Right now, I'm watching three of my closest friends' families fall apart in slow motion.

The circumstances are different, but the arguments sound remarkably similar:

"Mom already gave him money for years."

"Dad told me something completely different."

"Why did she get more?"

"Who gets the house?"

"Was Dad even capable of making that decision?"

What I'm watching isn't unusual. Inheritance can bring out feelings that have been sitting there for years. In a 2025 Trust and Will survey, 38% of Americans who had shared their estate plans with family said those conversations led to disagreements.

Caregiving responsibilities among adult children aren't always shared equally, which further complicates inheritance decisions. One child lives 10 minutes away. The others live three states away. At first, she's helping Mom out. Then she's sitting through medical appointments, figuring out what the doctor said and what needs to happen next, managing medications and emergencies, handling bills and perhaps cutting back at work.

Business Insider (paywall) reports that daughters make up roughly 61% of family caregivers overall, and nearly 70% of those provide round-the-clock care. The financial toll even has a name: The "daughter tax."

It can mean reduced work hours, missed promotions, paused retirement contributions and more than $7,000 a year, on average, in out-of-pocket caregiving expenses, according to AARP. Over time, the hit from lost wages and retirement savings can approach $295,000.

Then Mom dies and the will says everything gets split equally.

The daughter is thinking, "I gave up years of my life and spent my own money taking care of Mom." Her siblings are thinking, "Mom said we split everything equally."

Was she supposed to be reimbursed? Compensated? Did Mom intend to leave her more?

Parents: Your money should take care of you

Before you start mentally dividing your assets among your kids, ask yourself: What if I need that money?

According to Kiplinger's Trillion Dollar Talk survey, conducted in partnership with Morning Consult, roughly two in five families have never discussed inheritance plans.

Of course, parents aren't obligated to tell their adult children how much they have or what they're going to inherit. But there's another conversation I think you really should have: What money will be used to fund my long-term care should it be needed?

What if you or your spouse require years of in-home care, assisted living or memory care? What if you need to retrofit the house so you can stay there? Which assets will pay for it, and who manages the money if you can't?

The inheritance your kids may have in their heads today could look very different after five or 10 years of care. And if you never talk about that possibility, you're setting everyone up for assumptions, surprises and, yes, conflicts.

My friend Beth Pinsker, CFP and MarketWatch columnist, wrote My Mother's Money: A Guide to Financial Caregiving after managing her own mother's finances and care. At one point, her mother's caregiving costs reached about $12,000 a month.

There may be much less inheritance after you pay for your own care. There may be none. That's ok. The inheritance is what remains after you take care of yourselves.

That's what I'd talk about with the kids: Here's how we intend to pay for our care. Here's who will handle the finances if we can't. Here's what we may need from you — and what we don't. That way, if the inheritance changes dramatically, nobody is left wondering what happened to Mom and Dad's money.

Equal isn't always fair

Parents often assume an equal split is safest. Two children? Fifty-fifty. Three? One third each.

But maybe you gave one child $100,000 toward a house. Was that simply a gift or an advance on an inheritance? Maybe another child has significant health or financial needs. Maybe one wants the family house while the others want cash.

If you decide on an unequal split, understand how it might be heard. "Sarah needs more help" can easily become, "Mom cares about Sarah more."

You don't need to disclose your net worth or give everyone a preview of the will. But if you're making a decision that could surprise one of your kids, tell them why.

Here are the steps I advise anyone in this situation to take:

1. Head off the big fight now

Keep your will, trust and beneficiary designations current. Be clear whether a substantial lifetime gift is simply a gift or something you expect to count against an inheritance.

If one child is spending significant money on your care, decide whether those expenses will be reimbursed.

Think carefully about whom you name as executor or trustee, especially if that person is also an heir. And ask who actually wants the house, jewelry, furniture or Dad's watch.

Don't assume you know. The point isn't to make everyone happy with every decision. It's to make your intentions clear while you can.

2. Bring in a neutral voice

This is also where a good fee-only financial adviser can do much more than manage investments. There are several qualified advisers in my Wealthramp network who are helping families navigate this situation.

The right adviser can model what several years of care could do to your finances, put numbers around different inheritance choices, look at whether one child can realistically afford to keep the family house, and help you think through these decisions without being emotionally involved in them.

Your adviser isn't your estate attorney. The adviser helps you work through the financial choices; the attorney makes sure those choices are properly documented. Ideally, they work together.

3. While you still can, talk about it

I keep coming back to my three friends. In these families, only one parent is still alive, and even then, it's too late for the conversation I'm talking about. The decisions have been made, and the lines have been drawn.

So to my friends who are parents with adult kids: Have these conversations now. Don't leave your kids to guess what you meant later.

And to my friends who are already in the middle of this, I hope you can find your way through it without losing each other in the process.

Related Content

• The Caregiver Penalty: What Women Need to Know Before Hitting Pause on Their Career
• Caregiving Is a Stealth Retirement Expense for Women: I Should Know
• How to Leave Different Amounts to Adult Children Without Causing a Rift
• The Three Biggest Fears Keeping Retirees Up at Night
• I Didn't Think I Needed an Estate Plan Until This Happened

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

It happens daily. Someone joins a local social media group asking for recommendations for an estate planning attorney. In a matter of minutes, the comments start coming.

"You have a will — that's enough."

"You don't need an attorney."

"Just get a Lady Bird deed."

While most of the comments are probably coming from a good place, turning to social media for estate planning guidance overlooks one important fact: No two estate plans are the same. A strategy that worked well for one family may be inappropriate for another because everyone's goals, dynamics and circumstances are different.

Before taking advice from a fellow social media user, keep in mind that the most valuable part of estate planning isn't choosing the right documents — it's asking the right questions and seeking guidance from a licensed professional.

While there's a lot of misinformation on social media, the estate planning advice you'll get there isn't necessarily wrong — it might just be the wrong fit for your plan.

Consequences of poor estate planning

For example, let's consider a mother who signs a Lady Bird deed leaving her home equally to her children. This estate planning tool allows homeowners to transfer their property to chosen beneficiaries upon their death, maintaining complete control and ownership of the home while they're still living.

Unfortunately, one child passes before her, leaving their children behind. As the deed was never updated, it's unclear whether the surviving sibling or the grandchildren will get the deceased child's share. That decision could become an expensive battle that gets hashed out in court.

In many cases, parents know what they want to happen but don't update their estate plan to reflect those wishes as life changes. If plans aren't updated regularly, or properly drafted, the way assets are distributed may not align with what the owners intended.

Start by asking the right questions

The estate planning process doesn't begin with a document, it begins with asking the right questions.

To better understand your family, an estate planning attorney might ask questions such as:

• What do you want your plan to accomplish?
• If one of your children dies before you, who do you want to receive that child's share?
• Do any beneficiaries have a disability or receive government benefits?
• Could a beneficiary's divorce or financial difficulties affect an inheritance?
• Have there been any major life changes, such as marriages, divorces, births or deaths, since your plan was created?

The answers you give will help determine which estate planning tools are most appropriate.

Social media strategy

The next time someone online recommends an estate planning strategy, keep in mind that no one on social media knows your family's dynamics.

An estate plan that's worked well for someone else doesn't make it the right plan for you.

An estate planning attorney asks the questions that reveal what you want your plan to accomplish.

Simply having legal documents in place isn't enough, especially when they don't reflect your current wishes.

Once your plan is drafted, it should be reviewed periodically to ensure it aligns with your current circumstances.

Related Content

• 10 Things You Should Know About Estate Planning
• I Have Two Homes, But Three Kids. Can My Estate Plan Be Fair?
• An Overlooked Way to Pass Down Your Home Without Probate: The Life Estate
• Estate Planning in Six Manageable Steps
• Don't Disinherit Your Grandchildren: The Hidden Risks of Retirement Account Beneficiary Forms

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.

Lisbon is undergoing a transformation from one of Europe's popular tourist destinations into a growing center for wealth, technology investment and global mobility.

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

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

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

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

'Europe's Silicon Valley'

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

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

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

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

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

Lisbon's emergence as a center for wealth mobility

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

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

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

A beneficial fiscal environment

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

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

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

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

Rising property values and a favorable lifestyle

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

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

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

Burgeoning inward investment points to strong confidence

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

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

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

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

Much more than just a financially beneficial option

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

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

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

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

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

Related Content

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• Want to Get in on the Golden Visa Trend? Here's How
• Considerations for Americans Who Want to Move to Europe
• 5 European Countries Welcoming US Expats
• Where to Retire: Living in Portugal as a US Retiree

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

Sometimes it seems people spend more time researching what smartphone to buy than how to strategize Social Security in retirement. Many don't realize that starting Social Security benefits too early or too late can cost you considerably.

How do people approach Social Security strategy?

Nearly one third of people claim Social Security benefits as soon as they turn 62, according to the Congressional Research Service. When they do that, they permanently reduce the dollar amount of their Social Security checks by 30%.

On the surface, this seems short-sighted. After all, a few years of being patient can get you the entire benefit you're entitled to, and if you wait a few years beyond that, you can even increase your checks by 8% for every year you wait until you turn 70.

While it's definitely true that you leave Social Security money on the table each month when you claim early, sometimes there are extenuating circumstances that make it a sensible decision.

Involuntary retirement is all too common. A person in their late 50s or early 60s, working a good job and on track for their retirement savings goal, suddenly loses their job. Paychecks stop, and finding comparable employment at that age is undeniably difficult.

In cases like that, people often need to claim Social Security early for financial survival.

Other reasons to file early include receiving a serious diagnosis that may cut your life short; if you're unlikely to live for 20 more years, it might make more sense to start benefits now so you can begin using that money immediately.

On the other end of the spectrum, about 10% of people wait until age 70 to claim Social Security, gaining them an additional 8% in their checks for each of the three years they delayed their benefits.

That's a tempting proposition. After all, where else can you get a guaranteed 8% boost in today's market? That's potentially a large amount of additional money you will collect, especially if you live into your 90s.

Market conditions can also influence early claiming. If the market drops 40% right as you retire, your $500,000 nest egg is suddenly reduced to $300,000. That can understandably cause you to panic and jump at the quickest way to make up for that lost money.

However, in doing so, you risk the market recovering before you actually need to tap into Social Security to survive. If the market recovers a few days after it falls, but you've already activated Social Security, the extra income you'd planned on by delaying benefits will be permanently inaccessible.

How should you strategize your Social Security benefits?

Many people think Social Security decisions are just about simple timing: Start benefits early and risk getting less lifetime money, or start them late and risk passing away before the extra income makes up for the money you didn't get while you were delaying benefits.

This is known as the "break-even analysis." How long do you need to live to make the shorter collection of larger checks net you more money than the longer collection of smaller checks? That analysis needs to consider much more than just the simple math of lifetime benefit calculation.

For example, every year, Social Security adjusts its benefit checks to account for inflation in what's called the Cost of Living Adjustment (COLA). If you get $1,400 a month in 2026 after starting benefits at age 62 and the COLA for 2026 is 3%, you will get $1,442 a month next year. If you delayed benefits until 70, you'd be making $2,480 a month in 2026, and the 3% COLA would increase that to $2,554 a month.

Those increases cause your benefits to compound dramatically over decades of retirement.

You also need to take taxation into account. Retirement accounts such as IRAs have required minimum distributions (RMDs). The government requires you to take a certain percentage of your retirement account as income each year after you turn 73. That income is taxable, which means the larger your RMD, the larger your tax bill will be.

In some cases, you can reduce your lifetime taxation by delaying Social Security benefits and living on your retirement accounts until you turn 70, as this means your RMDs will be smaller.

Seek professional guidance

This article is just a small taste of the often bewildering complexity of properly strategizing Social Security. Making this decision on your own is risky and could cost you lifetime benefit amounts, unnecessary taxation or both. It's important to work with a financial adviser to help chart the best path forward for your unique situation.

Related Content

• The Average Social Security Check by Age
• Five Reasons You Should Take Social Security At 62 (and Five Reasons You Should Wait)
• Should You Claim Social Security Early or Late? A Financial Adviser Weighs In
• Four Social Security Myths Debunked
• 4 Steps to Take if You Lose Your Job Near Retirement

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

My wife and I don't take the same vitamins. We don't follow the same workout plan. We don't have the same diet. (The last one is on me. I should eat healthier food.) Think of retirement planning for women and men as a daily vitamin. They should be different by design.

This can apply to both accumulation for retirement and retirement income planning. For today's purposes, we are going to focus on retirement income planning, where our practice, Exit 59 Advisory (I'm the president), is focused.

Below are four areas where planning for women and men should vary and a few things you can do to prepare.

Longevity planning

The obvious fact that women live longer than men is the first domino that falls and creates many of the less obvious dominos falling in its wake.

If you're going to live a longer life, lifetime income sources are more valuable. Receiving $10,000 per month is more valuable if you receive that amount for 30 years instead of 25. (Duh.) So, what can you do about it?

• Consider delaying claiming Social Security or, if you're married, having your spouse delay claiming. That 8% delayed retirement credit you get paid to wait becomes more valuable the longer you collect the benefit.
• Pension options should be considered in the context of a longer life expectancy: Pension formulas are typically based on unisex mortality tables, so your pension benefit does not change because you're a woman. This makes lump sums less valuable typically than lifetime income streams. And single life annuities, all else being equal, are more advisable than joint options that may make more sense for men.
• Consider other lifetime income sources: A private annuity will factor in the fact that you are a woman. However, if you're married, it may make sense to consider joint income annuities. If you just find comfort in knowing you'll have basic expenses covered for a long life, it's worth getting a quote from an insurance agent.

Asset allocation vs asset purpose

Because women live longer, they should have more of their assets in equities as a hedge. However, this increases sequence of returns risk — the risk that the market drops significantly as you start withdrawing.

It also requires riding an investment roller coaster that is twice as scary when you don't have a paycheck.

The concept of asset purpose is similar to a bucketing strategy in that it will allow you to take more risk with buckets of money that you won't need for a long time. You can carve out a portion of your assets for end-of-life and long-term care. Those funds can be aggressively invested, and likely the risk endured, because you probably won't need them for a longer number of years.

Things like travel funds, an expense that spikes early in retirement, would be more conservative. Expenses needed within two years in this strategy would be kept in cash to account for the possibility of a significant market downturn.

In the aggregate, you would end up with a higher equity allocation over time as you spend down the more conservative buckets early in retirement.

Long-term care

I always used to joke in the continuing education sessions I taught on this topic that men who go into a nursing home hate it and then die. Women go in, make friends and live forever. I was only sort of kidding.

Women are not only more likely to need long-term care, since they don't receive the reciprocal care from their husband who has already died, but they tend to need care for about twice as long as their male counterparts. Not fair, I know.

When we build out financial plans, the long-term care expense we stress-test is about twice as high for women as it is for men.

If you don't have a plan, or want to stress-test it yourself, you can access a free version of the planning software we use.

Estate planning that actually matters for you

It is notoriously difficult to get male clients to tackle estate planning. I suspect that's because it's something solely for the benefit of someone else.

If you are a married woman, you should feel more confident that you are doing estate planning for you — and if you don't, things are going to get messy.

I typically encourage our clients to review beneficiary designations annually and a written estate plan (wills, trusts, etc.) every five years or if something material has changed.

This will almost never feel like a priority until something bad has happened. It pays to spray for weeds before they take over your lawn. Trust me: I know.

I really am just scratching the surface on this topic and plan to come back to it in future columns.

Notably not mentioned is the impact of being a caregiver and the outsized impact and obligation this comes with for women.

In this context, it can take you away from your peak earning years. That impacts Social Security, pensions and investment accumulation, not to mention the reality that mental and physical strain can make it easy to take your eye off the ball (your own finances). The former is hard to prevent; the latter is also difficult, but preventable.

This all seems very unfair to women.

Here's the silver lining and forgive the generalization: Women are also better planners.

Related Content

• How Your Kids' Low Tax Bracket Can Wipe Out Your Capital Gains
• How the Tax Torpedo Targets Wealthy Retirees (and How You Can Step Out of Its Path)
• If You're a Wealthy Retiree Who Ignores These 3 Retirement To-Dos, You're Courting Significant Financial Risk
• 5 Mistakes to Avoid in the 5 Years Before You Retire, From a Financial Planner
• For High-Net-Worth Retirees, Tax Planning and Estate Planning Are the Main Events

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

A family vacation home isn't just an asset on a balance sheet. It's where holidays happen, where grandchildren learn to fish or ski, and where family traditions and values get passed down almost as much as the property itself.

That is exactly why a vacation home deserves its own planning conversation — one that is fully integrated into the rest of your estate plan. Without a plan, a home that was meant to bring a family together can end up doing the opposite.

Why a vacation home is different from other assets

A primary residence often has a relatively straightforward path: It's sold or one person inherits. A vacation home can be more complicated because several family members may expect to share it. And "sharing" a single piece of property among siblings, cousins or in-laws is rarely simple once the original owners are gone.

A few things make vacation homes uniquely tricky to plan for:

• Shared but unequal use. One sibling may visit every summer; another may live across the country and rarely use it. Yet costs and decisions are often expected to be split evenly.
• Ongoing expenses. Property taxes, insurance, maintenance and repairs don't pause when the owners pass away, and often the children were not aware of how much it cost to maintain the property. Someone has to keep paying, and disagreements over who pays what — and how much — can quickly become a source of family conflict. Sharing actual numbers related to expenses is essential to helping the next generation make sound decisions.
• Out-of-state or out-of-country property. A vacation home located in a different state or country from the owner's primary residence can create additional estate administration, probate or tax considerations, depending on the jurisdiction and how the property is owned.
• Sentimental value vs financial value. Family members don't always agree on whether the goal should be to keep the property in the family at almost any cost or to treat it as another asset that can be divided or sold.

What can go wrong without a plan

Families that don't address the vacation home specifically tend to run into the same handful of issues:

• Co-owners disagree about selling, renting or remodeling, with no mechanism to break a tie
• One branch of the family uses the property heavily while another resents paying a portion of the upkeep
• Ownership becomes diluted over generations as the property passes to more heirs, each owning a smaller fractional share, until decision-making becomes unworkable
• One child is left managing the property and bearing the costs, without authority to make important decisions or sell the home if necessary

The common thread is that simply deciding who gets the house isn't enough. A good plan also needs to address how the house will be owned, used, paid for and, eventually, sold or transferred.

Planning tools families can consider

There is no single "right" answer. The appropriate structure depends on your family's goals, the number of heirs involved and how long you hope to keep the property in the family. That said, a few tools come up often in this kind of planning:

• A trust. Placing the property in a revocable living trust can help it pass to heirs without going through probate and allows the original owners to set clear terms for how the property should be used, maintained or eventually sold.
• An LLC or family entity. Some families place the vacation home into a limited liability company or family limited partnership, with each heir holding a membership share rather than a direct deed interest. A manager can be appointed with primary decision-making authority. This can make it easier to set rules around usage and buyouts, and can simplify what happens if one heir later wants to sell their share.
• A co-ownership or usage agreement. Whether or not a trust or LLC is used, a written agreement spelling out how the home will be used and paid for is one of the most practical tools available. It can address a usage schedule, how expenses are split, what happens if someone wants out and who has final say on big decisions, such as major repairs or a sale.
• Gifting strategies. Depending on the value of the property and the family's broader estate plan, gifting an interest in the home during the owners' lifetime may be worth considering. For some families with significant estate tax exposure, more specialized strategies, such as a qualified personal residence trust (QPRT), may also be appropriate. These strategies can have meaningful estate, gift and income tax consequences, so they should be evaluated with your financial adviser, tax professional and estate planning attorney.
• An honest conversation about selling. Not every family will decide to keep the vacation home. Sometimes the most practical plan is to sell the property and divide the proceeds, especially if heirs live far away, have different financial situations, have challenging relationships with each other or simply don't have the same attachment to the property as the original owners.

Before deciding on your approach, there is a more basic question to answer: Does the next generation actually want the house?

Parents sometimes spend considerable time and money creating a structure designed to keep a vacation home in the family without first asking whether their children even want to own it together. One child may treasure the idea while another would prefer to receive other assets. Knowing your children’s preferences in advance can shape the entire plan.

Planning is more than paperwork

Legal documents matter, but they aren't the whole solution. Some of the most effective planning and conversations happen around the kitchen table, not in an attorney's office.

• Talk to the next generation before drafting anything. Find out who actually wants to keep the property. Some heirs may prefer receiving a like amount of assets instead of a portion of the family home.
• Put usage and expense expectations in writing. Even within a formal ownership structure, clear expectations give family members something concrete to point back to when questions arise. Some families even use an app or shared calendar to reserve times and track usage.
• Name a decision-maker or manager. Whether it is one heir, a rotating role or an outside property manager, someone should have clear authority to handle day-to-day issues.
• Revisit the plan periodically. Family circumstances change. Children marry, move or have children of their own, financial situations evolve and the property itself may become more expensive to maintain. A plan that made sense 10 years ago may not fit the family today.

The takeaway

A vacation home can carry sentimental meaning that a typical asset does not, which is exactly why it deserves a deliberate plan rather than an assumption that "the kids will work it out."

The right legal structure — whether a trust, an LLC, a usage agreement or some combination — depends on the family's specific goals. What matters most is starting the conversation early.

Begin by talking with the people who may eventually inherit the home. Ask whether they want it, how they envision using it and whether they're prepared to share the tangible responsibilities and realistic costs that come with ownership.

From there, you can build a plan around what the family actually wants rather than what you assume it will want. That conversation may ultimately do as much to preserve the family vacation home — and the relationships surrounding it — as any legal document.

Related Content

• Should You Buy a Beach House? The Truth About Vacation Homes, From a Financial Planner
• Selling Your Vacation Home? Watch Out for These Tax Surprises
• Your Flawless Estate Plan Might Be Setting Your Kids Up for Conflict: What to Do
• Your Estate Plan Isn't 'Done' Until You've Completed These Five Steps, From an Estate Planning Attorney
• An Attorney's Guide to Your Evolving Estate Plan: Set-It-and-Forget-It Won't Work

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

For decades, the 60/40 portfolio has been one of the most familiar approaches to investing: Roughly 60% in stocks for growth and 40% in bonds for income and stability.

There's a reason that framework has lasted. Stocks and bonds remain important building blocks for many investors.

But today, investors have more choices than they did a generation ago.

High-net-worth investors, family offices and advisers increasingly have access to private credit, real estate, private equity, infrastructure and direct energy investments that can provide exposure to assets and economic drivers outside the traditional public markets.

That doesn't mean the 60/40 portfolio has stopped working.

It means investors now have the opportunity to ask a broader question: What other assets may complement it?

Diversification: What drives the investment?

Owning multiple funds doesn't always mean a portfolio is truly diversified.

Stocks and bonds can respond to many of the same forces, including interest rates, inflation, economic expectations and broader market sentiment. In 2022, for example, investors were reminded that stocks and bonds can decline at the same time.

That's why I believe diversification should be viewed not simply in terms of how many investments someone owns, but in terms of what actually drives their value.

Alternative investments can introduce different sources of potential return.

Real estate may be driven by rents and property values. Private credit may be driven by contractual interest payments. Infrastructure may benefit from long-term demand for essential services.

Direct oil and gas investments can be tied to something different again: The development, production and sale of energy.

Where direct oil and gas can fit

I've spent most of my career in oil and gas, and one of the things I believe investors should understand is how different direct energy ownership can be from simply purchasing shares of a publicly traded energy company.

A public oil and gas stock is still a stock. Its price can be influenced by the broader market, investor sentiment, analyst expectations, interest rates and company-specific events.

A direct oil and gas investment can provide exposure much closer to the underlying assets themselves.

Depending on the structure, investor capital may be used to acquire acreage, drill and complete wells, bring production online and develop reserves.

That distinction matters.

When an operator deploys capital into drilling, the goal is to turn dollars invested today into producing energy assets tomorrow.

A successful well can potentially create several layers of value, including current or future oil and natural gas production, potential monthly cash flow, additional proved or undeveloped reserves, potential value from continued development and potential value if producing assets are ultimately sold or otherwise monetized.

That's one reason I believe direct energy deserves a place in the broader diversification conversation.

Instead of investing solely in financial instruments, investors can potentially participate in the development of tangible assets producing commodities the global economy uses every day.

Capital goes to work in the ground

This is an important distinction in the way I think about oil and gas investing.

When we raise capital for a drilling program, the objective is not simply to hold acreage and hope it appreciates.

The capital has a job. It can be deployed to drill wells, complete wells and move assets from undeveloped potential toward production. Each stage can potentially add information and value to the asset.

Before a well is drilled, much of its value may be based on geology, engineering and nearby production. Once it is drilled and completed, the operator has additional data. Once it begins producing, there is another layer of information: Actual production performance.

That production history can help engineers evaluate reserves and can give lenders, potential buyers and other market participants more information with which to assess the asset. In other words, drilling can be a value-creation process, not simply an expense.

That's the model I find particularly compelling: Putting capital to work with the objective of creating producing assets and building value through development.

Energy demand isn't theoretical

There's also a fundamental reason oil and gas remains relevant. The world continues to require enormous amounts of energy.

Transportation, manufacturing, agriculture, petrochemicals, electricity generation, data centers and countless parts of the modern economy depend on reliable energy supplies.

At the same time, oil and gas production is naturally depleting. Existing wells decline, which means new capital and new drilling are continually required simply to replace lost production. That creates an interesting dynamic for investors.

Energy is both an essential commodity and a capital-intensive business. The industry needs investment to find, develop and produce the resources the economy continues to consume.

For investors who understand the risks and have the appropriate time horizon, participating directly in that development can provide exposure to a very different part of the economy than a traditional stock-and-bond portfolio.

The tax treatment can be meaningful

Direct oil and gas can also offer potential tax characteristics that are different from many traditional investments.

Depending on the structure of the investment and an investor's individual tax circumstances, certain drilling and development expenses may qualify for deductions, including potential intangible drilling cost deductions.

Producing oil and gas properties may also qualify for depletion deductions over time. For certain high-income investors, these potential tax benefits can materially affect the overall economics of an investment.

I don't believe anyone should make an investment solely for a tax deduction. The underlying assets, operator, development plan and economics must make sense first.

But when a fundamentally attractive investment also offers potential tax advantages, those benefits can become an important part of the overall investment consideration.

Because the rules can be complex and investor circumstances vary, individuals should always consult their own tax professionals regarding how those provisions may apply.

Start with the asset

When evaluating an oil and gas opportunity, I've always preferred to start with the asset rather than the spreadsheet.

Projections matter, but they're only as good as the assumptions behind them.

I want to know what exists in the ground and what we know about the surrounding area. I ask if there is existing production, if nearby wells have successfully produced from the same formations, what the geology tells us, what the development plan looks like, and what the capital will be used for. I also want to know how experienced the operator is at drilling, producing and selling oil and gas.

These types of questions tell me far more than an attractive projected return by itself.

In our business, the objective is to acquire and develop assets where we believe operational execution can create additional value.

That means deploying capital into drilling and development, gathering real production data, building reserves and continually evaluating the best way to maximize the value of those assets.

The operator matters

Oil and gas isn't a passive business from the operator's perspective. Execution, drilling decisions, completion design, cost control, land and title work, production operations, commodity marketing and timing: These all matter.

That's why I believe investors evaluating direct energy should spend as much time evaluating the operator as they do evaluating the projected economics.

An experienced operator should be able to explain where investor capital is going, what milestones are expected, what can create additional value and how the assets may ultimately be monetized.

The investment isn't just in a commodity. It's also an investment in the operator's ability to execute a development strategy.

Private investments require patient capital

Direct oil and gas investments are generally private investments, which means they should be viewed differently from publicly traded securities.

An investor may not be able to sell an interest with the click of a button. Timing and patience are important.

Patient capital can allow an operator to execute a multi-stage development strategy: Acquire the asset, drill wells, establish production, build reserves and pursue opportunities to create additional value over time.

For investors who have sufficient liquidity elsewhere in their portfolios, that longer-term approach may fit well alongside more liquid public-market investments.

Is 60/40 enough?

For many investors, it may be.

There's nothing inherently wrong with keeping a portfolio simple.

But for investors with significant assets, longer investment horizons and the ability to accept the risks and illiquidity associated with private investments, alternatives can broaden the opportunity set.

I don't view direct oil and gas as a replacement for stocks or bonds. I view it as something fundamentally different. Stocks provide ownership in companies. Bonds provide contractual debt exposure.

Direct oil and gas can provide qualified investors with the opportunity to participate in the acquisition, drilling, development and production of real energy assets.

That is an important distinction.

The question shouldn't be whether every investor needs alternatives.

The better question is whether adding assets driven by different fundamentals can make sense within the investor's overall strategy.

For the right investor, I believe direct energy deserves to be part of that conversation. At the end of the day, diversification isn't about making a portfolio more complicated.

It's about putting capital into assets that have a clear purpose, a clear economic rationale and the potential to create value in different ways.

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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.

This story began with a phone call from brother and sister "Lisa" and "Michael," who are both in their mid-40s. Their call was like no other I have received in all my decades of law practice.

"Mr. Beaver," Lisa began, "we have read your column for years and need your help. What can we do to prevent our mother from going forward with plans that will wind up killing our father?"

I, of course, asked them to please be specific. What plans? What's going on?

A matter of Mom's self-image

"Dad has been a beloved pediatrician his entire career in our town," Michael explained. "Mom's self-image has always been as 'Dr. Y's wife,' which, in her mind, gave her social status and made her feel important, a somebody. She always refers to herself as 'Dr. Y's wife.' That is her identity. Recently, Dad was diagnosed with Alzheimer's, and over her protests and denial ('Those neurologists don't know a thing! Dad is fine!' she insists), he had to close his medical practice.

"It was as if someone turned off a switch for her. In her mind, Mom no longer has the celebrity status of being married to a physician beloved by his patients and their families. Instead, she told people that Dad had embarrassed her! It was so upsetting, Mr. Beaver!

"Mom told us, 'I can't face people. We have to leave town.' She made a down payment on a house hundreds of miles away, where they do not know anyone, and she plans to move there with Dad. This will cut him off from all his friends, people who would want to help them in any way possible. He does not want to move but has always been passive in their marriage."

Lisa added, "This move will isolate him and impair his mental and physical health at a time when he needs support from the many people in town who care. We need direct, actionable advice from someone who has experience with these issues, a road map to follow on things we could do that might alter her desire to move away."

Listen before taking action and lead with empathy

Data on migration patterns shows that roughly 22% of people move to a different county following a dementia diagnosis — a rate significantly higher than for other major health events.

To get some advice to help Lisa and Michael, I spoke with Boca Raton, Florida-based Jill Poser, founder of Life Care Concierge of South Florida, a nurse-led care advocacy practice. Recognized as an expert in aging life care management, private duty home care and life care planning, she holds the Certified Dementia Care Partner (CDCP) designation provided through the Alzheimer's Foundation of America.

Poser began our Zoom interview by pointing out, "A diagnosis of Alzheimer's or another form of dementia severely impacts a couple's relationship, often causing a deep loss of identity."

She offered these four recommendations to consider, focusing on addressing Lisa and Michael's mom's grief and identity, continuing care for their father and legal issues.

1. Focus on Mom's grief and her identity fears

Listen to Mom and ask her what she fears. What is the basis of those fears?

View her behavior as an expression of grief and belief that she is losing her identity as "Mrs. Dr. Y."

Approach her from a position of empathy rather than accusation.

For example, don't say, "You are so wrapped up in yourself! Moving away where he has no one will shorten his life."

Instead, show compassion and avoid using "you must" statements: "We know how much you love Dad. How can we support you?"

2. Explore aspects of identity that will strengthen her public role as Dr. Y's wife

Suggest she get involved in social activities, philanthropy, clubs or sports.

Say: "You both loved tennis, and Dad is an excellent pianist, so create sports and music scholarships in both your names for students at our local college. This way, both of you will be so appreciated for giving back to our town."

3. Preserve routine and familiarity for Dad where possible

The siblings should stress the importance of stability and how a familiar environment is crucial for someone with cognitive decline. Routines, longtime friends and known surroundings reduce disorientation and the risk of behavioral decline or wandering.

Point out that in town Mom has a support system that is already in place, but moving away would be a major disruption and could accelerate Dad's functional decline. The responsibility of caring for Dad would be entirely on her shoulders.

Be strategic about this. For example, try something like, "Mom, let's assume that you decide to remain in town. Tell us about the support you would like and think about who you already lean on in times of stress. These are good reasons to remain here. We know the burden will be significant, and you can count on us to be here to help in any way we can."

4. Discuss care management and seek professional support

"A dementia diagnosis is one of the heaviest, world-altering moments (for couples)," Poser says. "It often triggers a fight-or-flight response — the urge to run away, to leave town to escape the reality of the situation. That's a common human reaction to fear and grief."

She adds, "For that reason, among many others, these adult children should suggest hiring a care manager or appropriate professionals to evaluate their father's home-care needs, provide ongoing counseling for their mother and help facilitate difficult family discussions. And be ready to act as a neutral mediator in family discussions."

The key to preventing the move

My advice? Lisa and Michael need to immediately consult with an elder law attorney/conservator who, in most states, could try to obtain a court order that would prevent their mother from isolating their father.

At a hearing, a judge can consider why the move is proposed and whether it is in their father's best interest. Dad's opinion can also be considered, if he is able to express it.

Poser concluded our interview with this observation that should apply to all of us who were raised by loving parents: "Growing up, our parents protect us. Growing older, we protect them."

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.

For most of my career, I've watched Americans think about life insurance the same way. It's something you buy to protect your family if something happens to you. That's still true, but it's no longer the whole story.

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

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

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

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

1. What do I want this policy to do?

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

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

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

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

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

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

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

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

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

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

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

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

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

5. What do I want to pass on?

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

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

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

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

We've all made at least one financial mistake we wish we could undo. For some, it's an over-reliance on credit cards. Others may wish they'd set more money aside for emergencies.

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

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

1. What just happened?

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

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

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

2. Start small

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

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

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

3. Adapt and adjust

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

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

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

4. Don't dwell on the past

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

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

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

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

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

For many retirees, few acronyms generate more anxiety than IRMAA.

Countless articles, videos and financial discussions warn retirees to stay below the next Medicare premium threshold. But what if avoiding an IRMAA surcharge causes you to pay more over the course of retirement?

In many cases, that's what can happen when annual tax planning takes priority over lifetime tax planning.

The income-related monthly adjustment amount (IRMAA) is the Medicare surcharge higher-income beneficiaries might pay for Medicare Part B and Part D coverage.

Because IRMAA is based on your modified adjusted gross income (MAGI) from two years earlier, many retirees become intensely focused on staying below the next surcharge threshold.

That focus is understandable — but it can also be expensive.

Many retirees reject Roth conversion strategies or other tax-planning opportunities solely because they might temporarily increase Medicare premiums. In some cases, avoiding an IRMAA surcharge can ultimately result in paying significantly more in lifetime taxes.

• The better question isn't: "How can I avoid IRMAA this year?"
• Instead, ask: "How can I minimize the total taxes and costs my family is likely to pay over the course of retirement?"

Those are two very different objectives.

Think beyond this year's tax return

Traditional tax planning often centers on reducing this year's tax liability.

Lifetime tax planning takes a broader view by evaluating how today's decisions affect taxes, retirement income and wealth in the next 20 to 30 years.

That distinction matters because strategies that intentionally increase taxable income today — such as Roth conversions — can sometimes reduce taxes substantially later.

Depending on the circumstances, converting part of a traditional IRA to a Roth IRA could:

• Reduce future required minimum distributions (RMDs)
• Lower taxable income later in retirement
• Reduce the taxation of Social Security benefits
• Provide additional tax-free assets for future spending
• Improve tax flexibility throughout retirement
• Reduce taxes for a surviving spouse
• Leave heirs with more tax-efficient inheritances

None of those benefits can be evaluated by looking at only one tax year.

Focus on the right goal

Key takeaway: IRMAA is an important planning variable — but it should rarely outweigh a well-supported strategy that meaningfully reduces lifetime taxes.

Understanding the tax valley

Many retirees experience a period after they stop working but before claiming Social Security and before required minimum distributions begin.

During these years, taxable income might be temporarily lower than it will be later in retirement.

Financial planners often refer to this as a tax valley — a window that might present an opportunity to recognize income at relatively favorable tax rates.

Consider a hypothetical married couple, both age 63, with $2 million in traditional IRAs.

Because they recently retired, they temporarily find themselves in the 24% federal income tax bracket. Their retirement income plan projects substantially higher taxable income once Social Security benefits begin and required minimum distributions become mandatory.

Suppose they convert $150,000 per year to Roth IRAs over several years. The conversions increase their taxable income enough to trigger higher Medicare premiums through IRMAA.

At first glance, paying higher Medicare premiums seems undesirable.

However, those same Roth conversions might significantly reduce future required minimum distributions, lower future taxable income, reduce taxes for a surviving spouse, create greater tax flexibility later in retirement and leave heirs with more tax-efficient assets.

If a temporary Medicare surcharge of several thousand dollars helps reduce projected lifetime taxes by six figures, many retirees would likely consider that an attractive trade-off.

The numbers — not the premium increase alone — should drive the decision.

IRMAA is one variable — not the objective

Retirement planning requires balancing many competing financial factors:

• Federal income taxes
• State income taxes
• Social Security taxation
• Required minimum distributions
• Medicare premiums
• Estate planning
• Legacy goals

Each deserves consideration, but the mistake is allowing any one of those to dominate the entire planning process.

IRMAA should be viewed the same way investors evaluate transaction costs or capital gains taxes. It is a legitimate expense to consider — but not necessarily a reason to abandon an otherwise beneficial strategy.

Waiting can be expensive

Many retirees assume paying less tax today automatically leads to paying less tax overall.

Unfortunately, that assumption often proves incorrect.

Traditional IRAs continue growing tax deferred. Larger account balances frequently produce larger required minimum distributions, which could:

• Push retirees into higher tax brackets.
• Increase the taxable portion of Social Security benefits.
• Trigger higher Medicare premiums later in retirement.
• Increase tax burdens after the death of a spouse, when the surviving spouse begins filing as a single taxpayer.
• Leave beneficiaries inheriting taxable retirement accounts that generally must be distributed within 10 years under current law.

Ironically, retirees who spend years trying to avoid modest IRMAA surcharges today might pay larger Medicare surcharges later because their required minimum distributions have become substantially larger.

Every recommendation should begin with a projection

No two retirees have identical circumstances.

The appropriate Roth conversion strategy depends on numerous variables, including expected investment returns, future tax rates, longevity, charitable giving goals, pension income, state taxes, estate-planning objectives and anticipated spending needs.

For that reason, sophisticated retirement planning relies on long-term projections rather than general rules.

Stopping a Roth conversion because it crosses an IRMAA threshold might feel prudent, but without a lifetime analysis, it's impossible to know whether that decision improves a retiree's long-term financial outcome.

The goal isn't to win this year's tax return

The Internal Revenue Service calculates your taxes one year at a time — your retirement plan shouldn't.

The objective of retirement tax planning isn't minimizing taxes this year — nor is it minimizing Medicare premiums this year.

The objective is maximizing after-tax wealth throughout retirement while preserving flexibility for future spending, charitable giving and legacy planning.

Sometimes that means staying below an IRMAA threshold.

Other times, the math clearly supports accepting a temporary Medicare surcharge because doing so produces substantially larger long-term tax savings.

The answer depends on the analysis — not the acronym.

The Centers for Medicare & Medicaid Services (CMS) establishes IRMAA as an income-based adjustment to Medicare premiums, while IRS rules govern the taxation of Roth conversions in the year they occur.

Neither rule suggests retirees should automatically avoid Roth conversions because of a temporary increase in Medicare premiums. Instead, both reinforce the importance of evaluating tax decisions within the context of an overall retirement income strategy.

The most ideal retirement tax plans rarely optimize a single year — they optimize a lifetime.

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

As an estate planning and elder law attorney for more than three decades, I can tell you that many people believe they've protected their assets by signing a revocable living trust.

They haven't.

Every year, I meet intelligent, financially successful families who have done almost everything right. They've accumulated retirement savings, worked with financial advisers, signed comprehensive estate planning documents and funded a revocable living trust.

Then one spouse develops Alzheimer's disease, Parkinson's disease or another chronic illness requiring years of home care, assisted living, memory care and eventually nursing-home care.

That's when they discover that their perfectly drafted trust is of no help, because it was designed to solve a different problem.

The ultimate question is not whether you have a trust. It's whether you have the right trust for the problem you need to solve.

A revocable living trust (often abbreviated as an RLT) is one of the best estate planning tools available. Unlike a will, an RLT trust protects your assets from probate and provides many other benefits, making it one of the most popular estate planning tools in the country.

But an RLT does not protect your assets from lawsuits or the potentially catastrophic expenses of long-term care.

Why doesn't an RLT protect assets?

The answer is simple.

An RLT works because you effectively remain the owner of all trust assets, and you retain complete control of those assets, including the ability to remove any or all assets from the trust at any time.

Because the assets remain yours, they remain available to pay any bills you owe, including long-term care bills. The assets in your RLT are treated as if they still belong to you and remain available to creditors, including the biggest creditor most people face in their lifetimes — a nursing home.

People often spend thousands creating and funding an RLT believing they've solved both the probate and the long-term care problem, when they've solved only the probate problem.

Unfortunately, many estate planning attorneys never explain this distinction because most don't practice in the area of Medicaid planning. They never discuss the irrevocable Medicaid Asset Protection Trust (MAPT) as an option.

As a result, many families discover the difference only after a health crisis, when planning options are limited.

What an RLT does well

None of this diminishes the value of an RLT.

I regularly recommend revocable living trusts to clients. My firm has prepared thousands of revocable living trusts.

A properly drafted and funded revocable living trust:

• Avoids probate
• Provides continuity if you become incapacitated
• Controls how and when beneficiaries receive an inheritance
• Keeps your affairs more private than a probate estate
• Can protect young or financially inexperienced beneficiaries from receiving large distributions outright
• Can provide ongoing asset protection to trust beneficiaries through the creation of spendthrift trusts, sometimes called dynasty trusts or beneficiary asset protection subtrusts

These are all important benefits. But none of them matter if you die broke because you spent all your money paying for long-term care.

As good as the revocable living trust is, in the past 15 years, my firm has prepared more MAPTs than revocable living trusts because once older clients understand the distinction, many choose a trust that not only avoids probate but also helps protect assets from long-term care costs.

We call our version the Living Trust Plus®. It's a proprietary MAPT system that we license to attorneys throughout the country to offer this type of planning to their own clients.

But most estate planning attorneys don't offer this type of trust planning. Helping clients protect their assets from long-term care costs is not on the radar of many estate planning attorneys.

Medicare won't pay the bill

Another common misconception is that Medicare will pay for long-term care. It won't.

Medicare doesn't pay a penny for long-term care. Families must rely on their own income and assets, long-term care insurance, certain veterans benefits or Medicaid, which is the biggest payor of nursing home expenses in the country.

What makes a Medicaid Asset Protection Trust different?

A MAPT is designed to solve not only the probate issue, but two additional problems. I call my version of the MAPT the Living Trust Plus because it protects your assets from probate plus lawsuits plus long-term care expenses.

Instead of retaining ownership of trust assets, you give up ownership and the ability to reclaim the protected assets. That creates the protection.

However, despite giving up ownership, you can retain a high degree of control of assets in the trust.

You can be the trustee of your own trust, meaning you can control how the assets are invested, whether your home gets sold and when assets get distributed to a trust beneficiary. You can even change the beneficiaries of the trust.

If you, as trustee, decide to distribute assets to a trust beneficiary, such as an adult child, that child can use the distributed money however they see fit, and you can't control what the child does with that money or have any type of agreement on how they use their money.

The child can spend the money for themselves, or they can, if they wish, spend the money for your benefit.

Planning using a MAPT must begin years before nursing home care is needed. The five-year Medicaid lookback period means waiting until a nursing-home admission or after a stroke could eliminate this planning opportunity.

Readers interested in learning more about Medicaid Asset Protection Trusts and other planning tools can find additional educational resources in our Elder Law Learning Hub.

For readers who want a more comprehensive discussion of probate avoidance, Medicaid Asset Protection Trusts and long-term care planning strategies, my bestselling book, Protecting Your Assets from Probate and Long-Term Care (Second Edition): Don't Let the System Bankrupt You and Your Loved Ones, explores these issues in greater detail.

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

Financial advice has never been more accessible. However, it also has never been more overwhelming.

A scroll through social media delivers budgeting tips, stock recommendations, tax strategies and conflicting opinions from influencers, friends and self-proclaimed financial experts.

While having access to more information can be empowering, it can also make it difficult to determine what advice is credible, relevant and worth acting on.

The reality is that building a financial plan doesn't require following every trend or implementing every strategy you encounter online. It requires understanding your own goals, evaluating information carefully and focusing on the decisions that will have the greatest impact on your financial future.

Before taking your next piece of financial advice, consider these four principles to help separate meaningful guidance from background noise.

1. Start with your goals, not someone else's

One of the biggest mistakes people make is looking for financial advice before taking inventory of their own situation. It's easy to become excited about investment strategies, tax-saving techniques or the latest market opportunity, but those decisions should come after you've identified what you're trying to accomplish.

A financial plan should begin with a clear understanding of where you are today and where you want to go. Are you focused on:

• Paying down student loans?
• Saving for a home?
• Building an emergency fund?
• Preparing for retirement?
• Supporting aging parents?

Your priorities should dictate your strategy, not someone else's timeline.

Consider two recent college graduates who are both beginning their independent financial lives.

One graduates debt-free, while the other enters the workforce with significant student loan debt. The first might be able to begin building an emergency fund and saving for retirement relatively quickly, while the second might need to prioritize paying down debt and establishing emergency savings before pursuing other financial goals.

Following the exact same financial advice might make sense for one person and very little sense for the other.

Financial planning isn't about keeping pace with your peers. It's about making decisions that align with your unique circumstances and long-term goals.

Once you establish that foundation, it becomes much easier to evaluate whether a particular piece of advice fits your unique situation.

2. Be selective about who you listen to

The internet has made financial education more widely available than ever before, but it has also made it easier for misinformation to spread. Social media platforms are designed to reward content that captures attention, not necessarily content that is accurate or personalized.

Before acting on financial advice, ask yourself a few simple questions:

• Who provides this information?
• What experience or credentials do they have?
• Are they offering objective guidance, or are they trying to sell a product or generate engagement?

The same level of skepticism should apply to advice from friends, family members and coworkers. A successful investment or tax strategy for someone else doesn't automatically make it appropriate for you.

Personal finance is exactly that. Your personal income, tax situation, family responsibilities, risk tolerance and goals all influence which strategies are most appropriate.

This doesn't mean you should ignore financial conversations altogether. Instead, use them as opportunities to learn what questions to ask rather than assuming every answer applies to your own situation.

3. Remember that financial planning is about more than investing

When many people hear the phrase "financial planning," they immediately think about investing or retirement accounts. While investments play an important role, they're only one piece of a much larger picture.

Investments aren't a replacement for inadequate insurance coverage, poor cash flow management or an unexpected tax bill. Likewise, focusing exclusively on retirement savings while ignoring other financial priorities can leave important gaps in your overall plan.

For some people, the most impactful financial decision is paying off high-interest credit card debt. For others, it might be building an emergency fund, reviewing insurance coverage, minimizing taxes or creating an estate plan.

A comprehensive financial plan considers how each of these pieces works together. Financial planning should evolve as your life changes. The strategies that make sense early in your career can look very different from the decisions you'll make as retirement approaches.

Rather than viewing your plan as a one-time project, think of it as an ongoing process that adapts alongside your goals and circumstances.

4. Learn the difference between news and noise

Financial headlines are designed to grab attention. Every week seems to bring a new "can't miss" investment, market prediction or economic warning that promises to change everything.

Some of these developments genuinely deserve your attention. Changes to IRS contribution limits, tax legislation, retirement account rules or other regulatory updates might warrant adjustments to your financial plan because they directly affect your available planning opportunities.

Many headlines, however, are simply attempts to create urgency. A trending stock, viral investing strategy or sensational market prediction rarely requires immediate action.

If a piece of financial advice makes you feel as if you need to act immediately or risk missing out, it's often worth slowing down instead.

Long-term financial success is built through consistent decision-making, not constant reaction. Filtering out distractions allows you to focus on the information that supports your financial goals.

The abundance of financial information available today is both a blessing and a challenge. While there are more resources than ever to help people make informed decisions, there is also more noise competing for their attention.

A thoughtful financial plan isn't built by following every piece of advice that crosses your screen. It's built by understanding your goals, seeking guidance from credible sources, considering every aspect of your financial life, not just your investments, and recognizing the difference between meaningful developments and passing trends.

When your decisions are grounded in your own circumstances instead of someone else's timeline, financial planning becomes less overwhelming and far more effective.

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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.

One of the most important retirement planning questions is also one of the hardest to answer: How much can you withdraw from your portfolio each year without running out of money?

A commonly cited starting point is the 4% rule. It suggests withdrawing about 4% of a portfolio in the first year, then increasing that dollar amount for inflation.

Using this guideline:

• A $1 million portfolio might initially support about $40,000 in annual withdrawals
• A $1.5 million portfolio might support about $60,000
• A $2 million portfolio might support about $80,000

These figures are illustrations, not guarantees. A sustainable strategy depends on retirement length, returns, inflation, taxes, healthcare costs, other income, spending flexibility and legacy goals.

A financial adviser can help determine how these factors work together and how the strategy should change over time.

The 4% rule is only a starting point

The 4% rule is appealing because it is simple. Retirement is not. Markets fluctuate, healthcare expenses rise, tax laws evolve and spending changes.

An adviser can help determine whether 4% is reasonable for a particular household or whether a higher or lower starting amount may be more appropriate.

Why the right withdrawal rate is different for everyone

No single withdrawal rate works for every retiree.

Retirement length and investment allocation. Someone retiring at 60 may need a portfolio to last 35 or 40 years. The portfolio must also balance stability and growth. Investing too conservatively may make it difficult to keep pace with inflation, while investing too aggressively may create large losses at the wrong time. An adviser can model longevity assumptions and build an allocation suited to the retiree's needs.

Inflation and taxes. Inflation gradually reduces purchasing power. Taxes also affect how much of a withdrawal is available to spend. Traditional retirement account withdrawals are generally taxable, qualified Roth withdrawals may be tax-free, and taxable accounts may produce interest, dividends and capital gains.

The order in which accounts are used can affect tax brackets, Medicare premiums, Social Security taxation and required minimum distributions. An adviser can help coordinate withdrawals across account types and work with a tax professional when appropriate.

Other income, spending and legacy goals. Social Security, pensions, rental income and annuity payments can reduce the amount required from investments. Retirees who can reduce discretionary spending during difficult markets may have more flexibility.

Some retirees want to spend most of their assets; others want to preserve wealth for family or charities. An adviser can coordinate income and balance lifestyle needs with long-term security and legacy goals.

Why average returns don't tell the whole story

Even when these factors are considered, the timing of market returns can significantly affect retirement outcomes.

A calculator may assume a portfolio earns a steady average return each year. Real markets don't behave that way. Two retirees can earn the same average return over 20 years and still have very different results depending on when gains and losses occur.

The importance of sequence of returns risk

This timing risk is known as sequence of returns risk.

Consider two retirees with the same starting portfolio, withdrawals and average return. One experiences strong returns early. The other experiences a major decline shortly after retiring and stronger returns later.

The second retiree may end up with far less money because withdrawals during a downturn require selling more shares at depressed prices. Those shares are no longer available to participate in a recovery.

Assume a retiree begins with $1 million and plans to withdraw $40,000 annually. If the portfolio declines 20% before the withdrawal, its value falls to $800,000. After taking $40,000, about $760,000 remains. The portfolio would then need to gain more than 31% to return to $1 million.

This is why a withdrawal plan shouldn't operate independently from the investment strategy.

How an adviser can help manage retirement income risk

Sequence risk can't be eliminated, but it can be managed.

Maintain an appropriate cash reserve. Cash for near-term expenses may reduce the need to sell stocks during a downturn. An adviser can help determine how much to hold without weakening long-term growth.

Create flexible spending rules. A retiree may temporarily delay a major purchase, reduce travel or pause inflation increases. Establishing guidelines in advance can make these decisions easier.

Rebalance systematically. An adviser can restore the portfolio to its intended allocation and help prevent short-term headlines from driving investment decisions.

Coordinate Social Security and pensions. Delaying Social Security may increase future guaranteed income but require larger portfolio withdrawals in the near term. An adviser can compare the trade-offs involving taxes, longevity and survivor benefits.

Use a dynamic withdrawal strategy. A fixed withdrawal may not remain appropriate throughout retirement. Guardrails can allow spending to rise after strong performance and decline when the portfolio falls below predetermined levels.

Why ongoing advice matters

A retirement plan shouldn't be treated as a one-time calculation. Markets, spending, tax laws, health and family circumstances change.

An adviser can review withdrawal rates, rebalance investments, update projections, coordinate tax-sensitive distributions and provide an objective perspective during volatile markets.

The value of advice is not predicting every market move. It is helping retirees make disciplined decisions based on a coordinated plan rather than short-term emotion.

The bottom line

The 4% rule can be a useful starting point, but it isn't a personalized retirement income plan.

A sustainable strategy must account for retirement length, investment allocation, inflation, taxes, healthcare costs, other income, spending flexibility, legacy goals and sequence of returns risk.

A financial adviser can bring these issues together and help adjust the strategy as circumstances change. The goal isn't simply to withdraw the maximum amount possible today. It is to balance enjoying retirement now with maintaining financial security for the years ahead.

This article is intended for general educational purposes and does not constitute individualized investment, tax, legal or retirement advice.

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

Living longer creates the opportunity for more — more experiences, more time with loved ones and more chances to pursue what matters most.

Unfortunately, there is often a disconnect between the life people hope to enjoy and how prepared they feel to support it. While most expect to age well, many are still working to build the foundation needed to turn their vision into reality.

Closing that gap starts with an understanding of what lies ahead and planning accordingly, allowing you to approach those added years with greater clarity and confidence.

Redefining aging

According to Guardian's 2026 Mind, Body, and Wallet® report, people are focused not only on living longer, but on maintaining independence, purpose and stability along the way.

Working Americans have a clear picture of what they want that future to look like. Sixty percent anticipate having more free time, 55% look forward to traveling, and 52% want to spend more time with friends and family, reflecting a desire for a more active, connected and fulfilling stage of life.

Retirement itself is evolving, as well. Two-thirds of Americans expect to continue working in some capacity, whether for income, personal fulfillment or social connection.

Where preparedness often falls short

Despite these evolving expectations, many Americans aren't fully prepared for the realities of a longer life.

Guardian found that Americans' financial wellness is at its lowest point in 15 years, with just three in 10 individuals reporting "excellent" or "very good" financial health.

Many people continue to face challenges managing day-to-day finances, with only 32% saying they do so very well, and more than half reporting difficulty living within their means.

Looking further ahead, long-term readiness is also limited. Just 13% feel on track to achieve their desired retirement lifestyle, and planning for key aspects of aging, such as housing or care needs, often remains incomplete.

Broader well-being trends add another layer of complexity. Just 31% of working Americans say they get enough exercise, and only 34% report being good at taking care of their mental health, both of which can influence independence and quality of life over time.

Taken together, these patterns point to a growing disconnect: As lifespans increase, the need for thoughtful preparation grows as well, yet many are still figuring out how to plan effectively for what's ahead.

Building financial confidence for the future

Preparing for a longer life isn't about reaching a single milestone, but rather building habits and a strategy that can evolve over time. Starting early can create more flexibility down the road — yet progress at any stage can make a meaningful difference.

Ultimately, these steps help support the financial confidence needed to enjoy later life as intended.

A few core priorities can help you keep that effort on track:

Start early and build a strong financial foundation. Establishing good financial habits early, such as building emergency reserves, saving consistently, investing for long-term growth and participating in workplace retirement plans can create flexibility.

When invested, even modest contributions can compound, helping reduce pressure later in life and providing a buffer against unexpected events.

Strengthen and protect as life evolves. As income and responsibilities grow, financial strategies should expand, as well. Increasing retirement contributions, managing debt and ensuring appropriate protection such as life and disability coverage can help safeguard progress and reduce the risk of setbacks that could derail long-term goals.

Plan for income, not just accumulation. A longer retirement shifts the focus from how much is saved to how those savings will be used.

Creating sustainable income, addressing longevity risk and preparing for healthcare and caregiving costs are essential to maintaining independence and financial stability over decades.

Stay flexible and adapt over time. Longevity introduces uncertainty, making flexibility critical. Financial plans should be revisited regularly to reflect changing goals, market conditions and life circumstances.

Staying engaged, even in retirement, can help ensure that strategies remain aligned with both lifestyle needs and long-term security.

Finding support along the way

Preparing financially for a long, fulfilling life is more complex than ever. However, it's not a journey you need to navigate alone. More than six in 10 Americans who report high financial wellness also work with a financial adviser, highlighting just how valuable it can be to have a trusted partner each step of the way.

Whether retirement is on the horizon or still decades away, an adviser can provide personalized guidance tailored to your needs and goals. Through regular check-ins, you can gain clearer insight into your financial picture, track progress toward your goals and adjust your approach as circumstances evolve, all within a relationship that strengthens over years and even decades.

Planning for longevity with confidence

Living longer changes the financial equation, but what we know for certain is that the quality of later years is shaped by decisions made much earlier. Building strong financial habits, protecting against risk and planning for reliable income, especially when backed by the expertise of a financial adviser, can be the difference between simply living longer and living with confidence.

By focusing on income, protection and adaptability, you can be better positioned to turn longevity into a source of stability and opportunity.

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

It's not easy to get parents and teenagers to agree about anything. But when it comes to investing early, they're on the same page.

Schwab recently conducted a study that found 70% of teenagers ages 13-17 say they are very or extremely interested in investing, and nearly three-quarters of parents (73%) say it's very important for teens to learn about it.

Now here's something that may surprise you. Teens in the study cited their parents more than any other source for trusted investing advice, ahead of friends, social media or anyone else.

In other words, this isn't an area where finding the balance between independence and control inevitably becomes a point of friction. Rather, it's an opportunity for guided learning, and it's one that most families are more ready for than they may realize.

In my role leading Schwab's Branch Network, I've seen firsthand how many parents want to help their children build healthy financial habits but aren't always sure where to begin. The encouraging news is that teens are often more interested in these conversations than we assume.

It's also an amazing time to begin investing. Teens have more access to information, tools and choices than any generation before them.

But with that comes more exposure to speculative trends, hype and "get rich quick" content. That's what makes this moment so pivotal. We have a genuine chance to give our kids a head start on building wealth, but if they start down the wrong path early, it can be hard to undo.

More than building wealth, investing teaches patience, discipline, decision-making and how to think about the future. Those lessons can benefit teens long before they see their first meaningful investment gains.

So, it's critical that parents help their teens get off on the right foot. Here are seven ways to do it.

1. Talk about your own experience … including the mistakes

Being open about financial decisions you'd make differently is often more impactful than presenting a polished track record.

When teens hear a parent say, "Here's what I wish I'd done at your age," they listen.

It's more relatable than a lesson, and it makes the whole conversation feel less like a lecture and more like a shared experience.

2. Connect investing to actual goals

Our survey found that teens want to invest for concrete reasons:

• Getting started building money as early as possible (45%)
• Paying for college (34%)
• Saving for something big like a car (30%)

Anchoring the conversation in what your teen actually wants to accomplish makes investing feel purposeful rather than abstract.

3. Start with something that already interests them

Fractional shares have lowered the barrier to entry significantly. A teen who's a fan of a particular brand no longer needs $1,000 to buy a single share. They can invest $20 or $40 into it.

That turns an abstract concept into something personal and provides an ideal prompt to talk about what makes a company worth owning in the first place.

It's also a natural opportunity to introduce the idea that successful investing rarely depends on a single company or trend, but on building a diversified portfolio over time.

4. Let them practice before the stakes are real

Mock trading and stock market simulators give teens a sandbox to experience real gains and losses without real consequences.

It's often the first time they grapple with managing risk directly, which builds confidence for when the money is actually theirs.

5. Make a plan for risk, especially around social media

Separating what's genuinely relevant from what's just noise is challenging for investors of all ages, not just teens.

A practical rule to consider is a 24-hour pause before acting on anything your teen sees or hears online. If your teen can't clearly explain why an investment might be valuable beyond what they saw online, that's often a sign it's worth slowing down and learning more before making a decision.

6. Consider the right account for your family

Custodial accounts keep parents in control until teens become adults.

Joint accounts, like the Schwab Teen Investor account, give teens ownership and the ability to move money in and out starting at age 13, while parents stay involved.

The decision comes down to how much control you want your teen to have early on.

7. Take advantage of educational resources

You don't have to have all the answers. There are tools designed specifically for this moment, including content from Schwab, which covers investing fundamentals built for teens.

Working through a video or article side by side signals that this is a shared project, not a solo assignment. And it takes the pressure off parents to be the sole source of expertise.

The good news is that today's teens are already getting an earlier start than their parents did. Most parents (68%) in our study say they didn't become aware of investing until they were young adults or older, and half (51%) wish they'd started sooner.

Today's teenagers are well ahead of that curve. Most say they became aware of investing as preteens or in their early teen years. That head start matters because time is the greatest advantage young investors have.

The teens who start now, even with modest amounts, have decades of compounding ahead of them.

But the goal isn't simply to help your teen make their first investment — it's to help them develop the knowledge, judgment and confidence they'll rely on throughout their lives.

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

A question I frequently hear is: When can I retire? What they're actually asking is: When will work stop being something I have to do?

Those are different questions, and the plan you build depends on which one you answer.

The on-ramp isn't the exit

Think of financial independence as merging onto a highway with an exit ramp available at every mile marker. You don't have to take the exit; you just need to know it's there and that you could take it if you wanted.

That's the point of the milestone: It's optionality, not an instruction.

Retirement is the decision to take the ramp. One is a number your plan produces. The other is a life choice you make with that number in hand. Reaching the first doesn't oblige you to do the second.

You don't need a perfect number

A common misconception I run into is that financial independence requires some enormous account balance before it counts. It doesn't. What it requires is a sustainable gap between what you have coming in and what you spend.

I've worked with clients whose modest spending got them to that on-ramp years before a higher-earning, higher-spending household with a much bigger portfolio.

Chasing a balance in isolation, without looking at the spending side, is how people miss their own exit ramp without realizing it was already within reach.

Flexibility deserves to be treated as an asset

The part of financial independence that gets underrated is what it does when life doesn't cooperate with your timeline. A health scare, a caregiving responsibility, a layoff, a market downturn — none of these sends you a calendar invite.

Clients who've already built in flexibility navigate those moments very differently than clients who were counting on working exactly as long as planned.

Reaching the ramp doesn't mean you must take it

One surprising thing I hear from clients who reach financial independence: Their relationship with work improves.

Once a paycheck stops being a requirement, plenty of people find they still want to do the work — just on different terms. Some stay full time. Others shift into consulting, board work or mentoring.

The point isn't that everyone should retire the moment they can. It's that they get to decide instead of defaulting.

The planning doesn't stop at the on-ramp

Financial independence isn't a finish line at which planning ends. Markets still move. Spending still shifts. A retirement, once you do take it, can run for decades.

Reaching independence changes the stakes of the plan. It doesn't retire the plan itself.

The real goal isn't racing to the earliest possible exit. It's building enough flexibility that when you do take the ramp, it's because you chose to, not because a number on a spreadsheet told you it was time.

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

Most research suggests the best time to buy long-term-care (LTC) insurance is typically in your late 50s.

Ten years ago, the advice I was giving clients on LTC planning was totally different than it is today. Ten years from today, I'm hoping robots have made the cost of care significantly cheaper without, at the same time, taking our jobs.

Anyway, on to the reason we're here.

Like so many planning arenas where women should plan differently than men, this one stems from longevity. It's a fact that women live longer than men. Because of this, a married woman is often the one taking on the primary caregiver role for her husband.

Once he passes, there is no spouse to take care of the caretaker, so she is forced to hire someone or enter a community.

I often joke in the courses I teach that if both a husband and wife enter a retirement or nursing community together, the husband will hate it and die. The wife will make new friends and live forever.

The numbers actually support this. Over 70% of nursing home residents are women, according to the American Association for Long-Term Care Insurance.

First targets: The benefit period and amount

The first thing I would adjust on an LTC policy is the benefit period. At Exit 59 Advisory, where I am the president, when we structure benefit periods for traditional long-term care insurance, we often use a starting point of four years for women and two years for men.

According to LongTermCare.gov, women on average need 3.7 years of care, while men need 2.2. Many of the newer hybrid LTC policies rely more on pools of money, or the total amount of coverage, than on a specific number of years.

"Long-term care" is a broad term. It often starts with custodial care, where someone comes to your home to help you cook, clean and get around. For women, it is more likely to end with skilled nursing care, which is medical care.

As you may imagine, these two levels of care cost very different amounts.

This is the second adjustment I would make: Whether it's a pool of funds or a monthly benefit, I would increase the amount for women, based on the statistic I stated earlier: 70% of nursing home residents are women.

Next target: The inflation rider

I have written more columns than I choose to admit on inflation over the past four years. Not exactly what I was picturing as a young boy aspiring to be a professional athlete. This one is no exception: Don't ignore the inflation rider on an LTC policy.

This is especially true for women, who are more likely to enter a facility later in life.

You've seen how inflation can erode your egg-purchasing power over the last few years. The same is true in this space. The longer down the line you plan to use the policy, the more important the inflation rider becomes — 3% vs 5% over a long period of time compounds to two very different numbers.

Simple interest inflation riders vs compounding interest riders will also look quite different 25 years from now.

The bottom line

We always start with the financial plan to see whether long-term care coverage is even necessary. For those with significant assets and low relative expenses, you may have no problem paying out of pocket.

First, assess your needs. If there is a need, measure it and build the policy to fit.

Just as you wouldn't buy a custom suit made for someone else, you shouldn't buy a long-term care policy that doesn't fit you.

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

Most parents and grandparents want the same thing: To give the next generation opportunities they might not have had themselves.

In many ways, families have never had more tools available to help make that happen. Yet many wonder, "Am I doing enough?" If that's a question you've asked yourself, you're in good company.

More than half of parents and grandparents (53%) believe today's children are less prepared for money management than they were at the same age, according to a new survey from Wealth Enhancement.

At first glance, those findings might not seem to add up. Today's children have access to more financial information than previous generations could have imagined. But most parents and grandparents know that financial confidence isn't built by downloading an app. It's built through experience, conversations and the values we pass along over time.

That might sound like a big responsibility, but it doesn't have to be. Helping children develop healthy financial habits often starts with small everyday moments rather than grand (or formal) financial lessons.

The important thing isn't doing everything perfectly. It's finding simple ways to make money a topic that feels approachable, practical and worth talking about.

Acknowledge today's financial world

One thing I've noticed as both a financial planner and a parent is that children experience money very differently from the way many of us did while growing up. My 5-year-old son has watched me tap my card to pay for groceries, swipe my card to make purchases and fill a Costco cart without ever exchanging cash. Outside the occasional dollar left by the Tooth Fairy, he's had very little reason to think about money as something tangible.

That isn't necessarily a problem, but it is different. Many of us grew up counting coins, saving cash in a piggy bank or watching money physically change hands.

Today, much of that happens behind the scenes. As a result, some of the money lessons previous generations absorbed naturally might require a little more intention.

At the same time, instant gratification has become part of everyday life. We can have almost anything delivered to our doorstep in a matter of hours. Even as adults, many of us aren't immune to the influence of social media, targeted advertising and one-click purchasing (I'm looking at you TikTok Shop).

Perhaps that's why 56% of parents and grandparents in Wealth Enhancement's survey said that avoiding impulse purchases and overspending is the hardest money lesson to teach.

Make room for regular money lessons

Most personal finance education doesn't happen through formal lessons. It happens in the everyday moments.

I've found that some of the most meaningful lessons happen during ordinary activities. When my family goes to the thrift store, my son gets a set dollar amount to spend. That's his budget. He can buy one larger item, several smaller ones or decide not to spend it all.

The amount isn't really the point. The lesson is learning how to make choices and think about tradeoffs.

If there's something he wants that's outside his budget, we don't turn it into a lecture. We simply acknowledge that it's hard when there's something you want and can't have right away. If it's something he still wants later, we might add it to a birthday or holiday wish list.

These moments might seem small, but they're often where the most meaningful money lessons happen.

Opportunities with allowances

Allowances can create similar opportunities. Our survey found that 63% of parents and grandparents have given children an allowance, with most starting around age 8. The age and amount matter far less than the conversations and experiences that come with it.

Children learn a great deal when they're given the chance to make real decisions with their own money. There's a unique sense of ownership that comes from deciding whether to spend, save or wait.

As children get older, those lessons can evolve. You might introduce investing by having them follow a company they recognize and watch how its stock price changes over time. The goal isn't to create the next investing expert. It's to help them connect the idea of ownership, growth and long-term thinking.

What works for one child might not work for another. Rather than searching for the perfect system, look for opportunities that fit your child's personality, interests and stage of development.

Most important, you're able to use these moments to pass along the values that matter most to your family. The lessons children learn about spending, saving, generosity and the relationship between work and reward often come from what they see us do every day.

Don't overlook your own financial foundation

More than half (53%) of parents and grandparents surveyed said they've never opened an investment account for a child. Investing can be one of the most powerful ways to help children build a financial foundation for the future. The earlier money is invested, the more time it has to grow.

When a parent asks me where to start, my answer is usually, "It depends on what you're hoping the money will do." A 529 plan, custodial account or a Roth IRA can all be effective tools, but the right choice depends on your family's goals and circumstances.

If you haven't opened an investment account for your child, you're not alone. Many families balance competing priorities, whether that's childcare, paying down debt, building an emergency fund or figuring out where to begin.

Before focusing on investing for the next generation's future, make sure your own financial foundation is secure. If your retirement savings aren't where you'd like them to be, start there. Your children can borrow for college, but there are no loans available for retirement.

Once your own future is on solid footing, you can decide how investing for your children and/or grandchildren fits within your family's goals and resources.

Make money conversations a part of everyday life

Financial education doesn't just come from what we teach children about money. It also comes from the way we talk about money at home.

Think about your earliest money memory. Maybe it was receiving cash in a birthday card or overhearing a conversation about household bills. Those experiences helped shape the way you think about money today.

The same is true for our children. The way we talk about financial decisions, priorities and tradeoffs influences how they think about money in the future.

Treat money as something that can be discussed openly rather than something that's off-limits. Talk about savings goals, explain financial choices and answer questions honestly (in age-appropriate ways).

Those conversations don't need to be formal, and they certainly don't need to be perfect.

Most important, remember that your children and grandchildren are watching. Long after today's apps and platforms have been replaced by something new, they'll remember the habits, values, and attitudes toward money they learned from the people around them.

Technology can be a useful tool, but it can't replace the influence of a trusted adult. We have an opportunity to be the guide that some of us may not have had ourselves.

That's one of the most meaningful ways we can help the next generation build a stronger financial future.

#2026-13422

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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.

Searching for a financial advisor often means entering a confusing marketplace filled with titles, credentials, compensation methods and marketing claims. Many advisors describe themselves as fiduciaries. Many claim to provide financial planning.

Yet consumers frequently discover that what they receive is primarily investment management — not comprehensive financial planning advice.

That's why more people should know about the Garrett Planning Network — a nationwide network of around 200 fee-only financial planners who share a commitment to comprehensive, fee-only financial planning and transparent compensation.

While members may use different fee structures — including hourly, project-based, retainer or subscription arrangements — they are united by a client-first philosophy and a focus on advice rather than product sales.

I asked Tracy St. John, a Kansas City financial planner and long-time member of the network, to explain its role and how it can help you find a financial adviser whose business models are aligned with your interests.

Why the Garrett Planning Network was created

Financial planner Sheryl Garrett created the Garrett Planning Network around a simple but powerful idea: Quality financial planning should be accessible to ordinary Americans, not just wealthy investors.

As St. John says, "The problem was the average person feeling like they couldn't have access."

That mission remains central to the network today.

Rather than requiring clients to meet asset minimums, many Garrett planners are willing to work with consumers who are just getting started, are approaching retirement or simply need objective advice on a specific financial issue.

If you've never worked with a financial planner before, this can be a significant advantage.

What makes Garrett planners different?

When asked how Garrett planners differ from many other financial advisors, St. John immediately points to two characteristics. "We are comprehensive planners," she says, and "We are client first."

She also emphasizes the dedication many Garrett planners bring to their work: "Many of us will work beyond the scope of a project or plan just because we want the best outcome for the client."

Those comments reflect an important distinction.

Many financial professionals focus primarily on investment management. Garrett planners generally view investments as only one component of a much broader financial planning process.

Their goal is to help clients make better decisions across all aspects of their financial lives.

Understanding comprehensive financial planning

Many consumers assume they are receiving comprehensive advice when they are actually receiving investment recommendations.

St. John believes comprehensive financial planning goes much deeper. In her practice, comprehensive financial planning includes far more than portfolio management.

It may involve:

• Cash-flow analysis
• Retirement planning
• Tax planning
• Estate planning reviews
• Social Security strategies
• Medicare decisions
• Employee benefit evaluations
• Insurance reviews
• Investment planning
• Tax-efficient withdrawal strategies
• Family financial education

It may also go into details that seem small individually, but collectively can have a meaningful impact on your financial well-being.

For example, one client discussion involved reviewing unused credit card rewards, St. John says. Another involved verifying whether a client had designated representatives on Social Security and Medicare accounts, while another involved identifying tax inefficiencies in investment accounts.

As St. John explains, "Comprehensive for me is really covering the gamut."

An interconnected approach

Consumers often approach financial planners with a specific question:

• When should I claim Social Security?
• Should I invest in this fund?
• Can I afford to retire?

But, St. John says, truly comprehensive planners recognize that these questions rarely exist in isolation.

"The depth to which every area of your finances intermingles with each other" is something consumers frequently underestimate, she notes.

For example, determining when to claim Social Security benefits requires understanding:

• Cash flow needs
• Retirement income sources
• Tax consequences
• Longevity assumptions
• Investment resources
• Estate planning goals

"We can't just answer that basic question without looking at other areas," St. John explains.

Similarly, she doesn't like making investment recommendations without understanding a client's tax situation.

This interconnected approach is one of the hallmarks of comprehensive financial planning.

Why fee-only matters

The Garrett Planning Network has long emphasized fee-only compensation.

While consumers ultimately must decide which compensation structure they prefer, fee-only arrangements eliminate many of the product sale conflicts that can arise when advisors receive commissions from product providers.

For St. John, the decision was deeply personal.

"I felt like if I [charged] hourly, the client would only pay when I'm doing work for them," she says. "That just felt morally right."

She also wants clients to feel free to engage in her services when they need help rather than feeling pressured into ongoing arrangements that might not fit their circumstances.

Importantly, Garrett planners use a variety of fee structures today. Some charge hourly. Others use flat fees, subscriptions or retainers.

What unites them is transparency and a commitment to putting the client's interests first.

As St. John explains, "It's about the client and what they need for their situation."

A culture of collaboration

Another distinguishing feature of the Garrett Planning Network is its culture.

Unlike many industries where professionals guard their ideas and processes, Garrett planners have historically embraced collaboration.

St. John describes the organization as one where members openly share knowledge and support one another's success.

One member who attended a Garrett event remarked: "I feel like I come here and it's this big group hug."

St. John laughs as she recalls the comment, but she believes it captures something important about the network: "It truly feels like a family where everybody cares, and everybody shares."

That collaborative culture ultimately benefits consumers because Garrett Planning Network advisors continuously learn from one another and share best practices.

The needle in the haystack

People often ask how they can determine whether an advisor is providing comprehensive planning or simply managing investments.

St. John's answer is surprisingly straightforward: "If they aren't being asked for their taxes and there isn't any tax work done, if they're not being asked for their estate plan, if they're not being asked to look at what their lifestyle costs, that from a high level would not be comprehensive planning."

In other words, you should expect your advisor to be interested in much more than investment accounts.

A comprehensive planner should seek to understand your entire financial life. But they're not always easy to find.

St. John tells me: "I've had several clients say, 'We did so much research and you were a needle in a haystack, but we are so glad we found you.'"

That statement highlights both the challenge and the opportunity facing consumers today.

The challenge is that truly comprehensive, fee-only financial planners remain a relatively small segment of the financial services marketplace.

The opportunity is that organizations such as the Garrett Planning Network make it easier to identify advisors who embrace this approach.

The bottom line

For consumers seeking objective financial guidance, the Garrett Planning Network offers a valuable resource.

Its members share a commitment to comprehensive, fee-only financial planning, transparent compensation and client-centered advice.

While no single organization has a monopoly on quality financial planning, the Garrett Planning Network has spent more than two decades promoting a model built around accessibility, education and putting the client first.

When you evaluate potential advisors, you should ask an important question: Am I receiving investment recommendations, or am I receiving comprehensive financial planning advice?

The answer may lead you to a new advisor — and a more complete understanding of your financial life.

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

For years, employers have expanded financial wellness programs to cover retirement savings, healthcare costs, emergency funds and student loan repayment.

Yet one of the biggest financial milestones in Americans' lives, buying a first home, has remained largely unsupported in the workplace. That is beginning to change.

A growing number of companies and benefits providers are exploring homeownership support as the next frontier of employee financial wellness.

The shift reflects a simple reality: For many workers, especially millennials and younger employees, homeownership feels further out of reach than ever. High prices, elevated interest rates and rising insurance and tax costs mean that even financially responsible workers struggle to turn "someday" into "this year."

Traditional benefits do little to solve that problem, since a 401(k) helps employees prepare for retirement decades away, a health savings account (HSA) helps manage healthcare expenses and student loan benefits help reduce debt.

Few employers, though, offer tools to help workers save for a down payment, improve mortgage readiness or navigate the homebuying process, leaving employees to piece together information on their own, often without clear guidance on what they can actually afford or how to trade off competing financial priorities.

That gap is exactly where employer-sponsored homeownership support can make a difference, and the mechanics are not complicated. Programs can help employees automatically set aside money from each paycheck toward a dedicated home fund, receive matched contributions or bonuses tied to milestones and access education on credit, debt-to-income ratios and local market conditions.

For many would-be buyers, simply having a structured plan, realistic affordability benchmarks and a single place to manage the process can be the difference between staying a renter and confidently taking the next step.

Benefits platforms are now trying to close that gap at scale. Partnerships between companies like Foyer (where I am the founder and CEO) and Nayya aim to integrate homebuying support directly into workplace benefits, offering employees savings tools, affordability planning and guidance throughout the homeownership journey.

Nayya has reported that roughly one in 10 users expects to buy a home within the next year. At the same time, HR Brew recently noted that only a small minority of employees currently receive any form of employer housing assistance, which suggests there is significant room for growth in this category.

There is also a broader workforce argument emerging. Employers increasingly compete on benefits that support major life milestones, not just base pay and a standard retirement plan. Housing affordability affects recruitment, retention, geographic mobility and overall financial stress.

Employees who feel permanently locked out of homeownership often carry that stress into work, which can influence everything from productivity to long-term loyalty. In that context, helping employees buy a first home looks less like a niche perk and more like a strategic workforce benefit.

The evolution mirrors what happened with student loan assistance a decade ago. A once-unusual offering gradually became part of mainstream financial wellness, as more employers recognized that workers cannot build a stable financial life while buried in debt.

Today, the pressure point has shifted. For many households, the largest single barrier to building wealth is not a lack of retirement vehicles, but the difficulty of getting onto the housing ladder in the first place.

If retirement benefits help employees build security for the future, homeownership benefits are the logical next step in helping them build wealth in the present.

For employers, integrating homeownership into financial wellness is an opportunity to stand out competitively and support long-term employee stability.

For workers, it is a sign that their workplace is not only focused on who they will be at age 65, but on the financial goals that shape their lives right now.

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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 U.S. Postal Service financial crisis is no longer a future concern — it's happening now.

Testifying before Congress in June, Postmaster General and Postal Service CEO David Steiner said the agency is running out of cash, deferring retirement obligations and relying on temporary financial maneuvers to continue providing service.

Those maneuvers include borrowing from employees' retirement funds, a move that should stop every postal worker in their tracks.

When Steiner says the agency is borrowing from those funds to stay afloat, he doesn't mean individual Thrift Savings Plan (TSP) accounts are being raided or that earned pensions have vanished.

However, it does mean the Postal Service is using deferred employer retirement obligations as a cash-management tool, which can impact every postal employee trying to make informed decisions about retirement, benefits, income and long-term security.

What postal workers can do to prepare

Postal employees have valuable benefits. This announcement isn't reason to panic, but it is reason to prepare.

Find out how potential changes could affect your pension, TSP, benefits and the financial protections you have chosen for your family. A qualified Federal Benefits Expert can help with that.

Calculate the retirement income you can realistically expect from the Federal Employees Retirement System (FERS), Social Security and your TSP, then compare it with what you actually spend each month.

The difference — whether a shortfall or a surplus — may determine how prepared you really are.

A Federal Benefits Expert can help you run that analysis, too.

Decide now how you would respond if the Postal Service announced another early-retirement offer, a restructuring or an involuntary separation. Understand what you would gain, what you could lose and whether your income, health coverage and savings could support that decision. Options are easier to evaluate before the pressure and deadlines arrive.

Prepare for the potential delay between your last paycheck and your full retirement income. We are seeing some retirement claims take six months (and occasionally as long as 12 months) to finalize.

A dedicated cash reserve can help you cover that gap without being forced into an unplanned, taxable withdrawal that depletes your traditional TSP savings.

That preparation matters because this is unlikely to be the last difficult decision involving Postal Service finances. Until the Postal Service and Congress agree on a durable plan for the Postal Service's long-term financial stability, employees should expect continued proposals that could affect operations, staffing and retirement planning.

Why we're in this situation

Deferring retirement obligations just to keep the lights on is not only indicative of a cash-flow problem for the Post Service, it's clear proof that the current funding model no longer works.

Under Title 39, the Postal Service must serve every American community, including routes that lose money year after year. Today, the agency delivers to roughly 170 million addresses, six days a week, across 233,000 delivery routes. This costs more than $65 million a week.

Steiner says 84% of city delivery routes and 52% of rural delivery routes are financially underwater, totaling a loss of more than $120 billion in the past decade.

In other words, the Postal Service is expected to operate like a business while providing service like a public utility.

The Postal Service isn't just cutting costs, it's fundamentally restructuring how it operates. Through its 10-year Delivering for America plan, the Postal Service is consolidating operations by moving letter carriers from local post offices to larger sorting and delivery centers.

These changes are already underway and have important implications for employees' careers, benefits and retirement planning. It appeared to improve efficiency on paper, but for the workers, it's often resulted in longer commutes, unfamiliar routes, new schedules and increasing uncertainty about future job security.

Although implementation has not met the Postal Service's original timeline, the restructuring has not stopped. In 2022, the Postal Service unveiled plans to consolidate up to 100,000 carrier routes into 400 to 500 larger sorting and delivery centers.

Today, with roughly half of those consolidations complete and about 133 facilities activated, its impact on employees is becoming increasingly evident.

The Postal Service says this change in operations has produced more than $1 billion in savings to date, potentially generating billions more annually if fully implemented.

But an audit from the United States Postal Service Office of Inspector General found it also created $1.4 million in added overtime costs and about $19 million in additional labor expenses.

This raises concerns about whether the savings are as clear as the Postal Service suggests.

Although postal workers' TSP accounts aren't being raided, nor are their pensions disappearing, suspending employer contributions to the FERS to save money isn't a sustainable solution.

While it might be saving the Postal Service roughly $100 million per week, or $2.5 billion in the current fiscal year, using those would-be contributions to employees' retirement funds is only multiplying future indebtedness.

Eventually, those missed payments must be restored, restructured or addressed by Congress.

For postal workers, it also raises an important question: How will the agency afford to pay back both missed and future payments?

Postal workers aren't the only ones impacted by this financial crisis. While taxpayers might not be paying the Postal Service's operating costs now, that doesn't mean they won't in the future. When a public service is legally required to serve every American address, but can't sustain itself financially, the bill gets pushed onto workers, customers, communities and potentially taxpayers.

The Postal Service can no longer afford to be expected to operate like a business while fulfilling a public mission. Unlike commercial carriers chasing profitable routes, the Postal Service is the only carrier legally obligated to deliver to every address in America — from densely populated cities to the most remote rural communities.

Unlike most federal agencies, the Postal Service does not rely on annual taxpayer appropriations to fund its day-to-day operations. Instead, it's expected to finance the majority of its operations through the sale of postage, products and services, all while fulfilling its legal obligation to deliver to every address.

It's a unique mandate that combines the responsibilities of a public service with the financial expectations of a self-supporting enterprise.

Until the Postal Service's long-term funding model is addressed, measures such as deferring retirement contributions are temporary solutions that postpone — not solve — the underlying financial challenges. If universal mail service is a national priority, then ensuring the long-term financial stability of the institution that delivers it must be a national priority as well.

If you're a postal employee, this isn't just another headline — it's your career, your retirement and your family's financial future. As the Postal Service continues to evolve, the decisions you make about your federal benefits today can have a lasting impact for decades to come. Understanding how your pension, TSP, Social Security, healthcare and insurance work together isn't just helpful — it's essential. The best time to prepare is before change leaves you with fewer options.

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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.

I can usually tell where we are in the precious-metals cycle by the questions investors ask me. When precious metals are quiet, few people want to discuss them.

When gold begins making headlines, interest builds. Then, after gold and silver have already rallied significantly, the questions inevitably shift to silver.

But when prices pull back, that interest disappears almost as quickly as it arrived. As a portfolio manager at Meristead Wealth, I have seen this pattern before, and it reflects one of the great challenges of commodity investing: Investors tend to become most enthusiastic when prices and expectations are already high.

The better time to get interested is often after both have come back down.

So, let's talk silver.

Silver is more than a precious metal

Silver is sometimes dismissed as "poor man's gold." That description badly understates what the metal has become. Like gold, silver has served as money and a store of value for thousands of years.

But unlike gold, silver plays a significant role in industry. It can be found in electronics, automobiles, medical equipment, electrical infrastructure and countless other products that have little to do with jewelry or investment demand.

Silver is particularly important to several technologies expected to shape the next generation of the global economy, including solar panels, electric vehicles, semiconductors and artificial intelligence data centers.

The reason comes down to the metal's physical properties. Silver is the most electrically conductive metal on Earth. In plain English, that means electricity can pass through it with exceptionally little resistance or wasted energy. It is also an excellent thermal conductor, allowing it to move heat away from sensitive components before they overheat.

Those qualities are valuable in everything from solar cells and vehicle charging systems to computer chips, servers and high-performance electrical connections. Industrial silver demand totaled 657.4 million ounces in 2025.

Although that was down modestly from the prior year's record, demand continued to benefit from investment in artificial intelligence infrastructure, automobiles and the power grid.

Here's the problem

The problem is that silver supply has not kept pace. The global market is projected to record its sixth consecutive annual supply deficit in 2026, with demand exceeding supply by an estimated 46.3 million ounces.

Since the current run of deficits began in 2021, about 762 million ounces have been drawn from above-ground inventories to bridge the cumulative gap between supply and demand.

That does not mean the world is about to run out of silver. It does mean that newly mined and recycled supply has repeatedly been insufficient to satisfy annual consumption, forcing the market to rely on metal accumulated in earlier years.

Mine production, meanwhile, has been remarkably stagnant over the past decade. Many of the world's premier silver districts are mature, and declining ore grades mean miners must move and process more rock to produce the same amount of metal.

Recycling can help, but only to a point. Some silver is concentrated in products such as jewelry, silverware and larger industrial components, making it economical to recover.

In many modern applications, however, each device contains only a tiny amount. A smartphone, medical instrument or electronic sensor may depend on silver to function yet contain so little that the recovered metal would be worth less than the cost of collecting, dismantling and processing the product.

As a result, much of the silver dispersed across millions of finished goods is unlikely to return to the market under current economics.

Diverse drivers of demand

The result is a precious metal with tight supply and a diverse collection of demand drivers. Better yet for silver producers, the small quantity used in many finished products can make demand relatively insensitive to price.

If the silver inside an expensive server, automobile or piece of medical equipment accounts for only a tiny fraction of its total cost, the manufacturer is unlikely to stop producing that item simply because silver becomes more expensive.

Supply can be equally unresponsive. Most silver is not produced by mines built primarily to extract silver. Instead, it is recovered as a byproduct from mines whose economics are driven by lead, zinc, copper or gold.

A sharp increase in silver prices will not necessarily convince a copper miner to expand production if copper prices, ore quality or the rest of the project economics do not justify it. Unlike commodities for which higher prices can quickly encourage greater production, silver supply does not always respond directly to the silver price.

For patient investors, that is an interesting setup indeed. Deciding how best to invest in it is more complicated.

Not all silver investments are equal

There is, of course, physical silver. Many of our clients at Meristead choose to own some precious metals directly, typically with the intention of holding them indefinitely or treating them as a form of "when stuff hits the fan" insurance.

That is a perfectly reasonable purpose for physical ownership. But owning more sizable quantities introduces practical problems, including secure storage, insurance and the risk of theft. Exchange-traded funds offer a more convenient alternative, but they charge fees and require investors to understand the fund's structure and custody arrangements.

Neither coins nor physical silver-backed funds provide the operating leverage that can make precious-metals equities especially rewarding when metal prices rise.

The obvious equity alternative is to buy a silver miner. Unfortunately, truly silver-focused mining stocks are in surprisingly short supply. Most of them are tiny companies that may own a mine but aren't currently pulling any silver out of the ground (which is to say, they aren't making any money).

This scarcity can also cause the few higher-quality silver companies to trade at premium valuations relative to the much larger universe of gold miners.

Even the "pure" silver miners are rarely as pure as the label suggests. Silver deposits frequently contain gold, lead, zinc or copper, and those other metals can represent a substantial share of a company's reserves, production or revenue. Investors who insist on seeing the word silver in the company name may therefore be restricting themselves to a small and sometimes expensive opportunity set without actually obtaining pure silver exposure.

Where silver hides in plain sight

At Meristead Wealth, we have found that investors seeking exposure to both gold and silver can often get the best of both worlds by looking beyond the narrow silver-miner category. A number of businesses thought of primarily as gold companies own meaningful silver-producing assets.

These companies can provide participation in higher silver prices without forcing investors to accept the limited choices or scarcity premiums that may accompany the most obvious silver stocks.

Newmont (NEM), for example, is known as one of the world's largest gold miners. Yet its Peñasquito operation in Mexico is also one of the world's largest silver mines. Peñasquito sold about 28 million ounces of silver in 2025, in addition to producing gold, lead and zinc. That is meaningful silver exposure hiding inside a company most investors place firmly in the gold bucket.

A different business model to consider

Another option is to move one step away from operating the mines altogether. In a previous Kiplinger article, I discussed precious-metals royalty and streaming companies, which provide miners with capital in exchange for a percentage of future production or revenue.

These businesses are typically highly profitable and capital efficient, and they avoid many of the day-to-day labor, equipment and cost risks faced by mine operators. They are not risk-free — their fortunes still depend on the underlying mines and operators — but I generally prefer the business model to traditional mining.

Here, too, investors can find both gold and silver exposure. Wheaton Precious Metals (WPM) is the clearest example. Longtime precious-metals investors may remember the company by its original name, Silver Wheaton — a nod to its roots as a silver-focused streaming business.

It has since broadened its portfolio, but silver still generated 36% of Wheaton's revenue in 2025, alongside 62% from gold. Its streaming agreements also provide exposure to hundreds of millions of ounces of attributable silver reserves and resources.

Royalty companies that appear more gold-oriented can offer silver exposure as well, although the degree varies by portfolio. Investors should examine the metals underlying each company's streams and royalties rather than relying on its name or headline gold-equivalent production.

That work can uncover silver assets within diversified businesses that offer stronger balance sheets, broader portfolios and, in some cases, more attractive economics than a narrowly focused mine operator.

Silver is still volatile

Investors who piled into silver when enthusiasm was at its peak earlier this year are now hurting. That is often the result of buying a volatile asset near record prices, when expectations are through the roof and it feels as though the rally can only continue. Just a handful of months ago, silver had both elevated prices and elevated expectations. Today, it has neither.

Make no mistake: Silver remains volatile, and I would hardly advise anyone to go "all in." Mining and royalty stocks also introduce company-specific risks that do not exist when owning the metal directly. But for investors possessing the right combination of patience and risk tolerance, a thoughtful allocation to silver-related equities after the recent pullback looks considerably more attractive than it did amid the excitement that preceded it.

In commodity investing, some of the best opportunities emerge only after the shine has worn off.

This commentary is for informational purposes only and is not investment advice or a recommendation. Any securities identified do not represent all securities purchased, sold, or recommended, and readers should not assume that investments in these securities were or will be profitable. Views and examples are subject to change and are not investment recommendations.

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

A few years ago, I sat across from a therapist for the first time in my life.

I was raised to believe you suffer in silence, that asking for help is what weak men do. But my marriage was struggling, I was unhappy at work, and pretending had stopped working.

Her first question wasn't about any of that. She asked, "What are your values?"

I'd spent more than a decade guiding people through life's biggest financial decisions, and I couldn't answer. She told me most people can't.

Learning to answer that question changed my life, and it became the foundation of my practice, Narativ Retirement in Bellevue, Washington: Values first, portfolio second.

Nowhere has that approach resonated more than with the women I serve, who now make up more than half my clients.

They've taught me something the industry rarely says out loud: Most women are better investors than they've been led to believe.

That likely includes you. The research backs it up, and the reason comes down to something you can put to work deliberately: Knowing what you value.

Your instincts are better than the industry credits them

The financial world has spent decades talking to women as if they need to be taught how to invest. The data disagrees.

Research keeps finding that women's returns tend to match or slightly outperform men's. Fidelity research analyzing 5.2 million accounts found women outperformed men by about 0.4% annually and a 2025 Wells Fargo Investment Institute report found women's risk-adjusted returns came out ahead, as well. The edge is behavioral:

• Less impulse trading
• Less chasing the hot stock
• More due diligence
• More patience to buy and hold
• A healthy respect for risk

If you recognize yourself in that list, there's a reason. Women tend to be more naturally in touch with what they value than anyone else I work with, and they carry that clarity into their money decisions.

When your investments reflect what you care about, patience becomes your natural state.

You might already be doing this instinctively. What follows is how to do it on purpose.

A simple exercise for naming your values

My therapist gave me an exercise adapted from Brené Brown's book Dare to Lead, and I now use it with every client before any paperwork.

Ask yourself one question: What would I keep working toward if no one else ever knew about it? No audience, no credit, just you.

One rule makes the exercise work: You can't define yourself by your roles. Not "I'm a mother," not "I'm a nurse." Roles describe who you are to other people, and every one of them comes with expectations someone else wrote. Your values are what remain when nothing is expected of you.

With the roles set aside, sit with the question and write down every answer that surfaces. If you're staring at a blank page, a published values list, such as the one Brown offers, gives you raw material to react to.

Narrow the list to five. Take your time; I spent a week. Mine are curiosity, achievement, fortitude, adventure and authenticity. Yours will be different, and that's the point.

When you're weighing any significant decision, run it through your five. If it doesn't satisfy at least three, it's probably wrong for you. Leaving my old firm to start my own practice checked all five boxes, which told me everything I needed to know.

The reverse is just as useful: When a decision feels persistently uncomfortable, you're probably going against your own grain.

That applies to portfolios as much as careers. All the exercise really does is put language to the instinct you might have been investing with all along.

How your values become your financial plan

In my practice, the values conversation happens before any paperwork. I ask every new client for a moment of vulnerability: Tell me your five core values. We return to them in our planning conversations afterward because values help predict fit.

If your values center on security and protecting what you've built, an aggressive portfolio will feel like a constant low-grade violation. Protection-oriented strategies might serve you far better.

If you're wired for adventure and comfortable with risk, you need a different path entirely.

Neither answer is wrong, but a plan that ignores who you are is one you'll eventually abandon, and abandoning a plan midjourney is where real damage can happen.

If a recommendation has ever sat wrong with you and you couldn't articulate why, that was likely your values flagging a mismatch, and the feeling deserved more credit than it got. There is no one-size-fits-all financial plan.

The part of your plan that outlives you

A pattern among my female clients has changed how I think about what a financial plan is for. They introduce me to their kids and grandkids years, sometimes decades, before any wealth would change hands, because they want the people they love to know the person who will help carry things forward.

If that impulse sounds familiar, honor it. It's one more instinct the industry rarely gives you credit for, and it's values-based planning at its endpoint: Your plan covers more than your retirement. It's about the people and things you love most.

It's also a useful test: An adviser willing to invest real time in your next generation, knowing that money might not be under their care for 10 or 15 years, is showing you they value the relationship above the transaction.

Choosing an adviser is a values decision, too

Once you can name your five core values, you also have a filter for one of the biggest money decisions you'll make: Who to trust with them.

Many women tell me past experiences with financial professionals left them feeling talked over or treated like an afterthought. You don't have to settle for that.

An adviser worth keeping should hold up to the same three-of-five scrutiny as any other decision:

They ask who you are before they ask what you have. If the first meeting opens with your account statements, keep looking.

They listen more than they present. You should leave every meeting feeling heard.

They translate your values into a concrete, written plan, then meet the expectations they set consistently.

They make room for your family, opening the door to your children and beneficiaries without being asked.

They hold credentials that back up the discipline. The CERTIFIED FINANCIAL PLANNER® (CFP®) certification, for example, requires rigorous education, examination, experience and a commitment to ethical standards.

I pursued that certification for one reason: A values conversation only helps you if the person across the table has the training to act on it across income planning, tax efficiency, insurance and legacy decisions. Credentials aren't everything, but they're evidence that someone chose the harder path on purpose.

Try it this week

All you need to start is an hour.

1. Ask yourself: What would I keep working toward if no one knew?

2. Write down every value that surfaces, then cut the list to five

3. Run your next money decision through the three-of-five test — a purchase, an investment, even the decision to hire or keep an adviser

Spend that hour, and you should start to feel it everywhere money touches: Decisions come easier, doubt gets quieter, and the plan you build is one that reflects who you are and what actually matters in your life.

The story your money tells

Your net worth is a number. Your values are the story your money is meant to tell.

You've spent much of your life stewarding other people's stories.

A plan aligned with your values is how your own gets told and, eventually, handed to the people you love. And you were never starting from behind: You've probably been investing this way by instinct all along.

Now you have the language and the test to do it on purpose.

Related Content

• Value Investing and Values-Based Investing Gain Momentum
• Your Legacy Is More Than Your Money: How to Plan for Values, Not Just Valuables
• How to Find a Financial Adviser
• 8 Rules for Choosing the Right Financial Adviser
• Want to Hire a Financial Planning Firm? Five Questions to Ask

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

Every year, thousands of employees and executives retire or leave a job with a 401(k) full of company stock and unknowingly pay far more in taxes than necessary.

The culprit is a lack of awareness around net unrealized appreciation (NUA), a little-known IRS provision that can convert a chunk of ordinary income tax into much cheaper long-term capital gains tax.

If you or your executives hold concentrated employer stock in a 401(k), profit-sharing plan or employee stock ownership plan (ESOP), understanding NUA could mean the difference between a seven-figure tax bill and meaningful savings.

What is NUA?

NUA is simply the growth in your company stock's value while it sat inside your retirement plan. To put it another way, it's the gap between what you (or your employer, via matches or stock bonuses) paid for the shares and what they're worth today.

Consider an executive who accumulated employer stock over a 20-year career with a cost basis of $200,000 and whose position is now worth $4.2 million. The $4 million difference is the NUA.

Under normal 401(k) rules, every dollar you eventually withdraw, including all that appreciation, gets taxed as ordinary income, which can run as high as 37% for top earners. On a $4 million distribution taxed entirely as ordinary income, that's roughly $1.5 million owed to the IRS.

NUA treatment changes that equation by letting you split the stock into two tax buckets: The $200,000 cost basis, taxed as ordinary income now, and the $4 million appreciation, taxed later at long-term capital gains rates (currently capped at 20% federally) whenever the shares are sold.

Why NUA is a big deal for executives

This distinction matters most for executives and long-tenured employees as they're the ones most likely to hold large, highly appreciated positions in employer stock after years of matches, ESOP allocations or stock bonus programs.

In this scenario, using NUA could shift roughly $4 million from a 37% ordinary income bracket down to a 20% capital gains bracket, a potential difference of more than $600,000 in taxes owed, simply by handling the distribution correctly.

There's an added bonus: The NUA portion, along with any gains after distribution, escapes the 10% early withdrawal penalty regardless of the employee's age, and it's exempt from the 3.8% Net Investment Income Tax as well.

The rules you can't skip

NUA isn't automatic. It only applies if very specific IRS requirements are met, and missing even one disqualifies the entire strategy. Use this checklist if you are considering it:

• A "triggering event" must occur first: Separation from the employer, reaching age 59½, disability or death.
• The entire vested balance across all of that employer's qualified plans must be distributed within a single calendar year, with no partial distributions carried into the next year.
• The company stock must be distributed "in-kind" as actual shares into a taxable brokerage account, never sold for cash first.
• If required minimum distributions were already taken in a prior year, NUA eligibility is lost. Taking only the current year's RMD is still allowed as long as the account is zeroed out by year-end.
• The stock must currently sit in a tax-deferred account, such as a traditional 401(k). It can't be in a Roth 401(k) or Roth IRA.

How the process actually works

Once eligibility is confirmed, the mechanics are straightforward but require careful sequencing.

• The employer stock gets distributed in-kind directly into a non-qualified brokerage account, triggering an immediate ordinary income tax bill on the $200,000 cost basis only.
• Meanwhile, any remaining 401(k) assets, such as mutual funds, cash or other holdings, can be rolled over tax-free into a traditional IRA or a new employer plan.
• From there, the $4 million NUA portion sits untaxed until the shares are actually sold, at which point it's taxed at long-term capital gains rates no matter how briefly the shares were held after distribution.
• Any additional appreciation that occurs after the distribution date is taxed separately, following normal short- or long-term capital gains rules based on the new holding period.

Common mistakes to avoid

The biggest and most irreversible mistake is rolling employer stock into an IRA by default, as this permanently forfeits NUA treatment on that entire $4 million gain. This is a common outcome when executives don't flag their intent in advance.

Other frequent missteps include taking RMDs in a prior year without realizing it disqualifies future NUA eligibility, selling shares inside the plan before distribution (converting NUA to cash disqualifies it), and failing to distribute the full account balance within one tax year.

Making the decision

NUA isn't right for everyone, but for an executive with a large basis-to-value gap, the math is compelling. It works best when the stock is highly appreciated relative to its basis, when the executive doesn't need immediate liquidity to cover the upfront ordinary income tax on the basis, and when long-term capital gains rates offer a real advantage over the executive's ordinary income bracket.

For those under 59½, the trade-off between the 10% early withdrawal penalty on the cost basis and the long-term tax savings on the multimillion-dollar gain needs careful modeling.

Given how irreversible and rules-driven this strategy is, any executive sitting on a concentrated, highly appreciated position of employer stock inside a 401(k) — especially those approaching retirement or a job change — should run the numbers with a financial adviser or tax professional well before their triggering event happens, not after.

Once the account is rolled into an IRA, the opportunity to save hundreds of thousands (or more) is gone for good.

Related Content

• Got Company Stock in Your 401(k)? You Should Know about NUD
• 4 Reasons to Roll Over Your 401(k) Into an IRA (And 4 Reasons Not To)
• How to Unlock the Value of Your Employee Stock Options (and Help Avoid Taking a Financial Hit)
• Yay! You've Been Awarded Stock! Boo, the Tax Hit Is Massive: How to Avoid the Mistakes High Earners Make Before They Even Realize It
• The Big Three IPOs: What Retirees Need to Know Now

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

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

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

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

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

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

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

Confirm how you will be paid

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

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

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

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

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

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

Compare your withholding with your expected tax bill

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

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

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

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

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

Bring specific questions to payroll

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

Questions to clarify with HR or payroll:

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

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

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

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

Understand what a W-4 doesn't change

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

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

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

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

Moreover, many states do not recognize the FEIE.

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

Build the payroll plan before the move

A workable international employment arrangement has four connected parts:

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

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

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

Related Content

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

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

Tax preparation and tax planning are not the same thing. For retirees with pensions, the difference could be worth tens of thousands of dollars over the course of their retirement.

When you think about working with a CPA, you probably think about your tax return. And that makes sense — tax professionals help calculate what you owe, identify available deductions and credits and make sure your return is filed correctly.

But there is a big difference between preparing your taxes and planning your taxes. Tax preparation looks backward. Tax planning looks forward (I wrote a book on this called I Hate Taxes — request a free copy here).

That distinction becomes particularly important for retirees with pensions, substantial savings and multiple sources of retirement income. A pension can provide valuable lifetime income, but it also creates a tax-planning challenge that many retirees don't anticipate: Your retirement income could be higher than it was during some of your working years.

As the founder and CEO of Peak Retirement Planning and a CFP® Professional, I recommend that retirees look beyond their federal income tax bracket and consider how decisions affect Social Security taxation, Medicare premiums, capital gains, Roth accounts and estate planning.

Here are eight retirement tax strategies worth discussing with your financial planning team.

1. Don't automatically dismiss Roth conversions

A Roth conversion involves moving money from a traditional IRA or other tax-deferred account into a Roth IRA and paying income taxes on the converted amount today.

In exchange, qualified Roth withdrawals in retirement are generally tax-free, and Roth IRAs aren't subject to lifetime required minimum distributions (RMDs) for the original owner.

The conventional wisdom around taxes is often simple: Defer taxes as long as possible. But that isn't necessarily the best strategy for every retiree.

Consider someone who has a pension, Social Security and several million dollars in traditional retirement accounts. Their future taxable income could be substantial, as RMDs will eventually force money out of tax-deferred accounts, and pension and Social Security income continues arriving regardless of whether the retiree needs additional cash.

This can create a very different tax picture than the one they had while working. A Roth conversion could make sense when the tax cost today is lower than the expected lifetime tax cost of leaving the money in a traditional account.

However, the calculation should include more than the federal income tax bracket. Social Security taxation, Medicare's income-related monthly adjustment amount (IRMAA), state taxes, future RMDs and estate planning goals all affect the result.

The goal isn't necessarily to pay the lowest tax rate this year; it's to pay the lowest lifetime tax bill.

2. Put charitable giving on your tax-planning calendar

If charitable giving is part of your retirement plan, don't wait until tax season to think about it. Beginning in 2026, a new above-the-line charitable deduction allows eligible taxpayers who take the standard deduction to deduct up to $1,000 of qualifying charitable contributions for single filers and $2,000 for married couples filing jointly.

This creates another planning opportunity for retirees who don't itemize deductions.

But retirees with larger retirement accounts have another important tool: Qualified charitable distributions (QCDs). Once you reach age 70½, a QCD allows you to make a charitable contribution directly from an IRA.

The distribution may satisfy part or all of an RMD, subject to applicable limits, while generally keeping the transferred amount out of adjusted gross income.

That distinction matters. For a retiree with a pension, keeping taxable income under control could have ripple effects beyond the income tax return, as it can influence Medicare premiums and the taxation of Social Security.

Charitable retirees therefore shouldn't simply ask, "How much can I deduct?" They should ask, "Which account should the charitable gift come from, and when should I make it?"

3. Stop treating tax preparation as tax planning

Your CPA might prepare an excellent tax return, but that doesn't necessarily mean you're receiving comprehensive retirement tax planning.

Tax preparation is largely reactive — the tax year has ended, your income and transactions are known, and your professional calculates the resulting liability.

Tax planning is proactive. It asks questions such as:

• Should you make a Roth conversion this year?
• How much should you convert?
• Which account should fund your next withdrawal?
• How will an RMD affect your tax bracket?
• Could a large capital gain increase your Medicare premiums?
• Should you delay Social Security?
• How will your tax strategy change after one spouse dies?
• Where should assets be held for tax efficiency?

These decisions often need to happen months or years before the tax return is prepared.

Retirees shouldn't necessarily expect one professional to handle every aspect of the process. Instead, the CPA and financial adviser should communicate so that investment and tax decisions work together rather than operating in silos.

That collaboration can be especially valuable for retirees with pensions, because the interaction between guaranteed income, retirement accounts and government benefits can add a lot of complexity to your plan.

4. Build tax diversification into your retirement portfolio

Most investors understand investment diversification: Don't put all your money in one stock or one asset class.

The same concept applies to taxes. Retirees may potentially benefit from having assets spread among three different tax "buckets":

• Tax-deferred. Traditional IRAs, 401(k)s, 403(b)s and similar accounts
• Tax-free. Roth IRAs and other qualifying Roth assets
• Taxable. Brokerage and other non-retirement accounts

Having everything in tax-deferred accounts could create a problem later. When you need money, you have limited flexibility — withdrawals generally create taxable income, and RMDs will eventually force distributions whether you need the money or not. A Roth account provides another option.

Suppose tax rates are relatively high in a particular year. You could draw more heavily from Roth assets, assuming the withdrawals are qualified, rather than adding more taxable income.

In another year, when your taxable income is lower, drawing from a traditional IRA could be more attractive.

Tax diversification gives retirees choices, and in a retirement that could last 20 or 30 years, flexibility has real value.

5. Pay attention to the "three-legged stool" of retirement income

Pension retirees often have three major sources of income:

• A pension
• Social Security
• Withdrawals from retirement accounts

Individually, each might be beneficial, but together they can create a surprisingly large stream of taxable income. A retiree with a $70,000 pension, $50,000 of Social Security and significant IRA withdrawals could have considerably more taxable income than they expected when they first retired. The consequences extend beyond ordinary income taxes.

This increased income could cause up to 85% of Social Security benefits to be taxable and can also push long-term capital gains into higher brackets, eliminating opportunities to realize gains at the 0% rate.

Medicare Part B and Part D premiums increase through IRMAA, when income exceeds certain thresholds. That means an additional dollar of taxable income isn't necessarily just another dollar subject to income tax. It could also contribute to higher Medicare premiums.

For pension holders, this is one reason tax planning needs to look beyond the tax return.

6. Don't overlook the tax implications of pension decisions

Choosing between pension options is primarily an income-planning decision, but taxes deserve a seat at the table.

For example, someone might be deciding between a monthly pension benefit and a lump-sum distribution. The choice involves numerous factors, including longevity, investment risk, survivor benefits, liquidity and spending needs.

Taxes are only one piece of that decision, but they influence the long-term outcome. Survivor benefits deserve particular attention, as while you may be able to file jointly now and enjoy the more favorable tax brackets, one spouse passing away could result in a severe increase in your tax and IRMAA situation. Not to mention the potential to lose a Social Security benefit.

That combination creates what is commonly called the widow's penalty. A pension strategy that looks perfectly reasonable while both spouses are alive could create a very different tax picture for the surviving spouse.

In some situations, Roth conversions during the couple's joint-filing years could help reduce the future tax burden. The key is to model the decision before making an irrevocable pension election.

7. Make your investment strategy tax-efficient, not just return-efficient

Retirement investing isn't only about selecting investments that you believe will perform well. It's also about deciding where those investments should live.

For example, highly appreciated assets held in a taxable brokerage account create capital gains when sold. Meanwhile, mutual funds often distribute taxable capital gains even when you didn't sell the fund yourself, creating "phantom gains."

Those distributions might make tax planning more difficult because you don't necessarily control when the taxable income occurs. Tax-loss harvesting is another strategy worth considering. Selling an investment that has declined in value generates a capital loss that offsets capital gains, subject to applicable tax rules.

The proceeds could then potentially be reinvested in another investment while maintaining a similar overall portfolio strategy, provided you follow the wash-sale rules.

Asset location matters, too. Growth-oriented investments could be particularly attractive inside a Roth account because future qualified growth can be tax-free.

More conservative investments could potentially fit better in traditional accounts, while certain investments in taxable accounts often benefit from favorable capital gains treatment.

The best location depends on the entire portfolio, not simply the investment itself.

8. Don't let your pension create a retirement tax trap

Here's the overarching issue pension holders need to understand: A guaranteed income stream could make retirement taxes more complicated, not less.

Many retirees have relatively little taxable income, so they remain within the standard deduction or lower tax brackets. Pensioners with significant savings can have a different experience.

Their pension continues producing income. Social Security then becomes partially or largely taxable. Their retirement accounts continue growing. Eventually, RMDs begin. If they don't need those RMDs for living expenses, they often reinvest the money in a taxable account, creating another layer of potential capital gains and taxable investment income.

The result is a cycle in which one source of income affects another. That's why retirees with pensions and substantial assets should look at taxes as a long-term planning issue rather than an annual filing exercise.

The objective isn't to eliminate taxes. Instead, the goal is to coordinate the different pieces of a retirement plan so that you aren't unnecessarily creating taxable income, Medicare surcharges or avoidable tax bills later in life.

The bottom line

Retirement tax planning isn't about finding one magic strategy; it's about understanding how today's decisions affect the next 10, 20 or even 30 years.

• A Roth conversion could be beneficial in one situation and counterproductive in another
• A charitable gift could comprise cash, appreciated investments or an IRA, with different tax consequences
• A pension election could affect the surviving spouse's future tax burden
• And the way investments are allocated among taxable, tax-deferred and Roth accounts may influence how much flexibility you have later

Perhaps most importantly, tax preparation and tax planning should not be confused. Your tax return tells you what happened. A comprehensive retirement tax plan asks what you can do about what happens next.

For retirees with pensions and significant savings, that distinction could be one of the most valuable parts of their retirement strategy.

Now, for those who have a financial planner who says, "I am not a tax professional, go talk to your tax preparer": It may be time to find a new adviser. We believe retirees should work with what we call a "one-stop shop," where the CPA and financial planners work in the same office to ensure the above strategies get implemented.

Related Content

• Why a Roth Conversion Is Wrong for Most People But Often Right for Pension Holders
• 13 Things to Know About How Your Pension Affects Your Taxes in Retirement
• Many Retirees With a Pension and $1 Million-Plus Do These 7 Things (and Regret It Later)
• 10 Retirement Fixes You Can Implement Today to Strengthen Your Financial Plan
• When Is a Roth Conversion a Bad Idea? 6 Situations Retirees Should Consider Carefully

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 survey of over 4,200 Kiplinger readers earlier this year, Charles Schwab was the overwhelming favorite among respondents for internet banks. It's won the annual Kiplinger Readers' Choice Awards in this category three times and it's not hard to see why readers love it.

"Schwab bank is perfect," raved one Kiplinger reader, adding that the internet bank "goes above and beyond and is absolutely the best in customer service hands down."

Whether you've been considering Schwab bank specifically or you're just exploring your options for moving your money away from your current bank, find out why Kiplinger readers voted Charles Schwab the best internet bank for the third time.

1. Manage all of your wealth in one place

One of the most cited reasons Kiplinger readers keep choosing Schwab as their favorite internet bank: the convenience of being able to manage all of their accounts at one institution.

"I like housing our checking, savings, brokerage and IRAs in the same place," wrote one reader. Alongside all the typical checking and savings account options you expect from any bank, Charles Schwab also offers various loan products, retirement accounts, brokerage accounts, money market funds and even a trading platform.

With all of your finances on one dashboard, it's easy to move money around and monitor your complete financial picture.

2. No unnecessary fees

No one likes getting nickel-and-dimed by their bank. At a time when just about every major financial institution seems to be charging everything from "maintenance fees" to ATM withdrawal fees, Schwab's fee-free checking accounts are a breath of fresh air.

A Schwab account "costs nothing and works well," said one reader. Not only will you not have to worry about getting hit with maintenance or inactivity fees at Schwab, but the internet bank also covers fees you might be charged elsewhere.

"They pay any fee on any ATM that I use," said one enthusiastic Kiplinger reader. Schwab is one of the few banks to offer unlimited ATM fee rebates. That's a relief when you need cash. There's no need to track down a Schwab location for a withdrawal. You can head to whatever machine is closest to you and grab the cash you need without worrying about fees.

Those fee rebates apply to any ATM fee anywhere in the world. Between that and the zero transaction fees, Schwab checking accounts are just as great for travelers as they are investors.

3. FDIC insurance and robust security features

When it comes to your cash, you don't want to cut corners with security. That's one area that sets Schwab apart from others. Many internet banks are technically fintech companies that partner with brick and mortar banks to offer banking services. As the 2024 bankruptcy of Synapse Financial Technologies revealed, fintech companies aren't FDIC insured because they aren't technically banks. That can leave your money vulnerable if the company goes under.

You don't have to worry about that here because Charles Schwab is a true member FDIC bank, so your checking account is insured up to the standard $250,000.

In addition to being FDIC insured, Schwab accounts come with other security features like fraud alerts, travel notifications and the ability to quickly and easily lock or unlock your debit card as needed to prevent theft.

Where you bank is just one piece of your financial picture. If you're looking for help bringing your savings, investments and retirement strategy together, a financial adviser can help you build a plan around your goals.

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

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When the world gets expensive, uncertain and volatile, the investors who win are the ones who move toward tangible assets and tax efficiency, not away from them.

Let me paint the picture.

• Oil is above $80 a barrel and volatile
• Gas is hovering around $4 a gallon nationwide (and above $6 in parts of California)
• The Strait of Hormuz, through which roughly 20% of the world's oil supply normally flows, has been contested and largely closed since early March — the International Energy Agency has called it the largest supply disruption in the history of the global oil market
• Moody's recession model is sitting at 49%
• Mortgage rates have climbed back above 6%

If your instinct right now is to freeze, to sit on your hands and wait for the smoke to clear, I understand the impulse. But I'd also argue that's exactly the wrong move.

Because buried inside this chaos is one of the most compelling arguments for tax-advantaged real estate investing that I've seen in my career.

Let me explain what I mean.

When everything else gets expensive, real estate gets interesting

Inflation is the silent killer of stock market portfolios. When oil prices spike, the cost of everything follows: Food, shipping, manufacturing and consumer goods. Corporate margins shrink. Consumer spending contracts. Stocks, which are priced on future earnings expectations, take the hit.

Real estate, on the other hand, has a fundamentally different relationship with inflation. Rental income tends to rise with inflation, because landlords adjust rents as costs increase. Property values tend to hold or appreciate because the replacement cost of building new construction rises with materials and energy prices. And the debt on the property, which is typically fixed-rate, becomes cheaper in real terms as the dollar loses purchasing power.

In other words, inflation erodes the value of what you owe while increasing the value of what you own. That's not a bad deal.

This dynamic doesn't guarantee positive returns in every scenario, of course. Rising mortgage rates can suppress transaction volume and put downward pressure on prices. But for investors who already own real estate, or who are exchanging into it using tax-advantaged strategies, the inflationary environment actually strengthens the fundamental case for staying in the game.

One crisis, three investors, three strategies

Let's look at how this energy crisis is affecting three very different investors and how each one is using the current environment to their advantage.

Nadia is a 58-year-old landlord who owns a small strip center in suburban Houston. She's been thinking about selling for years, but the capital gains tax bill has always stopped her cold. Now, with commercial property values still holding steady in her market but stock portfolios getting hammered, she's fielding calls from buyers who want to move money out of equities and into something tangible. Her property is suddenly more attractive to a wider pool of buyers than it has been in years.

Nadia's move: Sell now while buyer demand is strong, execute a 1031 exchange and roll the proceeds into a portfolio of Delaware statutory trusts. She defers the entire capital gains tax, exits active management and picks up monthly passive income from institutional-grade real estate, the kind of property that weathers inflationary storms better than a strip center with two vacant units.

She also captures bonus depreciation through DSTs that have undergone cost-segregation studies, creating paper losses that offset her passive income and reduce her current tax bill.

David is a 44-year-old software executive who sold $2 million in company stock when his restricted stock units (RSUs) vested in January. He was already sitting on a significant capital gain. Then the market cratered, and now he's watching his remaining portfolio shrink while staring at a six-figure tax bill on the shares he already sold.

David's move: Invest the capital gains from his stock sale into a Qualified Opportunity Fund within his 180-day window. He defers the tax on those gains through the end of 2026 and, more importantly, starts the 10-year clock toward completely tax-free appreciation on any growth within the QOZ investment.

His money moves from the stock market — which is at the mercy of oil prices, geopolitics and Federal Reserve press conferences — into tangible real estate in communities poised for long-term growth.

Ten years from now, if all goes well, the IRS doesn't see a dime of the new appreciation.

Patricia and Ray are both 67, and they're done. Done with tenants, done with maintenance, done with the stress of checking their brokerage account every morning to see what the latest Strait of Hormuz headline did to their retirement savings overnight. They own a rental duplex worth $800,000 and a stock portfolio that lost 15% of its value earlier in the year. They want simplicity, stability and income they can count on.

Their move: Sell the duplex via a 1031 exchange into DSTs for the real estate side, eliminating landlord duties while deferring the capital gains. For the stock portfolio, they harvest losses on their worst-performing positions to offset gains elsewhere and redirect a portion of any remaining gains into a QOZ fund.

The combination gives them passive income from the DSTs, tax-loss harvesting from the stock sell-off and a long-term growth vehicle in the QOZ. They've turned a crisis into a retirement plan.

Why timing matters more than usual

There are three reasons why this particular moment demands attention.

First, the Opportunity Zone clock is ticking. Deferred gains from earlier QOZ investments come due on December 31, 2026. If you're making a new QOZ investment today, you're still under the OZ 1.0 rules, which means the 10-year tax-free appreciation benefit is fully intact.

And with the OZ 2.0 maps being drawn, which began on July 1, investors who understand both programs will have a significant edge over those who don't.

Second, bonus depreciation is back at 100%, permanently, thanks to the One Big Beautiful Bill Act. For high earners investing in DSTs with cost-segregation studies, this creates the opportunity to offset passive income with accelerated first-year depreciation deductions. In an inflationary environment where every dollar of tax savings matters more, this benefit is amplified.

Third, the energy crisis itself is creating urgency among sellers and opportunity among buyers. Landlords who are spooked by rising costs and uncertain economic conditions are motivated to sell. Investors fleeing the stock market are looking for stable, income-producing alternatives.

The result is a marketplace where well-advised buyers using 1031 exchanges, DSTs and QOZ strategies can acquire quality assets at attractive valuations while deferring or eliminating taxes in the process.

The bigger picture

Every major economic disruption in modern history — the 1973 oil crisis, the 2008 financial collapse, the 2020 pandemic — has reshaped how investors think about risk, tangibility and tax efficiency. The 2026 energy crisis will be no different.

When the dust settles, the investors who moved toward real estate and deployed tax-advantaged strategies during the turbulence will have built portfolios that are more resilient, more diversified and more tax-efficient than those who waited for calm seas that may be years away or may never come.

The tools are all on the table: 1031 exchanges for tax-deferred repositioning, DSTs for passive income and bonus depreciation and Qualified Opportunity Zones for tax-free long-term growth.

Each one is powerful on its own. Used together, in the hands of an adviser who understands how the pieces fit, they become something close to a complete playbook for navigating exactly this kind of environment.

The crisis is real. But so is the opportunity. The only question is whether you're positioned to take advantage of it.

Related Content

• What a Delaware Statutory Trust Can Do for Your Kids That Your Will Can't
• DST Inventory Just Hit a Record $3.9 Billion: What 1031 Exchange Investors Should Do Next
• Your Stock Portfolio Just Got Hammered: Here's a Tax-Smart Way to Recover
• Don't Defer Retirement if You're a Landlord, Defer Taxes Instead
• I'm a Real Estate Investing Pro: This Is How to Use 1031 Exchanges to Scale Up Your Real Estate Empire

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

For many families, the Great Wealth Transfer starts long before an inheritance. Many adult children are becoming their aging parents' go-to financial decision-makers.

The shift from adult child to the family's Chief Financial Officer (CFO) can happen suddenly after discovering unpaid bills, a suspicious bank wire request or an aging parent falling prey to a scammer. Or the job can be created out of necessity after the realization that mom and dad's financial life has grown too complex to manage on their own, says Tyler Rosser, managing director at Oxford Financial Group.

Longer life expectancies, coupled with the staggering $124 trillion in wealth set to change hands through 2048, according to Cerulli Associates, are making the family CFO an increasingly common job description. "It's becoming much more prevalent," says Rosser.

Serving as the de facto family CFO means taking on a broad range of money-related responsibilities, such as overseeing estate planning and long-term care. It's time-consuming, and depending on your parents' situation, difficult, so make sure you take care of yourself throughout your "term" as CFO.

Here are six steps to acting as a family CFO.

1: Start with a conversation

The best plan of action is to sit down with your aging parents while they are still capable of making financial decisions — and before a crisis strikes, such as the onset of dementia — and explain why you'd like to play a larger role in managing their finances and be privy to their estate planning.

"It starts with a conversation with the older parents and getting their buy-in," says Rosser.

"Millions of families [are] going through generational transitions," says Timothy Habbershon, managing director and founder of the Fidelity Center for Family Engagement.

Unfortunately, many families haven't had these important sit-downs. A Morning Consult survey, commissioned by Kiplinger as part of our Trillion Dollar Talk campaign, found that roughly two in five families have never discussed the plans for passing on money and assets.

"As people get older — especially past 70 — they often become less willing to talk about things like estate planning," Habbershon said. It's a unique opportunity, he says, to "create confidence, closeness and peace of mind for years to come."

2. Collect relevant financial information with an 'audit'

To perform CFO duties properly, the adult child in charge must have access to all pertinent financial information for both parents, including the following items.

• Account access. Savings, investment, and retirement account numbers and passwords, as well as combinations or keys to safes and safety-deposit boxes.
• Cash flow. Monthly bill statements and recurring expenses.
• Legal documents. Real estate records, wills and trusts.
• Insurance. Life, health and long-term care policies.

"When your parents are aging, the most important thing adult children (acting as CFO) need to do is gather key financial information," says Noah Doyle, CEO of SoundRidge Private Wealth.

Gathering these documents gives the family CFO a fuller picture of their parents' finances. By laying everything out on the table while the parents are still alive and mentally competent, the family CFO also has a better chance at preventing in-fighting between adult siblings who have a stake in their aging parents' estate, adds Doyle.

Ideally, the family CFO will have full transparency into his or her parents' financial life. At a minimum, the CFO should get the parents to grant access to their account statements, preferably via a "duplicate statement" arrangement or "view-only access."

"It gives the family CFO insight into transactions that are coming in and out of a checking account or what withdrawals are coming out of an investment account," says Rosser. "They can log into a Fidelity or Schwab account, for example, and see account data in real time."

A parent can also authorize his financial institution or financial adviser to add the adult child and family CFO as a "trusted contact," which allows the adviser to contact the family CFO if he suspects financial exploitation, fraud, cognitive decline or can't reach the client. They can do the same for their Social Security accounts.

"The last thing you want is your parent to be susceptible to some sort of elder fraud," says Doyle. "Anytime a wire goes out or a transaction looks suspicious or fishy, you know it's time to step in."

A key piece of information that must be clarified, adds Doyle, is whether aging parents have a long-term care policy in place. Often, elderly parents have a policy but don't share that key information with their adult children.

If a long-term care policy does exist, it's important to evaluate it closely.

"You need to know what the policy number is and understand what the benefits are because if there's ever a time when your parents have to use this policy, it's the children who are going to actually file the claim and know what the care options are," says Doyle.

If there's no long-term care policy in place, the CFO must analyze the parents' assets to determine whether they have enough to cover long-term care, and if so, the most tax-efficient ways to raise the cash to pay for care, says Doyle.

3. Secure power of attorney

In many cases, it's prudent for the family CFO to have the aging parent or parents grant them power of attorney (POA), a legal authorization that lets the child manage the parents' financial affairs.

"A power of attorney can encompass everything from paying their mortgage to making sure they have enough liquid resources to satisfy their day-to-day living expenses," says Rosser.

Peggy Sizow, chief fiduciary officer at National Advisors Trust, says a power of attorney can be customized however a family wants. If the family CFO is most suited for financial matters, a financial power of attorney can be set up; if another family member is more comfortable with healthcare issues, a healthcare power of attorney can be set up in their name, says Sizow.

The financial power of attorney can enable the family CFO to take control of all a parent’s finances, or it can specify certain types of financial accounts, such as bank, brokerage or retirement accounts. "They can be as customizable as you like," says Sizow.

Having full visibility into a parent's financial accounts is also a way to protect them from cybercriminals and other fraudsters and scammers, and in some cases, protecting them from themselves, says Rosser.

"It protects them from bad actors," says Rosser. An elderly person may also inadvertently cause financial harm to themselves by continuing to give to charities they have supported their entire life but can no longer afford. A review of checking accounts by the CFO can spot those types of self-inflicted wounds.

"The family CFO can step in and say, 'Mom, you've done such a good job gifting to charity in your life, but you really need to preserve most of those assets for the rest of your life,' " says Rosser.

4. Build a team of trusted advisers

The family CFO likely won't be an expert in money management, estate planning or tax planning. It's prudent for the adult child managing a parent's finances to connect with and build a relationship with experts when needed, adds Rosser.

"Bringing in a broader advisory group is a really good strategy," says Rosser. "Lean on the professionals around you."

Aging parents might be more willing to listen to a suggestion by the family CFO if it's backed up by the parents' long-time financial adviser or CPA.

"Everyone is sort of singing the same tune," says Rosser. "You get more buy-in that way."

An effective family CFO gathers key financial information from trusted experts and makes a sound financial decision.

"The family CFO's job is to get the information and options from the parents' long-term accountant, long-term estate attorney, long-term financial adviser," says Doyle. "Once they've gotten all the information from the professionals, then they make the best decision that’s best for their family."

5. Create or manage the estate plan

Finalize and verify your parents' estate plan well before Mom or Dad gets sick or incapacitated, says Sizow. "There are quite a few things that could take place prior to an inheritance," says Sizow.

Creating a trust and titling assets as "payable on death," for example, can help assets pass more easily to heirs and avoid costly, time-intensive probate court, Sizow advises.

It's important that you know the key components of the estate plan, including the names and contact information of the professionals your parents worked with on it, as well as how to access estate documents. Kiplinger's Trillion Dollar Talk survey found that a third of adult children whose parents have estate documents don't know how to access those documents.

6. Act when necessary

Hopefully you will not need to step in on your parents' behalf for years to come. Still, it makes sense to monitor their accounts and keep an eye on their health, especially if they show signs of physical or mental decline.

More Trillion Dollar Talk

• How to Talk to Your Family About Estate Planning (Without the Drama)
• Being the Executor of an Estate Is a Thankless Job: Here's How to Do It Well Anyway
• How to Organize Your Financial Paperwork for Your Heirs
• 5 Critical Questions to Ask a Financial Adviser About an Inherited Stock Portfolio

Your friend is running a race for a local charity. Do you make a donation?

A natural disaster has occurred. Do you want to donate to help out?

You're checking out at your local store and get a prompt asking if you want to round up for charity. Do you do it?

While many of us are basking in the hazy days of summer vs the cold reality of the months to come, the warm weather seems to bring a lot of "Giving Tuesdays." The asks for everything from swim teams to summer camps to walk-a-thons begin to add up, leaving me to ponder: "Am I giving enough?"

So, while the end of the year feels a long way away, this time of year is a good time to think about creating a giving plan for the rest of the year and identifying how you want to maximize the tax benefits for your gifts.

There are a few key components to unpack with this process. Some include:

• Is charitable giving important to your core values?
• What capacity do you have to give to charities?
• How much can you give to receive a tax benefit?

The causes

Every one of us, without too much trouble, could find, or be asked, to give to a charity every day. There are plenty of groups that need help (some we've never heard of) and plenty of people (some we've never met) looking to raise cash.

Psychologically, if I give to something in a reactionary way — maybe I got put on the spot to give — I'm most likely going to feel less connected to the outcome, and the feel-good nature of the gift will be fleeting.

So, how do conversations with my clients go? Especially with those who might have a significant capacity to give.

I always advise my clients who are charitably inclined to set an intentional giving plan. This means rather than scattering a few dollars here or there based on various fundraisers, pick one or two core causes that align with your personal values.

Local youth sports? Animal welfare? Your alma mater? A local house of worship? Take the time to see if these fit the legacy you want to leave. After determining the cause, spend the time to do the due diligence on the charitable options presented in that space.

Look at the mission and the impact measurements, as well as the financials of an organization so you feel more confident that your investment is going to be spent in a way that you feel good about and aligns with your own goals and values.

What's your giving capacity?

Once you've determined that you want to give to charity, it's important to look at your personal capacity to give.

Everyone has different demands on their bank account. If someone is in a position where they need to pay off high interest debt, build an emergency fund or saving for a large purchase or a college education, their capacity is going to look differently than someone who doesn't have any of those events looming, is fully funding their retirement plans and is in their peak earning years.

While charitable giving is initially driven by values and purpose, it's OK to also want to maximize the financial advantages associated with giving to nonprofit organizations.

By the numbers

It's important to address upfront that while giving your money to something you believe in can feel good, a dollar-for-dollar tax deduction is not guaranteed.

In truth, a deduction lowers your taxable income, rather than your final tax bill.

The next key thing to know is the level of deduction you are eligible for depends on whether you take the standard deduction or itemize.

The standard deduction for 2026 tax year is $16,100 for single filers and $32,200 for married couples filing jointly — leaving many Americans finding themselves in the standard-deduction camp.

For a long time, this meant that you wouldn't get any deduction for giving to charity. But, as a result of the One Big Beautiful Bill Act, passed on July 4, 2025, taxpayers utilizing the standard deduction will now be able to receive a deduction for charitable gifts up to $1,000 for single filers and $2,000 for married couples filing jointly.

For individuals who itemize, there is a new floor for deductions. The amount given to charity that is equivalent to the first 0.5% of adjusted gross income (AGI) is not deductible, and for taxpayers in the top tax bracket, the tax benefit of the charitable deductions is capped at 35% rather than 37%.

Meaning if you have $500,000 AGI and charitable contributions of $20,000, then the first $2,500 (0.5% of $500,000) is not deductible, but the remaining $17,500 is. But, because you're in the highest bracket, the benefit is capped at 35%. In this example, the gift produces about $6,125 of federal income tax savings.

For individuals who want to get more of a tax benefit, but don't give enough in a single year to make the most of these limits, there is an idea called "bunching." Instead of giving a small amount every year, they can bunch two or three years of giving into a single year.

As a reminder, in order for you to receive a charitable deduction for your donation, the charity you choose must be a registered 501(c)(3) organization. So, while giving money to a friend's GoFundMe page after they experience misfortune is kind, it's not tax-deductible.

Additionally, for gifts of $250 or more, taxpayers must receive a formal acknowledgment letter from the charity confirming the donation and making it clear that they didn't receive any goods or services in return for their largesse.

So, should you be giving more to charity? Well, many of us could probably give more.

But a better question — and one I always ask my clients — might be: Are you giving in a way that reflects your values and maximizes the impact you want to have?

When charitable giving is approached with intention rather than obligation, it becomes more than a tax deduction or a response to the latest fundraising appeal.

It becomes an expression of purpose, a reflection of personal values and an opportunity to create meaningful change for the causes and communities we care about most.

Having a plan in place for your charities and your taxes makes great sense — especially as peak giving season approaches.

Related Content

• Donating Complex Assets Doesn't Have to Be Complicated
• Give More But Pay Less: An Essential Guide to Tax-Smart Charitable Giving in 2026
• Five Ways to Maintain Charitable Giving in Volatile Times
• 3 Reasons Young People are Filled With Financial Anxiety — and How to Help
• Tending to Your Estate Plan? Don't Forget to Give Your IRA Some Love

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

With a challenging economy and rising business failures and bankruptcies, the need for thoughtful asset protection planning is greater than ever.

Asset protection is a layered strategy — a financial fortress built one wall at a time — and the right combination of tools depends on your needs, your risk profile and your circumstances.

Understanding what asset protection is — and is not — is essential: Done properly, it is not about hiding assets or evading legitimate debts, but it is entirely lawful and transparent.

The goal is to structure your affairs so that reaching your assets becomes difficult, slow and expensive for a creditor — changing the economics of a dispute so a claimant is motivated to settle for a fraction of the claim, if anything at all.

While the objective is not mere concealment, legitimate steps such as holding real property in an anonymous LLC can keep your ownership out of public view, since title to real property is a matter of public record.

Protection layer No. 1: The right business entity

The foundation of most plans is to operate any active trade or business through a properly formed and maintained entity, most commonly a C corporation, an S corporation or an LLC.

The purpose is liability containment: A shareholder or member is generally not personally liable for the entity's debts, so long as corporate formalities — separate bank accounts, adequate capitalization, documented governance and arm's-length dealings — are respected. However, the extent of the protection depends on the nature of the claim, the creditor and all the circumstances.

For example, a corporation or LLC is formed for liability protection, but the business owner fails to pay the employees' share of payroll taxes. Most states and the IRS provide for personal liability of not only the corporate or company officers but anyone with control over the business accounts.

The benefits of the limited liability entity were lost for failure to pay the employees' share of the payroll tax liability.

Ignoring those formalities invites veil-piercing or alter-ego claims that reach the owner personally. The choice among entities is driven mainly by taxation:

• A C corporation is a separate taxpayer subject to double taxation
• An S corporation is a pass-through but is limited to 100 eligible shareholders and a single class of stock
• An LLC is the most flexible, offering pass-through taxation by default with the option to elect other treatment

Protection layer No. 2: Foundational estate planning

Before layering on advanced tools, everyone should have a foundational estate plan, because incapacity or death can itself expose assets and because the advanced structures are built on these documents.

The core documents are:

• A revocable living trust, to avoid probate and manage assets on incapacity
• A pour-over will, to name an executor and guardians and catch assets left outside the trust
• Durable powers of attorney for financial and healthcare decisions
• An advance healthcare directive
• A HIPAA authorization

Key considerations include properly funding the trust, coordinating beneficiary designations on retirement accounts and life insurance and using discretionary and spendthrift provisions so that what you leave to children is shielded from their future creditors and divorcing spouses.

A revocable trust avoids probate, but, because you retain control, it does not protect your assets from your own creditors during life; a blind trust — which can even be a revocable trust whose name does not identify you — can hold title to real property without revealing your name in public filings.

Protection layer No. 3: Statutory exemptions

State and federal law already shield specified assets without any special structuring, so careful planning means identifying and maximizing the exemptions available where you live.

The homestead exemption protects equity in a primary residence, but the amount varies enormously by state — from a few thousand dollars to a capped figure (California ties its exemption to countywide median home prices), to the effectively unlimited exemptions in Florida and Texas.

Retirement assets receive some of the strongest protection: ERISA-governed plans such as 401(k)s enjoy a federal anti-alienation shield, and IRAs are protected in bankruptcy up to an inflation-adjusted cap.

Most states also exempt some combination of life insurance cash value and annuities, a motor vehicle up to a set value, household goods, tools of the trade, a portion of wages, public benefits such as Social Security and workers' compensation, college savings accounts and a "wildcard" amount — and some protect property held as tenancy by the entirety from the creditors of only one spouse.

A well-known illustration is the O.J. Simpson matter: After a roughly $33.5 million wrongful death judgment for the Goldman and Brown families, little was collected, in part because his NFL pension and other retirement assets were beyond creditors' reach, and he'd moved to Florida, where the homestead exemption is essentially unlimited in value.

Protection layer No. 4: Limited liability entities

Holding investment assets and real estate in limited liability entities such as LLCs and limited partnerships adds a layer of separation and changes the remedies available to a creditor.

Their signature feature is the charging order, which in many states limits a creditor to a lien on distributions rather than the entity's assets — and where the charging order is the exclusive remedy, the creditor cannot foreclose on the interest or force a distribution, improving settlement posture.

The strength of this protection varies by state: Nevada makes the charging order the exclusive remedy even for single-member LLCs, one of the strongest positions in the country, while single-member LLCs are weaker elsewhere (Florida's Olmstead decision is the well-known example, since addressed by statute).

Holding real property in an anonymous LLC also keeps ownership off the public record, though this is privacy, not concealment, and transfers into an entity remain subject to fraudulent transfer law.

Protection layer No. 5: Marital planning

For married couples, careful planning can shift lower-risk assets to the spouse less exposed to liability. The mechanics depend on the marital property regime:

• In community property states, community property is generally reachable for the debts of either spouse, so planning may involve a written transmutation or partition agreement converting it to the separate property of the lower-risk spouse
• In common-law states, titling — and, where available, tenancy by the entirety — controls ownership.

Premarital (prenuptial) and postmarital (postnuptial) agreements are central tools, characterizing assets as one spouse's separate property and defining how future earnings are owned — generally enforceable only with full financial disclosure, independent counsel for each spouse and the absence of duress.

This planning must be proactive: A transfer to a spouse made after a claim arises can be unwound as a fraudulent transfer, and it carries divorce-related risk that should be weighed separately.

Protection layer No. 6: Domestic asset protection trusts

A domestic asset protection trust (DAPT) is a self-settled spendthrift trust that, contrary to the traditional rule, lets you remain a discretionary beneficiary while shielding trust assets from many creditors after a seasoning period.

DAPTs are authorized or permitted in 20 states, which include Alaska, Delaware, Nevada, South Dakota, Tennessee and Wyoming. Nevada is often favored for its lack of a state income tax, short two-year seasoning period and absence of statutory exception creditors.

A DAPT can also enhance privacy, since assets titled in the trust's name are not held in your own name.

Residents of states hostile to self-settled trusts — California, in particular — should plan carefully, often using a third-party trust (for the benefit of a spouse, child or parent) rather than a self-settled DAPT.

Protection layer No. 7: Foreign and hybrid trusts

A fully foreign trust is often considered the highest level of protection because it places assets beyond the easy reach of U.S. courts, but it carries the heaviest U.S. tax compliance from the outset, including foreign trust and foreign account reporting (Forms 3520 and 3520-A and FBAR filings).

The hybrid trust captures the benefit while deferring that cost: It begins as a DAPT and stays domestic until a defined threat arises, at which point the U.S. trustee resigns, and a predesignated foreign trustee takes over.

Because a trust is generally governed by the law of the jurisdiction where the trustee sits, that change shifts the trust into an offshore regime such as the Cook Islands, Nevis or the Cayman Islands — where U.S. judgments are not recognized, registries are private, and, in the Cook Islands, a creditor must prove its case beyond a reasonable doubt with no contingency fees allowed.

Even greater protection comes from also moving the underlying assets offshore, and the heavier reporting is triggered only if the trust actually goes foreign.

One important caution: If you remain within reach of the U.S. courts while your assets sit offshore, a court can order you to repatriate them and hold you in civil contempt — even jailing you until you comply, as happened in FTC v. Affordable Media, LLC and in Re Lawrence.

In both cases, though, the debtor retained control or acted in bad faith; a trust settled in calm weather is harder for a court to reach, but the personal risk of contempt is real.

Critical limitations

The most important rule is timing: Planning must be completed before the events that give rise to the liability.

Every state has a fraudulent transfer statute — the Uniform Fraudulent Transfer Act or its successor, the Uniform Voidable Transactions Act — allowing a creditor to unwind two kinds of transfers:

• Actual fraud, made with intent to hinder, delay or defraud, inferred from "badges of fraud" such as transfers to insiders or after being sued
• Constructive fraud, made without reasonably equivalent value while insolvent, regardless of intent

A voidable transfer can be set aside and clawed back from the transferee.

In asset protection, once a claim is on the horizon, the most effective tools are largely off the table, so implement any plan well in advance and with experienced counsel.

The same principle applies to exemptions, which are powerful but not absolute: In bankruptcy, the homestead exemption is reduced to the extent its value derives from property disposed of within the prior 10 years with intent to defraud a creditor, so last-minute conversions of nonexempt assets into exempt ones can be challenged.

In conclusion

Asset protection works best when it is proactive, layered and tailored to your circumstances.

Beginning with the right operating entity and a sound foundational estate plan, then adding statutory exemptions, limited liability entities, marital planning and — where appropriate — domestic, hybrid or foreign trusts, you can build a financial fortress that stands up to future challenges.

Because the rules vary significantly by state, interact with federal tax and bankruptcy law and turn heavily on timing, this planning should always be done well before any claim arises and with the guidance of qualified counsel.

This article is provided for general informational purposes and does not constitute legal advice. Consult a qualified attorney regarding your specific circumstances.

Related Content

• Domestic vs Offshore Asset Protection Trusts: A Basic Guide From an Attorney
• Got Assets? Attorney Explains How to Protect Them From Greedy Lawsuits
• Eight Types of Trusts for Owners of High-Net-Worth Estates
• What Assets Should You Put (or Not Put) in Your Trust?
• Ins and Outs of Domestic Asset Protection Trusts (DAPTs)

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 age-old advice of "buy low, sell high" seems simple enough to follow, and it is — except when the market tosses out surprises and emotions kick in.

We watch as stock prices plummet and something inside calls out, "Sell now, before it's too late." Of course, at that point it already is.

Or the market soars and that inner voice says, "Buy now and catch this wave." But the wave may have already crested.

Humans are human, which means if we aren't careful, emotions can replace logic when market volatility comes into play, causing us to make financial moves we later regret.

We saw this in 2020. When the pandemic began to affect markets, some people grew nervous and moved their money into the safety of money market accounts. By the end of the year, when the market had recovered and they had missed out on the gains, they lamented that move.

One thing we can count on is that there are always events that can lead to market volatility. Wars. Natural disasters. Government shutdowns. Unexpected election results.

During this year's midterm elections, depending on how people react to the results, the market could soar, plummet or hold steady. (Interestingly, the market tends to do well, on average, after a midterm election, although that doesn't mean every midterm election has proved favorable for investors.)

We can't control market volatility. But what retirees can do is have an investment portfolio that is suitable for this stage of life and that matches their risk tolerance. That way, they are in better shape to withstand market swings.

With the right investments attuned to their needs, they won't see as many large fluctuations as they would with a high-growth portfolio, and they will feel more comfortable with what they do experience.

Gauging risk tolerance

Among the problems retirees face with volatility is that they may not have time to recover when the market tumbles. Younger clients may have a 20- or 30-year time horizon, so a loss today isn't as worrisome because they have decades to recover.

Retirees, who often are withdrawing money from their accounts to live on, even as the value drops, are in a rougher spot. For example, after the 2008 financial crisis, it took more than five years for the S&P 500 to fully recover.

Still, that doesn't mean your situation is the same as everyone else's. One of the keys to building a portfolio is to look at all of your assets and determine how to invest them in the most efficient way.

If you are working with a financial professional, the more they know about your complete financial picture, the better. Much like a doctor, they can advise you based only on what they know.

An effective strategy many retirees use is to divide their investments among different investing buckets with different levels of risk that accomplish different goals.

When doing this, you first want to make sure your income is taken care of. That's the bucket with safer investments that will pay for your current living expenses.

After that, other buckets with different time horizons can be more aggressive because you don't anticipate needing to use that money anytime soon.

Once again, though, your risk tolerance comes into play. How much risk are you taking, and how do you feel about that risk? At our firm, RSG Investments, we use specific tools and technology to help our clients identify their risk tolerance. We determine what their pain points are so we can allocate investments appropriately.

It's not unusual for a husband and wife to have different results on the risk questionnaire, with one more conservative than the other. In those situations, it's important to get them on the same page so they are both comfortable with the investing decisions.

Helping you set aside the emotions

Market volatility always has been and always will be a possibility, and no one has a crystal ball to predict when the going might get rocky.

That's why it's important to have a financial professional you can speak with about any concerns you have, someone who can help you separate emotions from investing decisions and who understands your needs.

With the right person in your corner, you can build a portfolio where you will feel comfortable regardless of market ups and downs.

Ronnie Blair contributed to this article.

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

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

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

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

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

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

A troubling trend

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

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

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

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

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

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

Well, not Diane.

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

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

Top complaints against lawyers

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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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.