic climate. Right now, savers must balance maximizing immediate growth and remaining flexible enough to adapt if economic conditions shift.

With that in mind, here are three CDs I recommend using right now, as someone who monitors CD rates on a weekly basis.

Short-term CDs maximize growth with flexibility

A short-term CD of three months to a year is a smart move given the current economic climate. Why? Because you'll likely earn a guaranteed rate of return that outpaces inflation.

You'll also have access to your cash within the year. If prices continuously rise, you can pivot to other options that protect your purchasing power. Also, if the Federal Reserve hikes rates again, you might earn even more on your next CD.

You can use this Bankrate tool to compare short-term options quickly.

While this option works well for most savers, if you want to move a significant portion of cash (think at least $50,000) into a CD, here's another smart option.

A short maturity for larger sums

For large deposits ($50,000+), I recommend a jumbo CD. They offer some of the highest returns compared to other savings accounts, with maturity windows between six months and one year.

CreditOne Bank offers a 12-month jumbo CD at 4.60% APY with a $100,000 minimum deposit. If you deposit $100,000, you'll earn $4,600 effortlessly.

A few things to consider with this approach: Like all CDs, look for a bank offering FDIC insurance. This protects each depositor up to $250,000 if your bank goes under.

Two, because you're dealing with a larger cash balance, only use one if you don't need to touch the money until the term expires. If you need to break it open, you could lose thousands of dollars.

Most CDs come with early termination fees. Those fees depend on the CD's term. For shorter-term CDs of one year, you'll likely forfeit a few months of interest, whereas with longer CDs, it could be up to six months.

If cash flexibility is a priority, then consider this CD instead.

A safe solution with no penalties

A no-penalty CD can be an excellent start if you've never had a CD before and don't want to commit to a longer-term option. How it works: You'll open and deposit as you would with any other CD. They even come with short maturity windows, usually six months to a year, depending on the bank.

My recommendation: Climate First Bank has a six-month no-penalty CD, where you'll earn 4.33% APY with only a $500 minimum deposit.

However, unlike regular CDs, you can withdraw from them. Some banks allow you one withdrawal per month, while others will just close your CD without any early termination fees.

Before signing up, pay attention to the vesting period: It's the time banks require you to keep funds in the account before you can withdraw. Thankfully, for no-penalty CDs, this is usually one week to one month, so you can change your strategy right away if you need to.

High interest rates present a rare opportunity for savers. Choosing the right CD can lock in high guaranteed returns, outpace inflation and maintain the flexibility to respond to changing economic conditions.

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• Have $100,000 in Cash? Here's How Much an 18-Month Jumbo CD Will Earn You
• Do You Have a CD Maturing Soon? Here's What to Do Next
• Best No-Penalty CD Rates: Lock in Rates at 4.33%

"Perhaps it takes courage to raise children," John Steinbeck wrote in 1952's East of Eden. The American classic has a lot to say about parenting — and a lot to say about how money can twist relationships within families, despite good intentions.

Without giving away spoilers, I'll just say that East of Eden is ultimately a story about what we do and do not inherit from our parents. Because of that, with a new adaptation of the Cain-and-Abel tale now available to stream on Netflix, we partnered with our sister site CinemaBlend to ask some cast members about handling inheritances.

CinemaBlend sat down with actors Hoon Lee, Joseph Zada and Joe Anders. The latter two play brothers Cal and Aron, the younger generation of the story. Where Aron (Anders) is kind and trusting, Cal (Zada) is scheming and suspicious. To put it another way, a Kiplinger-Morning Consult survey found that 33% of adult children expect an inheritance will create conflict with their siblings: Cal and Aron are the types of squabbling siblings trusts and professional executors were created for in estate planning.

CinemaBlend asked Anders and Zada what they think would've happened if their characters' parents passed their businesses down to the brothers to run.

"I think I would've killed that," Zada said, in characteristically Cal fashion.

Turning to his onscreen brother, he said, "I don't know about you, dude. You're a little all over the place. I think you really wouldn't have done very well. You would've thought that you would've done great."

"Aron would've been totally convinced he was doing amazingly," Anders agreed. "And then I think he would've had a wake-up call at some point."

The 'wake-up call' of inheritance

There's a lot of confidence when it comes to inheritance. Our survey found that 70% of adult children feel confident in their ability to manage an inheritance.

But expectations and confidence don't always align with reality. Eight percent of adult children said they believe their parents' estate includes business assets — but only 2% of parents said business assets were in their estate. On the flip side, 54% of parents said real estate, including their home, is part of their estate — but only 32% of the younger generation said the same. These differences demonstrate the lack of understanding adult children have about what they may inherit, and those surprises could lead to, as Anders put it, shocking "wake-up calls" about how prepared you actually are.

"Confidence and competence are different things," Valerie Galinskaya, managing director and head of the Merrill Center for Family Wealth®, told me in our Kiplinger Conversation about inheritance. That's why it's important for parents to have open and honest conversations about their estate with their children (although, well, Aron and Cal may not have wanted to hear all about it from their mother).

By having these conversations, and especially by having these conversations throughout life stages from a young age, parents can better ensure that their legacy won't be squandered by overconfident and underprepared children. They can help their children know what to be ready for and how to manage certain money challenges.

When we asked adult children in our survey what they'd want to use an expected inheritance for, one respondent said, "I hope to use it to get a nice family business going for our future generations."

It's a lofty idea to start a business you hope to be a family legacy, but as each generation steps up with their own hopes, dreams and, let's face it, faults, it's not a given that even a successful business will survive a second generation. It's often not enough to simply build an estate; you also have to educate your children to be capable of managing it.

Because while it may seem like a gift to leave an inheritance, East of Eden is a prime example of how it can all go terribly wrong.

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A financial adviser can help you make sense of your finances, set realistic goals and develop a plan to achieve them. But a little preparation before your first meeting can help you get more out of the conversation.

Start by identifying your top three financial goals or concerns. Consider both your short- and long-term priorities, whether that's paying down debt, saving for a home or planning for retirement. Knowing what matters most to you will help the adviser understand your needs and recommend a path forward.

You don't need to have all the answers before your first meeting. The goal is to come prepared with a clear picture of your priorities and questions. This will help you make the most of your time and determine whether the adviser is the right fit for your financial needs.

Gather a snapshot of your finances

To help your financial adviser get a clear picture of your financial situation, gather a few key documents before your first meeting. These include:

• Recent pay stubs or other proof of income
• Most recent federal income tax return
• Current checking and savings account balances
• 401(k), IRA, pension and other retirement account statements
• Brokerage and other investment account statements
• Mortgage statements showing your balance, interest rate and monthly payment
• Credit card, auto loan, student loan and other outstanding debt balances
• Social Security benefit estimate, if applicable
• Life, disability and long-term care insurance policy details
• Will, trust and other estate planning documents, if applicable
• Employee benefits information, including retirement plans, insurance and stock options

Your adviser may ask you to upload these documents to a secure online portal before your appointment or bring them to the meeting. Don't worry if you can't find everything on the list. Bring what you have and follow up with any missing documents afterward. There's no need to delay your first meeting.

Know where your money is going

It’s helpful for your financial adviser to understand where your money goes each month; with that information, they can help you decide how to best save and invest your money to meet upcoming expenses or goals.

Estimate your typical monthly spending. If you have a budget, that can be a good place to start, since it outlines your recurring expenses. Identify any major recurring expenses, like your mortgage, health insurance and car and home insurance costs, and make sure you factor these expenses into your monthly spending.

It’s also important to flag any large expenses coming in the next few years, such as:

• Buying a home or making major renovations
• College tuition or other education expenses
• Major travel or vacations
• Purchasing or replacing a vehicle
• Medical expenses or planned procedures
• Retirement or a planned career change
• Supporting aging parents or other family members
• Weddings or other major family events

Be sure to account for any income that varies throughout the year, such as commissions, bonuses, freelance earnings, rental income or stock-based compensation. Let your adviser know if you expect any significant changes to your income, too.

Be ready to talk about more than money

During your first meeting with a financial adviser, you won't just talk about the specifics of your saving and spending. An adviser might ask you questions to better understand your priorities and attitudes about money, such as:

• At what age would you like to retire?
• What does your ideal retirement look like?
• How comfortable are you with investment risk and potential market losses?
• Does anyone depend on you financially, such as children or aging parents?
• Do you expect to receive an inheritance?
• Do you want to leave an inheritance for your family or other beneficiaries?
• Is charitable giving important to you?
• What are your biggest financial concerns?
• Do you anticipate any major life changes, such as marriage, divorce, a career change or relocation?
• How confident do you feel about managing your finances?
• Would you prefer to be actively involved in financial decisions or have an adviser take a more hands-on role?

Prepare questions for the financial adviser

Your first meeting with a financial adviser gives you a chance to get to know them and make sure that they’re the right fit for your needs, too. Don't be afraid to ask about their experience, qualifications, fees and approach to financial planning. Come prepared with a few questions to ask, including:

• How are you compensated, and do you earn commissions?
• What will I pay in fees, and are there any additional costs?
• What financial planning and investment management services are included?
• What professional credentials and certifications do you hold?
• Do you regularly work with clients who have financial goals and circumstances similar to mine?
• Do you have minimum investment or account balance requirements?
• What is your approach to investing and managing risk?
• Who will manage my investments and oversee my financial plan?
• How often will we meet to review my financial plan?
• How will we communicate between meetings?
• How will we measure progress toward my financial goals?
• Are there any potential conflicts of interest I should know about?
• How can I verify your credentials and check your disciplinary history?

Understand how financial advisers get paid

Financial advisers may be compensated in several ways, and that structure can affect what you pay. Don't hesitate to ask about how the adviser is paid, and then ask any follow-up questions you might have about how the structure affects your costs.

Your adviser should be willing to help you understand how their structure works, but here are a few common fee structures for financial advice that advisers may use:

• Assets under management (AUM): Adviser charges a percentage of the assets they manage for you
• Flat fee: Client pays a set amount for a financial plan or ongoing advice
• Hourly fee: Adviser charges for the time spent providing advice
• Subscription or retainer: Client pays a recurring monthly, quarterly or annual fee
• Commissions: Adviser may receive compensation when a client purchases certain investments, insurance products or other financial products
• Combination: Some advisers use more than one compensation method

Fee-only and fee-based advisers may sound similar, but there's an important distinction.

Fee-only advisers are compensated directly by their clients and don't earn commissions from selling financial products.

Fee-based advisers also charge clients for their services, but they may earn commissions from recommending or selling certain investments, insurance policies or other financial products.

To understand what you'll actually pay, ask the adviser to explain their fees in dollars, not just percentages. Find out which services are included, such as financial planning, investment management, tax planning or estate planning guidance.

Also, ask about additional costs, including investment fund expenses, trading fees or account maintenance charges. These expenses may not be included in the adviser's fee and can add up over time.

Know what happens after the first meeting

After your first meeting, your financial adviser may ask for additional documents or schedule a follow-up appointment to discuss their recommendations. Ask when you can expect to receive a financial plan and what steps you'll need to take next.

You may also receive an engagement agreement outlining the services the adviser will provide, their responsibilities and the fees you'll pay. Review the agreement carefully and ask questions about anything you don't understand before signing.

Don't feel pressured to make a decision right away. Take the time to choose a financial adviser you trust, feel comfortable working with and believe can help you achieve your financial goals.

Don't feel pressured to make a decision that day

You don't need to have your finances perfectly organized before meeting with an adviser. What's more important is having a clear understanding of your financial goals and being prepared to discuss your priorities. Remember, the first meeting is just as much about evaluating the adviser as it is about reviewing your finances.

By the end of the meeting, you should understand what services the adviser offers, how much you'll pay and what to expect next. Most importantly, you should feel confident that they're someone you can trust to help you reach your financial goals.

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

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Homeowners insurance rates naturally go up over time, but State Farm has just increased homeowners insurance rates in Illinois for the second year in a row. The 8% increase follows a more significant 27.2% State Farm insurance rate hike in 2025 that drew criticism from many.

According to State Farm, the 8% increase will add about $10 per month to the average Illinois homeowner's insurance bill, though individual increases will vary. The higher rates took effect for new policies on October 1, 2026, and existing policyholders will begin seeing increases when their policies renew starting in December.

State Farm's rate hike reflects a broader trend of rising homeowners insurance costs nationwide. Even if you're not affected by the increase in Illinois, you could face higher premiums when your policy renews. Understanding what's driving these increases can help you prepare for higher costs and identify opportunities to lower your home insurance premium.

Why State Farm is raising homeowners insurance rates again

According to State Farm, the rate increase is driven by losses caused by extreme weather. The University Corporation for Atmospheric Research (UCAR) reports that as the U.S. warms faster than the global average, storms are more likely to form in that warmer environment.

During the 1980s, the U.S. averaged just three billion-dollar weather disasters annually, each causing at least $1 billion in damage. By 2024, that number had climbed to 27, including 17 severe storms involving tornadoes, hail and straight-line winds.

As severe storms become more frequent, insurers pay out more in claims to repair or replace insured property. Rebuilding expenses have also increased, driven up by higher material and labor costs.

Rising homeowners insurance costs aren't limited to Illinois. Homeowners nationwide are feeling the pressure as premiums continue to climb. According to a report from the National Association of Insurance Commissioners, homeowners insurance premiums rose faster than inflation between 2018 and 2024, putting additional strain on household budgets.

How much more could homeowners pay?

For Illinois homeowners insured by State Farm, an 8% rate increase could add hundreds of dollars to their annual insurance costs, depending on their current premiums. Here's what that increase could look like at different price points.

Figures are hypothetical and illustrate an 8% premium increase. Actual increases will vary by policyholder.

For homeowners who pay their insurance premiums through a mortgage escrow account, higher insurance costs can also mean higher monthly mortgage payments. Even with a fixed-rate mortgage, your total payment can increase as property taxes and insurance costs rise.

The latest 8% increase follows State Farm's 27.2% rate hike in 2025, adding to the financial burden for Illinois homeowners who have already seen their insurance costs climb.

With homeowners insurance costs continuing to climb, now is a good time to see whether you're getting a competitive rate. Comparing quotes from multiple insurers could help you find similar coverage at a lower price.

Use the tool below to explore your options:

What Illinois' new insurance laws mean for homeowners

State Farm's 27.2% rate hike in 2025 drew criticism from Illinois Governor JB Pritzker and raised concerns about rising homeowners insurance costs. In August 2026, Pritzker signed House Bill 4273, now Public Act 104-0752, to strengthen oversight of homeowners insurance rates.

The law gives the Illinois Department of Insurance greater authority to review rate increases and requires insurers to provide policyholders with at least 60 days' notice before renewal premium increases exceeding 10%. The new requirements take effect July 1, 2027.

5 ways to lower your homeowners insurance costs

Though homeowners insurance rates are rising, there are several ways you may be able to bring your premium down.

• Shop around: Shop around for insurance annually before your premium renews. Compare quotes from at least three insurers, and make sure you're comparing the same coverage limits and deductibles. You might be able to save money by switching home insurance providers.
• Review your coverage: Make sure your coverage is appropriate for your needs, but also verify that you're not paying for more coverage than you need. Check your dwelling replacement costs, endorsements and coverage limits. If some of your coverage limits are high, you may be able to save money by lowering them — just don't leave yourself underinsured.
• Consider a higher deductible: Increasing your home insurance deductible can lower your premiums, saving you money every month. A higher deductible comes with additional out-of-pocket risk. Since you'll need to pay your deductible if you have to file a claim, it's a good idea to keep a deductible payment accessible, such as in a high-yield savings account, so it's there if you need it.
• Ask about discounts: You might be able to save money for bundling homeowners and auto insurance policies, installing a security system in your home, investing in storm-resistant home improvements and remaining claims-free. Contact your insurer, make sure you're receiving the discounts you qualify for and ask about what other discounts are available. 
• Review your policy annually: Before automatically renewing your coverage, check your coverage changes and premium increases. Contact your insurer to ask about discounts, changes in coverage and more before you decide to renew.

Higher insurance rates don't mean you have to overpay

State Farm's latest rate hike reflects a broader trend of rising homeowners insurance costs nationwide. While insurance is essential for protecting one of your most valuable assets, you don't have to accept a higher renewal premium without exploring your options.

Start by running a home insurance checkup to make sure your coverage still meets your needs. Then, compare quotes from multiple insurers to see whether you can get a better deal. Don't focus solely on price. Review coverage limits, exclusions and deductibles to find a policy that offers the right balance of protection and affordability.

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

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

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

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

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

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

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

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

How the new bill could boost financial flexibility

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

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

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

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

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

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

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

Four things to know about 529 to Roth IRA rollovers

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

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

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

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

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

Turning leftover college funds into a multimillion-dollar nest egg

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

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

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

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

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

"Financial flexibility is incredibly important," says Stanley.

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

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

Will the bill pass?

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

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

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

Read More

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

In mid-September, the Federal Reserve raised interest rates for the first time in three years. In its policy statement, the central bank stated that "inflation remains elevated," and the rate hike "will support a timelier return to the Committee's 2 percent goal."

The decision followed the August Consumer Price Index (CPI) report, which showed headline inflation was "uncomfortably high," explains David Payne, staff economist and reporter for The Kiplinger Letter. The pickup, he says, was driven by higher gas and fuel oil prices, shelter costs and airfares.

And with energy costs likely to stay elevated as the situation in the Middle East remains unresolved, Payne believes the annual CPI rate will end the year at 4%, while core CPI will be at 2.7%.

With another Fed meeting on the near-term horizon — the central bank will announce its next policy decision on Wednesday, October 28 — the release of the September CPI report is a key economic event we're tracking.

According to the Bureau of Labor Statistics (BLS), the CPI rose 0.6% from August to September and 3.7% year over year.

This is faster than the 0.4% monthly and 3.4% annual increases seen in August, with the year-over-year rate coming in above economists' estimate of a 3.6% rise.

"The index for gasoline rose 9.1 percent in September, accounting for over half of the monthly all items increase," according to the BLS. "The energy index increased 5.2 percent over the month following a 2.1-percent increase in August."

Shelter costs were higher, too, while food prices were unchanged.

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 rose 0.3% month over month in September, the same as in August. Year over year, core inflation was up 2.6%, faster than the 2.4% rise from the month prior.

Economists expected core CPI to rise 0.2% month over month and 2.5% year over year.

Prices for recreation, used cars and trucks, education, airline fares, medical care and apparel were higher, while communications costs were slightly lower.

With the September 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.

What Wall Street thinks about the September CPI report

"Chairman Warsh advised market participants to focus on the trend and not the incremental data. September CPI leaves intact the upward trend in core prices over the last 6 months. At the margin, it bolsters the case for a hike at the October FOMC. However, we think the bigger picture is the balance of risks. The economy is growing strongly so the FOMC can place more emphasis on the inflation mandate." - Brad Conger, Chief Investment Officer at Hirtle & Co.

"Today's warmer core CPI release bolsters the case for additional rate hikes, but recent dovish Fed-speak from New York President Williams and Governor Jefferson suggests that the bar is high for an immediate hike. In our view, September's print was likely not sufficient for the Fed to execute back-to-back increases at the October FOMC meeting. The steady rise in long yields has increased corporate/consumer borrowing costs and tightened financial conditions alongside the Fed's move, meaning the bond market has been doing some of the heavy lifting for the Fed." - Jeff Schulze, Head Investment Strategist at Franklin Templeton Institute

"Wednesday's CPI was stronger than expected, and it's clear as ever that inflation is stubborn and moving in the wrong direction. The inflation uptick is likely to lead the Federal Reserve to start a rate-hiking cycle. While we expect the Fed to pause on any rate changes in October, we expect rate hikes to resume in December and continue until June 2026. The Fed will not tolerate inflation at these levels and will apply the same playbook as it did in 2022 to keep it in check with a series of interest rate increases." - Skyler Weinand, Chief Investment Officer at Regan Capital

"Today's CPI report came in hotter than expected with September headline rising 0.649% MoM and core CPI increasing 0.335% MoM, versus expectations of 0.58% and 0.21%, respectively. With underlying inflation failing to cool, the September rate hike now looks like a start rather than a final move, and expectations for further rate hikes have increased. The Fed will remain data-dependent, but the focus now turns to October 28, where a second consecutive hike is firmly on the table." - Dustin Thackeray, CFA, Head of Portfolio Management at Crewe Advisors

"In our view, today's print puts the Fed's tactical breather priced into the market for October in question. With $100-plus crude adding friction to already sticky core prices, the latest data increasingly complicates the disinflation narrative and may limit the Fed's flexibility." - Tim Urbanowicz, Chief Investment Strategist, Innovator ETFs from Goldman Sachs Asset Management

"CPI came in hot and it wasn't just fuel prices, as core inflation ran at a 3.7% annualized pace in September and 3.2% over three years. The only surprise is that investors keep getting surprised by broad-based inflation. And we've yet to see the full impact of higher diesel prices and the AI boom. Another Fed hike to 4.3% looks likely this year, but that's hardly restrictive enough to bring inflation down to 2%." - Sonu Varghese, Chief Market Strategist at Carson Group

"Inflation is cooking with gas. It is abundantly clear where the inflation impulse originates, but two wars need to end before we get any relief. The Federal Reserve made the mistake of calling COVID-era inflation transitory, and now it appears they are set to make the same mistake in reverse on the energy supply shock." - Jamie Cox, Managing Partner for Harris Financial Group

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Budgeting for holiday giving can feel tough in a high-cost economy, but a new tax provision helps your charitable dollars go further this year.

Under the 2025 Trump tax bill, non-itemizers can now claim a tax deduction of up to $1,000 for single filers or $2,000 for married couples filing jointly for qualified cash donations.

Because roughly 90% of U.S. households claim the 2026 standard deduction rather than itemizing, this provision expands tax savings to an estimated 144 million taxpayers, according to data from Empower. However, the new standard-filer tax break carries strict limits.

Below are the primary rules governing the non-itemizer charitable deduction — and how the math shakes out for standard filers who donate in 2026.

Only cash counts, and there are no carryforwards

Unlike traditional itemized deductions, you cannot deduct physical goods or appreciated assets under the new standard deduction rule.

Only direct cash contributions, including payments made by check, credit card, debit card, or electronic transfers, are eligible up to the $1,000/$2,000 cap.

According to IRS guidelines, the following remain non-deductible for standard filers:

• Appreciated stocks, mutual funds, or cryptocurrency
• Household items, like furniture and donated clothing
• Cars, boats, RVs, and other vehicles
• Real estate or personal property
• Volunteer out-of-pocket expenses and mileage
• Contributions made to donor-advised funds (DAFs) or private non-operating foundations

Additionally, your donation must be made to a qualified 501(c)(3) public charity. If your eligible cash giving exceeds the $1,000 (single) or $2,000 (joint) ceiling, the excess can't be carried forward to future tax years — a key difference from traditional itemized contributions.

You get tax savings, not a direct reduction of your bill

Because the non-itemizer charitable tax break is structured as a deduction instead of a tax credit, it lowers your taxable income rather than reducing your final tax bill dollar-for-dollar.

For example, suppose a joint-filing couple has an adjusted gross income (AGI) of $200,000 and claims the maximum $2,000 deduction in the 22% marginal federal tax bracket.

Note: This example reflects an oversimplified tax situation. Actual tax savings depend on individual marginal rates, other tax breaks claimed, etc.

As shown above, this new deduction reduces your taxes owed less than a tax credit would. However, taxpayers in states that use federal taxable income as a starting point — like Idaho, North Dakota, and South Carolina — may indirectly capture the new charitable tax break savings on their state income returns. Consult a qualified tax professional or visit your state's Department of Revenue website for more information.

Detailed tax records are still required for the new tax break

One common misconception is that claiming the standard deduction waives record-keeping requirements for other eligible tax breaks. But the IRS enforces the same substantiation rules for non-itemized charitable deductions as it does for itemized filers. According to issued guidance:

• For any cash donation: You should retain written communication from the charity, bank statements, canceled checks, credit card records, or electronic receipts indicating the charity name, date, and amount.
• For donations of $250 or more: You must secure a formal contemporaneous written acknowledgment (CWA) from the qualifying charity before filing. The receipt must state whether you received any goods or services in return and provide a good-faith estimate of their value.
• Document retention: Keep all supporting tax records for up to seven years after filing to meet IRS review timelines.

Tracking cash donations throughout the year takes a little extra effort, but maintaining the proper receipts may help you claim every dollar of the new deduction when tax season arrives.

How the new tax rules change your giving strategy

As Kiplinger reported, recent federal legislation made major changes to the charitable deduction at both ends of the income spectrum.

For high-income itemizers, the rules grew tighter: federal provisions now require itemizers to exceed a 0.5% AGI floor before gifts become deductible, while top-bracket earners face a 35% cap on tax benefits. Nonprofit analysts warn these upper-tier limits could dampen large-scale donations from high-net-worth taxpayers.

Yet for the 90% of American households claiming the standard deduction, the new law opens a path to tax savings. The tax break of up to $1,000/$2,000 for charitable giving expands financial incentives for lower- and middle-income households — the groups that historically donate the highest percentage of their income, according to industry reports.

So if you plan on claiming the standard deduction this tax season, here's how much you might expect to save with this new charitable deduction, depending on your 2026 federal marginal tax bracket:

• Single filers in the 10% to 12% brackets might cut their tax bill by $100 to $120, while joint filers could save $200 to $240.
• Those in the 22% to 24% tax brackets could save between $220 and $480 on federal income taxes.
• Taxpayers in the 32% to 35% tax brackets might find up to $700 in direct savings.

A non-itemizer deduction won't double your refund overnight, but if you're eligible, claiming the new benefit may ensure your everyday holiday giving lends tangible tax relief when filing season arrives.

Read More

• 3 Major Changes to the 2026 Charitable Deduction
• How Charitable Donations Can Reduce Your Taxes
• 11 Overlooked Tax Breaks That May Lower Your Tax Bill

Our recent article about home warranty companies that promise to replace or repair your major appliances and HVAC systems — but have a nasty habit of telling subscribers to pound sand when their AC fails in 110-degree summer heat — got one heck of a response from readers all across the country.

Several (with a sense of humor) came up with mottos for their "disaster" that are hysterical, but we can't print them.

People who needed to have major home appliances — refrigerators, stoves, air-filtration systems — replaced with quality products but were given the run-around also called.

One told me, "We were referred to their own vendor's salespeople who had no product knowledge and would be happy to replace our item with a similar one that has a history of complaints and a high failure rate."

Sales presentation verified 'like with like' replacements

One couple had the foresight to record the sales presentation, which they played for me. They asked, "If you do replace an appliance, will it be the same or better than what we now have?"

The sales rep replied, "I have worked in insurance for years, and we do like-for-like replacements, which means, if not the same brand, it will be equivalent to what you now own."

That statement is likely false, as home warranty companies generally do not use "like for like" language in their contracts, but it sure sounds like a good reason to plunk down your money for what — often — is a bottomless pit.

"When they offered us junk as a replacement," the same couple said on our Zoom call, "our attorney played the recording for them, and all of a sudden, the company treated us correctly."

They, and others, suggested that an article could explain why it is important to establish a long-term relationship with people in appliance sales who consider themselves career professionals — in it for the long-term — and "not just after a quick commission, so you can obtain accurate and honest information."

Deal with a professional appliance salesperson

From people just starting out in life to families with children and grandchildren, the reality of homeownership is that, sooner or later, we all need to replace a fridge or other major appliance. When that becomes apparent, the first question usually is, "Where do I go for the best deal?"

I submit that is not the key question to ask.

Given the complexity and options available on today's washers/dryers, refrigerators, freezers, etc., guidance and personalized recommendations from a knowledgeable home-town appliance dealer's sales staff far outweigh saving a few dollars when buying from a "big box" store.

Often, if you ask a local dealer to match a price, they will.

Long-term, career appliance specialists offer customers distinct advantages, and I just happen to know two in my town — Adam and Ryan — who work at Urner's, a century-old, locally owned appliance retailer.

While Adam recently retired, my wife, Anne, and I considered him "our" go-to appliance guy because of the guidance he provided across the years. Now, Ryan is filling Adam's shoes.

I sat down to chat with them on this topic. Here is a summary of our discussion.

Adam: My job was never to just to sell you an appliance. I wanted to help you find the right fit for your specific lifestyle, kitchen dimensions, budget and so on. Especially with new customers, our interaction was all about having a meaningful consultation, not just quickly closing a sale. This means that I had to have, and customers need to probe, a salesperson's:

• Product and brand knowledge. How easy is it to use this washer? All brands have their own peculiarities that part-time clerks at a big-box store might not know, including details that could easily create issues for buyers, such as complex installation requirements, ventilation needs and warranty coverages.
• Long-term accountability. My business depended largely on referrals and repeat clients. If an appliance arrived damaged, or there were other issues, I would advocate for my customers to help bring about a positive resolution. I obtained so much new business because once the sale is made at many so-called discount stores, that's it! Customers could not count on the salesperson to help them resolve a problem.

When your fridge fails in the middle of summer

Ryan: I agree with all of Adam's points and will add something no one ever wants to see happening: Appliances fail at the worst times, and this past summer, so many did because of the heat waves.

With an established relationship, you don't need to drive to a showroom or research online, which be confusing. Instead, call your salesperson, explain what happened — and this is where the trust you have both developed pays off — they will find an appropriate replacement and jump through hoops to help you.

How to figure out who the career appliance salespeople are

In my experience of hearing complaints from customers of both big-box and independent appliance dealers, when employees are making a sale, they seem to care only about getting rid of inventory that earns them a commission or meeting a quota, and they often couldn't care less about after-sales support.

I recommend visiting showrooms that are run by independent dealers who carry a variety of brands. Ask to speak with the manager and just say, "May I ask for your help? I would like to speak with one of your career salespeople — someone who has been here for years."

That shows two things:

• You are a serious and informed customer
• You respect people who have one of the most challenging jobs — sales!

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

Related Content

• Why Buying a Home Warranty Could Leave You Feeling Burned (and What to Do Instead)
• Should You Get a Home Warranty?
• Company Flouts Product Warranty: What Happens Next?
• How to Avoid Getting Ripped Off by an Extended-Warranty Auto Contract
• Bill Bought a Fridge, and Then His Nightmare Began

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

I once worked with a family in which the parents had built substantial wealth and didn't share the details with their children for decades.

Their four adult children were all successful in their own right, but they didn't discover the full financial picture until they were in their 50s and early 60s, when their parents finally brought everyone together with an attorney and a financial adviser to review their estate plan.

This isn't an uncommon issue. According to Kiplinger's Trillion Dollar Talk survey, conducted by Morning Consult, more than half of parents ages 55 and older say they rarely or never discuss money with their children.

These parents hoped one child would step in to help manage the portfolio and that the others would take on roles like executor or trustee. Instead, the children left the meeting feeling frustrated and unprepared. They urged their parents to hire someone outside the family entirely.

The wealth wasn't the problem. The problem was that nobody had built the muscles for stewardship until the day they were suddenly required.

As a legacy planning specialist at Novare Capital Management, I think about preparing the next generation less like a single event and more like a curriculum, one where the lessons grow with the child instead of arriving all at once in a conference room.

Here's the road map I walk families through, stage by stage.

Elementary and middle school: Save, spend, give

The foundation starts simple: Help a child become intentional with every dollar they receive.

One family I worked with paired basic money lessons with a values-based twist. Each year, their three children picked a charity, researched it and presented why it mattered to them.

The child who showed the strongest research and conviction chose that year's family vacation destination, and every child still made their own donation, matched by the parents.

It turned saving and giving into something the kids competed to get right, and by the time they were adults, they brought that same confidence into estate planning conversations instead of feeling overwhelmed by them.

A savings match works the same way. If a child saves a dollar, the parents contribute 25 cents. It's a small practice, but it introduces the idea of matching contributions years before that child will encounter an employer 401(k) match.

Whatever structure you use, keep the terms consistent and let the child retain some control, including the freedom to spend within clear guidelines.

High school: Real costs, real stakes

Teenagers need lessons that move from abstract to practical. If you started a savings match earlier, high school is when a teen can begin contributing a percentage toward bigger costs, such as a car, a musical instrument or sports equipment.

That shared stake teaches delayed gratification in a way allowance never will.

This is also the right window to introduce responsible credit use, while the teen still has parental guardrails at home rather than encountering credit for the first time during their freshman year of college.

For investing specifically, I like mock trading exercises that let teens experience real market swings without real money on the line.

Investors with a Schwab brokerage account can use paperMoney, a free virtual trading platform, to practice buying and selling with fake money. It's a lower-pressure way for a teen to get comfortable with market swings rather than jumping straight into a real account, like an UTMA a grandparent funded with $10,000, where mistakes carry real consequences.

One mistake I see often: Trying to get a 16-year-old to care about retirement, which is too abstract at that age.

The more effective play is teaching the underlying skills, delayed gratification, budgeting, paying yourself first and comparing fees and providers, since those transfer directly into retirement readiness later without requiring a teenager to care about something that's 50 years away.

The 20s: Building independence without a safety net

Young adults need a budgeting approach that covers both savings and debt at the same time. That means understanding high-yield savings accounts, prioritizing high-interest debt paydown and building an emergency fund that can cover three to six months' worth of expenses.

This lesson is more important than many people realize: If parents become the automatic backstop for every setback, that precedent is hard to undo later.

This is also the age to talk through what support looks like if that emergency fund isn't enough. If an adult child needs to move home for a few months, will they pay rent or contribute to groceries? Is there an end date?

Working out those terms before a crisis hits keeps the conversation feeling like a plan instead of a rescue.

30s and beyond: From teaching to partnership

Once adult children reach their 30s, the goal shifts from teaching habits to preparing them for real roles in the family's financial future.

If regular family meetings haven't started yet, this is the time, and I recommend starting with a "ground rules" session rather than a numbers session: How does this family want to communicate about wealth going forward?

You don't need to open the full balance sheet to have this conversation. Plenty of families aren't ready to disclose the size of an estate, and that's fine. Disclosure comes later.

What matters first is whether the family has built the communication and trust to handle it when it does.

Four signs your children are ready for more

Age is a poor predictor of readiness. What I look for:

• Can they explain where their money went and why?
• Do they consistently save before they spend?
• Can they compare options and ask questions before making a decision?
• When they make a financial mistake, do they learn from it instead of hiding it or expecting someone else to fix it?

Those four behaviors tell you more about a child's readiness to handle money than any birthday will.

Let's revisit the family I opened with. Their children weren't incapable — they were simply never given the stage-by-stage practice that would have made a room full of legal documents feel familiar instead of overwhelming.

You don't need a perfect plan or a full disclosure meeting to start. You need one honest conversation at whatever stage your kids are at right now — and a willingness to keep having it as they grow.

Related Content

• How to Talk to Your Adult Kids About Their Inheritance
• 4 Practical Ways to Prepare Your Children for Their Inheritance
• Why Wills and Trusts Aren't Enough in the Great Wealth Transfer, From an Attorney Who Knows
• Great Wealth Transfer: How Families Can Get on the Same Page
• Will Millennials' Attitude Toward Money Put the Family Wealth at Stake? A Wealth Adviser Explains How Families Can Find Common Ground

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.

Do you remember the spring of 2021? It felt like we had all been let out of COVID-19 jail. Sure, there were new variants of the virus, but most people were vaccinated and eager to swipe, tap or hand over cash.

We promptly took our then-3-year-old to Jamaica. This was the inflation liftoff.

An eagerness to spend, a money supply that was about 30% higher than pre-pandemic levels and supply shortages from shuttered factories quickly caused prices to accelerate.

If you'd told me then that I would still be writing about inflation five years later, I would have been seriously concerned. But here we are.

We have now been through what most consider an interest rate-cutting cycle that was cut short. We also have a new Federal Reserve chair, Kevin Warsh, who has been (not so) tacitly tasked with cutting rates at the same time inflation has reawakened.

The two things are at odds: Raising rates is supposed to cool inflation by making things more expensive, while cutting rates is stimulative to the economy and often inflationary.

The majority of this inflation is headline inflation (food and energy), caused by the oil shock in Iran. Because of this, the market had moved from a less than 1% chance of a rate hike at the beginning of 2026 to an almost 45% chance as of mid-May.

Indeed, in September, the Fed raised the federal funds rate by 25 basis points, to 3.75% to 4%. The Fed is expected to raise the rate again before the end of the year.

So, here's what that means for retired folks.

A bounce back in cash rates

It doesn't seem that long ago when cash was paying basically nothing. More recently, you could get cash equivalents over 5% in a high-yield savings account.

Today, most things have settled in the mid-3% range. In the 5% range, it was a pretty easy decision for retirees who needed liquidity to keep it in cash.

In the 3% range, it's a tougher question. That question is a bit easier to answer now that the Fed has hiked rates.

If you still have a lot of cash sitting in a checking account at a large bank, there is probably a better way.

Most brokerage houses have a plethora of cash-equivalent options that pay significantly more.

Good for guaranteed income

Similar to cash equivalents, guaranteed income in the form of fixed annuities tends to move up with interest rates. The higher the rate environment, the more an insurance company is willing to pay you for the same pot of money you turn over to them.

In the previous hiking cycle, we were able to replace the majority of our clients' annuities with higher income guarantees — often significantly higher.

If you have an annuity issued between 2000 and 2022, it's worth having it looked at.

Time to de-leverage

When rates rise, floating-rate loans become more expensive.

For our clients, floating-rate loans most often take the form of home equity lines, securities-backed lines of credit and adjustable-rate mortgages. If you have floating-rate debt and some money in the bank, it may be a good time to pay down those debts.

My wife's car lease ended in 2022, and we were quoted rates of 9% or more for five-year car notes. Though it shouldn't be anything like last time, this is a strong argument for buying vehicles in cash should the funds be available.

I often use 5% as a sort of back-of-the-envelope line in the sand. If the note is over 5% and you have the cash, you probably want to do that. Below 5% and financing likely makes sense.

Your financial plan should dictate this decision. In our software, we can raise the rate and then see what happens to the plan success rate if a client were to accelerate the paydown. You can play around with that same software for free.

Continued struggles in the broader housing market

If you were waiting for mortgage rates to come down to bring more buyers into the pool for your home, you'll either have to keep waiting or pull off the Band-Aid and sell.

Nationally, the housing market is struggling. There are many more sellers than buyers. It's the opposite of the insane environment coming out of the pandemic.

However, real estate is hyperlocal, and we have clients who are selling their homes with little issue.

Zooming out, higher rates are bad for the housing market. Buyers focus on what they can afford in a monthly payment more than the total price.

As interest expense goes up, that same monthly payment buys less, which should bring down housing prices.

It's good for buying, but not so good for selling.

How you can help your kids if they're trying to buy a home

Just as the pool of buyers for your property is now reconsidering a purchase, your adult children who are trying to get into the market are probably equally frustrated.

In 2022, someone who took on a $1 million, 3% mortgage was paying $2,500 per month in interest expense. Today, that same loan amount at 6.5% has a monthly interest expense of about $5,400. That's $2,900 more per month for the same loan amount.

There are a lot of factors to consider before writing a large check to your kids to help them buy a home.

Here are a few to keep in mind for intrafamily loans:

• The loan must not materially impact your situation: While this is a secured loan and you could take ownership of the home should they default, that is an ugly situation. Lend only money you know you don't need.
• This is an actual loan, not a gift: Interest must be charged at a minimum federal rate, which can be referenced at the IRS website.
• Lending money can make Thanksgiving dinner uncomfortable: This isn't just a math problem. You have to accept that you are signing up for a long-term financial arrangement within your family. For some, that's a plus; for others, it's a red line.

If the stars align, these loan rates will be lower than what your kids could get in the market, and the interest you earn will typically be higher than what you're earning at the bank.

Related Content

• Why Buying Your First Home Is Way Harder Now Than in the Swinging '60s
• How to Help Your Children Buy a Home
• Think You Can Afford That House? Run These Numbers First
• A Financial Expert's Tips for Lending Money to Family and Friends
• Four Things to Consider Before Giving Your Kid a Down Payment

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.

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

This time, we hear from a 69-year-old mechanical engineer in the aerospace industry. He has been with his partner for 35 years and lives in Los Angeles, having moved there from Cleveland after college. He reports he started in the defense industry in 1979 with a salary of $15,000. He now brings in $220,000.

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?

All of my money was made $1 at a time. I am the classic "millionaire next door." I started saving in the company saving plan with my first paycheck at age 22 and never stopped.

When the savings plan stopped, and a 401(k) plan was introduced, I put the savings account value into an IRA with some lower-cost equity mutual funds (ETFs did not exist at the time).

I have always maxed out the company savings / retirement accounts.

The company also had a defined-benefit pension plan. For the first eight years, I contributed only to the company savings plan, trying hard to save up for a condo down payment.

I purchased a condo in 1986 and continue to live in the same condo today. After the condo purchase, I contributed to the company pension plan until it was terminated.

A company ownership change along the way required a divestiture of my work group to a second, smaller company. To retain the engineers, that company instituted a deferred-salary plan modeled after the earlier company's defined-benefit plan, so I was able to retire from that second company at age 56, start that "pension" payout and continue to work at a third company in the area.

I have invested most every dollar of that "pension" over the years in the stock market in low-cost funds.

Along the way, at age 45, the second company offered a long-term care insurance plan through MetLife. I signed up for that LTC plan for a five-year benefit with two riders: A 5% inflation rider and a 50% annual premium reduction starting at age 65. MetLife does not offer this plan anymore, and I have been told that it is an excellent plan.

When I was growing up in Cleveland, my parents needed to purchase too many cars — I remember at least eight — because of the corrosion from salty winter roads. I was determined to use the nice weather in Southern California to pare back that number of cars. I am currently on my fourth car — hopefully my last.

I have had each car for at least 10 years and 100,000 miles. None of my car loans exceeded 36 months.

I cook most all of my meals from scratch over the weekend, then live on leftovers during the next week. Sometimes, I dine out with friends on weekends as a treat.

When Roth IRAs became available, my salary for years was under the maximum contribution threshold, so I used extra cash to fund that account, along with a brokerage account.

Eventually, my salary consistently went over the Roth contribution limit, so I did some Roth IRA conversions along the way.

I achieved my first $1 million around age 50 in 2007, as the economy began to slide into the Great Recession.

I have continued to work as a mechanical engineer (my dream occupation since I was a child) to this day.

I have delayed starting Social Security until its value maximizes at age 70.

My current balance in the retirement plans is just under $6 million(!), and my net worth is about $8 million. The retirement plan balances are about equally split between traditional IRA, Roth IRA, brokerage account and 401(k) plans.

What are you doing with the money?

Having made extra payments on the condo loan over the years, the balance was low, but I wanted to end the mental stress of making the payment each month, so I paid off the condo loan. I have invested the freed-up cash over the years into the stock market.

I had a small balance on my car loan at the time, as well as a small credit card balance, so paid those off, too.

To this day, I continue to have credit card balances under 5% of my credit limit.

I pay for daily purchases with cash, a debit card or backfill the credit card after making a purchase to get the cash points.

The Fun Stuff

Did you do anything to celebrate?

I shared a steak dinner with my partner. I also purchased a Rolex sports watch. I wanted one since I was a child.

What is the best part of making $1 million?

I come from a low-income blue-collar family that had just enough money to live on. Making the decision to begin the investment process in my 20s and watching that balance grow over time was rewarding.

Did your life change?

Retirement savings gave me peace of mind; it provides options to "live and give like no one else" later in life.

My estate will split the balance of the traditional IRA and 401(k) plans and give that money to my alma mater and a local community college.

Does anyone know you're a millionaire?

My partner of 35 years knows. He is financially comfortable, too.

Any plans to retire early?

I have decided to work for a few more years, though I do not know how many. I realize that I have excess retirement assets and do not need to work.

Mechanical engineering is physically easy and provides intellectual stimulation, socialization and daily structure.

Healthcare through the company is better and less expensive than Medicare.

Looking Back

Anything you would do differently?

I would have focused more on Roth IRA conversions to whittle down the IRA balance subject to income taxation at age 73.

Also, the stock market swoon during the Great Recession tested my mental fortitude. In hindsight, I could have taken out a HELOC loan on my condo for $100,000, put that into equity ETFs and doubled or tripled the return on that money, but I did not feel confident in work prospects at the time to do so.

What advice would you give to your younger self?

Remember not to panic when the stock market swoons. Market swoons come along naturally, and the published rate-of-return numbers include the effects of these down markets.

If you take out the money in a panic, you upset that compounding math.

Trust the math! Take advantage of these down market periods and continue to invest.

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

Back around 1980, the Wall Street Journal began a weekly column on personal finance. I put into practice the tips I read about in that column.

Today, I would advise people to search for personal finance videos on YouTube. There is a wealth of information there. I find videos from Alex Finance to be particularly helpful to show how $100 a month automatically transferred to an investment account can compound to an enormous amount at retirement.

Did you work with a financial adviser?

My current employer uses TIAA to administer the retirement plan. I heard that Elizabeth Warren (D-MA), of Harvard Law School, has her retirement money with TIAA. Hearing that was good enough for me!

When my investments reached about $2 million, I wanted some help on managing the investments and wanted the investments behind a "firewall," so I moved all of my retirement money into a TIAA professionally managed trust account.

This structure has worked out well for me for a decade.

Did anyone help you early on?

The program manager at my first employer was self-made and was approachable for investment guidance. He said, "Put a small amount of your money into the stock market. Emphasize large companies." I followed his advice.

Looking Ahead

Plans for your next $1 million?

I will eventually retire and take some higher-end cruises with my partner.

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

Start the investing process with your first paycheck and make it automatic. After two paychecks, you will not miss the money.

The amount can be very small, since you have 40-plus years for those contributions to compound.

I have been told that contributing to a health savings account (HSA) is now the best when starting a career, due to flexibility and tax savings, and I probably would invest in that if starting out now.

Do you have an estate plan?

I have a will, power of attorney, healthcare power of attorney and a revocable trust as my estate plan.

How have you balanced immediate vs delayed gratification over time?

The investment process rewards delayed gratification — a concept that younger generations have difficulty learning these days.

What do you wish you'd known …

When you first started investing? I would have biased my contributions even more toward equities in the beginning.

When you first started working with a financial professional? Financial advisers take fees. TIAA takes 0.9% of the first $1 million managed, then lesser percentages as assets increase out to $5 million.

When you first started saving? That I had made the correct decision to begin saving in the first place. I learned over the years that you need to make every decision as good as you possibly can, given the information available at the time.

You will not know which decisions in life were pivotal until years or decades after the decisions were made.

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

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• 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…

Most of the expensive mistakes I see in retirement planning as a CFP® are subtle. This one is not.

A Medicare enrollment trap springs most often on the very people who feel least worried about it: Those working past 65 with what they assume is perfectly good employer coverage.

But a hard Medicare deadline with a permanent penalty attached can snare people who did everything else right.

Here's how it happens, why it costs real money and what to do about it.

The setup

When you turn 65, you become eligible for Medicare. Most people know that. What trips them up is the assumption that because they're still working and covered by an employer health plan, they can ignore Medicare until they retire.

Sometimes that is true. Often, it's not, and the difference comes down to the size of the employer and the type of coverage you have.

If you work for a larger employer, generally one with 20 or more employees, your group plan can remain your primary coverage, and you can delay Medicare Part B without penalty under a special enrollment period.

But if you work for a smaller employer, Medicare might be considered your primary payer once you turn 65, even while you're still on the company plan.

In that situation, delaying Part B doesn't just risk a penalty. It can leave you with gaps in coverage, because your employer plan might pay as though Medicare is already covering its share, whether or not you're enrolled.

That distinction — 20 employees —isn't something most people think to check. They see, "I have health insurance through work," and reasonably conclude they're fine. The rules don't care how reasonable the assumption was.

The penalty that never goes away

Here's the part that stings. If you're required to enroll in Part B and you miss your window, the late enrollment penalty is not a one-time fee.

According to Medicare.gov, the Part B penalty adds 10% to your premium for each full 12-month period you could have had Part B but did not. You pay that surcharge for as long as you have Part B, which for most people means the rest of their lives.

Think about what that means. Delay three years when you should have enrolled, and you're looking at a 30% premium surcharge, every month, indefinitely. There is no statute of limitations, no point where it falls off. A misunderstanding at 65 becomes a line item you carry into your nineties.

Because that 30% applies to whatever the standard premium happens to be each year, the dollar cost climbs right along with premiums over time. Across a 20-year retirement, a few years of delay can quietly add up to thousands of dollars in surcharges you could have avoided.

I have seen people discover this years later and have no recourse, because the rules were followed exactly as written — just not by them.

The timing windows that matter

Medicare enrollment runs on specific windows, and missing them is what triggers the trouble. Your initial enrollment period is a seven-month stretch around your 65th birthday: the three months before, your birthday month, and the three months after.

If you qualify to delay because of active employer coverage at a large employer, you get a special enrollment period to sign up later without penalty, typically while you're still covered and for eight months after that coverage ends.

The danger zone is the space between assumptions and rules. People who retire and lose coverage sometimes assume they can enroll whenever they get around to it.

The eight-month clock after employment ends is easy to blow past, especially amid the chaos of leaving a job. Miss it, and you might be stuck waiting for a general enrollment period and carrying the penalty besides.

What to do

A few concrete steps make this entirely manageable.

Well before you turn 65, find out if your employer has more or fewer than 20 employees and confirm in writing how your plan coordinates with Medicare. Your human resources (HR) department or benefits administrator should be able to tell you whether your coverage lets you delay Part B. Do not guess, and do not rely on a coworker's situation, which might differ from yours.

If you're at a small employer, treat your 65th birthday as a real deadline and enroll during your initial enrollment period unless you have confirmed you genuinely qualify to wait.

If you're delaying because of large-employer coverage, mark the eight-month special enrollment period that begins when that coverage ends. Put it somewhere you won't lose it. The moment you retire or drop the employer plan, the clock starts.

Remember that Part D, prescription drug coverage, has its own late enrollment penalty with similar lifetime consequences. If your employer coverage is not considered creditable drug coverage, the same kind of permanent surcharge can apply.

There is one more wrinkle worth flagging, because it catches a particular group off guard. If you contribute to a health savings account, enrolling in any part of Medicare, including Part A, ends your ability to make new HSA contributions.

Part A is premium-free for most people and many enroll in it automatically without thinking, but doing so while still funding an HSA can create a tax problem. If you work past 65, still contributing to an HSA and plan to delay Medicare, that interaction needs to be on your radar.

It's a small detail with outsize consequences and is precisely the kind of thing that gets missed when someone assumes Medicare is a single on-off switch rather than a set of separate decisions.

The bigger lesson

What makes this trap so frustrating is that it punishes inaction by people who weren't being careless, they were just uninformed. There is no investment decision here, no market risk, no judgment call about strategy. It's purely a matter of knowing the rules and the dates, and acting before a deadline that doesn’t announce itself.

If you're approaching 65 and still working, don't let, "I have coverage through my job," be the end of your analysis. It's the beginning of a question, not the answer.

Spend an afternoon confirming exactly how your employer plan interacts with Medicare, and put the relevant enrollment windows on your calendar.

It's one of the rare retirement mistakes that is completely avoidable with a single phone call, and one of the few in which the cost of getting it wrong follows you for the rest of your life.

Related Content

• Medicare Open Enrollment: 10 Things to Know
• 5 Times You Should Absolutely Not Do a Roth Conversion
• 10 Things the Top 10% of Retirees Do Differently With Their Money
• How to Coordinate Claiming Social Security With Your Tax Bracket
• The 7 RMD Tax Traps Waiting for You in Your 70s — and How to Start Disarming Them in Your 60s

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

Shipping holiday gifts will cost more this year. The U.S. Postal Service (USPS) has temporarily increased shipping rates for its peak holiday season, with higher prices in effect from October 4, 2026, through January 17, 2027.

The seasonal increases affect USPS Ground Advantage, Priority Mail and Priority Mail Express. For example, shipping a five-pound package via Priority Mail in Zones 1 through 4 costs an additional $0.80, while sending a Priority Mail Large Flat Rate Box costs $2.10 more. The increases are even steeper for heavier packages, with a $20.80 surcharge on Priority Mail Express shipments weighing 26 to 70 pounds in Zones 5 through 9.

Although these increases are temporary, they can add up quickly if you're mailing multiple gifts. The good news is that a little planning and comparison shopping can help you avoid paying more than necessary to get your holiday packages delivered.

1. Don't assume Priority Mail is your cheapest option

Priority Mail offers faster delivery, but it isn't always the most affordable option. If your package isn't time-sensitive, choosing USPS Ground Advantage could save you money.

Priority Mail typically delivers packages within two to three business days, compared with two to five business days for Ground Advantage. Neither service guarantees delivery within those time frames, so allow extra time when mailing holiday gifts.

Before buying postage, compare USPS shipping options to find the best combination of price and delivery speed. You can also check discounted rates through services such as Pirate Ship, which offers access to commercial USPS pricing at no additional charge. USPS also offers commercial rates through its Click-N-Ship service, giving you another way to potentially lower your shipping costs.

2. Watch the size of your box

The size of your package can drive up shipping costs, even if it doesn't weigh much. USPS considers both weight and dimensions when calculating postage, and larger boxes can trigger additional fees.

For example, packages measuring more than 22 inches long or exceeding two cubic feet in volume may incur extra charges. Packages with a combined length and girth of more than 108 inches can also be subject to oversized pricing. USPS generally limits packages to 70 pounds and 130 inches in combined length and girth, with additional fees possible for packages that exceed those limits.

To avoid unexpected charges, choose the smallest box that safely fits your items, including any protective packaging. Measure and weigh your package before purchasing postage so you can compare rates and identify potential surcharges.

3. Don't automatically choose a Flat Rate box

USPS Flat Rate boxes make shipping simple because you pay a set price based on the box size, regardless of the package's weight or destination within the domestic service area, subject to USPS restrictions. However, that convenience doesn't always translate into savings.

If you're shipping a small, lightweight gift a short distance, standard Priority Mail or Ground Advantage may cost less than a Flat Rate box. That's because regular shipping rates depend on factors such as package weight, dimensions and destination.

For example, a medium Priority Mail Flat Rate Box costs $25.80 at retail, while regular Priority Mail rates start at $11.50. Before choosing Flat Rate packaging, compare the cost of shipping your gift in your own box. You may find that paying based on weight and distance is the better deal.

4. Compare USPS with UPS and FedEx

USPS isn't always the cheapest way to ship a package. Depending on its size, weight and destination, UPS or FedEx may offer a better deal, particularly for larger or heavier shipments.

All three carriers offer online shipping calculators that let you compare rates and estimated delivery times before purchasing postage. Be sure to compare similar delivery services, since expedited shipping can cost significantly more than standard ground delivery.

To see how prices compare, we checked shipping estimates from USPS, UPS and FedEx on October 9, 2026, for three packages traveling between Chicago, Illinois, and Sevierville, Tennessee. USPS offered the lowest retail rate for the small and medium packages, while UPS was the least expensive option for the large package.

You may also be able to save by purchasing postage online or scheduling a home pickup, depending on the carrier. Keep in mind that pickup fees and availability vary by service.

5. Ship early to avoid paying for speed

One of the simplest ways to save on shipping is to shop early and ship your packages before you’re short on time. Procrastination can leave you paying for Priority Mail Express or other expedited services to ensure your packages arrive before the holidays.

For expected delivery before Christmas, the USPS recommends sending your packages by specific cutoff dates:

• USPS Ground Advantage: Thursday, December 17, 2026
• First-Class Mail: Thursday, December 17, 2026
• Priority Mail: Friday, December 18, 2026
• Priority Mail Express: Saturday, December 19, 2026

If you’re shipping to or from Alaska, Hawaii, Puerto Rico, or the U.S. Territories, the cutoff dates are a day or two earlier.

Keep in mind that these cutoff dates are just recommendations and don’t guarantee delivery by Christmas, so it’s a good idea to mail Christmas presents and other time-sensitive packages as early as possible. Shipping early also gives you more flexibility to choose slower, less expensive services.

The bottom line on USPS holiday shipping

Higher holiday shipping rates don't have to put a strain on your budget. Choosing the right packaging, comparing carrier rates and mailing gifts early can help keep costs under control. Although USPS's seasonal price increases are scheduled to end January 17, 2027, shopping around and planning ahead can help you save on shipping year-round.

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There's nothing like traveling. Snapping out of the routine of everyday life to explore a new locale, meet new people, sample different cuisine and have the joy of becoming lost in an experience or scene. It's well worth the expense.

And that expense will cost you. The war in Iran has increased fuel prices. The result? Airfare increased by 23.4% compared to last year, according to the US Travel Association, while hotels are up 2.9%.

The other essential travel expense is food. As diesel continues to rise, it will hit your wallet when you dine out. Thankfully, you can lower food costs when traveling. Here's how.

Do some detective work

When I travel to a city I've never been to before, I turn to Reddit. Reddit is a collection of online communities where you can learn more about everything from investing to travel hotspots.

If you are traveling to San Francisco for the first time and want to find "local places away from tourist traps," type that phrase into Google with "Reddit" at the end and find recommendations from local Redditors.

I've used it to find amazing restaurants in Las Vegas, Honolulu, Los Angeles, Charleston and Montreal. Most of the time, the recommendations are exceptional. Just pay close attention to when a user posts a recommendation, since some can be years old, and that hotspot you were looking at might not be open anymore.

Another tip I found helpful is to Google Maps the area around your hotel before you arrive. It gives you an idea of what's around you, and you can research restaurants ahead of time to find places you want to visit. When looking at places, pay close attention to the three- and four-star Google reviews, as they tend to offer more honest assessments.

Places where I would use caution include local magazines and food blogs. Many of these rely on paid endorsements from restaurants. So if you're reading a review that's 100% positive, it's likely a paid promotion.

Ask the locals

If Reddit is a wash, consult the real-life locals. I recommend Uber or taxi drivers (if they're talkative) since they often know where to go and places to avoid.

Another source to consider is a bartender. Bartenders make excellent local guides because many know the best places and which ones will overcharge you.

Finally, local colleagues and friends also make exceptional resources. They can help you find convenient spots while avoiding a tourist tax. I was recently in St. Louis, and a colleague recommended a place that served one of the best Chinese meals I've ever had. So, it always pays to ask.

Smart money moves for every meal

Touristy areas can be fun, but the food around them isn't always the best, and it can be overpriced. To demonstrate, many places in Miami add an 18% to 20% service fee on top of credit card processing fees and local tax.

That's why, if you do dine in a tourist hotspot, pay close attention to the menu. Many states, including Florida, require restaurants to be transparent about their fees.

Along with this, here are other smart ways to lower food inflation costs:

• Pay in cash: This helps you avoid the 3% to 4% credit card processing fee.
• Use other credit card perks: For example, American Express offers its Fine Hotels + Resorts Program, where you'll earn generous cash back on hotel bookings in this collection, plus free breakfast and a hotel credit you can use for drinks and other expenses, which can lower food costs.
• Travel during weekdays: You can find better hotel and flight deals, and many local restaurants also offer weekday deals, so you can save money and eat well. Also, many breweries and restaurants hold fun local events during the week, such as music bingo, philosophy meetups and more to add to the experience.
• Embrace street food: Street food can be a city's culinary heartbeat; it is often less expensive than a sit-down meal, and there are great options anywhere you go. Tamales in San Antonio. Hot dogs in Chicago. Tacos in Mexico City. Doner in Munich. OK, I am hungry now.
• Resy for the win: If you have The Platinum Card from American Express, you can earn $400 back annually (broken down into $100 quarterly) for using your Platinum credit card at over 10,000 qualifying U.S. Resy restaurants. Enrollment required.

Travel is one of the most rewarding experiences you can have. Even with costs rising, smart planning ensures your budget goes toward memorable experiences instead of overpriced meals. By doing some homework, tapping into local insight and using savvy payment strategies, you can enjoy local culinary gems without breaking the bank.

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With Americans racking up credit card debt at an alarming rate, there is a misconception that all debt is bad. That's not necessarily true.

Debt is a crucial financial tool, one commonly used by the wealthy to increase capital.

Think of the different types of debt most Americans have: Mortgages to buy homes, auto loans to buy cars and student loans to become more educated and increase their future earnings. These are investments that are essential and would be difficult to access without loans.

Debt is not always bad. It's something everyone can, and should, leverage in some way, as long as you do it responsibly. It's important to understand its place in your financial plan and the situations you can use it to improve your finances.

Understand good debt vs bad debt

To understand how you can leverage debt, you first need to understand the difference between good debt and bad debt. Generally speaking, good debt makes you money or adds value, while bad debt costs money.

Whether debt is good or bad depends on the specific situation. Good debt typically includes mortgages, student loans, investment debt for good value or business debt. Bad debt can include unsecured loans, high-interest credit card debt or payday loans.

A mortgage is typically categorized as good debt because real estate historically appreciates over time, but with current 30-year mortgage rates sitting near 7%, that might not be the best investment long-term.

Student loans, on the other hand, might be categorized as bad debt to some. However, the average worker with a bachelor's degree makes 86% more than one with only a high school degree. Being able to make these distinctions will allow you to not only manage your debt, but leverage your debt to increase capital long-term.

Prioritize controlling your bad debt

You need equity before you can utilize debt, and unfortunately, Americans collectively have more than $1.2 trillion in credit card debt, costing them money and limiting their financial ability. Credit card debt often comes with interest rates above 20%, which makes this very bad debt.

Not only is this costing you, but missing payments can lower your credit score, which could mean facing higher interest rates or being denied for loans, including mortgages and auto loans.

You should prioritize your budget accordingly to pay down your credit card debt.

However, if you have equity, such as a home that you've paid off or mostly paid off, you can leverage this equity to access good debt and improve your situation.

For example, a home equity line of credit (HELOC) loan, which has an average interest rate of 7.30% to 7.50%, can be taken out against your home to pay off your credit card debt. This allows you to exchange a bad debt for a lesser bad debt, cut your interest by more than half and make it easier to pay off.

Leveraging good debt

Once you have equity, you can begin to utilize your good debt. There are a variety of ways to do this depending on the circumstances.

Buying a car could be a good example. Let's say you walk into the dealership and have the money to buy a car outright, but when you begin the process of purchasing the car, a loan is offered to you at a low introductory rate. This is typically only an option if you have a high credit score.

If you take the loan, you'll have to make monthly payments, but you can deposit the money that you would've spent to buy the car in a high-yield savings account or a certificate of deposit (CD), which offer returns of around 3% to 4%.

If that's higher than the interest rate on the loan, the money grows faster long-term, and you can access it as needed for monthly payments.

Another way to leverage debt is if you own a business and want to expand. A business loan allows you to borrow to make improvements and add to your revenue.

These are just two examples, but you get the idea. Debt can be a tool to access an asset in the short term and ultimately improve your finances in the long run.

In conclusion

Debt isn't something you should be afraid of as long as you can afford it and are responsible. You need to make payments on time and be smart about what your budget allows.

This depends on your individual financial situation, which is different for everyone, but this strategy is not reserved for the wealthy. Many Americans can leverage their debt, but they either have too much bad debt or don't know where to begin.

If that's you, I recommend speaking with a financial professional who can help you understand your debt and determine how you can leverage it strategically.

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

Last year, in my article Should Your Brokerage Firm Become Your Bookie? I advised anyone seeking to make wagers on random events to do so carefully.

Stick to a predetermined, and limited, amount of money, I warned. And use a financial institution separate from the ones holding your savings and securities accounts.

This helps you to avoid the possibility of dipping into your financial assets to wager on, say, an election in Brazil. You can make those kinds of bets, known as "event contracts," on "prediction markets."

We've now had a year to watch prediction markets become ubiquitous in the media. And I've changed my recommendation, though my earlier advice stands if you still want to venture into prediction markets.

But to you, the average person, reading this on your phone, laptop or at your desk: You. Should. Not. Bet. On. Prediction. Markets.

As they say in the opening line of the movie Rounders, "Listen… If you can't spot the sucker in your first half hour at the table, then you are the sucker."

Why? Because in prediction markets, the odds are stacked against you, your opponents are professionals with tools you don't have, and inside information is virtually a feature.

People who do this for a living believe you are the sucker. The numbers say they're right.

Who are you betting against?

In May, the Wall Street Journal published Prediction Bets Are (Mostly) a Losing Game (paywall). The article studied trades at Polymarket and Kalshi, two of the largest prediction markets.

At Polymarket, the numbers are sobering. The most sobering of all: Out of 1.6 million accounts studied, fewer than 2,000 accounts made 67% of the profits. In other words, 0.1% of the accounts won more than two-thirds of the money wagered. A significant majority of participants were net losers.

Kalshi informed the Journal that there are 2.9 unprofitable users for each profitable one based on a recent month's data.

What makes the profitable traders hard to beat?

What do the winners have that you probably don't have? Access to artificial intelligence that can analyze a betting proposition, determine the factors that could alter the odds, place a wager without human interference, close out that wager when the odds change and do so 24/7.

AI also adds speed that you can't match in terms of access to that information. Simply getting information early and reacting to it can be critical to changing the odds of any event outcome.

The sooner you find out that a star college quarterback has a concussion, the sooner you can place a bet against his team.

An AI tool can tell you a particular tennis player has difficulty with left-handed opponents, then factor in that information and place a bet against that player a microsecond after a lefty wins a match that will place him against that player in the next round.

Solely on a hypothetical basis, let's say someone paid $100,000 a month to receive access to information about prospective government activity a few seconds before that information was released to the general public.

I'd venture to say that, coupled with AI, those few seconds would give someone a distinct advantage in predicting the outcome of certain future events.

In short, you are betting against the pros.

Any other reasons for steering clear of prediction markets?

In theory, insider trading is forbidden in prediction markets. When discovered, insiders who improperly use information have their wagers voided, are subject to financial penalties and may be barred from the sites and even indicted.

Examples are government personnel with access to military intelligence and speechwriters who wager on whether a certain speaker will use certain words.

But the discovery mechanism and the enforcement of the ban on insider activity are difficult to identify and prove.

Some state regulators have tried to enforce state gambling laws and regulations against prediction markets.

Polymarket and Kalshi have deftly avoided state control over their operations by claiming that the individual event contracts they offer are exclusively regulated by the federal Commodity Futures Trading Commission (CFTC) to the exclusion of state gambling laws. The CFTC has sided with the Polymarket and Kalshi positions.

It is my view that the CFTC doesn't have sufficient staff or expertise to credibly undertake the necessary regulatory review. Indeed, the CFTC has lost a significant percentage of its personnel in recent years.

Further, since Donald Trump Jr. is a paid strategic adviser to Kalshi and sits on Polymarket's advisory board, and his investment firm has invested in Polymarket, it is difficult for me to predict that CFTC regulatory review would go against any positions taken by these firms.

Lessons from Brazil

My previous article offhandedly mentioned that it might be unwise to bet on the outcome of an election in Brazil.

We now have evidence that Brazil is on the precipice of financial ruin, and the poorest Brazilians are trying to dig out of rising debt by using prediction markets, and other online wagering apps, to make a big score.

It is not going well. The New York Times reports that online gambling is a major issue in the upcoming presidential election. Brazilians have lost about $7 billion gambling online, and the poorest bettors are digging themselves into the deepest holes.

Sometimes wisdom comes from a goat, a pig, a mouse and a comic strip. So before you open a prediction market account, or make a bet on an account you already have, ask yourself: Is all of life now one big grift? The comic strip Pearls Before Swine might have the answer.

My advice, though? Make a $10 bet with your Dodger-fan neighbor instead. Who do you like in the World Series?

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

You may want to start double-checking your receipt before leaving the store. Several recent reports involving major retailers show that the price you see on the shelf isn't always the price you pay at checkout.

A September Guardian investigation found pricing discrepancies at 7-Eleven and Circle K locations, including instances where shoppers were charged more than advertised. Earlier this year, TikTok creator Jimmy Wrigg also raised questions about Walmart's packaged meat after finding products whose labeled weights appeared higher than their actual weights.

More recently, Five Below reached a $179,500 agreement with Michigan to resolve allegations involving scanner overcharges and problems displaying prices at some stores. Five Below did not admit wrongdoing.

These cases involve different circumstances and don't necessarily suggest intentional overcharging. But they offer a good reason to pay closer attention to what rings up at the register.

How you could end up paying more than expected

Pricing errors can happen in several ways. A shelf tag might not match the register price, or a sale price may fail to ring up correctly. Digital coupons, loyalty discounts and buy-one-get-one promotions can also fail to apply as expected.

Products sold by weight present another opportunity for errors. Meat, seafood and produce may be incorrectly weighed or labeled, resulting in a higher total price.

Packaging matters, too. "Tare" refers to the weight of packaging or containers that should be excluded from a product's net weight. If the appropriate packaging weight isn't deducted, you effectively pay for the packaging as part of the product.

Which price does a store have to honor?

There isn't one nationwide rule requiring every U.S. retailer to honor the shelf price when it differs from the register price. Instead, states have their own pricing laws, while state and local weights-and-measures agencies typically enforce retail price accuracy.

Some states give shoppers additional protections. Michigan's Scanner Law, for example, allows shoppers who are charged more than the displayed price to receive the difference between the displayed price and the amount charged, plus a bonus of 10 times that difference. The bonus must be at least $1 but no more than $5. Shoppers must have a receipt showing the overcharge and notify the seller within 30 days.

California generally requires retailers to charge the lowest posted, quoted or advertised price for which the shopper qualifies. However, an overcharge doesn't automatically mean the shopper gets the item for free.

Massachusetts has additional protections for covered grocery and household products. Depending on the retailer's pricing system and the item's price, an incorrectly scanned product may be free or discounted.

Because the rules vary, check your state's requirements rather than assuming a policy you've encountered elsewhere applies. The National Institute of Standards and Technology (NIST) provides information on state pricing laws and weights-and-measures agencies.

How to catch pricing errors before you leave the store

You don't need to audit your entire shopping cart to reduce your odds of overpaying. A few simple habits can make errors easier to catch.

Start by watching the screen as your items are scanned. Pay particular attention to higher-priced purchases and items you specifically chose because they were on sale.

Before walking out, spend a minute reviewing your receipt. Look for prices that seem higher than expected, duplicate charges and promotions that weren't applied. If you loaded digital coupons or used a loyalty account, confirm that the expected savings appear on the receipt.

It can also help to check unit prices while you're shopping. Unit pricing shows the cost per ounce, pound or other unit of measurement, making it easier to compare different package sizes. Just remember that a correct unit price won't protect you if the package itself has been incorrectly weighed or labeled.

For expensive meat, seafood and other products sold by weight, take a closer look at the label. Check the weight, price per pound and total price to make sure the numbers make sense together.

Finally, if you're buying an item because of a sale or promotional sign, take a quick photo of the shelf tag, especially if the offer has several conditions. That gives you something to reference if the register shows a different price.

What to do if you've been overcharged

If you notice the discrepancy before leaving, your first stop should be the cashier or customer service desk. Show your receipt and explain the price you expected to pay. In many cases, the store can verify the shelf price and issue a refund for the difference.

Keep your receipt and, when possible, take a photo of the shelf tag or advertisement showing the lower price. If a digital coupon or app offer is involved, a screenshot can also help document the promotion and its terms.

It's also worth asking whether the retailer has its own price-accuracy or scanner policy. A store may voluntarily offer a refund, additional discount or free item beyond what state law requires.

If the retailer doesn't resolve the problem, or you notice what appears to be a recurring pattern, you can contact your state or local weights-and-measures authority.

NIST maintains a directory of state weights-and-measures directors, along with contact information for the appropriate agencies.

Local authorities may also conduct inspections to determine whether a retailer is complying with price-verification and weighing requirements.

A few seconds at checkout could save you money

A $1 discrepancy may not seem worth worrying about when you're trying to get through the checkout line. But small overcharges can add up, particularly on groceries, gas and convenience-store purchases you make regularly.

You also don't need to approach every shopping trip assuming something will go wrong. Most purchases will likely ring up just as expected. Instead, make a quick receipt check part of your normal shopping routine.

Know roughly what the items in your cart should cost, pay extra attention to sales and products priced by weight, and check your receipt before you head home. A minute or two of extra attention can make it much easier to catch a pricing mistake while you're still in the store.

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You sold a second home, earned a sizable year-end bonus or received an inheritance. The check arrives, and it's equal parts exciting and overwhelming.

You think of all the ways you plan to use that check, but first you have to deposit it. And this is where you might run into challenges.

To make what could be a frustrating situation less stressful, I am going to show you some obstacles you could encounter and ways to work around them when depositing a substantial check.

Depositing a large check isn't easy

Banks want to protect themselves from scammers. So they impose mobile and other deposit restrictions.

That's why each bank has its own policy for larger check deposits. In general, if your check is over $10,000, a mobile deposit might not work. If you don't have a branch nearby, what do you do?

Thankfully, it's not hopeless. First, contact your bank. Explain your situation and see what options are available. They might suggest overnighting the check. Use certified mail to track your package and ensure it arrives.

Credit union members might have access to partner branches. This means you can visit a participating branch to conduct transactions. However, I recommend calling that partner branch in advance and explaining your situation to ensure they can help.

You could also contact the check issuer and request an electronic payment instead. You might have to pay a stop-payment or wire transfer fee, but this guarantees you receive the money without jumping through any hoops.

And when you receive the money, here's a smart strategy.

Grow your wealth while planning for the future

Receiving a large deposit is exhilarating until you have to determine what to do with it. That's why I recommend opening a savings account or storing it in a short-term certificate of deposit while figuring out next steps.

If you need cash access, a high-yield savings account will be your best bet. Look for online banks since they offer higher APYs with no monthly fees. Newtek Bank is our top choice at the time of this writing, offering a 4.20% APY.

The other thing to keep in mind is that high-yield savings accounts have variable interest rates. If the Fed issues another rate hike, you could receive an even higher APY.

Alternatively, a certificate of deposit is perfect for storing money away for a few months and not touching it. Some CDs offer higher APYs than high-yield savings accounts, giving you a better way to grow your deposit.

Use this Bankrate tool to find the best option for your goals:

Remember, if you need to break a CD term, you'll incur early termination fees. So, if you're on the fence about cash flow, use a high-yield savings account for a few months until you have a plan in place.

Ultimately, depositing a large check can be challenging, but it's doable. Contact your bank to learn more about their deposit policies. Once your deposit goes through, buy yourself time with a short-term CD or high-yield savings account, where your money grows even more as you plan for next steps.

Speaking of planning, if you come into a lot of cash and need help with next steps, consider a reputable financial adviser or personal banker. They can work with you to establish goals that help you build wealth, pay off debt and plan for any tax implications.

If you don't have an adviser, use this Bankrate tool to find a reputable one:

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You've come into some cash, or you're looking to allocate some money away from the rollercoaster of market volatility as you approach retirement. So, where do you place it?

If you're looking to store significant cash (think $100,000), a smart solution can be a jumbo CD. Jumbo CDs come in a variety of terms to match your savings goals. And with competitive APYs, you can earn thousands of dollars effortlessly.

I'll show you how much you can earn with the best jumbo CD rates and whether now is the right time to lock one in.

How much can I earn with an 18-month jumbo CD?

I review CD rates regularly and have found that jumbo CDs consistently offer some of the highest APYs. CreditOne Bank offers an 18-month CD with a 4.50% APY and no monthly account fees.

If you deposit the minimum $100,000 into this CD, you'll earn $6,825.38 effortlessly over just a year and a half.

Of course, this term might not suit your timeline. Jumbo CDs carry early withdrawal penalties. For larger cash balances, breaking a CD early can mean losing thousands of dollars in interest.

If you want to earn a higher rate but don't want to tie up your cash for that long, use this Bankrate tool to find a term that matches your needs:

Another factor to consider is that CDs have fixed interest rates. This means that even if the Federal Reserve hikes rates during your term, your APY will remain unchanged.

Is the timing right for a longer-term CD?

The Fed is unlikely to make a move at its October meeting. The same doesn't apply for the December meeting, especially if sticky inflation remains.

This means if the Fed hikes rates again, you could miss out on a higher APY. With that significant a deposit, you'll lose out on hundreds of extra dollars.

An alternative is to look for a shorter-term option (ideally six months) for now. This positions you to earn a high APY now, and when the CD matures, you could earn an even higher APY.

However, if you don't want to chase rates and want a guaranteed return on your cash, the 18-month jumbo CD from CreditOne Bank checks all the boxes.

Don't forget to plan for this

CD earnings are taxed as ordinary income, so your marginal tax rate applies to your yield. A financial adviser or accountant can help you plan accordingly.

As Dat Ngo, CPA at Vetted Prop Firms, notes: "One thing savers often miss when comparing jumbo CDs to high-yield savings accounts is the tax timing. With a CD, you typically owe income tax on interest in the year it's earned — even if the term hasn't matured yet — so a multi-year CD on $100k can create a recurring tax bill you weren't budgeting for."

What are the best reasons to use a jumbo CD?

Some of the best options include:

• You have a shorter-term savings goal: Whether you're planning a dream vacation, want to pay in cash for home remodels or have your eyes on another expense, 18 months can be the sweet spot to make some money and achieve these goals.
• You're retiring soon or are retired: You want to protect some of your hard-earned money from risk while earning a guaranteed return.
• FDIC Insurance: FDIC-insured banks are generally covered up to $250,000 per depositor, per insured bank, for each account ownership category. That protection can make CDs an attractive place to hold a large cash balance while earning a guaranteed return.

No matter your financial strategy, jumbo CDs offer a compelling blend of security and competitive yields. Locking in a top-tier APY now puts your money to work safely —maximizing your returns without the risk.

Related content

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• Maximize Your Savings: The Best Jumbo CD Rates to Lock In Now

Mortgage rates are an important factor when it comes to affordability in the housing market. And unfortunately, rates just went up again, potentially complicating plans for homeowners who want to refinance, relocate or downsize.

According to Freddie Mac, the average 30-year fixed mortgage rate recently reached 7.28%, while the 15-year rate increased to 6.60%. Meanwhile, the Mortgage Bankers Association reported that mortgage applications fell 6% overall and purchase applications dropped 4% as rates moved higher.

For homeowners who have a decent amount of equity, higher rates don't necessarily mean you need to put your plans to refinance or buy on hold. There are several factors to consider, such as your mortgage interest rate, equity, cash flow and how long you expect to own your home. Here's what you need to consider now that mortgage rates have increased again.

Is refinancing off the table?

Generally, refinancing can be a good option when you can lock in a lower interest rate and reduce the overall cost of your mortgage. The Mortgage Bankers Association's latest Weekly Applications Survey found that refinance applications fell 9% from the previous week, but that doesn't necessarily mean refinancing is off the table for everyone.

Seeing rates go up can be discouraging, but it's important to factor in your current interest rate, remaining balance, closing costs and how long you expect to stay in your home.

For example, someone who took out a 30-year mortgage at 7.5% a few years ago may still benefit from refinancing, particularly if they can qualify for a lower rate or want to shorten the loan term. But the potential savings depend on the new rate, remaining loan balance, closing costs and how long they plan to keep the loan.

If refinancing costs $6,000, for example, and lowers your payment by $250 per month, it would take around 24 months to recoup those costs. This is your refinance "break-even point." You can calculate it by dividing your total refinancing costs by your expected monthly savings. That's an important number to consider, especially if you aren't sure how long you plan to stay in your home.

Lowering your interest rate isn't the only reason to consider refinancing. Someone approaching retirement might refinance from a 30-year loan into a 15-year mortgage with the goal of eliminating mortgage debt sooner. But that strategy could significantly increase the monthly payment, so consider how it fits into your retirement cash flow before committing.

Should you choose a 15-year or 30-year mortgage?

Fifteen-year and 30-year fixed-rate mortgages are two common options when buying a home or refinancing, and each comes with different trade-offs.

A 15-year mortgage typically has a lower interest rate and can significantly reduce the amount of interest you pay over the life of the loan. The trade-off is a higher required monthly payment.

A 30-year mortgage spreads payments over twice as long, resulting in a lower required monthly payment but substantially more interest if you keep the loan for the full term.

Here's how the principal and interest payments on a $400,000 mortgage compare using recent average rates from Freddie Mac:

Figures are approximate and assume the loan is held for the full term. Payments include principal and interest only and exclude taxes, homeowners insurance, HOA fees, closing costs and other housing expenses.

In this example, choosing the 15-year mortgage increases the monthly principal-and-interest payment by about $769 but saves more than $354,000 in interest if the loan is held for its full term.

That doesn't necessarily make the shorter loan term the better choice. A 30-year mortgage offers a lower required monthly payment, which can provide more flexibility, particularly if you're approaching retirement and want to keep fixed expenses manageable.

You may also be able to make additional principal payments when your budget allows, reducing your balance and interest costs without committing to the higher required payment of a 15-year mortgage.

How downsizing can change the calculation

Downsizing may seem like an obvious way to lower your expenses in retirement, but moving to a smaller home doesn't necessarily mean you'll spend less. If you currently have a mortgage rate around 3%, for example, taking out a new mortgage at 7% could offset some of the savings from buying a less expensive home.

Consider a homeowner who bought a home with a $320,000, 30-year mortgage at 3% and has lived there for 10 years. Their home is now worth $400,000 and they still owe about $243,000, giving them roughly $157,000 in equity before selling costs.

If they sell and use that equity to buy a $320,000 home, they would need a new mortgage of about $163,000. Here's how staying put compares with downsizing at today's higher mortgage rate.

In this example, the homeowner moves to a house that costs $80,000 less and reduces the amount owed by about $80,000. Yet the required principal-and-interest payment falls by only about $232 per month because the new mortgage carries a much higher interest rate.

There's another trade-off. Staying put means the existing mortgage will be paid off in about 20 years, while taking out a new 30-year mortgage resets the clock. A shorter loan term or additional principal payments could reduce interest costs, but would also reduce the monthly cash-flow benefit of downsizing.

The mortgage payment isn't the only number to consider. Compare property taxes, homeowners insurance, HOA fees, utilities and expected maintenance costs for both homes. If you're moving to another area, particularly another state, research local property taxes and insurance costs rather than relying on what the current homeowner pays.

Your existing home equity also gives you options. You could make a larger down payment or potentially buy a smaller home outright. But putting a large portion of your wealth into a home could leave you with less liquidity for emergencies, investments, travel and other retirement expenses.

Ultimately, downsizing is about more than buying a less expensive home. Consider how the move would affect your monthly cash flow, available savings and overall retirement plan after accounting for selling and moving costs.

Deciding how much of your savings to put toward a home can have implications for the rest of your retirement plan. A financial adviser can help you weigh your housing costs, cash flow and other financial priorities before you make a move.

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

Higher rates could give buyers some negotiating power

There's at least one potential upside to today's higher mortgage rates: Fewer buyers may be competing for homes. The Mortgage Bankers Association's seasonally adjusted Purchase Index recently fell 4% in a single week, while unadjusted purchase applications were 14% lower than the same week a year earlier.

Less competition could give some buyers more negotiating power, particularly in markets where homes are taking longer to sell. That may create opportunities to negotiate on price, closing costs, repairs or other seller concessions.

Meanwhile, buyers in many markets have gained more negotiating leverage. Homes spent a median of 61 days on the market nationally in September, according to Realtor.com.

Redfin also found that sellers gave concessions in 44.7% of U.S. home sales in the three months ending August, up from 42.6% a year earlier. Concessions can include money toward closing costs, repairs or mortgage-rate buydowns.

Of course, housing markets vary significantly by location. If you're considering a move, look at the number of homes for sale in your target area, how long properties have been on the market and whether sellers are cutting prices or offering concessions.

Those factors can give you a better sense of how much negotiating power you may have. A seller who's had a home on the market for an extended period, for example, may be more willing to negotiate on price, closing costs or repairs. That could provide another way to reduce the cost of buying a home without focusing solely on mortgage rates.

What to watch next

Mortgage rates are always changing, and Federal Reserve decisions aren't the only factor that determines where they go. Rates are also influenced by Treasury yields, inflation expectations and broader conditions in the bond market.

Rather than trying to predict exactly when mortgage rates will peak or waiting for a specific average rate, determine what numbers would make a move work for you based on your unique situation.

If you're thinking about downsizing, calculate the purchase price, down payment and monthly housing cost you can comfortably afford. If you're hoping to refinance, determine the interest rate that would provide enough monthly savings to justify the closing costs.

Mortgage rates may eventually move lower, but homeowners with significant equity don't necessarily need to put their plans on hold until they do. The more useful question is whether the numbers work for your finances, your retirement income and the amount of flexibility you want to preserve.

Use the tool below to compare some of today's top mortgage offers:

Related Content:

• How Much Does It Costs to Refinance a Mortgage and Other Questions to Consider
• 5 Things You Can Negotiate When Buying a Home
• Think You Can Afford That House? Run These Numbers First

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

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

Polish your application

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

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

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

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

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

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

Leverage your network

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

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

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

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

Ace the interview

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

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

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

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

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Apparently, artificial intelligence is going to take our jobs.

All of them.

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

I'm not buying it.

We've seen this movie before

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

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

Now it is AI's turn.

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

So, should we start cleaning out our desks?

Not so fast

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

So maybe we're asking the wrong question.

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

That is where this gets interesting.

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

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

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

Not yet. And maybe that's the point.

The future may not belong to AI

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

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

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

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

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

What could AI do?

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

Productivity can create jobs, too

We tend to think about AI productivity backward.

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

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

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

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

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

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

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

Don't compete with AI — learn to manage it

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

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

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

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

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

Five ways to make yourself and your kids harder to replace

1. Stop hiding from AI.

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

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

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

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

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

That's where your future job may be hiding.

3. Double down on being human.

AI has information. You have judgment.

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

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

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

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

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

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

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

This is the part nobody wants to talk about.

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

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

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

Don't compete with the machine

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

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

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

Great.

Give it the 30%.

Then become indispensable at the other 70%.

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

Amazon Prime Big Deal Days 2026 kicked off today — but so did a bunch of competing sales events from Amazon's major rivals. So, if you're looking to save on any big-ticket tech purchases on your wish list, now is a great time to find a deal. The trick is figuring out exactly which retailer's sale you should be shopping.

Ultimately, you should check prices across multiple retailers for whatever you are buying to find the best deal. But, as you'll see below, you also need to read the product pages closely.

In some cases, for example, the bundle deals vary in exactly what you're getting in the bundle at each retailer. In other cases, opting for the lowest price might mean taking a risk by buying from a third-party seller. So read through to find out what you might be trading by choosing one retailer's deal over another.

Save $100 on Arlo Pro 6 Home Security Cameras

If you're looking for DIY home security upgrades, the Best Buy three-camera bundle is the best deal if you're starting from scratch. It comes with a charging station and four rechargeable batteries.

Neither Amazon nor Walmart offer a bundle like this. The deals I've listed below for comparison are for the cameras themselves. If you went with either of these options, you would still need to buy a charging station and any spare batteries you might want.

With that said, if you already have a couple of Arlo cameras and a charging station, the camera-only deals at Amazon could be a better deal for you. There, you're getting four cameras for $190 compared to just three cameras for a little over $180 at Walmart. That's a full extra camera for just $10 more.

• Get three Arlo Pro 6 cameras with charging station and four batteries for $199.99 at Best Buy
• Get four Arlo Pro 6 cameras for $189.99 at Amazon
• Get three Arlo Pro 6 cameras for $180.98 at Walmart

Save 36% on the Yale Assure Lock 2 Fingerprint Keypad

Boost home security without having to remember lock codes with the Yale Assure Lock 2. It comes with a fingerprint scanner so you can just scan and open. But there's still a keypad so you can provide custom codes for visitors.

Right now, the Walmart option is $2 cheaper than Best Buy for what appears to be the same device — albeit only in satin nickel. If you look closely at the listings, the models are also slightly different.

At Best Buy, the model is YRD420-F-WF1. At Walmart, it's listed as YRD430-F-WF1. In reviewing the product descriptions for both, I can't find any meaningful differences between them.

So it's going to come down to your style preference. You can find three different finishes at Best Buy, all on sale for the same $189 price. At Walmart, only the satin nickel finish is on sale.

• Get the Yale Assure Lock 2 Fingerprint Keypad for $187 at Walmart
• Get the Yale Assure Lock 2 Fingerprint Keypad for $189.99 at Best Buy
• Get the Yale Assure Lock 2 Fingerprint Keypad for $230 at Amazon

Save $110 on the Vantrue N4 Pro Dash Cam

A dash cam is one of the best investments you can make for your car. In an accident, the video evidence will be crucial in determining who is at fault. In a hit and run, you'll have video evidence to help the police find the driver so you can file a claim.

While the price tag on the Vantrue N4 Pro dash cam looks lowest at Walmart, there is an important catch. The kit doesn't come with the 128 GB memory card that you're getting when you buy it from Best Buy. There also doesn't appear to be an option to have it professionally installed, which you can do at Best Buy for an added fee.

The same applies to the Amazon deal. There's no memory card included and professional installation doesn't seem to be an option. It's also not as deeply discounted.

• Get the Vantru N4 Pro with a 128 GB memory card for $269.99 at Best Buy
• Get the Vantru N4 Pro without a memory card for $265.99 at Walmart
• Get the Vantru N4 Pro without a memory card for $299.99 at Amazon

Get $400 off on the Shark PowerDetect 2-in-1 Vacuum and Mop

At Best Buy, the Shark PowerDetect 2-in-1 vacuum and mop is on sale for $599.99 and the "comparable value" is listed at $999.99. That means you're saving $400. At Walmart, you'll pay about the same price, but it is sold by a third party seller rather than Walmart. With the price being equal, your best bet is to go for Best Buy where you can buy it directly from the retailer.

You'll notice that Amazon is listed at about $200 below the price offered at either Best Buy or Walmart. But that model is slightly different. It's an AV2800ZE compared to the RV2820ZE at Best Buy.

From the best I can gather, the AV refers to models packaged and sold exclusively by Amazon while the RV refers to the retail model sold directly by Shark and by certain retailers (like Best Buy).

What differences exist between a 2800ZE and a 2820ZE are unclear, but the $200 price difference suggests there's something different. For what it's worth, the AV2820ZE at Amazon is selling for over $680 and only available from third party sellers.

• Get Shark PowerDetect 2-in-1 for $599.99 at Best Buy
• Get Shark PowerDetect 2-in-1 for $599 at Walmart (from a third party seller)
• Get Shark PowerDetect 2-in-1 for $399.99 at Amazon (but confirm the features you want are there as the model number is different)

Get 54% off the Lenovo IdeaPad Slim 3 Chromebook

If you're looking for a budget-friendly yet reliable laptop, there are a lot of great deals right now, especially at Best Buy. This Lenovo IdeaPad Slim 3 Chromebook, for example, is on sale for just $189 at Best Buy. That's over half off of the comparable value of $419.

That's by far the best price across all three retailers and it's the only option that isn't sold by a third party seller.

• Get the Lenovo IdeaPad Slim 3 for $189 at Best Buy
• Get the Lenovo IdeaPad Slim 3 for $237.97 at Walmart (from a third party seller)
• Get the Lenovo IdeaPad Slim 3 with 512 GB of external storage for $332.49 at Amazon (from a third party seller)

Save $70 on the Apple AirPods Pro 3

Right now, you can save $70 on a new pair of Apple AirPod Pro 3 headphones at Amazon, Walmart and Best Buy. All three retailers ship and sell the popular headphones directly so you aren't dealing with a third party seller no matter where you buy.

If you know you're going to grab these, add them to your cart wherever you prefer to shop — or wait until you browse other deals and just add them to your order after you decide which sale you're shopping.

• Get Apple AirPods Pro 3 for $179 at Amazon
• Get Apple AirPods Pro 3 for $179 at Walmart
• Get Apple AirPods Pro 3 for $179.99 at Best Buy

Save 50% on the Beats Studio Pro

The story for Beats Studio Pro is similar to the AirPods. They are 50% off at all three retailers. And you are buying directly from the retailer in all three cases.

The one caveat: if you prefer the matte white style (or you aren't picky about color), that one is available for an even deeper discount at Walmart right now. You can get a pair there for just $119.

• Get Beats Studio Pro for as low as $119 at Walmart
• Get Beats Studio Pro for $149.95 at Amazon
• Get Beats Studio Pro for $149.99 at Best Buy

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

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

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

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

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

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

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

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

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

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

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

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

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

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

2. Stress-test your retirement plan now

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

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

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

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

3. Stay connected

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

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

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

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

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

The iPhone 18 Pro is here, and it's a stellar upgrade. The new phone delivers 24 hours of battery life with regular daily use, so you're not tethered to your charger.

Do you love taking pictures? The variable aperture and pro controls allow you to capture more creative shots. Overall, the phone offers excellent battery and camera features, making it worth a closer look.

If you're looking to upgrade from your current model, you're in luck, as all the major carriers offer it for free. But "free" comes with strings attached, typically requiring an eligible plan and long-term commitment to receive the full promotional credits. However, is that the right play? I'll break down why getting a free phone from a major carrier isn't really free, and a cost-saving alternative.

Your phone is never free through major carriers

Major carriers like AT&T, T-Mobile and Verizon make it easy to transfer service or upgrade devices with little to no out-of-pocket expenses. The problem? You have to sign up for a more expensive plan to earn the incentive.

T-Mobile offers the iPhone 18 Pro for free with the Experience Beyond 2.0 plan. This plan is $100 for one line, $170 for two. If you're 55+, you qualify for T-Mobile's senior plans, lowering the costs to $85 for one line or $130 for two.

To be fair, this plan packs ample perks, such as a five-year price-lock guarantee, free ad-supported plans for Hulu and Netflix and unlimited premium data. But if you don't need many of those perks, you'll overpay.

Because the other aspect of earning a "free" phone is that you must keep service for 36 months. For a free iPhone 18 Pro from T-Mobile, your out-of-pocket costs for three years on the plan alone will be…

• $3,600 for a single-line subscriber
• $6,120 for two lines
• $3,060 for a 55+ plan for one line
• $4,680 for two 55+ plans

Sounds expensive? Because it is. Verizon offers a free iPhone 18 Pro with its Unlimited Plus Plan for $80 per month. Meanwhile, AT&T offers the best iPhone 18 Pro deal with the AT&T Value 2.0 plan for $50.

Now, let's compare another option.

Own the phone instead of a plan owning you

Another option is to purchase the iPhone 18 Pro outright. This is a pretty penny upfront, as the base model starts at $1,199. Yet, once you buy the phone, you can use whichever cell service you want, without locking into a multi-year commitment.

If you want a bare-bones cell phone plan with unlimited texting and calling and some high-speed data, you don't have to settle for more expensive plans. Instead, you can use a service like Mint Mobile, where plans start at $15 per month.

Striking a balance between perks and value

Most people don't need the most expensive plan cell phone providers offer, but you want a steady baseline of perks.

Here's a breakdown of the basic plan each carrier offers, its cost, and how much it would be to purchase the iPhone 18 Pro outright and use these plans for the same three years:

Therefore, buying your iPhone 18 Pro outright not only gives you more flexibility to choose a plan that fits your needs, but it could also save you hundreds of dollars over three years.

How trade-ins factor into the math

You'll likely be upgrading from an older phone. Trading in an older device lowers the upfront cost of purchasing an iPhone 18 Pro, as major carriers provide monthly credits to offset some or all of the costs.

Keep in mind, though, that carriers typically spread these credits over a set period, often 24 or 36 months. If you cancel service before this time, you forfeit any remaining credits and must pay off the device balance.

One smart alternative is to work directly with Apple regarding your trade-in. This approach gives you an immediate discount and lets you choose your carrier and plan.

Ultimately, if you haven't upgraded your phone in a while and want better battery life, the iPhone 18 Pro is a smart option. Instead of getting it for "free" through your carrier, you can save thousands of dollars by purchasing it, then choosing a carrier and plan that fits your needs.

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If you are considering purchasing a home warranty, you might want to wait until after you've read this. Today's story offers information that can help you avoid getting ripped off.

First, let's clear up a common source of confusion: A home warranty is a service contract, not an insurance policy like your homeowners insurance. It is supposed to help pay to repair or replace major home systems and appliances that break down from normal wear and tear.

That's what the ads of home warranty firms say, and there are 114 such firms in the U.S. The largest is American Home Shield. Check out this NBC News video to get an idea of what many consumers are dealing with.

One of the ways companies that offer these contracts make oodles of money is by promising to be there for you, collecting your monthly coverage payments and then coming up with one reason after another to deny claims when you need to actually use the services they've sold you.

They operate very much like after-market extended auto warranties, an industry whose motto should be, "Oh, so you drove your car after paying for our extended warranty? Who said you could do that?"

You have to give AHS credit for creative advertising — the fortune-teller ads with Saturday Night Live alum Rachel Dratch are fun. Those ads clearly state, "If AHS can't fix your covered item, they'll replace it, no matter its age." You can watch one of the ads here, which is featured on AHS' YouTube channel.

Vonda and Rick's experience: Delay after delay plus incompetence

In our office, we didn't need to look at a calendar to know this summer — the hottest ever recorded in the U.S. — was over. Something, or, to be more precise, the lack of something, was the clue: Not as many complaints from frustrated people calling about their home warranty companies refusing to repair or replace their AC units.

The home warranty is the very definition of a bait-and-switch, with advertising campaigns making the promise that, with various wording and for a monthly fee, the company is your safety net should something happen to a major appliance or your heating and air conditioning system.

A safety net is what longtime Southern California readers Vonda and Rick Perales expected from American Home Shield. "We had been subscribers for over 20 years," Vonda said. "As the company promptly repaired little things, like a dishwasher, we felt certain they would quickly remedy our AC system that had failed. Mr. Beaver, we were so disappointed."

Their discovery of just how much AHS cared about their customers was set out in this summary of a chronology that is the very definition of gross incompetence — at the very least:

• June 18. AC stopped working. Rick contacts AHS.
• June 22. Contractor arrives but says he can't access the unit because it is on a two-story roof with Spanish tile. Later that day, a different contractor arrives and offers the same reason for not accessing the unit on the roof.
• June 23. A third contractor says the AC is too old to fix and makes a request to AHS to replace the entire unit. Only a replacement compressor and fan motor are authorized.

Just a reminder that the ads we mentioned earlier say, "If AHS can't fix your covered item, they'll replace it, no matter its age."

Rick said, "Because our unit was 33 years old, the replacement parts drew too much current, leading to burned wires and the AC failing repeatedly — burning wires is a true fire risk.

"AHS sent out the same contractors, who again could not access the roof, then told us to find our own contractor. They refused to accept responsibility for the delays."

Fed up with the largest home warranty company in the U.S. refusing to honor its contractual commitments — and the statement in its ads — the couple contacted me.

I emailed an AHS media contact, asking her to help my readers. There was no response to my first email, so I sent a second, and this one prompted action, which eventually resulted in a $4,600 buyout of the Peraleses' contract.

Collateral damage

Rick reported that as of July 29, he had made 52 calls to AHS, beginning in June, trying to get contractors to repair or replace their AC. AHS required them to pay an $800 bill for Freon, as it was not covered in their policy. That would have been reasonable had AHS actually repaired their AC. Instead, it was money down the drain.

Vonda wrote to me, "We had to purchase an AC window unit at a cost of $599 and have spent $1,205 on hotel rooms due to the excessive heat. We have paid for this policy for the last 20-plus years. I do not know where we would have wound up without your help. Thank you, Mr. Beaver."

My advice

If you are seriously considering signing up for a home warranty, search the Better Business Bureau (BBB) website for reviews and complaints.

I am not only pointing out AHS, which has a BBB rating of 1.28 out of 5 stars (based on nearly 6,000 customer reviews), but the complaints about many of these companies should make you run the other way!

I have looked for a home warranty company to recommend, but I have not found one.

What can you do instead of buying a home warranty? (Again, I'm not talking about homeowners insurance — that is legit). Instead of a home warranty, consider opening a home maintenance savings account so you can budget for the repairs that every home will require at some point.

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

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

In a Berkshire Hathaway shareholder letter, Warren Buffett once advised, "Leave the children enough so that they can do anything but not enough that they can do nothing."

Many parents share this sentiment. A recent survey from Kiplinger and Morning Consult found that parents hope their adult children use an inheritance to improve their lives (22%), not waste it (20%).

Once it's handed over, though, an inheritance can go toward things you'd never condone, or the windfall can shift a child's behavior in unhealthy ways in the long run.

Take David and Kathy, a hypothetical couple who gave their 20-something twins $100,000 each. Instead of using it to buy a house or invest wisely, one twin quit a steady job to day-trade, while the other used it to buy a luxury car that would depreciate over time. What was meant as a gift to open up the future instead became a setback or wasted opportunity.

As Joy Slabaugh, a certified financial planner (CFP) and founder of the Wealth Alignment Institute, explains: "Money can unintentionally interfere with motivation, identity, autonomy or family relationships."

Fortunately, avoiding that outcome doesn't have to change your desire to give or how much, just the way you give it. This holds true for parents as well as grandparents.

Why early inheritances can backfire

An early inheritance is a chance to help adult children while you're still around to see them enjoy it. While more adult children would rather get financial help now (45%) than a larger inheritance later, only 14% of parents say they'd prefer to give now, according to Kiplinger's survey.

Part of that hesitation might stem from research such as a 2026 study that found 42% of heirs spend their entire inheritance within a single year of receiving it. Going from having little to suddenly having a lot can trigger impulsive spending. Depending on the amount, it can also dull the motivation to work hard or invest.

Psychological factors are at play, too. Heirs can experience what researchers call "mortality salience" — the subconscious discomfort of handling "death money," which can prompt rapid spending as a coping mechanism.

Unearned money also tends to be treated more casually than a paycheck. Behavioral economists call this the "house money effect." People spend windfalls, gifts and winnings more freely than money they worked for, as though it were the casino's money rather than their own.

Control of an early inheritance with incentive trusts

For parents who want to give each adult child an early inheritance without fear that it will become a slush fund to live on, one possible solution is an incentive trust.

An incentive trust releases money only when your child meets certain conditions you've set, rather than handing everything over at once. Think of it as a gift with instructions attached. You, the parent, write the rules, while a trustee checks that each one is met before releasing any money. Your child receives a payout only after clearing the bar you set.

If David and Kathy had used an incentive trust, they could have nipped the twins' spendthrift behavior in the bud. Some common conditions they might have required are: a college degree; matching income from a job; or releasing money for a specific step such as buying a first home. Other requirements act as guardrails, such as pausing payouts if a child struggles with substance abuse.

Jon Lapp, a CFP and founder of Haven Financial Advisors, suggests, "Reasonable provisions might support college or vocational training, match retirement savings, help purchase a first home, fund a credible business plan, or give an independent trustee discretion to make staged distributions as the beneficiary demonstrates financial responsibility."

Ultimately, the purpose of an incentive trust is to encourage a desired action or prevent mismanagement. "I would consider this type of trust when the inheritance is large relative to the child's experience, or when there are specific concerns involving addiction, impulsive spending, creditors or an unstable relationship," Lapp says.

What to know before setting up an incentive trust

While an incentive trust sounds good on paper, it can turn into a problem in practice without careful planning.

For instance, Lapp says, "Conditions based on earning a particular salary, entering a certain profession, getting married or having children can become unfair very quickly. Even an earned-income match can penalize a teacher, caregiver, entrepreneur or disabled beneficiary."

Rigid rules can also become outdated, fail to account for unexpected life events such as illness or injury, and place trustees in difficult emotional positions. "When parents use wealth to protect, control, rescue or reward their children, the financial gift can become emotionally complicated for everyone involved," says Slabaugh.

When weighing how best to give an early inheritance, she recommends first asking the right question: "Rather than asking, 'How do we keep our kids from wasting the money?' I encourage families to ask, 'What do we want this wealth to make possible for our children, and what do we want it to teach or reinforce?' "

Other ways to help sooner rather than later

If you plan to give as much as a six-figure sum to your adult children, Lapp advises starting small. "Smaller gifts over several years can provide a useful test of how the child handles money," he says.

Other options Lapp offers include helping fund a Roth IRA when the child has eligible earned income, using a parent- or grandparent-controlled 529 account, paying tuition or medical costs directly to the provider and structuring housing help as a formal loan rather than an informal blank check. He points out that direct tuition and medical payments can also qualify for specific federal gift-tax exclusions when handled correctly.

When the money supports positive choices a child has already made, it can set healthier expectations. That's what parents want most. As Lapp puts it, "The primary goal is to help the next generation, without enabling poor financial management, or creating the expectation that they will always be 'bailed out' by mom and dad."

More Trillion Dollar Talk

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It starts at the very beginning. You hold your baby in your arms and feel a deep, primal desire to give them everything they need. At some point, though, it's time to tighten the purse strings and help them make responsible decisions.

Giving your kids everything they want can cause more problems than it solves, not only during their formative years, but also when they're well into adulthood. There can be a fine line between financially helping adult children and putting them into a situation in which they're financially reliant upon you.

The 'too-nice neighborhood' problem

According to a recent survey from mortgage lender Veterans United Home Loans, more than half of parents of adult children are willing to help their kids purchase a home. Sometimes that's helping with a down payment or closing costs. Other times, it's cosigning a loan.

Problems quickly arise when parents help kids buy houses they can't afford to maintain on their own. Whether it's a monthly payment that burdens the budget or homeowners association (HOA) fees that feel excessive, helping your kids buy a house that they can't afford can be more of a curse than a blessing.

Instead, help them buy within their means or match their down payment to ensure they have some financial skin in the game.

Avoid lifestyle inflation by proxy

If you paid for a somewhat luxurious life for your kids or took extravagant vacations when they were younger (and continue to do so into their adult years), your kids might feel that a certain lifestyle is the norm and come to expect it.

Trying to keep up with a lifestyle once provided by financially established parents can rapidly become problematic.

Covering rent, vacations or luxury expenses tells your kids that their current lifestyle is normal even when it's not sustainable. Once support stops, the adjustment can be brutal, and the kids might try to scramble to afford the same niceties to which they've become accustomed.

This isn't to say that you can't occasionally splurge on a fun family vacation or other luxury, but rather to suggest that boundaries are clear that such a splurge isn't to be expected.

You've probably learned how to deal with lifestyle inflation, as many successful people have. Don't allow it to become your kids' problem by proxy.

Gifts should build habits, not dependence

You can be generous with your adult kids without risking bigger problems. Offer to pay for tools that can create momentum so they can stand on their own, such as professional certifications, seed money for a business or contributions to a retirement account.

The goal is empowerment, not entitlement. If you can help set them up for success, do it with clear expectations that you thoroughly discuss.

Ensure the "help" you provide is actually helpful — a certification in a career your child has no interest in will likely be a waste of money, as would seed money for a business your child wouldn't be able to keep afloat.

Talk openly about the trade-offs

If you gift something to adult kids, explain what the gift does and doesn't cover. If you buy a home, clarify who handles taxes and maintenance. If you pay their tuition, make clear it's a one-time payment. Clarity today prevents conflict tomorrow.

Examine the complications and relational strain that can come with changing your role with your child from "parent" to "lender" and decide if it's worth it. If you expect your child to pay you back, have a clear agreement on the terms so there's no ambiguity in the payback of the funds.

Protect your own financial health

Parents often dip into retirement savings to help adult children, but that kindness can jeopardize long-term stability. It can be a bad idea to earmark money to fund your adult child's lifestyle when you might need that money for your retirement.

Remember: Your kids can borrow money for a house or an education, but you can't borrow your way through retirement. Being financially ill-prepared for retirement because you're helping your kids can backfire on everyone involved if they have to then step in to help you survive.

Helping your adult kids in a productive way can be beneficial, but putting your own finances at risk can damage your financial health. Instead, choose when you want to help, and be clear in your intentions of wanting to help your kids thrive in adulthood on their own.

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

Welcome to Kiplinger's My First $1 Million series, in which we hear from people who have made $1 million.

They're sharing how they did it and what they're doing with it. This time, we hear from a married 60-year-old transportation truck driver based in Jordan, Minnesota. He reports that he grew up north of the Twin Cities and currently pulls in $130,000 a year.

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?

I started investing in a 401(k) at 26 years old. Followed advice from wife's grandfather.

My mom was a single parent and lived her whole life paycheck-to-paycheck. Even in retirement for her, she had to go back to work to make ends meet.

I was determined I did not want that.

What are you doing with the money?

It's all being managed by Fidelity in their proprietary investment portfolios.

We do plan on at least one family trip a year with our kids, but that's not being paid with the investment accounts, but rather our regular income.

The Fun Stuff

Did you do anything to celebrate?

Not really, but someday we will for our anniversary. I used to tease my wife we were due for a board meeting. I would take her out to dinner every time $100,000 was made.

She never knew what I was talking about until I had over a million saved up.

What is the best part of making $1 million?

The security of believing you are going to be OK and don't have to worry about money if you live within your means the rest of your life and just live off of the money your money makes.

Did your life change?

No, not really.

Does anyone know you're a millionaire?

Fidelity and my kids know, but outside of that, I just tell people I'm set for retirement and that I won't have to work anymore after I feel I'm done.

Any plans to retire early?

I was let go from my previous job after a part of the company I worked for closed that department. Not planning on retiring until 65 because I don't like the idea of paying for my health insurance. And I still like working and being around people.

Looking Back

Anything you would do differently?

I took $50,000 out of my 401(k) at about 40 years old to buy a business. Three years later, the business was broke, and we were going to be getting foreclosed on our home.

Business got sold, and we did a short sale on our house.

My balance on the 401(k) was probably around $125,000 before I took that money out.

What advice would you give to your younger self?

Automatic withdrawal is the best thing. You don't see it, you don't spend it.

My first suggestion was going to be to not splurge on toys, but I have always been able to save some money up to buy old cars, motorcycles and snowmobiles and pay cash for them, and I consider them an investment as well.

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

We did a Learn the Stock Market class through local community education related to investing, but I did read a lot of MarketWatch and Yahoo Finance and have a Motley Fool membership, so I was always reading something and had a decent idea as to what was going on with the market.

Did you work with a financial adviser?

Not until I was let go from my previous work. I have had an account with Fidelity for the last 15 years and was investing everything on my own until I was let go.

Then I signed up for Fidelity's program, and they have been managing my investments for the last six months.

Did anyone help you early on?

My wife's grandfather showed me how to diversify my accounts.

Looking Ahead

Plans for your next $1 million?

I'm going to keep working and starting all over again with a new 401(k) and an HSA account. I doubt I will get there on the new job's 401(k), but if I keep working to 65, the Fidelity account alone, with an average return, will be $1.7 million.

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

Starting at a younger age gives you a head start. And the hardest dollars saved are the first few. Compound interest is your best friend.

Do you have an estate plan?

I have a living will, but we have not sat down and divided up every asset yet. That's for sure on the to-do list this year.

What do you wish you'd known …

When you first started saving? Invest your first amount of money to get your company match, and then after that invest as much as you can in an after-tax Roth account.