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:

Related content

• 3 Reasons Fidelity is Kiplinger Readers' Favorite Full-Service Broker
• 3 Reasons UBS is Kiplinger Readers' Favorite Wealth Management Firm in 2026
• 3 Reasons Why Kiplinger Readers Chose Cash App as the Best Peer-to-Peer Payment Service
• 3 Reasons Kiplinger Readers Prefer the Capital One Venture Rewards Card

Note: This item first appeared in Kiplinger Personal Finance Magazine, a monthly, trustworthy source of advice and guidance, as the letter from the editor. We're sharing it here to shed light on our findings for our digital audience, as part of our Trillion Dollar Talk campaign. Subscribe to help you make more money and keep more of the money you make here.

In our cover story this month, we've taken a deep dive into what the Great Wealth Transfer — the estimated $124 trillion of assets that will flow from older generations to heirs and charities through 2048 — means for families. While a good chunk of that transfer will come from a small slice of high-net-worth households, those who aren't among the super-rich are making plans to share their wealth over the coming couple of decades, too.

To gather insight into how families are handling this historic shift, Kiplinger commissioned an exclusive survey, conducted by research firm Morning Consult, of more than 5,000 older parents and adult children, asking for their knowledge and expectations surrounding the inheritance that parents will leave for their heirs.

Drawing from the survey's findings, the story you can find here offers advice on how families can successfully navigate this transition, from determining what information you may want to disclose to your children about their inheritance ahead of time to ensuring that you pass along your values, too. In another story, we outline some key takeaways from the survey.

And in a third story, we provide guidelines on having conversations with your adult children that will leave them well positioned to manage their inheritance and minimize conflicts and confusion among your heirs when the assets change hands.

How real families are handling this transition

As a complement to the stories in our cover package, we asked readers to send us their responses to this question: Are you giving away some of your money or assets to your heirs while you're still living, or do you intend to leave a larger inheritance later? I'm sharing a few responses here.

Many readers said they are offering some financial help while they're still around to see their children enjoy it, and at a stage during which their kids may most need the assistance. Says one reader, "My in-laws gave us money at a time in our lives when we were raising three children, and it was very helpful to our family. We feel that our retirement is secure and have started giving some money each year to our children while they are young adults, as they raise children and buy homes. I feel that it can benefit them more at this stage of their lives than later."

Another reader emphasized the importance of conveying financial lessons along with giving gifts. "Our philosophy for giving to children is to make their lives better, not remove the incentive for hard work and development of good spending habits," he says. He and his wife provided about 35% of the down payment for their son's home purchase, and they explained to him how paying extra on his mortgage can reduce total interest on the loan and shorten the time it takes to pay it off.

Several of you mentioned that you're helping your grandchildren, too, funding their retirement accounts and college-savings plans. One reader is contributing $5,000 yearly to each of his five grandchildren's 529 plans, with a goal of contributing $100,000 total per beneficiary.

"Because I was willing to start early, my family can benefit from the tax-free growth of these funds," he says. And, he notes, if any of the grandchildren don't use all the savings on education expenses, they can roll over as much as $35,000 from the 529 to a Roth IRA tax- and penalty-free, "giving that generation a head start on retirement savings."

A reader whose two oldest grandchildren are in college is boosting their retirement savings — and encouraging them to start thinking about investing—by contributing to their Roth IRAs. And, he says, "Once they begin their careers, we will offer to match their retirement-fund contribution."

More Trillion Dollar Talk

• The Great Wealth Transfer is Creating a New Generation of Family CFOs
• The $124 Trillion Great Wealth Transfer: Fact vs Fiction Quiz
• Could You Handle a Sudden Windfall Quiz?

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.

Do you plan to leave your children a meaningful inheritance? Do you worry about how inflation and long-term-care costs might affect how much you have to give? Have you talked to your kids about your plans? Or, if you're the adult child in this equation, have you broached the subject of inheritance with your mom and dad?

On the eve of what's expected to be a historic generational transfer of wealth in the U.S., Kiplinger set out to explore how families are navigating inheritance planning in their households — what they intend, what they hope for, what they worry about and how they've communicated with each other. Toward that end, we partnered with research firm Morning Consult to field a national survey asking 5,156 Americans — half adult children ages 25 to 60, half parents ages 55 and up — to share their views and circumstances.

Here is a look at what we learned.

Parents and adult children are not on the same page

When it comes to inheritance plans, the survey reveals a big gap in expectations and knowledge between the older and younger generations in many families.

For starters, adult children are far less likely to think they'll be getting an inheritance at all, compared with parents who expect to leave one. Some 42% of younger respondents say they don't expect to receive a meaningful amount, but just 15% of parents say they won't have any money to pass down. On the flip side, about twice as many parents, in fact, do plan on leaving a meaningful inheritance as adult children who anticipate they'll get one.

The kids generally aren't clear what assets will be involved, either. Nearly two-thirds of parents say they have money in cash and savings, but fewer than four in 10 children think those assets are part of the older generation's estate. Adult children are also far less likely to say that life insurance, real estate, an IRA or a 401(k), and other investments are part of their parent's holdings, compared with parents who say they own these assets.

There are also big generational gaps concerning how much financial help parents extend to their children now (parents consistently say they are helping more than children believe); whether it's better to split inheritances evenly among siblings or consider other factors such as financial need or past assistance (more kids favor "fair" over equal than parents, by a 21 percentage point margin); and whether they've discussed an inheritance plan (more parents report having shared information than children recall hearing).

"Both parents and adult children need to do a better job of understanding where the other side is coming from," says Kurt Supe, a certified public accountant and retirement planner at Creative Financial Group in Indianapolis and CFD Investments. "The key is better communication."

There's a gender gap when it comes to inheritances, too.

Sons are more confident about their ability to manage an inheritance than daughters, the survey results show. That's in keeping with other research showing men's greater belief in their financial acumen (although the studies don't necessarily indicate that faith is justified).

Sons are also more likely than daughters to expect an inheritance (30% versus 18%), to say their parents have shared plans for passing down assets, and to know how to locate Mom and Dad's will and other estate-planning documents. Daughters, by contrast, answered "not sure/don't know" to questions more frequently than sons — about how much they'll inherit, whether they'll owe taxes on the bequest, and even whether they prefer financial help from their parents now or a larger inheritance later.

When it comes to talking to the kids about inheritance plans, moms rule. Although both mothers and fathers express the same comfort level in talking to their children about money, dads in practice are more likely to have said nothing to their kids about their inheritance plans (45% of dads have stayed tight-lipped, compared with just 33% of moms).

Financial adviser Stephanie McCullough, founder of Sofia Financial, a financial planning firm for women in Berwyn, Pa., suggests that women who aren't confident about managing their finances may get past the hump if they connect with a friend they feel comfortable talking with about money or if they consult with a professional. Says McCullough: "Find a money buddy or an adviser to help. And if they make you feel stupid, find a different one."

Everybody has big questions about inheritance

Inheritance plans live largely in the dark, the survey shows. Two in five families have never discussed them, and three in 10 parents have no formal plans. Families rank inheritance next to last among topics they feel comfortable discussing — only sex and dating elicit more of a shudder.

And the less wealth parents have, the quieter things get.

It's not just that parents and kids don't communicate; it's that many don't even know what's at stake. More than one-third of adult children and nearly four in 10 parents aren't sure whether the older generation will have any assets left to pass down; just over one-fourth of parents can't estimate the size of their estate; and 43% of children and 38% of parents have no clue how much each of the kids will inherit.

The top reason parents stay silent: "There are too many unknowns about how long I will live or how much will be left." Inflation and other economic pressures top their list of concerns, along with possible long-term-care costs. Kids worry about those things on their parents' behalf, too, and some 16% are also anxious that their moms and dads will need financial help from them instead of the other way around.

Wealthier families — parents with incomes above $100,000 or estates worth $1 million or more — share those same top concerns. But they also keep quiet about estate plans because they do not want their offspring to count on an inheritance (cited by about one in three parents with estates estimated at $500,000 or more, for instance, compared with 19% of parent respondents overall).

That's understandable, says financial psychologist Brad Klontz, who notes, "You don't want your child's financial plan to be your death."

Love and good intentions are abundant

When asked what they'd want done or would do with an inheritance, both parents and adult children focused primarily on practical moves that would help the younger generation. Paying off debt. Buying a home. Saving to build wealth and a secure retirement. Providing a better life for the children of the adult kids and the parents' grandchildren.

Something else families agree on: Most adult children feel ready to manage an inheritance (70%), and nearly as many parents (67%) feel the same.

What would adult children ask their parents, if they felt comfortable? Sure, some (18%) were curious to ask, "How much?" But others wanted to know their parents' wishes for the money so they could respect those intentions (9%), and to understand more about the older generation's experiences (12%). As one adult child put it, "I would ask if they were truly happy in life."

David Chubak, head of wealth management and field management at Edward Jones, says families shouldn't keep questions, feelings and plans about wealth transfer inside. He encourages them to talk in advance of assets changing hands. "These are important conversations that touch every family and every level of wealth," he says. "My best advice is to start now."

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

More Trillion Dollar Talk

• How to Talk to Your Adult Kids About Their Inheritance
• Why So Many Families Are Unprepared for the Great Wealth Transfer — and What You Can Do About It
• An Expert's Guide to the Estate Planning Documents Everyone Needs

The amounts are staggering. Over the next 20 years or so, U.S. households are expected to pass an estimated $124 trillion in financial assets to heirs and other beneficiaries, according to Cerulli Associates, a financial services research firm. That includes some $85 trillion going to the Gen X and millennial offspring of boomer and Silent Generation parents, with many trillions more headed to surviving spouses and charity.

Experts are calling it the greatest wealth transfer in history, and the drumbeat heralding its arrival grows louder every day.

To explore how American families are navigating this inheritance wave and offer smart advice to help them meet the challenge, Kiplinger commissioned an exclusive, national survey of more than 5,000 older parents and adult children, conducted by the research firm Morning Consult.

What we discovered is a mix of big hopes and deep uncertainty as the older generation prepares to pass down the assets they've built over a lifetime, the younger generation stands poised to receive them and concerns grow on both sides that outside factors could erode that wealth before it changes hands.

The results also make clear there is a big gap in expectations and knowledge between older and younger family members about the money and property at stake — in part because both sides are deeply reluctant to talk to each other about it. Among the survey's key takeaways:

• Nearly half of older parents expect to leave their kids a meaningful inheritance, but the majority of adult children don't think they're getting anything or aren't sure what might be left for them.
• The amounts involved for most families are not the life-changing windfalls recent headlines suggest but still have the potential for serious impact, from enabling the younger generation to buy a home to helping put their own kids through college.
• Many parents worry that a shaky economy and their own healthcare costs will upend their plans to pass down wealth — even as the children, facing big expenses of their own, wish their elders wouldn't wait so long to send money their way.
• Plans for gifting and inheritances live mostly in the dark because parents and kids would rather talk to each other about almost anything else — only sex and dating are more awkward topics.
• As a result, uncertainty casts a cloud over the inheritance process and keeps many families from taking the steps needed to make the most of these assets — moves that could also help parents and adult children forge an even closer bond.

"People are grappling with being asked to make important decisions that will impact their wealth and the assets they want to pass to future generations without having perfect information," says Valerie Galinskaya, managing director and head of the Merrill Center for Family Wealth.

"The individuals and families I see excel and do this most effectively don't wait for uncertainty to disappear. They build their plans and then adapt as life unfolds."

Here is what you need to know to ensure that you and the people you love plan for inheritance in a way that not only creates a smooth and effective transfer of wealth but also helps bring your family closer in the process.

The Great Wealth Transfer won't be great for everyone

Lest anyone feel bad that the assets parents intend to leave to children in their family can't be counted in eight or more digits, rest assured those megasize amounts that pundits are quoting about the Great Wealth Transfer aren't all they're cracked up to be.

More than half of the expected inheritances coming down the pike over the next two decades will be concentrated among the richest 2% of U.S. households, Cerulli estimates, leaving a lot less to be divided among everyone else.

How much less? About one-fourth of the parents who expect to leave an inheritance to their children estimate their estate will be worth less than $100,000, and about half put the total at less than $500,000, according to the Kiplinger–Morning Consult survey.

Just over one in 10 valued their estate at $1 million or more. Homes made up the greatest share of the wealth to be passed down, followed by life insurance, liquid savings and investments.

The numbers get whittled down even further when you consider that in many families these assets will be divided among more than one child. Roughly one in four parents thought each of their children would inherit less than $50,000 from them, with 44% estimating the amount per child would be less than $250,000.

Bequests in seven-figure territory were rare, cited by just 5% of the parents who expect to leave an inheritance. These findings are largely in keeping with Federal Reserve data, which shows that about half of heirs receive less than $50,000 and 30% of inheritances range from $50,000 to $249,000.

"That big, huge $124 trillion number is irrelevant to the vast majority of people — but it's not that there's nothing coming, either," says Teresa Ghilarducci, professor of economics at The New School for Social Research, who puts the number of adult children who can expect an inheritance at about 30 million.

That's a lot of potential heirs, but relatively few of them know what to expect. While nearly half of parents 55 and older expect to leave a meaningful inheritance for their children, only about one-fourth of adults ages 25 to 60 with at least one living parent think they'll receive one, the Kiplinger–Morning Consult study found.

Driving the disconnect: Relatively few families are talking about inheritance. Roughly two in five have never discussed the older generation's plans for passing along their assets, the survey reveals. And among those who have talked, it's mostly in generalities, such as whether the parents have a will or who will inherit something, rather than specifics, with details about the assets parents have, their value, or Mom and Dad's wishes regarding them.

"When families do not talk, everyone makes up a different story," Ghilarducci says. "That's when trouble starts."

"Parents may think they don't want to burden a child by talking about their death," says certified financial planner Douglas Boneparth, founder and president of Bone Fide Wealth, a New York City firm that specializes in advice for millennials.

"But not communicating a plan or conveying your wishes to the very person or people who ultimately will be responsible for settling your estate and dealing with your affairs will leave them in the dark and scrambling to figure things out while they're grieving over the loss of a loved one. It's an absolute kick in the pants and burdens them more than you could have imagined."

Lack of knowledge can also prevent the younger generation from making informed choices about their lives, financial experts say. That's especially true if the parents intend to gift money during their lifetime — say, to help with the down payment on a home or a grandchild's college education.

"Counting on nothing may seem like the safest approach for adult children, and the easiest emotionally," says adviser Stephanie McCullough, founder and CEO of Sofia Financial in Berwyn, Pa.

"But if knowing that your parents plan to leave you some money might help you breathe a little easier financially now or do a little more for your own kids, it would be good to have some sense of it."

Uncertainty prevails — and paralyzes estate planning

There are plenty of reasons why many families shy away from conversations about money generally and inheritances specifically.

For starters, no one likes to talk about their own mortality or think about their parents dying. Or about the possibility that illness or disability might drain the older generation's savings.

Then, too, many boomers and members of the Silent Generation grew up in homes where talking about money was considered impolite or taboo. (Our survey found that families would prefer to talk about almost anything else — politics, mental health, you name it — than inheritances. Only sex was a more awkward topic.) And, especially at greater levels of wealth, parents may worry that learning of an inheritance could be de-motivating for their children.

Adult kids also don't want to raise the subject and risk coming across to Mom and Dad as grasping. "Bringing up a parent's finances can feel like you're being greedy or morbid," Boneparth says. "Millennials want to know but feel like they shouldn't have to ask."

Yet the top reason families stay silent, the Kiplinger–Morning Consult survey shows, is uncertainty. More than one-third of parents who haven't discussed inheritance plans with their adult children say there are too many unknowns about how long they'll live or how much money they'll have left.

Overall, the top worries among parents about the inheritance they've earmarked for their kids are that, given inflation and other economic pressures, they might not have much left to give and that long-term care or other health costs might deplete their estate. And that was true even at higher levels of income and wealth.

Another source of uncertainty for many parents is whether and how long they may need to help their kids financially now, given sometimes shaky career paths, high housing costs and, for some, hefty student loans, says David Chubak, head of wealth management and field management at Edward Jones.

The Kiplinger–Morning Consult study confirms that lots of parents are providing that support: More than four in five say they have given their adult kids financial assistance, from helping with expenses or debt to regular gifting.

"The reality is we live in an age of financial uncertainty and anxiety like no other," Chubak says.

Bundle all of that uncertainty together and it can become paralyzing, stopping parents from crafting an estate plan or talking about any plans that have been made, says Joshua Morris, vice president of thought leadership and research insights at the Fidelity Center for Family Engagement.

Parents in the Kiplinger survey who were uncertain about the value of their estate, for instance, were half as likely to have a will as parents who were confident about leaving an inheritance, and even fewer had discussed estate-planning issues with their kids.

"The senior generation often feel they need everything completely buttoned up before they say anything to their children, so feeling uncertain about one or two things regarding estate planning shuts down dialogue about everything," Morris says.

"And if you're not having dialogue, that compounds the uncertainty both generations feel, because without conversation, there's no flow of information or talking about concerns and wishes."

What the "kids" really need to know about inheritance

When it comes to inheritances, parents are usually most reluctant to share specific numbers, such as how much money they have saved or expect to leave to each child, financial advisers say.

"Mom and Dad worry if they tell the kids they have, say, a million dollars, the kids will think they're rich — the gifts should be bigger at Christmas, they should be doing more for the grandkids, and why aren't they helping me more when I'm struggling to pay my rent?" says Kurt Supe, a certified public accountant and retirement planner at Creative Financial Group in Indianapolis and CFD Investments.

"Meanwhile, the parents are thinking, We don't know if we have enough to last our lives, and a long-term-care event could wipe out half of what we've got."

If you'd prefer to keep the amounts to yourself, or you just don't know what they'll be, that's fine, advisers say. And if you choose to disclose, keep it to broad ranges and possibilities, because circumstances can change.

More important than the numbers, though, is sharing practical details, such as whether you have a will and, if so, where you've stored it, as well as insight into the reasons for key decisions, such as who your executor will be.

"A lot of times people think about disclosure as a light switch — you're either on or off," says Galinskaya at the Merrill Center for Family Wealth. "We prefer a dimmer-switch approach."

New research from the Fidelity Center for Family Engagement suggests what younger family members most want to know are details that will bring them peace of mind, instead of anxiously wondering what to expect. While the definition of peace of mind differs from individual to individual, and from family to family, common themes pop up.

For instance, a separate Fidelity study found that 76% of the younger generation want to know whether they are named as beneficiaries — something that applies to retirement accounts and life insurance policies as well as being named in a will or trust — but only 35% of baby boomers have shared this information.

A Merrill report identified clarity around expectations as the top concern of younger family members, including whether parents have specific wishes for how any money they inherit should be used. Adult children with a special-needs sibling might be concerned about whether their parents have made provisions for care when they're no longer around to provide it.

The key is to identify the issues that might cause confusion or anxiety in your particular family circumstances. And if younger family members approach the subject respectfully, they don't have to wait for parents to initiate the talk.

Says Boneparth, "The best thing a millennial child can do is give their parents a reason to have a conversation about their estate planning that has nothing to do with money. It's asking about their wishes, their values and their worries."

One exception to the suggestion that parents can stay tight-lipped about dollar figures is if you intend to provide financial gifts during your lifetime, because that knowledge might affect the decisions and choices your children make.

"Let your adult children know whether they can expect financial help from you at key moments in their life when a lump sum would really help, such as when they want to buy a house, or when they graduate from college, get married or have a child," says Ghilarducci. "Be frank and up front about what you have budgeted."

How families can set up for estate transfer success

A smooth transfer of wealth requires a clear plan that lays out who your heirs will be and how you want your assets divided among them. It should also appoint individuals you trust to settle your affairs, with legal documents in place to ensure your wishes are upheld. Few families, however, have such a plan in place.

"Most people take the ostrich approach: I'm going to stick my head in the sand and hope I never have to deal with this," Supe says.

In fact, only four in 10 parents in the Kiplinger–Morning Consult survey say they have a will, just over one-third have designated beneficiaries on retirement accounts or life insurance policies, and a scant 14% have written a letter of instruction outlining their wishes.

Wealthier families are far more likely to have the legal paperwork drawn up, but large swaths of them still go without. About one-third of parents with estates worth more than $500,000, for instance, don't have a will, and nearly half haven't documented what they want to happen to their personal possessions.

"A will is not just for rich people," Ghilarducci says. "Even a modest estate can include a house, retirement accounts, a car and personal property. Somebody has to sort all that out. Parents usually need a will, a financial power of attorney, a healthcare directive and updated beneficiary forms. A simple letter explaining where everything is can save the family a lot of grief."

Once the documents are drawn up, you'll need to communicate that information to your children and other loved ones. Let them know where the papers are stored, whether you place them in a digital file, a physical binder or both.

And it's not a one-and-done exercise; you'll want to revisit and update, as needed, every few years and after major life milestones.

"The plans that worked for you in your fifties may need to be adapted in your sixties, as well as once you retire, when your children get married or you have grandchildren, and then again in your seventies and eighties," says CFP Marguerita Cheng, CEO of Blue Ocean Global Wealth in Gaithersburg, Md.

You will also need to consider how taxes may impact a planned inheritance — an issue that causes a lot of confusion for both generations, the Kiplinger survey shows. None but the ultra-wealthy will owe federal taxes, with the amount exempt from estate taxes now at $15 million for individuals and $30 million for couples.

However, about a dozen states have estate taxes of their own, including Oregon (exemption: $1 million), Rhode Island ($1,838,056) and Massachusetts ($2 million). If you live in one of those states and calculate your net worth in seven figures, you'll want to consult a financial adviser about ways to minimize the impact.

A more pressing issue for most families: If you plan to leave money in a traditional IRA or 401(k) to your children, they could be in for a big tax hit. Under a recent rule change, heirs other than a spouse now typically have to withdraw all the money in these accounts by the end of the 10th year after the original IRA owner's death rather than stretching withdrawals over their life expectancy, and they'll pay taxes on the money at their ordinary income tax rates.

A possible double whammy: Those withdrawals could push heirs into a higher tax bracket.

"The biggest threat to eroding the value of an inheritance for adult children who are beneficiaries of traditional retirement plans is the possible tax hit," Supe says.

What to do? Supe suggests you might convert all or a portion of a traditional IRA or 401(k) to a Roth account over time. You'll pay income tax on the amount you convert, but your children will then be able to withdraw the money tax-free when they inherit — a strategy that makes sense if you are in a lower tax bracket than your kids, as is the case for many retirees with offspring who are in their peak earning years.

You'll want to make sure, though, that your withdrawals from the traditional plan don't push you into a higher income tax bracket or income tier for Medicare, which could cause your premiums to increase sharply.

McCullough says some people are reluctant to do the conversion and pay taxes up front because they've been taught to defer, defer, defer, and it's hard to break that mind-set. She says, "Think of the taxes you'll pay as part of what you're gifting to your children, a way to maximize the value of what they inherit from you."

Issues that can topple your inheritance plan

One of the thorniest challenges that many families face in transferring wealth to younger generations: The great now-versus-later debate.

Nearly twice as many adult children in the Kiplinger–Morning Consult study say they'd prefer their parents help them financially now, when their biggest life expenses are upon them, as those who say they favor getting a bigger inheritance later.

With older generations now living longer, healthier lives, it could be a long wait — 10 to 20 years or more — and millennials and Gen Xers are buying homes, raising children and paying for college now. Indeed, Fed data shows that inheritances in middle-class and affluent families most commonly go to recipients in their early to mid-sixties, when those heirs are often closing in on retirement themselves.

Many parents, however, aren't on board — with good reason. The largest segment of parents in the survey (42%) intend to wait to provide an inheritance, most commonly because they want to be sure they have enough money to support themselves throughout their lifetime. Just 14% said they would rather give more now to see their children benefit from the money.

Then, too, a lot of parents are already providing a generous helping hand. Nearly half of the parents in the Kiplinger–Morning Consult survey report they have provided financial help to adult children on an as-needed basis, nearly one-third have helped with other expenses and one-fourth have assisted with major life events.

Similarly, recent Visa research shows that one in four millennial homeowners received help with the down payment from their parents, and about the same number said they couldn't have purchased the house without it.

How can families navigate the competing, compelling needs of both generations? "It's a balancing act," says Cheng. "While parents don't want to give away too much during their lifetime, the flip side is that if you wait until you're gone, did your money really have the greatest impact it could have?"

Cheng suggests putting parameters around the financial help you offer now. For instance, you might provide money for a specific purpose rather than ongoing, unrestricted gifts — say, supplying the money for a down payment, paying for a grandchild's music lessons or sleepaway camp, or contributing to a 529 college-savings plan.

If you do choose to gift annually — in 2026, you can give up to $19,000 per recipient, without filing IRS paperwork; couples can give up to $38,000 — make it clear that you'll revisit your strategy every year and that you may not always be able to give the amount you've been giving, or be able to give at all, if your financial circumstances or needs change.

The key, says Galinskaya, is to avoid binary thinking. In other words, do not consider gifting to be an all-or-nothing proposition and that you'll have to do it forever once you start, or that you'll always have to give the same amount to each of your children. "There's a spectrum of options," she says.

For parents with more than one child, the question of fairness is perhaps toughest of all. Typically, parents are eager to avoid discord among siblings. That's likely why the vast majority of them in the Kiplinger–Morning Consult survey — 71% in all —said they intend to divide their assets equally among their children.

Sons and daughters, however, are less convinced that's the best approach. Although half of the adult children in the survey preferred an even split with siblings, one in five thought inheritances should be based on factors such as how much each of them had helped their parents or gotten financial help in the past (11%) or each one's financial need (9%).

Many also anticipated trouble ahead, with one-third of the adult children respondents expecting an inheritance to create conflict with their siblings. And experts agree: The risk is high.

"Adult children will often view inheritances through the lens of unresolved issues and patterns in the family, especially if the way assets are divided between siblings comes as a surprise to them," says financial psychologist Brad Klontz, coauthor of Psychology of Financial Planning. "Someone feels hurt and thinks, Oh, Mom must have loved you more than me, or You influenced our parents behind my back."

For many parents, it's their worst nightmare.

The best way to avoid that outcome is for parents to talk with their children in advance about how assets will be divided and, critically, why. "Err on the side of equality unless there's a good reason not to — and sometimes there is a good reason not to. Maybe one child works in the family business, one puts in more effort, another has special needs," says Galinskaya.

"A good outcome is less about whether dividing things equally or fairly is best and more about how you communicate your actions and explain the intent behind them."

Leaving a legacy beyond money

Experts say that's generally true of inheritance planning. "The biggest mistake parents can make is passing down money without communicating the family values that drive your thinking," says Klontz. "That could be and should be the most valuable part of your legacy."

Make sure the conversations you have as a family about transferring wealth are two-sided and collaborative, not just parents delivering news and rendering decisions from on high, advisers say. "It's Mom and Dad's money, and they get to choose what to do with it. But children should have a voice, if not a vote, in the process," Galinskaya says.

Rather than a single big talk, think in terms of having a series of smaller chats over a long period. "One misconception about the Great Wealth Transfer is that it is a single point in time, the reading of the will, like the movie scene where everyone is in the room and you find out where all the money goes," says Joshua Morris of Fidelity.

"We like to reframe the transfer as a transition that's happening over decades as parents move into and through retirement — planning, gifting and adapting plans along the way."

Fidelity uses the skiing concept of bunny slopes and black diamond trails to suggest how the conversations should move from initially low-stakes, emotionally easy topics — say, what to do with family heirlooms or where the will and other documents are stored — to more challenging subjects around inheritance and estate planning involving how assets will be divided and their value. (For more about the best ways to approach these conversations, see our article on talking to your adult kids about inheritance.)

Each conversation is an opportunity for parents and children to share feelings as well as facts, and for parents in particular to provide insight about what they view as the purpose behind the assets they've accumulated, big or small, and their wishes for the next generation.

"Whatever number is attached to the wealth you've built, it is the story of your career, the story of your life, and there's a vulnerability and emotionality attached to sharing your story that brings families closer together," Morris says.

Fidelity's latest research bears that out. It found that parents who regularly share planning details and keep family members informed are more likely to report peace of mind and confidence about the future than those who don't. Adult children will probably feel a lot better too.

Says Morris, "That's a payoff for families that goes far beyond money."

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

Related Content

• The Conversation You're Avoiding: How to Bring Up Estate Planning with Your Family
• Estate Planning Essentials to Protect Your Family's Future
• An Expert's Guide to the Estate Planning Documents Everyone Needs
• 5 Key Components of an Estate Plan — and 7 Others to Consider

Joseph Moore's oldest daughter was 10 years old when she raised the question some parents dread: Are we rich?

She'd noticed that, unlike her friends, she lived in a gated golf course community with celebrities as neighbors, Moore says. The family's affluent lifestyle reflected the wealth Moore had built through real estate investing. But he was quick to challenge his daughter's assumption.

"I said to her, 'No, I'm rich,' " Moore says. "'You have what you've put in your savings account.'"

The distinction was intentional. Moore wanted his daughter to understand he had worked to create his wealth, and she would have to do the same to create her own fortune.

That doesn't mean that Moore's oldest daughter and her younger sister won't benefit from the wealth he has amassed. Rather than save the conversation for adulthood, Moore has a multiphase plan for talking with his daughters, now 13 and 6, about money and how he will share his assets with them. The framework grew out of research for his best-selling book, How to Get Rich in American History: 300 Years of Financial Advice That Worked (& Didn't).

He's already started teaching them basic financial concepts and money-management skills. With his teenager, he has moved on to explaining the kinds of opportunities he'll pay for, such as college, a down payment on a home or a business venture. When his daughters are mature enough, he will share details about what assets he will pass on to them and others, including charities.

"I'd much rather them be handed these things in phases than think that there's some huge pot of gold that they're going to get at my demise," Moore says. The real inheritance he hopes to leave his daughters, he says, is competence: "That to me is the lesson of history, that competence outperforms trust funds."

Most families don't take such a deliberate approach. More than half of parents ages 55 and older surveyed by Morning Consult for Kiplinger say they rarely or never discuss money with their children.

Talking about inheritance is even more taboo. Both generations rank it as one of the most challenging topics to raise — more uncomfortable than talking about mental health, politics, or even your end-of-life wishes and funeral arrangements.

Financial experts say that avoiding these conversations can leave children unprepared to manage wealth and families vulnerable to confusion or conflict when assets eventually change hands.

"I have seen many families really struggle, be torn apart due to surprises about things that came out after people passed away," says Ruschelle Khanna, a therapist with 25 years of experience working with high-net-worth families and author of Inherited Trauma and Family Wealth.

One reason many find it difficult to have these discussions is that there's little historical precedence for having them, Moore says. In the past, few families had the type of wealth that could be bequeathed to the next generation. Since the shift from pensions to 401(k)s began in the early 1980s, Americans have been retiring with more liquid assets that can be passed on when they die, Moore says.

Known as the Great Wealth Transfer, $105 trillion is expected to be handed down — largely by high-net-worth households — to heirs through 2048, according to the consulting firm Cerulli Associates. After removing the top 1% from the equation, there's still an estimated $36 trillion that will be transferred from boomers to their Gen X and millennial children over the next two decades, according to Visa Business and Economic Insights.

"This is a newer conversation for middle-class families," Moore says. "If your parents didn't sit you down and explain how you were going to inherit your wealth, you don't know how to do it with someone else."

That doesn't mean you can't learn. Experts say productive inheritance conversations aren't about revealing dollar amounts all at once. Instead, they recommend treating them as an ongoing dialogue that evolves with your child's age and maturity and any changes in your own circumstances or views. Here's how to start.

The case for talking about inheritance

When it comes to inheritance, there's a transparency gap. Nearly half of parents expect to leave money or assets to loved ones when they die, but only about one-fourth of adult children expect to receive an inheritance, according to the Kiplinger–Morning Consult survey.

The most-common reasons parents give for not talking are that there are too many unknowns, they don't have a clear plan or that they simply haven't gotten around to having the conversation, the survey found.

"I have had clients say, 'I don't care what happens because I'll be dead,'" says Sandi Bragar, chief client officer at wealth management firm Aspiriant in San Francisco.

If you die without any estate-planning documents, such as a will or trust, that spell out who gets what when you die, your state's laws will determine how your assets will be distributed. "People of all net worths ought to have a plan," says Michael Whitty, an estate-planning attorney with Smith, Gambrill and Russell in Chicago. "Even if they are of very modest means, they should have at least a will."

Online will and trust creation services, such as LegalZoom, Trust & Will and Quicken WillMaker & Trust, are low-cost options. However, Whitty advises working with a professional who can ask the right questions about your wishes to tailor estate-planning documents to your needs, rather than trying to rely exclusively on self-help services.

Once you have a plan, it's important to let your family know that you have one and to share some details. "One of the biggest mistakes is not communicating with your children or asking your advisers to communicate on your behalf," says Dawn Jinsky, a partner with Plante Moran Wealth Management in Ann Arbor, Michigan. "They need to hear it from you."

If they don't, your children could make assumptions about the reasons you won't share inheritance information with them. They might think that you don't trust them with money, Jinsky says. Or they might have unrealistic expectations about what they will inherit.

Lack of communication can also leave children unprepared for the wealth they receive or roles they'll have to fill. "For example, if a child is meant to become a trustee of a trust, we want to help the client make sure the child has the skills and competency to fulfill the responsibilities of the trust," Bragar says.

Plus, an unwillingness to discuss your plan and explain the reasoning behind your decisions can lead to resentment or disputes among your children.

"There are plenty of stories of families throughout history who go to the will reading to find out that what they had assumed would be a fair and equitable distribution was not," Moore says. "Your legacy is forever locked into that last moment of conflict."

When to have conversations about inheritance

The best time to start talking about inheritance isn't when you're drafting your estate plan. Ideally, parents should start laying the foundation for discussions as soon as their children can understand the concept of money. "The families that do this the best begin as young as possible," Khanna says.

When children are in elementary school, conversations can focus on family values and money-management basics. As children mature, parents can gradually introduce more information about family finances, including goals for their wealth and, eventually, details about their inheritance planning, Whitty says. The goal is to avoid leaving children to fill in the blanks.

"If you're silent, the kids might think, I don't know if I'll get anything, but I may get a lot," Whitty says. "That could distort their motivations about their own careers, personal development, even their choice of a potential spouse."

Parents who missed earlier opportunities shouldn't assume they have waited too long. Experts say discussions with adult children are essential — as long as they happen before a crisis forces the issue.

"I'm sure a lot of these conversations occur on the deathbed," says David Russell, a wealth adviser with Argent Trust in Ridgeland, Missouri. "At that time, it's too late to do anything planning-wise."

Don't let reluctance to talk hold you back. "If you're not ready to jump into the conversation, find an adviser as soon as possible," Khanna says.

She recommends working with a financial planner with experience facilitating family money talks. (You may be able to find one using the directory at 2164.net/advisors, which lists financial pros who focus on multigenerational planning and family philanthropy.)

If emotional barriers are getting in the way, a financial therapist can help you address fears that are preventing you from sharing inheritance information with your children. You can find a financial therapist through the Financial Therapy Association

What to share about inheritance

Before you talk, Bragar recommends identifying what you hope to achieve. "How do you want your family to think about the wealth that will be left?" she says.

"When people care about their family members and want there to be some level of harmony, it's easier to go into the conversation when you visualize what is important."

Then, consider the questions your children might have. "What type of information might they need about you to live their lives stress-free?" Bragar says. For example, they might be wondering whether you have enough money to live comfortably in retirement or to pay for long-term care.

Bragar says some parents are reluctant to spend savings because they want to leave more for their children — even though that can be the last thing the children want.

Russell has what he calls "who does what when" meetings with his clients and their children to foster conversations about both wealth transfer and long-term-care planning. The focus on logistics can help keep emotions at bay to ensure a more productive discussion, he says.

To replicate the process, parents can create three columns on paper or a computer document to list the people they expect to be involved with their finances as they age and after they die, what role each person will play, and when they are expected to fill those roles. Parents could add a fourth "Why" column to explain the reasoning behind their choices, Russell says.

Note that there's not a column for "How much." Russell says that most of his clients aren't willing to share the details of how much they have.

Other financial advisers meet with the same resistance. "Clients feel like communication means opening the curtain and sharing everything," Jinsky says. "You don't need full transparency with your children."

There are a handful of reasons why it could make sense not to share specifics about how much your children or family members will inherit. For starters, you might end up needing to spend more of your savings than you think, especially if dementia or another chronic condition forces you to pay hundreds of thousands of dollars for many years of care.

Another reason: You might change your mind. "Don't lock yourself into a conversation your children will remember," Jinsky says. For example, one of her clients who lived to age 96 changed her estate-planning documents 32 times — every time she did or didn't get a call on her birthday.

However, Jinsky cautions that full disclosure is needed in some circumstances, such as when you've legally appointed your child to manage your assets when you die. "If you're in your eighties and your child is the trustee, that is a pull-the-curtain-and-share-everything moment," she says.

Another reason parents might opt for sharing some details with children about what they can expect to inherit or receive while you're still living: If knowing, even just broad ranges, might help them make more-informed financial and estate-planning decisions in their own lives, Whitty says.

How to keep inheritance conflict to a minimum

Experts recommend having a family meeting with all of your children to share your inheritance plans if everyone gets along well. This holds true even if you plan to divide your assets unevenly or give the bulk of your wealth to charity, your place of worship or a similar organization.

Children who are mature and have a strong relationship with their parents and each other should understand why, for example, their parents plan to give more to a child with special needs, Whitty says.

When a family meeting isn't the best choice: "If there is resentment, jealousy or in-fighting, or any sort of disrespect, maybe you want to have those conversations individually," Khanna says. It also can be helpful to have a third party, such as an attorney, financial adviser or therapist, mediate potentially difficult inheritance talks to "slow the conversation down and hold space for big feelings," she says.

Another option is to write letters to your children to explain your decisions. This tactic can also be effective if you have children who are unwilling to engage in a conversation because of their fears about aging and death, Khanna says.

Although it's your money at the end of the day, and the approach you choose is ultimately up to you, Khanna says, "I always try to encourage families to make compassionate decisions knowing the impact it will have on people."

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

More Trillion Dollar Talk

• Being an Executor is a Thankless Job: Here's How to Do It Well Anyway
• These Are the 2 Legal Documents Everyone Should Have, Courtesy of an Estate Planning Attorney
• Is Your Will 'Fair'? Estate Planning Is About More Than Money

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.

Related Content

• Beyond the Bar: Your 5-Step Guide to Discovering Whether a Lawyer Is Shady
• Billed 12 Hours for a Few Seconds of Work: How AI Is Helping Law Firms Overcharge Clients
• Five Things to Notice in Your Lawyer's Bill
• Deadbeat Lawyer Trying to Rip Off Doctor Gets Busted
• Seven Ways to Be an Absolute Jerk as a Lawyer

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 65-year-old retiring in 2026 can expect to spend $185,000 on healthcare costs. That's a 130% increase since 2002.

Those figures come from a new report from Fidelity, and they don't include long-term care, such as at-home caretakers or retirement homes.

You may have mapped out your retirement destination and legacy plans, but have you thought through the long-term care costs?

As a Registered Financial Consultant (RFC®) who specializes in tax-efficient planning for retirees, I'm sharing four considerations that every retiree should think about when it comes to planning for healthcare costs later in life.

1. Healthcare could become your largest retirement expense

Most Americans are ready to plan their housing, travel and everyday living expenses in retirement, but a portion could find that healthcare costs balloon beyond expectations, becoming the overall largest expense.

Consider the costs of Medicare premiums, prescription drugs and out-of-pocket costs that factor into your yearly budget.

You should also be honest with yourself about your mobility and health later in life. Americans are living longer, with more people making it to age 100 every year. Self-sufficiency at older ages can deteriorate quickly, and if you expect you'll need long-term care from professionals or a facility, monthly costs can range from $6,000 to $11,000, according to CareScout.

2. Medicare could fall short in retirement

Don't assume that Medicare will take care of your healthcare expenses in retirement. While it will certainly help with inpatient care, specialist visits and important screenings, there are multitudes of expenses that Medicare will not cover.

Beneficiaries will still pay for things like deductibles, coinsurance and insurance premiums. You can be hit with surprise expenses for out-of-market coverage or emergency care. It also won't cover routine dental, hearing and vision care appointments.

There are also significant time limits to the care that Medicare covers. If you find yourself at a long-term care facility, Medicare will cover only the first 20 days of your stay in full and only a portion of the care up to 100 days.

Medicare offers great support for paying for medical expenses, but if you're expecting it to take care of you on its own, you'll find a pile of unexpected bills in your mailbox.

3. Make your healthcare plans now

The earlier you begin planning for healthcare expenses, the more options you will have in retirement.

If you're still working, contributing to a health savings account (HSA) can offer one of the most tax-efficient ways to save for future healthcare costs.

Part of your plan should be what age you intend to enroll in Medicare. Most should enroll around the age of 65, but you may be able to delay Medicare Part B without penalty if you're still working and receive health insurance through your employer.

This will keep you from paying the premiums on your current insurance and Medicare at the same time.

You will be allowed to sign up for Medicare during a special enrollment period if you leave your position and lose your employer coverage.

The real issue to avoid is enrolling late without qualifying coverage. If you miss your window to apply, your premium can increase by 10% for each year you were eligible but chose not to enroll.

That is a devastating and unnecessary expense that will follow you throughout your retirement.

Be sure to speak with a financial adviser or retirement professional to understand the important windows of when you should enroll.

4. It's never too late to lower risk and costs

The best way to reduce your healthcare costs is by not needing healthcare in the first place.

Obviously, some unforeseen conditions and circumstances will impact our healthcare spending, but it's never too late to reduce the risk factors.

Eating well and exercising regularly will help keep risk factors for a wide range of illnesses and health conditions down. A lower risk of heart disease or broken bones means fewer medical bills throughout your retirement.

It will also greatly improve your mobility later in life, helping you enjoy your golden years to the fullest.

Just like saving for retirement, the sooner you invest in your health, the better. But it's never too late to start the journey to healthier living.

It's not a conventional consideration when making your financial plan, but it is a factor that could make a major impact on your healthcare spending in retirement.

Related Content

• Average Cost of Healthcare by Age and US State
• 5 Smart Retirement Healthcare Moves: Maximize Your HSA and Medigap Savings
• The 5 Biggest Stealth Costs in Retirement
• Retirement Location, Location, Location: Can Florida Be Beaten?
• Is That Really Your Grandkid Calling, or an AI Scam Trying to Rip You Off? 3 Tips to Protect Your Money

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

According to insurance-comparison marketplace Insurify, the national average cost of full coverage car insurance is $2,244 per year, while liability-only coverage averages $1,176 per year. But drivers in some states are paying thousands of dollars more than that national average to keep their car insured.

While there's not much you can do if you live in one of the 10 states below — aside from moving to another state with cheaper car insurance — it helps to know how your state compares to the average.

If you know you're in a more expensive state, you can be even more diligent about the rate-influencing factors that are in your control. For example, make your next car one of the cheaper models to insure or take a defensive driving class to earn a discount on premiums.

The 10 states that pay the most for car insurance

Based on the latest data fromInsurify, the 10 states that paid the most for car insurance in August are largely concentrated along the east coast, from Connecticut stretching down to Florida.

Whether you live in one of the most expensive states are not, the best way to keep your premiums under control is to shop around ahead of every renewal to see if you can find a better deal elsewhere.

Start that process using the Bankrate-powered car insurance shopping tool below:

What makes car insurance more expensive in some states?

You might already know that things like your driving history or your car's make and model influence your car insurance premium. But why would the state you're driving in matter to an insurance company? There are many reasons, but here are a few of the most common state-level factors that drive your premium up:

• Population density: Many of the most expensive states are also among the more densely populated. When you've got a lot of drivers packed into a smaller area, accidents become more likely compared to drivers cruising on the wide, open roads of, say, the Midwest (which is underrepresented on the top 10 list). Insurers see more densely populated areas as more prone to auto theft as well.
• Weather and natural disasters: Just as home insurance rates go up in more disaster-prone areas, so too, do car insurance rates. This will primarily affect your comprehensive car insurance as that's what you'd file a claim against if your car was damaged in a weather-related event. But it can also spike rates on the rest of your coverage as accidents become more likely in bad weather.
• Coverage requirements: Some states require higher levels of coverage than others. This can make even minimum coverage policies in one state pricier than full coverage in another state.
• Rates of uninsured or underinsured drivers: The share of drivers without adequate insurance can also affect insurance costs. Florida, for example, has one of the nation's higher rates of uninsured motorists. When an at-fault driver has no insurance or doesn't have enough liability coverage to pay for your injuries, uninsured or underinsured motorist coverage can help cover the difference. Higher rates of uninsured drivers can contribute to insurers' claims costs and, in turn, put upward pressure on premiums. Some states require drivers to carry uninsured or underinsured motorist coverage, while others allow drivers to decline it.
• Legal costs: If you file a lawsuit against the at-fault driver or their insurance company after a serious accident, you may receive a higher payout than you would through the initial claims process. In states where costly lawsuits are more common, insurers may spend more on legal fees and claim payouts. Many insurers pass those costs on to consumers in the form of higher premiums.
• Cost of living: Housing and groceries aren't the only expenses that tend to be higher in states with a high cost of living. Auto repair costs can also be more expensive, in part because of higher labor costs. When insurers have to pay more to repair vehicles after covered accidents, those higher claim costs can contribute to higher car insurance premiums.

While car insurance rates shouldn't be your main criteria for choosing which state you want to move to, they can be a useful way to narrow down your options or balance quality of life with cost of living.

Say you want to retire on the coast of Florida, for example. Since both home insurance and car insurance are significantly more expensive there, you might be able to enjoy a similar quality of life at a fraction of the price by heading to the gulf coast of Alabama instead.

The average rates can also vary substantially from one area of the state to the next. If you don't want to trade Florida for Alabama, moving to a less populated area within Florida could result in car insurance rates below the state average, for example.

Finally, you can use average rates as an indicator of what driving might be like in a state. If it's more expensive, that's because insurance companies expect to handle more frequent or more expensive claims. As a driver, that means you might need to be even more cautious than usual when you're behind the wheel to avoid an accident.

Related content

• 8 States With the Highest Car Insurance Rate Increases
• What Is the 100,000-Mile Rule in Car Insurance?
• How to Switch Car Insurance the Right Way
• Should You Get Home or Car Insurance Through Costco?

A pattern shows up often enough in my practice that I've stopped being surprised by it.

Someone in their mid-50s comes in for a routine check-in. Their mortgage is paid off. The kids whose 20-year term life policy was meant to protect are mostly grown. That policy did its job well.

But somewhere in the conversation, it comes out that an aging parent has just moved in or started needing help that wasn't part of anyone's plan two decades ago, right around the time the original coverage is scheduled to end.

September is Life Insurance Awareness Month, which makes this a good moment to look at a timing problem that comes up more than people expect. This isn't a rare coincidence.

According to Northwestern Mutual's Planning & Progress Study, roughly one in five Americans is caring for a family member, and many are making financial trade-offs to do it: Cutting spending, pulling from savings or taking on debt.

That's the backdrop many are managing when a term policy expires in the same decade.

What makes these situations challenging is not necessarily the policy itself. It is that people may be trying to address today's responsibilities with a financial plan built for a very different season of life.

How age and health affect the cost of new coverage

Here's what I explain to people in that situation: Term life insurance is generally relatively inexpensive because it's temporary, and the premium you paid years ago reflected your age and health at that time.

When that policy ends and you look for new coverage at 55 instead of 35, an insurer isn't underwriting the same person. Medical history and health markers may have changed over that period, even for people who feel healthy.

What that means in practice: Replacement coverage at this stage may cost more for the same death benefit, and health changes can sometimes limit what you're able to qualify for.

I don't tell people that buying term coverage in their 30s was a mistake. If they had a young family and a time-limited need, like a mortgage or a child's dependent years, term insurance was likely the most cost-effective way to secure meaningful coverage, and for many it still is. The issue is making sure the plan keeps pace as responsibilities change.

Three ways to approach an expiring policy

If your term policy is nearing its end date, there are three paths to consider. The right one depends on your health, budget and what you're trying to protect against.

Convert what you have. Some term policies include a conversion option that may allow you to convert some or all the coverage to a permanent policy, subject to policy terms, without new medical underwriting.

This may be a valuable option for anyone whose health has changed, but conversion windows are typically limited to a specific age, so check before your policy expires.

Add smaller coverage on top. Instead of replacing your full death benefit, you may need only a death benefit to help cover a narrower, current gap, like a parent's care needs or a remaining few years of a child's dependency on your income.

Start over with today's numbers. The coverage amount that made sense at 35, based on income replacement, a mortgage and young children, may have little to do with what you need to protect now. Recalculating based on your current obligations often produces a more accurate target.

This kind of planning matters even more for those also thinking about what they'll eventually leave behind. A historic $124 trillion intergenerational Great Wealth Transfer is already underway between generations in the U.S., and those revisiting an expiring term policy are often also due for a broader look at their estate plan.

Don't skip the estate planning conversation

An expiring policy is a natural prompt to check something many haven't looked at in years: Their beneficiary designations.

I ask clients to review whether their beneficiary designations still align with their estate plan and whether they should consult tax or legal professionals about potential unintended consequences.

A former spouse listed as beneficiary, a minor child who'd receive a lump sum before they're ready to manage it or an estate named as beneficiary by default can all create complications that a trust, staggered distribution or other planning tool may help address.

Some permanent life insurance policies can build cash value over time. For some households, its death benefit can help address estate planning needs, which may include estate taxes, equalizing inheritances among heirs or charitable giving.

For those whose estate plan hasn't been reviewed since the term policy was purchased, an expiring policy is as good a reason as any to have both conversations at once.

For wealthier individuals, the expiring policy itself is often less the point than what it was quietly standing in for. Coverage tied to a business loan, buy-sell agreement or key-person planning can also expire or lapse, and often carries higher stakes.

It's also common for these clients to have postponed other estate planning decisions, such as gifting assets into a trust or updating succession plans. An expiring policy is a reasonable prompt to finally have that conversation.

What to do before the policy lapses

If any part of this sounds like your household, a few steps are worth taking now, while you still have options:

Pull your policy documents and check whether it includes a conversion option and by what date it needs to be exercised

Take an honest inventory of who currently depends on your income, rather than the picture from 20 years ago

Check your beneficiary designations against your current estate plan, not the one you had 20 years ago

Talk to a financial adviser before your term expires, not after a lapse notice arrives — options narrow once the policy has ended

In my experience, the clients most exposed to this timing mismatch usually aren't the ones who think of themselves as underinsured. They may have purchased exactly the right coverage for the season of life they were in.

The challenge is that life rarely stands still. Careers change. Families change. Businesses grow. Parents age. Responsibilities shift.

The good news is that many of these situations can be addressed when they are identified early. The goal is not to perfectly predict every change life may bring. It's to revisit your plan often enough that it can evolve alongside the people and priorities that matter most.

Sometimes an expiring policy is simply the reminder that it's time to make sure your financial plan has changed along with your life.

Article prepared by Northwestern Mutual with the cooperation of Gina Cimineri. To view detailed disclosures regarding individual representatives, view their information at taketwofinancial.nm.com.

This article is not intended as legal or tax advice. Financial Representatives do not render tax advice. Consult with a tax or legal professional for advice specific to your situation.

Related Content

• What Is Term Life Insurance?
• How to Shop for Life Insurance in 3 Easy Steps
• How Much Life Insurance Do You Need?
• Do You Need Life Insurance When You're Young?
• 5 Ways to Use Your Life Insurance While You're Alive

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

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

This time, we hear from a married 38-year-old program analyst with the Department of Defense who lives in California. She reports a salary of $145,000.

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

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

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

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

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

The Basics

How did you make your first $1 million?

Over the last 15 years, through saving in our TSPs (Thrift Savings Plans) — we have a combined balance of just over $1 million.

We started out with contributing just enough to get the match, not really understanding much about investing.

Thankfully, my husband's family provided advice along the way on how they have been successful, and that led me to start doing my own research. Over the course of a couple of years, we upped our contributions, and in 2019, we basically went all in and maxed out both TSPs to the IRS limits.

This was challenging, as we were both still considered developmental employees (not at our full performance/pay scale) level and had two young children with all the associated bills.

But we made it a priority and cut back in other areas to make it happen.

What are you doing with the money?

It's all invested in our TSPs — 100% stock allocation between large cap, small cap and a bit of international.

As we get nearer to our full retirement ages, we'll reduce stocks and add in the safer funds.

The Fun Stuff

Did you do anything to celebrate?

Nothing specific. I stared at the spreadsheet for a while almost in disbelief.

What is the best part of making $1 million?

The sense of freedom and security. Being able to let off the gas and use more of our income on making memories with my family, especially now that my kids are teenagers and have a limited amount of time left in the house before they move out.

Did your life change?

Maybe a little bit. We're really enjoying the trips and experiences with our kids now and not worrying so much about the spending money part of that.

Does anyone know you're a millionaire?

No, I don't want to feel like I'm bragging. I've mentioned that we've been able to back off on retirement contributions because we're doing well and hit our numbers. But nothing more specific than that.

Any plans to retire early?

I'm planning on retiring at 57, which is my full retirement age. But if I have the opportunity to retire earlier, I will take it.

Looking Back

Anything you would do differently?

I would have split some of the contributions into our taxable brokerage account so that we have more flexibility. While I'm super proud of what we've accomplished, the overwhelming majority of our net worth is tied up in retirement accounts and not accessible.

After everything that happened last year in the federal sector, it highlighted the need for options.

Going forward, we cut back retirement contributions to only what's needed for the match and are redirecting the rest to emergency savings and then what I'm calling our "flexibility fund" in our taxable brokerage account.

What advice would you give to your younger self?

Be patient. You're on the right track. I have a hard time waiting once I have a goal in mind. Hence why we went all in on contributions and sacrificing in other areas.

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

I Will Teach You to Be Rich (by Ramit Sethi). Also, lots of personal finance articles and lots of podcasts.

Did you work with a financial adviser?

No. We're fortunate to have family that helped point us in the right direction.

Did anyone help you early on?

My husband's grandma and uncle. They shared their experience and helped us understand what allocations would set us up for long-term growth.

Looking Ahead

Plans for your next $1 million?

Continue to let the market work for us and add more into non-retirement accounts.

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

Not to be a broken record, but starting as early as possible and letting the power of compound growth work are all you need.

Even if you're not making much, contribute what you can and up it whenever you get a raise.

I see a lot of my peers who upgraded their lifestyles with each raise instead of thinking about their futures and are now starting to worry.

Do you have an estate plan?

Not yet. It's on list of things we need to do for sure.

What do you wish you'd known …

When you first started saving? Invest in stocks. I had all my contributions going into the G Fund at first, not really earning anything.

When you first started investing? Run your numbers. You may not need to save as much as you thought. We went all in and definitely made sacrifices to be able to do that.

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

Related Content

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

Buying a car — always a costly endeavor — has become even more expensive recently, thanks to a surge in vehicle prices since the pandemic and spiraling auto-loan rates.

The average balance for a new auto loan hit nearly $34,000 by the end of 2025, about $10,000 higher than in 2018, according to a recent report from The Century Foundation. Meanwhile, Experian data shows that the recent average interest rate of 6.39% on new-car loans is 57% higher than rates were in 2022.

Fueling the increases: New-vehicle prices now average close to $50,000, thanks to tariffs, lingering supply-chain challenges and higher manufacturing costs. Loftier new-car prices, in turn, have pushed up demand and prices for used cars as well, with the average price of a three-year-old used car recently at $31,500.

"There's a whole mix of factors that have been driving the price of cars higher, which makes it really hard for anyone who needs to buy a new car," says NerdWallet personal finance expert Kimberly Palmer.

In the market for new wheels? These tactics can help keep costs on track.

1. Stay in your (budget) lane.

Save time and narrow your vehicle choices by setting your budget up front — and sticking to it. Aim to keep your car payments under 10% of your monthly income and your total car costs (including insurance, gas and maintenance) under 20%, says Matt Schulz, chief consumer finance analyst at LendingTree.

2. Shift your timing.

The end of the month (and often the end of the quarter or the year) may offer your best opportunity to snag a discount. That's when dealers, closing in on their quotas, are most motivated to cut prices to make a sale. If you can wait until the end of the calendar year, you may see even better offers on 2026 vehicles as dealers look to make room for next year's models.

3. Don't let monthly payments steer your decision.

Auto expert Lauren Fix, founder of Car Coach Reports, recommends avoiding financing terms that exceed the terms of a car's warranty — typically three to five years. Yet nearly seven in 10 new-car buyers now finance their vehicle for more than five years, Experian reports. While a longer term will lower your monthly payments, the extra interest you'll pay over the life of the loan can dramatically increase the total cost of the car.

"If the number doesn't work for you, don't try to jam a square peg into a round hole," Fix says. "Find another car. Look at a different trim level or a smaller vehicle."

4. Map out alternate routes.

Although used cars still generally cost less than new models, the gap between them has narrowed. Prices for three-year-old used cars are at a near-record $31,500, and loans for used cars typically have higher interest rates. So run the numbers using an online auto-loan calculator. You can find one at sites such as Bankrate and Cars.com.

5. Cruise in with outside financing.

Compare loans from at least three banks and credit unions, and get preapproved before visiting the dealership. "If the dealer can beat your bank, great. Let them," says Sean Tucker, a managing editor with Kelley Blue Book. "Just don't put yourself in a position where you're dependent on the dealer's offer."

Some dealers may run low-rate promotional financing, typically for borrowers with a high credit score. But these offers are less common than they were before the pandemic.

6. Drive a hard bargain.

Most dealers now have an internet sales department that will give you a price quote before you set foot on the lot. Collect at least three of these quotes, which you can use to push down the price during negotiations, Palmer says.

Map out your finances before buying a car

A car is a major purchase, and the right price and financing strategy will depend on how it fits into your broader budget and financial goals. A financial adviser can help you weigh the cost of a new vehicle against other priorities, from paying down debt to saving for retirement.

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

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

Related Content

• Is Your Car Model Driving Up Your Insurance Premium?
• 4 Money-Saving Tips for Car Shoppers in a Tough Market
• I Drive and Collect Classic Cars: Here's How I Got in the Game

When you picture a millionaire, you might imagine someone living in a huge home, driving a luxury car and taking lavish vacations. But having a $1 million net worth doesn't necessarily mean living as if you're rich or even earning an exceptionally high salary.

Plenty of wealth is built much more quietly. Someone might spend decades working a regular job, living in the same relatively modest home and consistently putting money into retirement accounts and other investments.

Being a millionaire generally means having a net worth of at least $1 million; it doesn't mean earning $1 million a year. Your net worth is the value of what you own (including savings, investments, retirement accounts and home equity) minus what you owe.

Over time, those assets can add up. A household could have several hundred thousand dollars in retirement accounts, another chunk of money invested elsewhere and significant equity in a paid-down home, eventually pushing its net worth past $1 million without ever earning anywhere close to $1 million a year.

Here are three practical money moves that can help middle-class households quietly build wealth.

1. Make investing part of your monthly budget

One of the biggest advantages you can give yourself when building wealth isn't finding the perfect stock. It's time.

Consistently investing every month allows you to benefit from compounding, meaning you can potentially earn returns not only on the money you've contributed but also on previous investment gains.

You can see how time and consistent contributions can affect your potential investment growth using Investor.gov's compound interest calculator. The tool lets you model different scenarios by changing your initial investment, monthly contributions, time horizon and estimated rate of return.

For example, someone starting with $1,000 at age 25 and investing about $375 per month could accumulate roughly $1 million by age 65, assuming a hypothetical 7% average annual return.

Someone starting at age 35 with the same $1,000 initial investment would need to contribute about $813 per month to reach the same goal.

Actual investment returns will vary, of course, and investing always involves risk. These hypothetical examples also don't account for taxes or investment fees.

The lesson isn't that everyone should expect a 7% return or that $375 is a magic number. It's that consistent contributions, given enough time, can potentially become a substantial amount of money.

For many workers, a workplace retirement account such as a 401(k) is one of the easiest places to start because contributions can come directly from your paycheck. If your employer offers a matching contribution, consider contributing enough to receive the full match if your budget allows. Employer matching formulas and vesting rules vary by plan, so check your plan documents to understand how your match works.

From there, look for opportunities to increase your savings rate over time. When you get a 3% raise, for example, you don't necessarily have to increase your spending by the full 3%. You might bump your retirement contribution up by 1% and use the rest for current expenses or other financial goals.

2. Keep lifestyle creep under control

Earning more money can certainly make it easier to build wealth, but income alone doesn't determine how much wealth you keep.

Lifestyle creep can quietly absorb raises and promotions before you have a chance to save or invest that additional income. Maybe a higher salary leads to a newer car, a larger house, more expensive vacations, additional subscriptions and more frequent dining out.

There's nothing inherently wrong with spending more as your financial situation improves. Money is also there to help you enjoy your life. The problem occurs when expenses rise just as quickly, or even faster, than your income.

Someone who consistently spends less than they earn has room to save and invest. Someone who spends nearly everything they bring in, even with a much higher income, might have surprisingly little left to build wealth.

Some of the biggest opportunities to maintain that gap involve your largest expenses, particularly housing and transportation. For example, getting a raise doesn't mean you immediately need to move into a larger house. Paying off your car doesn't necessarily mean it's time to replace it with another vehicle and another monthly payment.

This doesn't require extreme frugality, either. You don't have to cut every vacation, restaurant meal or small luxury out of your life in pursuit of a seven-figure net worth.

Instead, consider being selective about the lifestyle upgrades you make. Spend more on the things that genuinely improve your quality of life while allowing at least some of your rising income to increase your savings and investments. Over decades, maintaining that margin can make a significant difference.

3. Don't let debt eat away at your wealth

Debt isn't automatically the enemy of wealth building. Many financially successful households have used mortgages to purchase homes, for example, rather than waiting until they could afford to pay cash.

The bigger concern is allowing high-interest debt to become a permanent part of your lifestyle.

High-interest credit card balances can be particularly damaging because interest charges consume money that could otherwise be going toward savings, investments or other financial goals.

There's also an opportunity cost to continually financing purchases. If you're regularly making payments on credit card balances, personal loans or vehicles that stretch your budget, those monthly obligations leave less money available for investing.

That's why paying down high-interest debt can be an important part of a long-term wealth-building strategy. Your approach might depend on the type of debt, interest rate, access to an employer retirement match, emergency savings and other factors. Pay attention to whether debt helps you accomplish a larger financial goal or funding a lifestyle that's difficult to sustain.

A manageable mortgage on a home you can comfortably afford looks very different from carrying revolving credit card debt for vacations, clothing and everyday expenses year after year.

As high-interest debts are paid off, you can also redirect payments toward building assets. Paying off a $500 monthly debt payment, for example, doesn't have to mean finding a new way to spend $500 each month. Instead, consider redirecting some or all of that $500 toward retirement accounts, investments or other long-term goals.

The quiet path to a $1 million net worth

Building a net worth of $1 million generally doesn't happen overnight, and for many middle-class households, that's exactly the point.

Building wealth can take decades of consistently investing, keeping lifestyle creep in check and avoiding high-interest debt that pulls money away from long-term goals. Over time, retirement accounts can grow, mortgage balances can shrink and other assets can increase in value.

You don't have to look rich to become wealthy. Resisting the pressure to upgrade your car every few years, spend every raise or keep up with a more expensive lifestyle can leave more money available to save and invest. These habits aren't flashy, but practiced consistently over time, they can help turn an ordinary income into substantial wealth.

Whether your goal is a $1 million net worth or simply greater financial security, a financial adviser can help you map out a realistic path for getting there.

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

Related Content:

• How to Manage Money Like a Millionaire (Even If You’re Not One Yet)
• 'We Have Food at Home': The 'Midwestern Millionaire' Mentality That's Built a Fortune
• How to Become a 401(k) Millionaire

One of my favorite online reads is the "Tough Love" column in The Free Press, in which author Abigail Shrier dispenses advice to readers seeking help with a wide range of family-related issues.

Recently, Abigail replied to a query from a reader signed Darrill. Darrill sought advice on how to eject his 38-year-old son, who has been living in Darrill's garage apartment for eight years (along with his current girlfriend) and shows no inclination to leave despite having earned two college degrees funded by his parents.

Darrill writes, "We've made it clear that the gravy train ends in six months, and he either moves or starts paying rent, but I have no confidence that things will change by then."

Abigail responds: "How do you make a 38-year-old act like an adult? You can't. You have but one productive role to play in your son's rescue: Kick him out. Cease your mollycoddling and leave the rest to him. Give them two months and then — if necessary — hire a company to box up their things and put them out on the lawn."

Along with most of the dozens of readers who commented, I agreed that in the spirit of tough love, Abigail's counsel was spot on, if often difficult for parents to take. That prompted me to revisit advice I had given to parents of boomerang kids when I wrote my book Raising Money Smart Kids more than two decades ago.

Would the advice of my younger self still hold up, especially at a time when one-third of adults between the ages of 18 and 34 are still living with their parents? Many parents are happy to lend a hand — or a spare bedroom — but how do you keep the kids from becoming too comfy on the couch, stunting their growth into adulthood and possibly jeopardizing your own retirement?

Lay down the house rules.

My best advice, both then and now, is to nip things in the bud by coming up with "The Plan." You and your children should work out in advance the terms under which they'll move back into your home and what they'll do once they get there.

The Plan should start by addressing how long your children will stay. It needn't be a brief interlude, but it shouldn't be open-ended. If your children are home to attend a graduate or training program, their stay could end with the program. If the kids are job-hunting, start with, say, six months and give them an option to renew. Ditto if they have a job and are saving up for a deposit on an apartment. Not being firm enough on this point is one of the biggest mistakes parents can make.

Another big bone of contention is room and board. If your young adults have a job, The Plan should include an arrangement for them to pay at least a nominal amount of rent. If you don't need the money, you can always put it aside for the kids to save for a security deposit on an apartment or to pay off any debt. As an alternative to rent, they could contribute to the cost of food, streaming services or other household expenses. And kids with no income can provide in-kind payment by cooking, grocery shopping, taking over the yard work or performing other household chores.

Whatever arrangement you agree on, it helps to write down the terms in a contract so everyone is working from the same page. And most important, follow through — even if it means, as in Darrill's case, boxing up their things and moving them out.

But it shouldn't come to that if you create The Plan beforehand. It isn't helpful for either of you if you continue to play the role of enabler, conspiring to keep your adult children from growing up.

Note: If you have had adult children return home, let me know how you handled the situation. I'll be happy to share your advice.

Janet Bodnar is editor at large of Kiplinger Personal Finance. Contact her at Janet.Bodnar@futurenet.com.

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

Related Content

• How to Help Your Kids With Finances When They Move Back Home
• 'Subsidized Adulting': Can You Afford to Help Your Children Financially?
• 3 Ages, 3 Money Lessons: How to Raise Financially Savvy Kids

With the official start of fall just a few weeks away, many homeowners are ready for the heat to let up and the electricity bills to go down. This is the ideal time to take a walk around the outside of your house and check for any lasting damage the relentless heat of summer might have caused this year.

While you may already be familiar with the risks of winter damage, like frozen pipes and leaky roofs, summer can also do a number on your home – and often the damage isn't immediately obvious unless you know what you're looking for.

If you haven't done an inspection since winter ended, now is a great time to check for these five signs of heat damage around the home and learn how to address them and which ones home insurance might cover.

1. Cracks in your foundation from subsidence

In some states, like Texas and Missouri, the threat heat poses to a home's foundation is already fairly well known. But in states that are still getting used to blistering hot summers, you might not even think to check for (or prevent) subsidence around your home.

Primarily a threat in clay-heavy soils, subsidence happens when soil expands with moisture during wetter or cooler months and then contracts during hot, dry weather. Over time, that cycle of expansion and contraction can cause cracks to develop in your foundation.

Foundation damage can show up as cracks around windows and doors as well as on the foundation itself. It might also show up as a window or door not shutting like it used to. In some homes, normal swelling and shrinking of wood from changing humidity can cause windows and doors to stick a bit. But if you notice them being even harder to open and shut than you're used to with the changing season, it could be a sign to get your foundation inspected.

This is important for homeowners to stay on top of because subsidence is usually categorized as "earth movement," which is typically excluded by standard home insurance. However, if you purchase earthquake insurance (which usually includes most common forms of earth movement), you might be able to get this covered.

To prevent this next summer, you may need to set a reminder to water your foundation during hot, dry weather. Typically, homeowners are advised to keep water as far away from their foundation as possible. But if you have heavy clay, you might be one of the exceptions.

Not sure if your soil is the kind that needs watering? Check around your home after a hot, dry spell to look for signs of cracked soil anywhere that you don't regularly water. Pay special attention to the soil along the edge of your home. If you can see areas where the soil has pulled away from your house, that's a sign that it shrinks and swells severely enough to require watering – even if you don't see any cracks in the foundation yet.

2. Siding distortion

Vinyl siding is an affordable and attractive option for upgrading your home. But it's also susceptible to melting (or distorting) in the heat. This is a bigger risk for siding that's facing a neighbor's window or other reflective surface, since this concentrates and targets sunlight on a specific spot for prolonged periods.

As you walk around the house inspecting your foundation and checking for cracks near windows and doors, check the siding while you're at it. Look for any patches that might look a little distorted or warped.

If you see any signs of distortion, the first step is to check the manufacturer's warranty if you happen to know the manufacturer. This kind of damage might be covered by the warranty if your siding is new enough to be under warranty. If not, you'll likely have to cover the repair out of pocket, as home insurance typically only covers siding distortion if it was caused by a covered peril (like a fire).

To prevent this next summer, identify any possible source of reflected sunlight that might have caused the distortion. If it's a neighbor's window, for example, you might be able to put up a temporary screen or plan to plant a hedge between your houses to block the reflected light.

3. Cracked or blistered roof shingles

Once you've finished your walk-around inspection, get up on the roof if you're comfortable doing so. If not, you can hire a pro to do the inspection. Your roof should be inspected twice a year: Once after winter, when the freeze-thaw cycle or heavy snow might have damaged your roof, and once after summer, when extreme heat and fluctuating humidity levels can cause shingles to crack or blister.

In both cases, damage may not be severe enough after a single season to cause leaking or other issues in your roof. But catching and repairing minor damage regularly can prevent more severe problems down the line.

Another reason to make those repairs now while they are still minor: Your home insurance probably won't cover it. As with siding, roof damage is usually only covered if the cause is a covered peril like hail or fire.

To prevent this next summer, you can apply a reflective sealant to shingles that protects your roof by bouncing solar radiation and UV rays back up rather than allowing them to absorb into the shingles. This can also block heat from entering the home, so you might also see lower cooling costs next summer.

4. Mold growth in your basement, bathrooms or other damp spaces

If you have a basement, you probably already know it's prone to dampness. The same is true for any room in your house that has plumbing, like bathrooms, kitchens, and laundry rooms. When you combine already damp spaces with the warmth of summer, you have a recipe for mold.

While at-home mold test kits might seem like the right move, they're not really that helpful. The amount of airborne mold spores can fluctuate dramatically from one hour to the next, so you might get a negative because you tested at a time when the spore count happened to be low. Those that test samples scraped from a surface are limited in use for the same reason. The small patch of wall you sampled might not have mold on it, but the patch two inches to the left might.

Instead, do a thorough visual inspection of the high-risk rooms in your home to look for the orange or black discoloration characteristic of mold growth. If you find visual evidence of mold but it seems minor, you can try cleaning the area with bleach or vinegar thoroughly. But continue monitoring the area periodically to see if the mold comes back. If it does, you might need to bring in professional mold remediators to find and fix the underlying source of the problem.

Whether or not mold remediation will be covered by your home insurance is a tricky issue. If the cause can be traced to a covered peril, like a burst pipe or water heater, you might be able to file a claim. If not, you might be out of luck.

To prevent this next summer, one option is to keep your HVAC system running all season long to keep humidity and temperatures under control. If the risk is only in certain rooms of the house, however, a more cost-effective option might be to get dehumidifiers for just those rooms. According to the EPA, maintaining humidity levels between 30% and 50% will prevent mold growth. As an added bonus, lower humidity also discourages pests like cockroaches and dust mites.

5. Spoiled food and damaged medicine

Even if you run the air conditioner, some parts of your home can end up hotter than others – such as a kitchen cupboard mounted to an exterior wall or a medicine cabinet in a bathroom that has no A/C vent.

Heat aside, summer is also a time when pests and mold spores are more numerous and more likely to find their way into your home.

You may have already started stashing some produce that you'd normally keep on counters in the fridge to prevent spoilage. But things like coffee, spices and vitamin supplements should all get moved somewhere cooler as well.

Now is the time to check for signs of spoilage or stale smells in all of your pantry staples and toss anything that seems suspicious. In your medicine cabinet, look for changes in color, texture or smell in your medicines, supplements and even cosmetics.

To prevent this next summer, make a list now of heat-sensitive items in your home that you'll move to a cooler, drier area. This can be as simple as moving them away from exterior walls and keeping them in a bin in a room that is air conditioned most of the day.

Related content

• 10 Ways to Prepare Your Home for Summer Weather
• 5 Home Upgrades for Surviving Record-Breaking Heat
• 9 Easy Home Hardening Projects That Also Save on Insurance
• 6 Ways Seniors Can Save on Home Insurance

From Andrew Carnegie to Mackenzie Scott, America has a long and proud tradition of producing great philanthropists who have erected universities and cultural institutions and bestowed generous gifts to causes and communities.

But it's not just centi-millionaires and billionaires who are generous — average Americans are committed to charitable giving, too. According to a survey from the Associated Press-NORC Center for Public Affairs Research, roughly three-quarters of U.S. adults say their households have donated to a charitable cause.

While "'tis better to give than to receive," it does help that the U.S. tax code rewards generosity. Of course, the structure of the gift is important when considering the tax implications of philanthropy.

Heading into the second half of the year, many people begin to think carefully about their year-end giving strategy. Here are four structures to consider.

Direct giving

The simplest, most straightforward way to give to a charitable organization or cause is direct giving. While most people think philanthropy must involve monetary donations, you can also gift appreciated securities, automobiles, recreational vehicles, boats and other personal items, all of which will also qualify for a tax benefit.

Direct gifts of appreciated securities, for example, may allow donors to avoid recognizing capital gains while potentially receiving a charitable deduction for the full fair market value, subject to applicable IRA rules.

Not only is this the most common form of giving, it can also supplement the other structures outlined below.

Donor-advised funds

Donor-advised funds (DAFs), which effectively separate the tax savings from the charitable-planning component, are becoming increasingly popular.

With a DAF, an advisor opens the fund, and the donor immediately receives an eligible charitable income tax deduction. Meanwhile, the fund continues to grow, giving the donor time to decide how to disburse money.

Beyond the planning benefits, DAFs can provide meaningful tax savings. With the standard deduction for married couples (filing jointly) now at $32,200, most Americans will find that it doesn't make sense to itemize their taxes for a standard charitable gift.

But if you can afford to bunch multiple years of charitable donations into one lump sum, it might help you surpass the standard deduction and realize significant tax savings.

This strategy is particularly helpful in a year when a family has an unexpected windfall, such as a large bonus, and it's looking to offset larger tax liabilities. Another perk of setting up a DAF: You can name the fund, which can allow you to preserve anonymity.

DAFs are also great for teaching children about giving back and money management, as families can decide together how to distribute the funds based on shared values.

Charitable trusts

For families gifting larger dollar amounts, charitable trusts can wrap charitable donations in a larger estate planning framework. There are typically two trust structures which clients choose from when creating a charitable trust.

A charitable remainder trust provides income from investments during the donor's lifetime, with the remaining assets ultimately passing to the charity.

Conversely, if a donor wants to leave assets to their children, a charitable lead trust operates in the opposite fashion — the charity receives payments for a specific period before the remaining assets pass to heirs.

Both options allow families to pair their charitable giving with estate planning to support both personal and philanthropic goals.

Foundations

Individual or family foundations provide donors with more control over named charities and benefactors, but this structure also requires a significant commitment, both financially and timewise.

Donors must be prepared to set up and fund the entire organization, including operational oversight and administrative expenses. Often, foundations can become difficult to sustain over time when the administrator steps away, and the foundation begins looking at how to wind down operations, either via a merger or dissolution.

While the idea of a foundation might sound appealing, we typically advise wealthier clients that they can achieve the same goals through either a donor-advised fund or a charitable trust.

Some parents like the idea of creating a foundation to provide a child with a job and an income stream. But if you're simply looking for income, you can achieve the same goals by setting up a charitable remainder trust with the child as the income beneficiary, or as a grantor charitable lead trust, with children or grandchildren eventually inheriting.

Families sometimes view private foundations as a path to involving younger generations in philanthropy. However, donor-advised funds and charitable trusts can often provide similar opportunities with less administrative complexity.

Philanthropy is personal. Whether you give to express your values, honor a loved one or leave a legacy, the smartest philanthropists make it a win-win, structuring their gifts to increase both the effectiveness of their giving and the value of available tax incentives.

Janney Montgomery Scott LLC, its affiliates, and its employees are not in the business of providing tax, regulatory, accounting or legal advice. Any such taxpayer should seek advice based on the taxpayer's particular circumstances from an independent tax adviser.

Related Content

• Giving Tuesday Is Just the Start: An Expert Guide to Keeping Your Charitable Giving Momentum Going All Year
• Five Ways to Adapt Your Charitable Giving Strategy in a Changing World: An Expert Guide
• Giving Gamechanger: Why Now's the Time to Use a Donor-Advised Fund
• Tax-Smart Charitable Gifting Strategies
• Where a Trump Account Might Fit in Your Financial Strategy for Your Newborn

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.

Imagine strolling down charming cobblestone streets as the scent of hot-baked pretzels hangs in the air. Children zip past in crisp lederhosen, laughter echoes over the clink of heavy glass steins, and you duck inside a Bavarian-style shop expecting to hear a German greeting.

Instead, a local welcomes you in an American accent.

Each year, millions of Oktoberfest revelers skip the expensive transatlantic flights and long hours of air travel, opting for the authentic spirit of Gemütlichkeit (that cozy, welcoming cheer) right here in the United States.

If that's you, we're taking a look at how state tax policies compare across the country's top festival spots. Rounding up the ten most famous American Oktoberfest destinations, we've ranked them by their state's beer excise tax rate (the festival's official drink, and, hey — we're not complaining).

So pack your dirndls and warm up your polka: Here's where Alpine charm meets beer taxes on a budget.

Top Oktoberfests ranked by beer tax in 2026

To compare state beer taxes across top Oktoberfest spots, we used the 10 American destinations featured in Time Out magazine.

We then ranked them by their mandatory state beer excise tax rates per gallon, using the latest data from the Tax Foundation. The list utilizes a standard 12-ounce pour of a baseline imported 4.7% ABV lager.

Keep in mind that state excise taxes are built into the wholesale price upstream, providing a foundational baseline for beverage costs across each state. Thus, festival prices on the ground are also shaped by factors like local sales taxes, brewery selections, and souvenir packages.

However, this ranking offers a unique look at how state tax policy frames the nation's premier German celebrations — one stein at a time.

10. Helen, Georgia

State beer tax: $0.48

Dates: Sept. 10 - Nov. 1, 2026

As the longest-running Oktoberfest in the U.S., the festival in Helen, Georgia, has the most expensive state beer tax on our list, according to Tax Foundation data. Additionally, admission generally costs $5 to $25 per person per day (though entry to the Festhalle is completely free on Sundays).

But Helen is famously known for its Bavarian charm. Redesigned in the late 1960s to mirror alpine architecture, the festival is backdropped against the Blue Ridge Mountains, delivering picturesque fall foliage views along the Chattahoochee River.

Visitors can watch the festive Oktoberfest Parade on opening weekend, try holding their beer the longest at the annual Stein Holding Competition in October, or sip warm spiced apple ciders and rich wheat beers. Helen also offers a costume party on Halloween night and 12 to 16 rotating traditional bands inside the Festhalle over the nearly two-month-long celebration.

Thus, if you want to feel like you're in Germany this autumn without ever actually leaving the States, you might consider a surprisingly authentic Oktoberfest in America's South.

Want to be a little closer to the action year-round? Check out the 10 Cheapest Places to Live in Georgia.

9. Stowe, Vermont

State beer tax: $0.27

Dates: Sept. 19, 2026

The von Trapp Family Lodge & Resort Oktoberfest ranks ninth on our list, with a state beer tax of $0.27, per the latest Tax Foundation data. Ticket prices for the one-day affair are typically $80 per person and include an official souvenir mug, one beer pour, and a festive appetizer, entree, and dessert.

Musical fans and history buffs will especially appreciate the setting. Hosted by the real-life family that inspired the film "The Sound of Music", the resort brings an Austrian twist to the traditional festival. The event packs a full schedule of vibrant folk music, cask tapping, Steinholding contests, traditional outfit competitions, and — yes — plenty of singing.

Perched high above the town of Stowe, the lodge also has some of the prettiest scenery on our list, with panoramic views of Vermont's fall foliage. And while the festival itself is a single-day event, booking a weekend stay allows you to enjoy on-site brewery tours, crisp Austrian-style lagers, and cozy fireside retreats.

So you might want to check out von Trapp Family Lodge & Resort in Vermont for one of America's most unique Oktoberfests.

8. Leavenworth, Washington

State beer tax: $0.26

Dates: Oct. 2-3, 9-10, and 16-17, 2026

Taking place over three weekends in October, the traditional Oktoberfest of Leavenworth, Washington, ranks eighth on our list, according to the latest data from the Tax Foundation. Single-day tickets range from $20 to $40, with weekend passes costing about $55 per person (and kids 12 and under enter for free).

Framed by the jagged peaks of the Cascade Range, entering Leavenworth might just feel like you're stepping straight into a Bavarian postcard. Music is at the heart of the festival, with three stages featuring live performances from 6 p.m. to close each day.

The annual Festzug grand parade also marches through town every weekend, while stein hoists and costume contests run throughout the day. Plus, whoever rocks the best or funniest mustache wins a prize on Saturdays (so get your hair gel ready).

Those traveling with children will also love the dedicated "kinderplatz" play area chock full of classic carnival games and a 62-foot Ferris wheel.

Ergo, whether you like browsing street fair merchandise or jumping onto the dance floor with European headliners, enjoy Leavenworth this fall.

See also: 10 Cheapest Places to Live in Washington.

7. Frankenmuth, Michigan

State beer tax: $0.20

Dates: Sept. 17-20, 2026

Frankenmuth's Oktoberfest charges a state beer excise tax rate of $0.20, according to the Tax Foundation, and ticket prices are only $10 per person per day, though kids 15 and under are free (and Sunday admission is free as well).

Known as "Michigan's Little Bavaria," Frankenmuth was settled in 1845 and holds the distinction of hosting the very first Oktoberfest officially sanctioned by the City of Munich outside of Germany. For this reason, Germany’s world-renowned Hofbräuhaus München exported its beer to the U.S. and Frankenmuth for the first time in history.

The festival features live music, authentic cuisine, and beloved events like the Wiener Dog Races — where up to 100 dachshunds compete for glory. (And ribbons, trophies, cash, and a free hotel stay…maybe it's time to adopt a pet?)

Dog lovers will also appreciate that the festival is exceptionally pet-friendly, welcoming leashed pups throughout the outdoor grounds. Frankenmuth offers several walkable (and pet-friendly!) hotels downtown, meaning you and your pooch can enjoy Oktoberfest together.

Thus, if you're a fan of Germanic history and want to take your pup along for the ride, stay for select hotel access in Frankenmuth, Michigan.

6. Fredericksburg, Texas

State beer tax: $0.19

Dates: Oct. 2-4, 2026

Walk under a big tent and experience Fredericksburg, Texas Oktoberfest with remarkably low beer taxes — at just $0.19, according to the Tax Foundation. Ticket prices usually range from $1 to $20 (depending on your age and the day you go), and you can add an extra $10 for daily shuttle passes that run between Marktplatz, local parking, downtown shopping, and nearby county fairgrounds.

Rooted in 19th-century German immigrant heritage, Fredericksburg serves up genuine schnitzel and cold Hofbräu on tap alongside Texas Hill Country classics like spiced wines and warm mulled cider.

You might start your festival with the Saturday morning chicken dance, which is perfect for little ones who want to meet costumed feathered friends on the dance floor. Or, if you're feeling particularly energetic for the autumn air, sign up to walk or run the annual Oktoberfest Kraut Run (benefiting local youth and literacy programs).

With easy shuttles, endless steins, and plenty of Texas hospitality, Fredericksburg may be well worth the trip.

Looking to live nearby? Check out the 10 Cheapest Places to Live in Texas.

5. Cincinnati, Ohio

State beer tax: $0.18

Dates: Sept. 17-20, 2026

Celebrating its 50th anniversary this year is Oktoberfest "Zinzinnati" in Cincinnati, Ohio. With state beer taxes as low as $0.18, per the Tax Foundation, you might not break the bank celebrating here — after all, admission is free.

As America's largest Oktoberfest, this riverfront celebration welcomes nearly one million guests with colorful spectacles like the "World's Largest Chicken Dance" and the Running of the Wieners dachshund race. The festival also features over 30 live musical performances along with circus acts, competitions, and games.

Plus, guests can opt for paid extras with all the free festival admission they save, like a local glassblowing workshop or a VIP pass for dedicated bars and shaded seating. Starting this year, the plaza also has a new Glockenspiel, a two-story clock tower with hourly chimes and choreographed performances.

For America's biggest Oktoberfest blowout with (relatively) cheap beer taxes, head right to the heart of the Midwest.

Related: Check out the 10 Cheapest Places in Ohio to Live.

4. Tempe, Arizona

State beer tax: $0.16

Dates: Oct. 9-11, 2026

Located along Tempe Town Lake at Beach Park, the Four Peaks Brewing Oktoberfest is a must-see for West Coasters and desert travelers alike. Arizona state beer taxes are a cool $0.16, according to 2026 Tax Foundation reports. And with free admission for everyone aged 20 and under, it might offer one of the best values on our list.

Sponsored by the local Four Peaks Brewing Company, this festival proves you don't need alpine pine trees to throw an incredible fall party. Enjoy classic Oktoberfest traditions like live music, brat-eating contests, and the annual "Runnin' for the Brats" 5K, together with a full carnival with rides and games.

Additionally, event hosts put on Dachshund races and a "Low Center of Gravity" dog race specifically for short-legged, non-weiner breeds.

But to upgrade your experience, check out the VIP backstage pass for prime lakefront viewing of mainstage performances, private shaded lounges, and included drink coupons.

So for lederhosen and dirndls in the Southwest, stop by Tempe, Arizona.

Related: 10 Cheapest Places to Live in Arizona.

3. Mt. Angel, Oregon

State beer tax: $0.08

Dates: Sept. 17-20, 2026

Surrounded by Bavarian-style architecture, scenic Willamette Valley farmlands, and hop fields, Mt. Angel hosts the Pacific Northwest's largest Oktoberfest. The Beaver State's beer tax is a startling $0.08, according to the Tax Foundation. Festival passes are only $15 to $20 per day (or $50 for a full season pass), while attendees under 21 enter free.

Explore a host of specialized "gartens" throughout town. This includes a bustling Biergarten, a Weingarten serving regional Oregon pinots and warm spiced wines, an Alpinegarten for live shows, and dedicated play areas for families.

Mt. Angel also features an authentic four-story Glockenspiel clock that chimes and spins hand-carved figures four times daily. Or for a more peaceful moment to get away from it all, step inside historic St. Mary Church to savor uplifting pipe organ music beneath stained glass windows.

Just south of Portland, deep cultural tradition and autumnal charm come together at the Mt. Angel Oktoberfest.

Want to make the commute a bit shorter next year? Check out the 10 Cheapest Places to Live in Oregon.

2. Denver, Colorado

State beer tax: $0.08

Dates: Sept. 18-20 and 25-27, 2026

The heart of downtown Denver beats to a German-style celebration spanning two autumnal weekends. Denver's Oktoberfest offers free general admission and holds the second-lowest beer tax on this list, per Tax Foundation data (tied with Oregon when rounded to the nearest penny).

The schedule is packed with interactive competitions, like the famous Keg Bowling tournament, where participants can pair strength with expert aim. The festival also boasts the annual Stein Hoisting Championship, the Long Dog Derby, a silent disco (whew, what a great way to take a break from it all), and of course, daily costume contests.

Have a dietary restriction? Not a problem. Denver also stands out for its dietary inclusivity, serving up plenty of vegetarian bratwurst, gluten-free bites, local ciders, and non-alcoholic brews alongside traditional taps.

For a high-altitude block party with free general admission, check out the Denver, Colorado Oktoberfest in 2026.

See also: 10 Cheapest Places to Live in Colorado.

1. La Crosse, Wisconsin

State beer tax: $0.06

Dates: Sept. 24-27, 2026

The most famous Oktoberfest with the cheapest state beer tax in America is located in La Crosse, Wisconsin, where the rate is barely above $0.05, according to the Tax Foundation. General admission wristbands are about $25 (with free ground entry on Sunday), giving you access to lederhosen games, food vendors, live polka, and craft beer gardens.

Holding its celebration along the Mississippi River bluffs since 1961, La Crosse has unmatched community traditions. Thursday night launches the famous Torchlight Parade — a tradition added to the festival in 1965 — which glows through the Northside and kicks off the Afterglow Bash.

Meanwhile, daytime brings carnival rides, vendor shopping, and festive community events, culminating in Saturday morning's Maple Leaf Parade and a grand fireworks show that evening. The celebration then wraps up on Sunday with the traditional Parade Marshal Pancake Breakfast and family-friendly activities.

In favor of an action-packed weekend full of Midwestern Gemütlichkeit, culture, and cheap beer taxes? Check out the Wisconsin USA Oktoberfest festival, and you'll be glad you did.

Explore More

• Best States to Buy Halloween Chocolate Tax-Free
• Your Fall Garden Can Raise Property Tax Bills
• Can I Deduct My Pet On My Taxes?

My father was a doctor, often on call for emergencies. Though he worked tirelessly, he valued family time. Long before "work-life balance" entered the American vernacular, he practiced it.

Now, decades later, I carry both his work ethic and commitment to loved ones in my own life and share these values with my daughter and clients at Pence Capital Management, where I am the chief investment officer. With summer winding down, I am reminded of the importance of prioritizing family while pursuing success.

Shopify President Harley Finkelstein spoke last year about the concept of "work-life harmony" rather than "work-life balance." I tend to agree. For each of us, there will be many seasons of life where balance will ebb and flow. For the sake of our health and our families, we must learn to find harmony in the season we are in.

What it takes to put family first

Consider this: A great family, financial success, yet children who feel disconnected.

In my decades of work as a wealth adviser, I've seen the terrible repercussions of professionals who have done well financially at the expense of their families. It's not uncommon in our industry to guide clients through painful divorces.

Even in our Golden State, where the rest of the country comes to rest and recharge, Californians need to get away as much as anyone else.

You can choose to prioritize meaningful connections now rather than risk repairing — even severing — relationships later. While financial security is important, investing time in your family can be even more valuable.

Begin today by establishing clear guidelines and intentionally dedicating time and resources to your family's well-being. It's easier than it sounds.

Consider the 'BS account'

It's often hard to spend our hard-earned money because we fear something might come up that requires those funds. Naturally, we want to protect our assets and save for a rainy day, as we were taught for many years.

But allowing yourself to spend on experiences for you and your loved ones is one of life's greatest gifts, and one that can slip away if we're not careful. We should be as intentional about spending on experiences as we are with retirement planning.

My father called this practice a "BS account" and encouraged me to create one early. His rule: Imagine something you want to do with your family, set a cost and save for it in a separate investment account. When you reach the goal, spend it. Then start again.

When I was growing up, he contributed money to this savings account every month, and whenever it reached a certain level, he would spend it on something for the family — usually a great vacation.

When I was young, his "BS account" bought a lake house. Our family would retreat there every weekend and spend time together outdoors.

In the spring, I formally presented the concept of "BS accounts" to a few hundred of our clients and encouraged them to send our team photos if they took our advice.

It's been one of the greatest joys of my professional career to see their memories start rolling into our inboxes.

What experiences matter most to you?

Today, some of my own "BS account" goes toward funding biannual family reunions, one of which I recently wrapped up in the Middle East.

Yours might fund a magical trip to Disneyland, an escape to Europe or the adventurous "California Double," where you surf in the morning and ski in the afternoon. "BS accounts" are less about the cost and more about intentionality and memories.

Decide what experiences matter most to you and your loved ones. Take the first steps: Set up your own account, define the rules and start saving for moments you'll remember.

Make your memories a priority — commit to spending for experiences, not just saving for someday.

You set the rules.

Create transformative traditions

Children will remember the time and memories they share with their parents more than any paycheck. Financial statements might gather dust in a drawer, but the experiences we share stay with us for life.

For a lasting legacy, make your scrapbook as important as your checkbook.

None of us needs permission to spend our money, but sometimes we do need a little encouragement.

Related Content

• The Secret to Life, Liberty and the Pursuit of Happiness? It Isn't Money. A Financial Planner's Take on the American Dream
• Can Money Buy You Happiness? Yes, It Can. However…
• 9 Habits for a Happy Retirement
• What Science Reveals About Money and a Happy Retirement
• Retirement Won't Make You as Happy as You Expect: A Financial Planner Explains Why

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

If you have an unresolved problem with a bank, credit card issuer, credit-reporting company, or other financial product or service, one way to get help is to file a complaint with the Consumer Financial Protection Bureau. After you submit your complaint at the CFPB's website, the CFPB sends it to the provider for review. Most companies respond within 15 days.

Recently, the CFPB announced changes to its complaint portal. It's adding two-factor authentication, requiring users who create online accounts to verify both their e-mail address and their phone number. Additionally, the CFPB says that those who wish to correct inaccurate information on their credit reports must first file a dispute with the credit-reporting companies: Equifax, Experian and TransUnion.

While the Fair Credit Reporting Act supplies a framework for consumers to do this directly with the companies, "some credit-repair clinics and individuals are using the Bureau's complaint process to circumvent this statutory process," the CFPB says.

In recent years, the volume of complaints to the CFPB about consumer- and credit-reporting companies increased dramatically, rising from more than 150,000 in 2019 to more than 5 million in 2025. The CFPB says that it is "focusing resources on complaints that warrant a substantive response," safeguarding the system from users who appear to be abusing the complaint process.

The CFPB says its adjustments will help the bureau more effectively address complaints. Some consumer advocates, however, contend that these moves will create obstacles for those who request assistance from the CFPB. The National Consumer Law Center said in a statement that the CFPB's actions will discourage people from disputing credit-report errors.

In a letter to the CFPB's acting director, Russell Vought, Democratic Sens. Elizabeth Warren and Andy Kim expressed concern that the overhaul has made it more difficult for consumers to submit complaints and that the changes were made "at the urging and to the benefit of the credit-reporting companies."

Where to get help

Before you ask the CFPB or another third party to assist you with a complaint, reach out to the provider to see whether it offers a solution. If you find an error or signs of fraudulent activity on your credit reports — say, the presence of a credit card or loan that you never opened — contact the card issuer, lender or other entity that furnished the information, and file a dispute with each credit-reporting company listing it. You'll find a link to initiate your dispute online at each credit-reporting company's home page: equifax.com, experian.com and transunion.com.

If you're dissatisfied with a provider's response to your complaint (or if you get no reply at all), you may gain a better result by bringing in a government agency or advocacy organization. While the CFPB accepts complaints about financial products and services, other groups can assist with problems outside that arena. Your state's consumer protection office may mediate disputes with businesses; look up your state's office at usa.gov/state-consumer.

The Better Business Bureau will forward complaints to businesses on your behalf, asking them to respond within 14 days. Elliott Advocacy helps consumers resolve complaints with businesses for free, but you must agree that the group can publish your name and city in an article about your case so that others can learn from your experience.

Some financial problems can have effects that extend beyond the initial dispute. A financial professional can help you assess the potential impact on your finances and plan your next steps.

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

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

Related Content

• How to Fix Errors in Your Credit Report
• Is a Hidden Credit Report Error Costing You? Here’s How to Fix It.
• 5 Scams Targeting Retirees Now — and the Easiest Ways to Stay Safe

Most people ask one big question when evaluating a job offer: What's the salary?

While that single number tends to get all the attention, it only tells part of the story. According to the Bureau of Labor Statistics, benefits account for nearly 30% of private-sector employers' total compensation costs on average.

Yet, as a financial professional, I regularly see clients overlook that value, either by underusing their current benefits or comparing job offers based on salary alone.

An extra $10,000 in salary would get your attention. The same amount in benefits should, too.

Here's how to evaluate your full compensation package, whether you're reviewing a new offer or making sure you're getting the most from your current benefits.

1. Calculate the value of your health benefits

Health insurance can be one of the most valuable parts of a compensation package: After all, according to the KFF Employer Health Benefits Survey, insuring a family in the U.S. now costs nearly $27,000 a year.

But the complexities inherent in the U.S. healthcare system can make putting a number on it challenging. To evaluate your benefits, compare the health plans available to you based on the employer contribution, premium, deductible, out-of-pocket maximum and provider network.

A plan that saves you $100 a month in premiums, for example, could still cost more overall if its deductible is $2,000 higher and you expect to use enough care to reach it.

Also review preventive care options, fitness incentives and wellness programs that could add value.

2. Capture the full value of your 401(k)

While the employer match for a 401(k) is maybe the most obvious form of noncash compensation, many fail to maximize its value.

In my practice, annual employer retirement contributions have ranged from about $3,000 to $30,000 — a difference that can become enormous over a career.

Contribute enough to receive the full match, consider automatic annual increases and check for nonelective or profit-sharing contributions.

3. Understand what equity compensation is really worth

Equity compensation, such as stock options and company shares, can create a significant wealth-building opportunity. That doesn't mean you should take the number listed in the offer letter at face value.

Review when the award vests, when taxes may be due and whether you could lose unvested shares or face a deadline to exercise options if you leave the company.

4. Put a dollar value on paid time off

Most people know to ask how many vacation days they will receive. Far fewer calculate what those days are worth.

For an employee earning $100,000, 15 days of paid time off represents almost $6,000 worth of paid time (based on roughly 260 working days per year).

Consider paid holidays, sick leave, parental leave and caregiving leave, as well as what happens to unused time:

• Does it carry over into the next year?
• Is there a cap on how much you can accumulate?
• Will accrued time be paid out if you leave?

5. Review employer-paid life and disability income insurance

Life and disability income insurance are easy to overlook because you might not use them for years, if ever.

For disability income insurance, review the percentage of income replaced, the waiting period before benefits begin and how long payments can continue.

For life insurance, determine whether the employer-provided benefit would be enough for your family's needs or whether you'll need additional coverage.

6. Remember commuter and other tax-advantaged benefits

Some benefits look small but still add up.

Commuter benefits, for example, may allow employees to pay eligible transit or parking expenses with pretax dollars. That is particularly valuable for workers in bustling cities like New York.

Other benefits may include flexible spending accounts (FSAs), health savings accounts (HSAs), tuition reimbursement, student loan assistance and professional development funds.

Crucially, the value of these benefits depends in large part on whether you'll actually use them. A tuition benefit may be worth thousands to one employee and very little to another.

Look at the complete picture

At the end of the day, this is a simple math exercise.

Add up the salary, health benefits, employer retirement contributions, equity compensation, paid leave, insurance and other benefits each position offers. Then consider what those benefits could be worth across the five or more years you might remain with the employer.

A bigger salary is appealing, but there is far more to building a financially secure life than what lands in your checking account every two weeks. A lower-paying job could ultimately provide greater total compensation — if you know how to value its benefits correctly.

While this discussion summarizes, for your convenience, certain information about employee benefit plans, it is not an official explanation or discussion of these programs, and any information provided directly by your employer will prevail.

Related Content

• Don't Let Your Equity Compensation Trip You Up: A Financial Expert's Guide
• Why Company Stock May Be Riskier Than Employees Realize
• Have Equity Compensation? Strategies to Handle Stock Market Volatility
• Worried About an AI Bubble? 5 Ways to Ensure Your Portfolio is Prepared — Whether It Bursts or Not
• 2 Awkward Talks to Have With Your Kids Before They're 18 (Not 'That' One)

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.

"Debt" is probably a word many of us don't like to hear.

Given the negative impacts debt can have, from foreclosures on homes to harming credit profiles, it's natural that the word "debt" often sparks fear.

Americans' total household debt rose to a jaw-dropping $18.8 trillion in the fourth quarter of 2025, according to the Federal Reserve Bank of New York.

However, not all debt is created equal. When used intentionally, specific types of debt can help advance your financial well-being. It's important to distinguish which debt could hold you back and which could move you forward.

How can debt be an asset?

Debt can help bridge a gap to achieve a meaningful goal or create long-term financial stability.

For homeowners, leveraging home equity through a line of credit or loan can provide a lower-cost way to fund major life milestones or home improvements.

• Entrepreneurs can access the capital required to launch or expand their business through a business loan
• A student loan to pay for education can be an investment in an individual's lifetime earning potential
• A fixed-rate personal loan can be a strategic tool for consolidating high-interest debt to help save money on interest or simplify monthly payments

If borrowers use the funds from these loans wisely and responsibly, the value of the opportunity they create can outweigh the cost of the loan.

On the other hand, bad debt is often defined by discretionary purposes, high interest rates and little to no long-term benefit.

For example, using a loan or credit card to pay for a vacation or for shopping expenses can saddle you with high interest payments over time that outweigh the short-term payoff.

Similarly, even if you're borrowing for an important goal, if it has a high interest rate or if you borrowed more than needed, then it might hinder your financial well-being in the long run.

Taking control with credit cards

Some people might be wary of using credit cards because it's easy to accumulate debt quickly.

While the risk of overspending is a valid concern, avoiding credit cards entirely can lead to credit invisibility. This occurs when you have no reported debt, which means credit bureaus lack data to calculate a credit score, making it significantly harder to rent an apartment, buy insurance, or even secure a loan when you actually need one.

When used wisely, a credit card can be a powerful tool to help you take control of your finances. A credit card can help you move across the credit spectrum, manage your cash flow and access potential rewards.

If you're just starting out or working with less-than-perfect credit, utilizing a credit-builder card or being added as an authorized user on a trusted family member's account can be a helpful first step to strengthen your history.

One of the main ways to have a healthy credit score is to demonstrate you're a reliable and trustworthy borrower by keeping your charges low and paying your monthly balances on time and in full (if possible).

If a card has high fees, consider negotiating a lower interest rate with your card issuers or switch to a simpler version of the card with no fees rather than closing the account entirely.

Keeping accounts open and in good standing helps maintain a healthy credit utilization ratio and longer credit history. Developing responsible credit card habits benefits your credit score, which helps you qualify for more favorable terms in the future.

Being debt-free could make you financially vulnerable

While chipping away at high-interest debt is a great move, being 100% debt-free doesn't have to be your only priority. Waiting until every balance is zero before you start saving or investing might leave you feeling a bit stuck when an unexpected bill pops up.

Depending on your situation, it might be best to focus on keeping a steady pace on your debt payments. If your debt is low interest, it's often more advantageous to maintain your payment schedule and build your savings simultaneously to give yourself a safety net.

How to evaluate debt

Prior to taking on new debt, ask yourself these questions to ensure it's the right choice for you:

How does this fit my goals? Will borrowing funds help you reach a milestone, such as homeownership or debt consolidation? Will the anticipated outcome outweigh the cost of the loan?

What's the interest rate? Consider how the rate impacts your finances long-term.

Do I have time to improve my credit score first? Having a higher credit score can open doors to higher credit limits and loan amounts, lower rates and more flexible loan terms, which can save you money in the long run.

Depending on when you need funds, taking a few months to improve your credit score can be a wise move.

How does a loan or credit card fit into my budget? Ensure you can comfortably manage the monthly payments without sacrificing your savings or essential expenses.

The goal is to bridge a financial gap, not create a new one.

Is there a clear exit? Have a repayment plan mapped out before borrowing. Compare the different types of loans available, prioritizing transparent options with structured, simple repayment plans and zero hidden fees or early-payment penalties.

Is the lender or credit card provider flexible? Life happens. Ask a lender about their willingness to renegotiate terms, APR adjustments and provide support in times of hardship.

Debt is a tool, and like any tool, its value depends on the hand that wields it. By shifting from complete avoidance to strategy, you can leverage debt to help build your financial future.

Related Content

• 4 Ways to Make Debt Your Friend Instead of Your Frenemy
• I'm a Financial Professional: Here Are Four Ways You Can Use Debt to Build Wealth
• Seven Questions to Ask When Evaluating Personal Loan Options
• Top Five Benefits of Peer-to-Peer Lending
• Six Tasks That Can Help You Feel Better About Your Money

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 wealth grows, financial decisions often become more complex. For many investors, most wealth is invested rather than held in cash, creating liquidity challenges when funds are quickly needed.

Whether funding a home renovation, purchasing real estate, pursuing a business opportunity or addressing a short-term liquidity need, many investors assume they need to sell investments to access cash.

In some situations, that may be the right answer. In others, borrowing against a portfolio through a securities-based line of credit (SBLOC) may help preserve the integrity of a long-term financial plan while providing the liquidity needed today.

An experienced adviser, guided by a thoughtful and carefully constructed financial plan, can help determine when an SBLOC may make sense, when it may not and how to use it effectively while keeping the broader financial plan intact.

How an SBLOC works

Many affluent investors have substantial assets but limited readily available cash. When a significant expense or opportunity arises, selling investments may generate capital gains taxes, disrupt asset allocation or reduce exposure to future market growth.

An SBLOC allows investors to borrow against eligible assets in their investment portfolio without selling the underlying securities.

As a revolving line of credit, it provides flexible access to cash while allowing investments to remain part of a long-term strategy.

Because the loan is secured by investments, borrowing terms may differ from unsecured lending options.

SBLOCs are often used to address short-term liquidity needs, fund major purchases or serve as a source of readily available borrowing capacity. As a non-purpose loan, proceeds can be used for many personal or business needs, but typically can't be used to purchase, carry or trade securities.

The amount available to borrow depends on the type and value of the assets pledged as collateral, which are typically held in eligible taxable investment accounts rather than retirement accounts.

When borrowing against your portfolio might make sense

Securities-based lending is not a one-size-fits-all solution, but it can be an effective planning tool in several scenarios:

Bridging a short-term liquidity need. A common use case is when an investor needs cash today but expects funds in the near future.

For example, someone might be awaiting proceeds from the sale of a business or property, an annual bonus or another expected source of funds. Rather than selling investments, SBLOCs could provide temporary financing until those funds arrive.

Funding major purchases or opportunities. Real estate purchases, business investments or other large expenditures may arise when market conditions are favorable. In these situations, an SBLOC may provide flexibility and speed while allowing the investor to keep their investments intact.

Securities-based lending is commonly used for purposes such as real estate financing, business financing, tax obligations, education expenses and other significant purchases.

Avoiding unnecessary liquidation. Selling investments to raise cash can disrupt a long-term strategy and create unintended tax or market consequences. Beyond potential taxes, investors may find themselves out of the market during periods of strong performance.

An SBLOC may help maintain exposure to long-term growth opportunities while addressing immediate cash needs.

When borrowing against your portfolio may not make sense

Securities-based lending can be a valuable tool, but it's not appropriate for every situation.

Long-term spending needs. Using borrowed funds for ongoing lifestyle expenses warrants careful consideration. An SBLOC may be more effective as a source of strategic, temporary liquidity than as a permanent solution to recurring cash-flow challenges.

For long-term spending needs, selling assets or pursuing other financing options may be more appropriate.

When market volatility would create discomfort. Borrowing capacity is tied to the value of the pledged investments. If the value of pledged securities declines, the lender may require additional collateral or repayment of a portion of the loan.

If those requirements are not met, the lender may sell pledged securities, potentially on short notice and without advance consultation regarding which assets are sold. Investors who are uncomfortable with those possibilities may prefer other sources of financing.

When rising borrowing costs could be a concern. While SBLOCs can offer competitive borrowing rates, they typically feature variable interest rates and may involve interest-only payments.

As interest rates change, borrowing costs can increase, potentially affecting cash flow and the overall cost of financing. Investors should understand how rate fluctuations could affect their repayment strategy before establishing an SBLOC.

When repayment is unclear. As with any borrowing strategy, there should be a clear understanding of how the debt will be managed and repaid. An SBLOC should be evaluated within the context of a comprehensive financial plan, not simply because borrowing capacity exists.

Why professional guidance matters

Effective use of securities-based lending often involves guidance from banking, lending and wealth management professionals who understand the client's broader financial picture.

An adviser can help evaluate questions such as:

• Is borrowing more advantageous than selling securities?
• What are the potential tax considerations?
• How does the loan affect overall cash flow?
• How might different market scenarios affect the pledged portfolio?
• Does the strategy support long-term financial goals?

An SBLOC is more than a lending solution. It's a financial planning decision that should be evaluated within the context of an investor's broader goals.

A tool, not a shortcut

Accessing cash doesn't always require selling investments. For some investors, an SBLOC can provide liquidity while preserving a long-term investment strategy.

But as with any financial tool, it should be used intentionally, with a clear understanding of both its benefits and its risks.

When incorporated into a comprehensive wealth strategy and guided by experienced advisers, borrowing against a portfolio may help investors pursue today's opportunities without losing sight of tomorrow's goals.

Related Content

• How Can Your Investments Act as Your Financial Safety Net?
• Asset-Rich But Cash-Poor? A Wealth Adviser's Guide to Helping Solve the Liquidity Crunch for Affluent Families
• When You Need Capital Quickly, Think 'Ready, Set, Fund': A Financial Adviser's Strategy
• The 401(k) Loan Dilemma: Is It Ever a Good Idea?
• Considering a 401(k) Loan? What You Can Do Instead

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.

Dolly Parton spent a lifetime turning contradictions into strengths.

She grew up with very little money yet became extraordinarily wealthy. She left the mountains of East Tennessee, yet never really left them behind. She created an image that was deliberately extravagant, while underneath the rhinestones was a remarkably disciplined businesswoman.

Her life offers a powerful lesson about wealth because she accumulated two very different kinds of it.

I define total wealth as the combination of financial wealth and wisdom wealth:

• Financial wealth includes income, investments, businesses, property and financial security.
• Wisdom wealth is harder to measure. It includes knowing yourself, understanding what matters, finding purpose, developing resilience, building meaningful relationships and having the courage to live according to your own definition of success.

Dolly Parton built an extraordinary amount of both.

Step outside your concrete box

Parton was the fourth of 12 children raised in rural Tennessee in a family with very little money. Her childhood later inspired "Coat of Many Colors," one of her most beloved songs. The coat itself had almost no financial value, but the love with which her mother made it gave it another kind of value. Its value came from relationships, love and gratitude.

That is wisdom wealth.

But being grateful for what we have does not mean accepting every limitation we inherit. I use the term "concrete box" to describe the invisible boundaries that family, circumstances, culture, fear and our own assumptions can construct around our lives.

Over time, we can become so accustomed to those walls that we stop seeing them.

Parton saw hers. The day after graduating from high school, she left for Nashville. She did not reject where she came from. She simply refused to allow her starting point to define her destination.

That may be the first lesson in building total wealth: Know where you come from, but don't let it tell you how far you can go.

Create income, but own assets

One of Parton's smartest financial decisions came long before she became a global superstar.

In the 1960s, before she had even achieved a Top 10 hit as a recording artist, she established a publishing company with her uncle Bill Owens. The decision allowed her to maintain control over the copyrights to the songs she wrote.

At a time when many famous musicians surrendered ownership of their work, Parton understood its long-term value.

Years later, Elvis Presley wanted to record her song "I Will Always Love You." It should have been a dream opportunity, until his business manager demanded half of the publishing rights.

Parton said no.

Imagine turning down Presley while you are still building your career. Yet Parton understood something every investor should understand: Income pays you today. Ownership can pay you for decades.

That decision became enormously valuable when Whitney Houston later recorded "I Will Always Love You," and the song became a worldwide phenomenon. Because Parton retained her rights as the songwriter, she participated in its enormous financial success.

Most of us will never own a music catalog, but the principle applies to everyone:

• A paycheck creates income
• Savings can purchase investments
• Investments create ownership
• Ownership, combined with time and compounding, can create financial freedom and even generational wealth

Don't only ask, "How much am I earning?" Also ask, "What am I owning?"

For many people, that can mean building ownership through diversified equities, real estate or a business. Starting early gives compounding more time to work.

Don't confuse your job with your potential

Parton also understood that one source of income does not have to define the boundaries of your economic life.

In the movie 9 to 5, she famously sang about pouring herself "a cup of ambition." She had plenty of it.

She did not remain simply a country singer. She crossed into pop music, acted in movies, wrote books, invested in businesses, licensed products and ultimately attached her name and capital to Dollywood.

Forbes valued her music catalog at about $120 million and estimated her net worth at about $450 million. Dollywood became an economic engine in the same region where she had grown up poor. A Tennessee study estimated its annual economic impact at $1.8 billion and associated it with 23,000 jobs.

There is a financial lesson here that goes beyond celebrity entrepreneurship: Diversification does not apply only to portfolios.

Your skills and career create human capital. Saving and investing can convert the income from that human capital into financial capital. With enough time and the power of compounding, your money begins working alongside you.

You do not need five businesses to follow Parton's example. You need a growth mindset and a commitment to save, invest and own.

Failure is an event, not an identity

Looking back, it might appear that Parton's extraordinary success was inevitable. It wasn't.

Projects failed. Her movie Rhinestone disappointed at the box office. A costly prime-time television show was canceled after one season. Separating professionally from Porter Wagoner resulted in an expensive legal settlement.

She kept going.

This is where wisdom wealth becomes essential to financial wealth. Investors experience bear markets. Entrepreneurs have failed ventures. Employees lose jobs. Careers stall. Retirement plans change. No financial plan can eliminate uncertainty or life's unexpected turns.

Financial wealth can give us the resources to withstand setbacks. Wisdom wealth gives us the resilience to begin again.

Sometimes wealth is the portfolio that carries you through a difficult period. Sometimes it is the mindset that prevents a difficult period from defining the rest of your life.

We need both.

Eventually, ask what money is for

Perhaps Parton's greatest investment cannot be measured on a balance sheet.

In 1995, she launched the Imagination Library, inspired partly by her father's inability to read and write. What began as an effort to provide books to children in her home county grew into an international literacy program that has distributed hundreds of millions of books.

Consider the circle her life completed:

• A girl grows up poor in Tennessee
• She steps outside her concrete box
• She turns talent into income
• She converts income into ownership
• Ownership creates financial wealth
• She uses that wealth to give millions of children opportunities that were unavailable to people she loved

That is total wealth creation.

We spend enormous amounts of time asking financial questions:

• How much should I save?
• What should I invest in?
• When can I retire?
• What return do I need?

Those questions matter. I have spent much of my professional life helping people answer them. But eventually, we should ask a bigger question: What is all this wealth for?

If money itself becomes the destination, the finish line keeps moving. There will always be someone with a larger house, a bigger portfolio or a higher net worth.

Wisdom wealth gives you the why — financial wealth provides the how

Dolly Parton understood both sides of wealth. She knew how to make money, protect ownership and build businesses. But she also knew where she came from, what mattered to her and what she wanted her success to accomplish.

She left her rural hometown to pursue her dreams, then used much of what she built to enrich the place she came from.

Perhaps that is her greatest wealth lesson: Don't simply build a bigger balance sheet. Build a bigger life.

Step outside your concrete box. Build financial wealth. Build wisdom wealth. Together, build total wealth.

Feroz Ansari, CFP®, is a portfolio manager at Compak Asset Management and an adjunct professor at the University of California, Irvine. He is the author of The Wisdom and Wealth Solution, published by Kiplinger Books and a USA Today national bestseller.

To learn more, visit wisdomandwealthsolution.com or subscribe to The Wisdom and Wealth Solution YouTube channel.

Related Content

• 5 Dolly Parton Quotes Retirees Should Live By
• The Biggest Obstacle to Happiness Isn't a Poorly Performing Portfolio — It's a Barrier You Haven't Even Noticed
• Want to Make Better Investment Decisions? Use This 8-Question Checklist, From a Financial Planner
• The Inheritance Your Kids Need More Than Money — and 5 Ways to Pass It On
• When a $1 Valet Tip Becomes $5: What Tipping Anxiety Says About Inflation and the Outdated Price List in Your Head

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

You've no doubt heard the saying, "There is nothing as uncommon as common sense."

There is a closely related issue in the form of several questions that we should ask ourselves, but often do not at times when common sense should prevail:

• If I do this, what are the likely consequences?
• Why am I even considering doing this?
• Who can I ask before I take the next step?
• Have I been here before, doing something that, when looking back on it later and the trouble it got me into, indicates I'm prone to asking for trouble?

'I am supposed to get 32 miles per charge'

Ideas for my articles are often handed to me by readers. Fortunately, most are asking for a legal opinion on some action they want to take. Frequently, the underlying basis, as we say in law, "assumes facts not in evidence."

This means a question or statement assumes something that hasn't been proven, but there is an assumption, a belief, that the statement is true, and they are about to act on it.

"Jackie," who lives in the South, sent this email that is the perfect illustration: "I purchased a new Chrysler Pacifica eHybrid from my local dealer in 2024. I am supposed to get 32 miles per charge. In March, I was only getting 28 to 32 miles per charge. The charge is also not lasting as long as it is supposed to.

"The local dealer, as well as Chrysler customer care, refuse to fix the problem. My car is within the warranty period. I want to put magnetic signs on my car telling people not to purchase vehicles from this dealer. Am I protected under the First Amendment? We live in a small city, and these signs would definitely make an impact."

Jackie signed her email, "A devoted reader."

Is Jackie's complaint valid?

I read online reviews of her vehicle, all confirming the EPA estimates 32 miles of electric-only range on a full charge. Industrywide, EV batteries normally lose about 2% range per year.

In any event, a 28- to 32-mile electric range is within normal variation for a 2024 Pacifica PHEV. Jackie's complaint about the dealer and Chrysler therefore lacks merit, as there is nothing to repair.

Legal issue: Defamation vs protected opinion

When it comes to criticizing a business, it is important to understand the difference between speech that is protected and speech that is unprotected — statements of opinion vs factual assertions.

So, Jackie could attach a sign to her car that states her opinions, such as:

• I believe the dealer misled me, and I would not buy from them again
• I do not like the mileage I am getting
• In my opinion, Chrysler isn't honoring its warranty

However, the following assertions could see her staring down the barrel of a defamation lawsuit if she's unable to support them with facts:

• Chrysler lied about the battery range
• My dealer knowingly sold me a defective vehicle and refused needed repairs
• My dealer is engaging in consumer fraud

The legal risks Jackie could be inviting

Jackie could be:

• Sued for business interference. If her local Chrysler dealer has proof that the signs she put on her car are costing them sales or other economic damage, they would likely file suit alleging intentional interference with prospective economic advantage and trade libel.
• Sued for defamation. Over the years, I have had more than one unhappy car owner march into my office, shaking like a leaf, holding a lawsuit they were just served with from an auto dealer that accuses them of posting defamatory signs, reviews and social media comments containing false factual assertions — meaning they stated a specific fact that can be proven false.

To a person, they thought that by causing embarrassment to the dealer, this would result in their complaint being dealt with. The result was anything but. None of them ever saw the possible legal consequences of engaging in what amounted to defamatory conduct.

They never remotely considered having to shell out a significant amount of money for attorney fees.

So, Jackie may put magnetic signs on her vehicle if they contain only her opinions, but she would almost certainly find herself in scalding-hot legal water if the signs contain false factual accusations about the dealer or manufacturer.

I am worried about Jackie

I do not know Jackie, but I wonder if this is a pattern with her. Is she reacting to a perceived wrong in a disproportionate way, revealing a grievance mindset? Is she psychologically invested in the idea that she has been wronged and someone must be held accountable?

That could explain why someone would consider putting a sign on her car even though doing so might lead to significant (and expensive) consequences.

Jackie lives in a small town and will need to have her vehicle serviced, so what does she get out of going to war with the dealer? Absolutely nothing!

There could very well be deeper issues at play, and this could be a time for a family meeting. Today, it is a non-issue with her vehicle, but she faces potential enormously high attorney fees if she defames the auto dealer and automaker.

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

Related Content

• What to Do When an Unhappy Customer Threatens to Ruin Your Rep
• Six Things Not to Do if You Want to Resolve a Conflict
• Eight Don’ts to Keep in Mind as You and Your Loved Ones Age
• Are Your Secrets Safe With a Law Firm's Receptionist? All About Attorney-Client Privilege (Though Kenny Is Clearly in Big Trouble)
• Loyalty Points and a Widow's Interaction with Customer Service: What Happens When a Company Forgets the Human Behind the Account

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.

Investing in U.S. Treasury securities has long been the financial equivalent of vanilla ice cream: Not the most exciting choice, but generally predictable and dependable.

That reputation has made Treasuries a cornerstone of countless investment portfolios and an important source of funding for a national debt that now exceeds $40 trillion.

About U.S. Treasury securities

What is a U.S. Treasury security? It is a loan you make to the U.S. government, with terms ranging from ultra-short (four weeks) to long-term (30 years). In return, the U.S. government promises to pay back the full amount of your principal, plus interest, at regular intervals.

Treasury securities have long been considered one of the safest investments because they're backed by the full faith and credit of the U.S. government.

But in recent years, some investors have questioned whether an investment in U.S. Treasury securities should continue to be categorized as the default "safe" investment.

What if, for example, the trust that worldwide investors have placed in these instruments breaks, and payments are either denied or deferred? What if a significant number of investors decide they no longer want to help fund the U.S. government, because a large portion of the debt is related to military spending or other policies with which they disagree?

If these concerns resonate with you, there's good news. There are other fixed income alternatives that could help you sleep better at night — options that put your capital to work in community infrastructure and local economies with risk profiles comparable to U.S. Treasuries and with similar or higher yields.

Choosing the right fixed income alternative for you depends on your values and financial situation.

Consider investing in a CDFI

A Community Development Financial Institution (CDFI) provides capital to certified lenders in communities historically underserved by traditional financing opportunities.

CDFIs fund initiatives such as affordable housing projects, BIPOC-owned businesses, healthcare programs, rural development projects and community nonprofits.

Many CDFIs offer bonds with nonconcessionary or market-rate returns, so the investor doesn't have to sacrifice expected financial performance to make a positive impact.

However, investors should be aware that CDFIs are less liquid than U.S. bonds — meaning they can't be quickly converted to cash — because these investments are typically held for a set term and aren't traded on a public marketplace.

For those who don't need immediate access to their capital, however, this tradeoff can be well worth it.

The Opportunity Finance Network is a free tool you can use to find CDFIs based in rural, urban and Native communities across the U.S.

Explore opportunities to invest directly into a community project

One of the most direct and meaningful ways to make a lasting impact with your dollars is to invest in community projects. Private organizations pool investor capital to finance projects such as affordable housing, renewable energy, community facilities, healthcare centers, small businesses and more.

These investments can be a great way to diversify your portfolio.

As with CDFIs, these investments are less liquid because they're intended to be held until the loan reaches maturity, so they're not ideal for investors who need immediate access to cash.

They may also carry higher risk, depending on the issuer — however, they arguably bring the highest return in terms of community impact.

If you're interested in finding community projects seeking investments, donor collectives such as Solidaire Network or Women Donors Network, as well as community banks, can be wonderful resources for sourcing projects to invest in.

Support community infrastructure through municipal bonds

A municipal, or muni, bond is issued by a state or local government to finance infrastructure projects such as schools, roads, hospitals, water systems, transportation and parks.

In addition to providing essential services to local communities, muni bonds usually offer the highest rate of return available in the bond space, relative to the amount of investment risk.

They can also have potential federal and sometimes state tax benefits.

However, those advantages are generally reserved for investors in the highest tax brackets, making this option less suitable for some.

The Municipal Securities Rulemaking Board (MSRB) has a free tool to help investors view and compare municipal bonds.

Remember that your portfolio can be a direct reflection of your personal values

Regardless of what type of community investment vehicle you decide on, the important thing to know is that there are always options if you're looking to diversify your portfolio away from U.S. Treasury bonds. The right solution depends on your values, your personal appetite for risk and the timeframe you have for holding the investment.

Shifting your fixed-income strategy toward one that better aligns with your personal values is a significant step toward building a complete financial plan that fully aligns with the causes, communities and values that matter to you.

You shouldn't have to do it alone. Using a tool such as valuesadvisor.org can help you find a financial professional who cares about both the financial and ethical impact of your investments as much as you do.

Related Content

• For Your Fixed-Income Pot, Consider an Annuity That Behaves Much Like a Bank CD
• When Will Bonds Be Loved? What the Longest Bond Bear Market in History Can Teach Investors (Another Lesson From the School of Rock)
• Enough With 'Business as Usual' Financial Advice: When The World Feels Like It's Out of Control, This Is How I Reassure Clients
• 'Politics' Is a Dirty Word for Some Financial Advisers: 3 Reasons This Financial Planner Vehemently Disagrees
• I'm a Financial Planner: Here Are Three High-Impact Ways to Make a Difference With Your Dollars

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 natural disasters, such as hurricanes, wildfires, earthquakes, tornadoes, floods and blizzards, become more intense, losses from these disasters are soaring. If you suffer property damage from such a disaster, knowledge of the tax law can help.

Deducting Losses

Individuals can deduct personal casualty losses that are not reimbursed by insurance to the extent those uninsured losses are attributable to federally declared disasters that affect a wide area.

Your loss is equal to the smaller of the damaged property's adjusted basis or decline in value, less any insurance proceeds you receive or expect to receive.

New legislation passed by Congress has tax easings identical to prior relief for victims of federally declared disasters that occurred in 2020 through July 4, 2025. The law, named the "Doug LaMalfa Federal Disaster Tax Relief Certainty Act," applies to federally declared disasters beginning before 2026, which includes disasters that occurred in the last six months of 2025.

The new legislation lets taxpayers deduct their uninsured personal losses, such as damage to a house, car, or personal belongings, from federally declared disasters in excess of a $500 threshold, without regard to the 10%-of-adjusted-gross-income offset that generally applies to disaster loss deductions.

This expanded tax break is available for taxpayers who claim the standard deduction and for those who itemize on Schedule A of Form 1040. The IRS refers to these losses as “qualified disaster losses.”

Computing the amount of loss to your home, car, or belongings can be difficult. Luckily, the IRS has multiple safe harbors that may help with this calculation.

• For example, one method lets a homeowner with casualty losses of $20,000 or less take the lesser of two repair estimates to determine the decrease in the home's value.
• Homeowners can also use the estimated loss in reports prepared by an insurer or a licensed contractor's invoice.
• And there is a safe harbor to help you compute the replacement cost of your personal belongings destroyed in the federally declared disaster.

You can find out more about these safe harbors in IRS Publication 547 and IRS Revenue Procedure 2018-08.

If you suffered a disaster loss last year after July 4, 2025, and you used the old tax rules when preparing your 2025 tax return, you have three years from the filing due date to amend your return by filing Form 1040X to take advantage of the new law.

If you suffer a disaster loss in 2026, you can claim the loss on your 2026 or 2025 federal tax return. That's because individuals can opt to take the loss for the disaster year or the year immediately preceding the disaster.

For example, if a tornado damaged your home or personal belongings this year, you can claim the loss on your 2026 return or your 2025 return, giving you the flexibility to claim it in the year that provides the greatest benefit. If you decide to claim it for 2025 and you have already filed your 2025 return, you can amend it by filing Form 1040-X.

Note that for this purpose, the filing due date for a 2025 amended return is six months after the normal due date for filing your return (without extensions) for the year in which the loss took place. So for 2026 disaster losses, you would need to file an amended 2025 return by October 15, 2027.

IRS Resources

The IRS can be your friend after a disaster. If you lost prior-year tax returns in a hurricane, fire or other disaster, there are multiple ways to get a tax transcript, which is a summary of your key tax information. You can get a paper copy of your full return, but that would take longer.

The IRS also has a dedicated phone line for disaster-related questions: 866-562-5227. This is in addition to the tax filing and tax payment extensions that the IRS regularly provides after a disaster.

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

Related Content

• Ask the Editor: FAQs on Disaster Losses
• 6 Common Home Disasters Your Insurance Probably Won’t Cover
• How and When to File an Amended Return
• How to Prepare For a Hurricane and Other Natural Disasters

Wealth Wise is Kiplinger's advice column on navigating retirement-related dilemmas. Got a question? See below for how to send it.

Dear Wealth Wise: With tuition for private colleges nearing $100k a year, I have four questions about college savings for a child or grandchild.

1. When should you start saving, and how much per year?
2. What happens to any excess money in a child's 529 after they have graduated?
3. Does bankrolling a four-year university still make financial sense given the job market and potential AI takeover?
4. Do you think lawmakers will change the rules on leftover 529 funds if college becomes increasingly less useful in the coming years?

— Stressed Saver

Dear Stressed Saver: Any parent or grandparent trying to finance a child's education knows the struggle of balancing college savings with retirement savings. Still, many are willing to make sacrifices so their children or grandchildren can choose among universities without accumulating a massive pile of debt.

But with a weak entry-level job market and the possibility of AI taking an increasing number of jobs, some may be wondering just how much of an effort to make on the college savings front, and if a four-year degree is even worth it.

Those are exactly the questions one of our readers has for us. They want to understand how to prioritize college savings and whether a 529 plan is the right choice in today's changing landscape.

There's a lot to unpack here, so let's review what our experts had to say.

1. When should you start saving and how much per year?

Retirement savers have an advantage. They can begin funding an IRA or 401(k) in their 20s, potentially giving that money 40 years to grow. The window to accumulate college savings isn't as long, unless you're willing to start socking funds away for education prior to having kids.

Jonathan Codispoti, President at Legacy Wealth Strategies, says that if you're potentially looking to fund a $100,000-per-year education, your best bet is to start at birth. However, he cautions, "You can borrow for college. You can't borrow for retirement."

That's why he advises clients to first max out retirement plan contributions and then allocate what's left to college savings.

Michael Van Boening CFP and Director, Financial Planning at Mercer Advisors, agrees.

"Ideally, you should have a retirement plan of record that shows you are saving sufficiently for a successful retirement before starting to save for education," he says.

But Van Boening also says it’s important to start saving for college as early as possible to give your 529 plan time to compound and grow.

"A public four-year university could easily cost $150,000-$250,000 in future dollars. To fund the average public in-state school 100% in 18 years, you would need to save approximately $700 per month, or $8,400 per year," he says.

Codispoti says one way to get a head start on college savings is to take advantage of "superfunding." You can contribute up to $95,000 per child in a single year using the five-year gift tax averaging rule.

If you're a grandparent, there's a 529 loophole for you. Under FAFSA rules implemented in 2024, distributions from a grandparent-owned 529 account no longer count as student income, meaning they won't hurt a grandchild's financial aid eligibility in most cases.

2. What happens to excess 529 funds?

Some might say having too much money in a 529 plan is a good problem to have. Thankfully, it's less of a problem these days.

As Van Boening explains, "You can always move some or all of the 529 funds to another beneficiary within the family. This extends to siblings, children, grandchildren, even including first cousins."

Another option, he says, is to save the excess funds for the beneficiary's graduate or doctoral degrees. You can even make yourself the beneficiary and use the funds to attend classes to further your education. Plus, 529 plans can be used to pay for vocational school if your child decides not to pursue a traditional college education.

"Most 529 accounts do not have time limits when the money must be withdrawn, so the accounts could be used as an educational legacy for future generations," Van Boening says.

Another important thing to keep in mind is that under SECURE 2.0, excess funds in a 529 plan can now be rolled into a Roth IRA, up to $35,000. But there are some nuances.

"The annual limit is the Roth account contribution limit, and the rollover counts as the annual contribution to the Roth IRA," Van Boening says. As such, based on today's Roth IRA contribution limits, it could take several years to complete a $35,000 rollover.

Van Boening also explains that the beneficiary must match the 529 account beneficiary, and they must have earned income equal to or higher than the rollover amount. In addition, the 529 account must have been open for at least 15 years.

Codispoti calls this flexibility a game-changer.

"This eliminates the old overfunding penalty fear [for most savers]," he says. If you don't need the money for college, it still grows for retirement.

Still, if you've overfunded a 529 plan by $100K, your beneficiary will be on the hook for a 10% penalty and income taxes if they don't use the money for education. That said, proceeds from a 529 account don't incur taxes in many states.

3. Will lawmakers change the rules on leftover 529 funds?

Given uncertainty about the future need for a college degree, our reader wonders whether 529 rules might change even more if college enrollment wanes.

Codispoti's answer? Possibly.

"The trend is toward more flexibility, not less," he explains. Recent legislation already expanded 529 use for K-12, apprenticeships, and Roth rollovers, he says. "If enrollment declines persist, I'd expect further expansion rather than restrictions."

Van Boening has a similar take.

"It’s hard to predict future policy changes, but I would bet that future changes are more likely to increase flexibility than to restrict existing benefits," he says.

4. Does four-year college still make sense?

Even if you're able to juggle retirement savings and 529 plan contributions, you may be wondering if you should even be planning for your children to attend college given the uncertainty that abounds.

Codispoti says four-year college still makes sense. But, he says, "The ROI calculus has changed."

As he explains, a degree still correlates with significantly higher lifetime earnings versus non-graduates.

"However," Codispoti continues, "the real question isn't if college pays off. It's whether their child will graduate with a plan. The days of any degree, any school equaling automatic success are over. Targeted vocational paths, apprenticeships, and entrepreneurship are also viable routes worth serious discussion."

Van Boening, meanwhile, also says a college degree still makes sense, especially for in-demand professional careers.

"The data from the National Center for Education Statistics shows that those with a college degree earn about 59% more than those with just a high school diploma," he says.

But Van Boening also cautions, "It pays to choose wisely, though, because some degree programs do not have a good return on the education investment, especially if the chosen field is not in demand."

Bonus advice: consider the Roth IRA

Although our reader didn't ask this question directly, since they're asking whether a 529 plan makes sense to prioritize, we'd be remiss not to mention an alternative college-saving option — the Roth IRA.

Codispoti says that even though 529 plans now allow for a Roth rollover, "for parents who want maximum flexibility, prioritize a Roth IRA first. Contributions can be withdrawn penalty-free for any reason, including college. Then use a 529 for additional savings."

Van Boening, meanwhile, says that while you can use a Roth IRA to save for college, he still recommends 529 plans. But you should only fund yours up to a point.

"We typically recommend clients aim for saving 75% to 80% [of college costs] in their 529 accounts," he says. Often, he continues, "the remaining balance can be paid for through scholarships, grants, relatives contributing, or even the parent’s own cash flow or savings."

And don't forget that if you end up with a small college savings shortfall, your child can always borrow. So if you need to limit college savings to prioritize your own savings, you shouldn't think twice.

As Codispoti says, "Never sacrifice your own retirement to fund college. Your kid can get a loan. You can't get a retirement loan."

Not all questions submitted will be published, and some may be condensed and/or combined with other similar questions and answers, as required editorially. The answers provided by our writers and experts in this advice column are for general informational purposes only. While we take reasonable precautions to ensure we provide accurate answers to your questions, this information does not and is not intended to constitute independent financial, legal, or tax advice. You should not act, or refrain from acting, based on any information provided in this feature. You should consult with a financial adviser regarding any questions you may have in relation to the matters discussed in this article.

MORE WEALTH WISE ADVICE ON COLLEGE SAVINGS

• Should You Upsize When College Tuition and Retirement Collide?
• Should We Bankroll Our Son's $180K Law School Tuition Even Though We're Retired?
• 'Subsidized Adulting': Can You Afford to Help Your Children Financially?

Read More

• We're 54 With $1.8 Million. My Wife Wants to Start a College Fund for Our Grandson, but I Think We Should Keep Funding Our Retirement.
• 529 Funds and a Roth IRA: How to Use One to Jumpstart the Other
• We're 75 With $3.2 Million. Our Grandchild Needs Help Paying for College, but It's Not Our Fault She Picked a School That's $90k a Year!

Inflation has been running hot for more than five years.

We know how this affects our grocery bills. We get an ugly reminder of that every week.

But how does it impact our long-term investment returns?

Consider the S&P 500 since its inception in 1957. The index delivered compound annual returns, including dividends, of 10.6%. But stripping out the effects of inflation, that number drops to 6.8%, nearly 400 basis points lower than the number quoted in most marketing materials.

That might seem small, but it makes an enormous difference over time. One thousand dollars in 1957 compounded at 10.6% would be worth more than $1 million today. That same $1,000 compounded at 6.8% would be worth about $94,000, a massive difference.

Winners and losers when inflation runs hot

Our accounts are measured in dollars. Inflation erodes the value of those dollars, which skews our perception of what our investments are worth. But not all assets are impacted equally. Let's look at how the broad asset classes performed during the last major period of sustained inflation, 1973 to 1981, when it averaged around 9.2% per year.

We'll start with what got hit the hardest. Long-term bonds were the decade's biggest casualty, losing nearly 40% of their value in real terms, even after coupon payments. When inflation is rising, bond yields must rise to keep pace. The way bond math works, rising yields mean lower prices. The longer the time to maturity, the more sensitive a bond is to yield changes.

What does this look like in today's market?

The iShares 20+ Year Treasury Bond ETF (TLT) reports an effective duration of about 15. In simple terms, this means that every 1% rise in interest rates results in an approximate 15% decline in TLT's share price. A 2% increase in rates can lower the value of the bond fund by around 30%.

Bonds are a mainstay in the portfolios of most retirees because they pay income, and they're perceived as being less risky than stocks. But in a period of high inflation, bonds increase risk rather than mitigate it.

What about stocks?

Inflation hurts stocks too, and particularly growth stocks whose valuations are based on earnings estimates years or decades in the future.

Here's why. A dollar of earnings to be received five or 10 years from now is worth a lot less in today's dollars when inflation and interest rates are higher. The higher that interest rates go due to inflation, the less those future earnings are worth.

This isn't academic. We saw firsthand how the stock market reacted to the Federal Reserve's interest rate shock in 2022. By October, the S&P 500 had fallen almost 27% before rebounding slightly in the fourth quarter. Going back even further, the S&P 500's return from 1966 to 1982 was a cumulative 51% in those 16 years. That's a paltry compound return of less than 3% per year. But at least it's positive ... right?

Wrong ... not after accounting for inflation. The inflation-adjusted S&P 500 lost about half its value over that stretch.

Not everything was a flop during that time frame. Gold enjoyed a monster run, rising from roughly $35 per ounce to $850 for a return of more than 2,000% in nominal terms. Commodities in general performed well, though this is partly skewed by the effects of the two oil shocks of the 1970s.

Real estate also proved to be a fantastic inflation hedge, particularly if it was leveraged. The median price of a new home rose from $23,400 in 1970 to $64,600 in 1980. If you had purchased your home with a mortgage before the 1970s, your leveraged return would have been several multiples of that … plus you got to pay back the mortgage in depreciated dollars.

Commercial properties were another winner, as landlords were able to raise their rents to keep pace with inflation. Farmland roughly quadrupled in value in the 1970s.

While inflation wreaked havoc on traditional "paper" portfolios, investors who had diversified into hard assets did just fine.

What about the Fed?

Inflation affects the way assets are priced. But it also impacts the underlying fundamentals. Inflation influences Federal Reserve policy, which changes how fast the economy — and corporate earnings — can grow.

The Fed operates under a "dual mandate" from Congress: maximum employment and stable prices. When inflation runs hot, the Fed's playbook is to raise its benchmark federal funds rate to cool demand for borrowing.

Higher policy rates ripple outward into higher mortgage rates, higher corporate borrowing costs and higher hurdle rates for new business investment. That's not a bug; it's a feature. The Fed is deliberately trying to slow the economy down enough to bring price growth back under control.

In this scenario, Nike (NKE) sells fewer shoes and Starbucks (SBUX) sells fewer lattes. Microsoft (MSFT) and Amazon (AMZN) build fewer data centers, which means Nvidia (NVDA) sells fewer chips. Sales and earnings growth cools, and that slower growth gets translated into lower stock prices.

This is why stocks struggle during inflationary times. Not only are their future earnings discounted more heavily into today's dollars, but the estimates of those future earnings are themselves revised lower.

What's different today for investors and what isn't?

It was a lot harder to diversify in the 1970s. Treasury Inflation-Protected Securities (TIPS) didn't exist until 1997. Commodity and gold ETFs didn't exist until the 2000s. More exotic investments such as commercial real estate or farmland were too expensive and too complicated for the average investor to buy.

Today, an investor's biggest risk is being overwhelmed by choice. For virtually any inflation-fighting strategy, there are likely a half dozen off-the-shelf ETFs available to choose from.

How should we approach this as investors?

Make sure your portfolio is well balanced between stocks, bonds and inflation hedges such as gold, commodities or real estate. You don't need to dump your stocks and bonds entirely, but introducing inflation hedges into the mix can reduce your risk and potentially boost your returns.

The beauty of diversification is that you don't have to get it exactly right. Being overweight or underweight by a few percent in any asset class isn't likely to make the difference between a luxurious retirement and total ruin. But having some inflation protection in the portfolio really can make a difference to your long-term returns.

Related content

• Stop Waiting for the Perfect Moment to Invest: There Isn't One
• 5 Top ETFs to Build Wealth Over the Long Term
• 5 Tips to Help You Prepare Your Portfolio for Midterm Elections
• How to Pick the Right ETF for Your Financial Goals
• How the Federal Reserve Affects Mortgage Rates

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

This time, we hear from a Boston-based 70-year-old married Realtor who has no plans to retire. She reports shifting to real estate after working in corporate sales and leadership roles for the first 20 years of her career. Her salary over the years has ranged from $18,000 at her first job to six figures with a corporate job.

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

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

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

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

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

The Basics

How did you make your first $1 million?

I bought my first stock at 12 years old and learned about investing from my dad. I had three roommates to help pay the rent back in the '70s. I bought my first home at 21 years old for $47,000 with 20% downpayment help from my dad. By 28, I had bought four rental homes to build wealth.

I actively invested in my company 401(k) over the years.

I made my first million once I switched to being a Realtor. Being self-employed, I learned to max out my self-directed 401(k) — now I put $72,000 a year away in this account. Started contributing in 2009.

My accountant called and said, You can pay $$ to taxes or $ to yourself and start a self-funded 401(k), so I paid myself!

What are you doing with the money?

I've kept it invested in stocks and hired a finance manager, who has helped it grow from my first million.

My goal at the time was $3 million. That was what I had learned from the finance people.

At $3 million and a 4% withdrawal rate, I would have $120,000 per year plus Social Security income.

The Fun Stuff

Did you do anything to celebrate?

No, my goal was $3 million. However, now we take elaborate vacations to celebrate our success.

What is the best part of making $1 million?

I don't worry about finances anymore. I have the money for life expenses that come, vacations and helping our young adult children.

Did your life change?

Yes, it made life a little easier and relaxed. We are able to travel with our family and explore the world.

Does anyone know you're a millionaire?

My family — we talk with the kids and educate them on investing, credit cards, expenses and investing in rental property.

Any plans to retire?

I have not retired — I could. I just enjoy working.

Now I am mentoring others on my team to help them grow and learn about investing and real estate.

Looking Back

Anything you would do differently?

I opened credit cards early on. Now I would give the advice: Do not open credit cards. You just spend money you don't have. Then you pay high interest!

Instead, create buckets and contribute religiously.

What advice would you give to your younger self?

Its easy to get to $1 million if you invest in yourself first and start with your first paycheck.

Build wealth through investing on day one with your job and buying rental property and paying one extra payment on your mortgage every month! (I bought a rental home by buying my home and then trading up but keeping that home as a rental property for the past 30 years.)

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

The Millionaire Next Door: The Surprising Secrets of America's Wealthy by Thomas Stanley and William Danko

Did you work with a financial adviser?

I did not work with a financial adviser. I read a lot, talked with friends, and my dad helped give me great advice.

Did anyone help you early on?

I had the great fortune of listening to smart people along the way and asking questions. I had a few people I looked up to.

My mom and dad came from nothing and were very smart. We grew up with very little but were very happy! My parents were very instrumental in teaching us about life, investing and building wealth.

My favorite person was my high school teacher — she had a class on personal finance, and I learned so much about checking accounts, credit cards, investing, unexpected expenses that happen. I was 16, and I'll never forget.

I don't see high schools teaching that. Every week, the class would pretend — we would get a paycheck, and we could do what we wanted, but we had to pay rent, utilities, living expenses, etc.

We had to balance our checking accounts every month. We would get a bill we would have to pay. Maybe we would get a flat tire and have to decide whether to pay for one or whether we had money to pay for four, etc.

It was so great. They would create scenarios — like, you got a bonus, or you got fired, or you got an inheritance. You needed to buy a car, or you'd have unexpected expenses, health bills, etc.

High schools should offer this as a mandatory class!

Looking Ahead

Plans for your next $1 million?

I have built a sizable estate. At this point, we are letting our investments grow.

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

The first job you get, set up a bucket savings account. Separate your savings accounts: 20% bucket for savings, bucket for investing, bucket for vacations.

Max out your 401(k). If you can put money in a Roth IRA as well, even better.

I took money out of each paycheck and directed dollars off the top so I would not get used to the total paycheck I received. When I would get a raise, I would increase the amount I put away. We tend to get used to our paychecks and enjoy the money, spend on credit cards, etc.

Don't use credit cards — or pay them off every month.

Pay extra every month on your mortgage. They say if you add one extra mortgage payment, it will reduce your mortgage length by seven years on a 30-year mortgage. I do this on every home we have purchased!

Plan to keep your car for at least seven to 10 years. You don't need the latest or fanciest car.

Couples with kids: Start putting $6,000 a year away for your children starting the year they are born and every year after. It will compound and pay for college. If they don't go to college, it will pay for a down payment on their first home or to get started after high school.

Live your life and have fun along the way — don't forget to take vacations.

Don't count on Social Security income — consider that bonus money.

Do you have an estate plan?

We do have an estate plan. We put it in place 20 years ago. We have a revocable trust, will, durable power of attorney, medical, etc.

We also created revocable trusts for our kids when they were in their teens.

What do you wish you'd known …

When you first started saving? I wish I had researched more about the value of compounding. It would have opened my eyes to saving more money. Now I teach my kids about the value of that and the Rule of 72!

When you first started investing? I wish I had known more about ETFs, bonds, etc. I mostly only knew about stocks. I wish I had understood more about the markets. I wish I had thought about investing in an apartment building.

Before you retired? I wish someone had a clear explanation on life when you retire instead of having to DIY.

Anything you'd like to add?

I grew up poor/middle class and now have an eight-figure estate from being curious and asking questions about investments and real estate. We have built our wealth through saving and investing in the stock market and rental homes!

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

Related Content

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

Your 70th birthday is a major life milestone. From a financial perspective, you now qualify for the highest Social Security benefits (if you waited to claim Social Security at 70) thanks to delayed retirement benefits and, if you worked until this age, potentially more higher-earning years, which can also translate to a higher Social Security check.

But it can also be a rough transition for retirees, who've spent decades saving for this moment and now find it surprisingly difficult to watch their retirement savings go down — even if you've done all the planning and triple-checking to make sure your withdrawal amount is sustainable.

Whether you're worried about running out of money in retirement, overwhelmed by estate planning, or just generally unsure of how you should approach retirement planning when you're already retired, here's a financial checklist for your 70s to help you stay on track and feel more confident about enjoying your money.

1. Create a realistic spending plan, then spend your money

When you're still working, retirement planning is about identifying a healthy target number to save that will give you the lifestyle you want. By your 70s, "Retirement planning should be less about putting life on hold in the name of preservation and more about funding the experiences, and legacy that matter most," Nancy Anderson, director of wealth planning programs at Key Private Bank, told Kiplinger.

While coming up with an annual spending amount on paper is straightforward, shifting from a saving mindset to a spending mindset is much harder. To help make that behavioral shift, Anderson recommends:

• Create separate accounts for separate expense categories. As cash comes in from Social Security, distributions and other income sources, fund your household expenses account first. Put the amount you've allocated for travel and hobbies into a separate account. That way, you can be confident that your essential costs are covered, and you can see at a glance exactly how much you can afford to spend on travel and hobbies. "Knowing that money has been earmarked for a specific purpose can make spending feel more comfortable and intentional," Anderson explained.
• Claim Social Security now if you haven't already. While delaying Social Security can increase your benefits by up to 24%, "waiting beyond age 70 does not create additional value," she said. This guaranteed income isn't vulnerable to market volatility and can give you a spending floor — the minimum you'll be able to spend each month even if all your other assets disappeared.
• Make a plan for required minimum distributions (RMDs). These kick in in your mid-70s and often catch retirees by surprise, warned Anderson. This can throw off your tax planning by increasing taxable income if you don't plan for it. But there are strategies you can use to mitigate that if you get a plan in place before they kick in.
• Review your withdrawal amount annually. Your annual withdrawal amount isn't a "set it and forget it" number. Anderson recommends reviewing your spending amount annually to make sure it's still sustainable. "An annual review provides an opportunity to adjust spending based on market performance, inflation, and personal circumstances," she said.

2. Stress-test your finances annually

In addition to reviewing your withdrawal amount annually based on current market conditions and personal needs, Anderson recommends stress-testing your finances against possible future risks.

"Running stress tests that account for market volatility, inflation, healthcare costs and longevity can help identify potential shortfalls before they become serious problems," she noted.

By examining all the "what if" scenarios you can think of, you'll see exactly how long your savings would last in each one. More important, you'll be able to come up with contingency plans and adjusted spending limits that account for those various risks.

"In many cases, relatively small changes can significantly improve long-term outcomes," Anderson said.

By running these stress tests annually, you can anticipate problems before they become serious and, in many cases, avoid needing to make drastic changes to your spending. "The sooner adjustments are made; the more options are available and the less dramatic the changes typically need to be," she noted.

This habit will replace those vague fears of running out of money with a concrete picture of how your savings would hold up under different scenarios and what adjustments you can make to address specific threats.

3. Plan your retirement in five-year chapters

The biggest risk in retirement isn't necessarily running out of money, Anderson says. "Sometimes, it's about reaching a point where you no longer have the health, energy, or opportunity to do the things you want to do."

That's why she advises clients not to assume spending will remain constant from age 70 to 100. Instead, she recommends planning in five-year chapters. Start by funding the experiences and bucket list adventures you know you'll regret postponing if health or other circumstances prevent you from being able to enjoy them later.

"Many retirees spend more in the initial phase because they have greater flexibility and often want to travel, pursue hobbies or enjoy experiences they postponed while working," she said.

That higher spending up front might make you anxious if you're stuck in that saving mindset. But when you factor that into the plan by planning in five-year chapters and back it up with those annual reviews and stress tests, you can be confident that your overall spending plan is sustainable.

4. Put fraud protection in place before you're targeted

That generous nest egg you worked so hard to build makes you an attractive target to scammers and fraudsters. It also puts you at heightened risk of financial abuse — especially as you get older and start relying more on family to make financial decisions for you.

"Cognitive decline does not need to be severe before financial judgment begins deteriorating," warned Evan Farr, a Certified Elder Law Attorney and retirement planner practicing in Virginia, Maryland, and Washington, D.C.

Even before cognitive decline hits, modern technology is making scams harder to spot. Taking proactive steps now can go a long way toward protecting yourself in the future. Some of the most effective strategies to do that, Farr says, include:

• Enable transaction alerts on your bank and brokerage accounts so you can catch suspicious activity promptly.
• Set up multifactor authentication on all your financial accounts.
• Learn how to freeze your credit now so you can do it quickly when necessary.
• Make a rule that you'll discuss all major transfers or investment decisions with a designated trusted person, such as your financial planner or attorney, before acting.
• Designate a trusted contact to be notified of suspicious transactions. Most major financial institutions will allow you to note this on your account so that if a bank representative notices signs of a scam, exploitation or fraud, they can reach out to this trusted contact.
• Sign strong power of attorney paperwork, and make sure the person you name has the integrity and capacity to take on that responsibility.
• Be cautious about adding family members jointly on your accounts. Even if you trust the person fully, doing so can create conflicts later around ownership and inheritance that you never intended.

5. Reduce unnecessary financial complexity for your heirs

"Many people by age 70 have accumulated numerous bank accounts, brokerage accounts, retirement accounts, insurance policies, real property holdings, past beneficiary designations, passwords and/or decades of documentation," Farr told Kiplinger.

While this might not be a problem for you, it can be a confusing maze of accounts and records to sift through for your heirs.

Farr recommends clients simplify their financial affairs as much as possible and leave a roadmap to make it easier for heirs to know what's what and where to look. That includes consolidating unnecessary accounts and maintaining an up-to-date account of assets and passwords. It can be helpful to do this with a financial planner so you can spot any old 401k or other accounts you might have forgotten about.

Lastly, Farr said to make sure you "inform those who will act on behalf of your client during incapacitation that the documentation exists and how they can obtain access to it."

6. Get more specific with your estate planning

In the past, it might have been enough to name a beneficiary or have a general plan for how your assets would be split among heirs. As you get older, it's time to get more specific with your estate planning to prevent unnecessary conflict or obstacles when carrying out your final wishes.

According to Farr, "While it was previously sufficient to ask who would receive the decedent's assets upon death, today the decedents' estates must address how the assets will pass, who will administer matters should the decedent become incapacitated, whether probate may be avoided, whether an inheritance should pass directly to beneficiaries or remain protected within a trust arrangement(s), and whether the estate plan will lead to conflict amongst the beneficiaries."

You deserve to enjoy the retirement you saved up for

If you've been feeling too nervous to splurge on vacations or start embracing all the hobbies and experiences you promised yourself you'd enjoy once you retired, know that a lot of retirees struggle with that same anxiety.

By following the steps in this checklist every few years, you can ensure that the "permission to spend" amount you're working with truly is sustainable and that you'll be able to catch any shortfalls or issues early to adjust your spending long before you run any real risk of outliving your savings.

Doing the steps with the help of a financial planner can help ease those fears even more as you'll know that an outside expert helped you come up with that realistic, sustainable spending amount.

Use the tool below to connect with a vetted financial professional who can help you stay on track and make the most of the retirement for which you planned:

Related content

• A Financial Checklist for Your 50s
• An Essential Money Checklist For Your 40s
• A 5-Part Financial Checklist for Your 30s
• An Expert Guide to Your Financial Priorities Decade-by-Decade

Are you maximizing your hard-earned money? If you've been looking at your bank statements and want to earn a little more, now is a smart time to re-evaluate your savings approach.

Why now? Inflation has remained sticky, giving the Federal Reserve less room to cut interest rates.

Instead, I've found that while high-yield savings accounts have been stagnant, CDs have seen higher rates in the past few weeks. I'll explain when you should make the pivot and how much money you're missing by not doing so.

Is it time to switch to CDs?

I review savings accounts weekly and have found that the best CD rates have been increasing in the past few weeks. The highest CD rates are now outpacing many of the best high-yield savings account (HYSA) rates.

Now, CDs won't be the smartest approach for everyone. If you're still growing your emergency fund or need access to your cash, a high-yield savings account is the smarter move. I recommend the one from Newtek Bank, as it offers 4.20% with no account fees or minimums.

That said, if you're comfortable with your cash flow and emergency fund, use this Bankrate tool to find the best rate for your savings goals:

As you'll see, CD rates are significantly higher than they were even three to four months ago. Locking one in now guarantees you a return and annual percentage yield (APY) that currently outpaces inflation in many cases.

However, choosing the right CD term can feel like a gamble; here's how to clarify your options.

Which CD term is right for me?

CDs are inflexible savings vehicles. Once you lock one in, you must keep the money in the account until the term expires. If you need to break it open, you'll generally face an early withdrawal penalty, which can reduce your earnings and, in some cases, your principal.

That's why being intentional with your savings goals can point you to the right term. If you're concerned about inflation rising again and don't want it to erode some of your future purchasing power, a short-term CD might be worth considering, such as a six-month or one-year CD.

This achieves several objectives:

• You won't have your money tied up for long.
• You'll have the flexibility to pivot to other savings or investment solutions as economic conditions clarify.
• If the Fed decides to hike rates in the future, you'll be in a prime position to capitalize.

Such a move could help you earn hundreds of dollars more in the interim with the higher APY. Here's a comparison of what you would earn with a $100,000 HYSA vs a $100,000 jumbo CD:

Alternatively, if you're approaching retirement and want to move some of your cash to safer investments without chasing APYs, a long-term CD can still be a smart move. You'll earn a guaranteed return, with APYs as high as 4.40%.

That can give you peace of mind and assurance that your money is safe from market dips. CDs at federally insured banks and credit unions are also protected by FDIC or NCUA insurance, generally up to $250,000 per depositor, per institution and ownership category.

If you have a large sum of money to move (think $100,000 or more), a jumbo CD might be worth considering. You'll earn a rate as high as 4.55%, with maturity windows of around one year.

Before signing up for any CD, consider the tax situation.

Factor in the tax implications of a CD

As part of your savings strategy, keep in mind that interest earned on a CD is generally taxable as ordinary income. With CDs that mature in more than one year, you might have to report a portion of the interest as it accrues each year, even if you don't receive the money until the CD matures.

As you calculate your potential return, consider your current tax bracket or consult a tax professional about how CD interest could affect your overall tax liability.

Overall, with some of the best CD rates moving higher, now is a good time to take a fresh look at your savings strategy. High-yield savings accounts remain a smart choice if you're building an emergency fund or need easy access to your cash.

However, if your emergency fund is established and you have money you won't need for a set period, locking in a CD rate might be worth considering. Think about your savings goals and when you'll need the money to determine the right term for you. That way, you can take advantage of a competitive rate without giving up access to money you might need sooner.

Not sure how CDs fit into your broader savings strategy?

A financial professional can help you weigh your options and decide how to put your cash to work based on your goals, timeline and need for flexibility. Use the tool below to connect with a vetted financial professional today:

Related content

• Best CD Rates — Earn Up to 4.55%
• Have $100,000 in Cash? You Could Earn More Than 4% With These Jumbo CDs
• Do You Have a CD Maturing Soon? Here's What to Do Next
• Don't Lock in a Long-Term CD Yet: The Moves to Make Instead

Raising financially literate children requires intentionality. By making financial literacy a regular part of family life, parents can empower their kids to make informed, responsible financial decisions that will benefit them throughout their lives.

And that attitude helps your kids — and yourself — throughout all phases of raising children.

First, starting a family — maybe in your 20s or 30s — means a shift in both your lifestyle and your finances, but it also means that you are responsible for teaching your children good financial hygiene and money habits.

Later, your 40s often bring a unique blend of increased responsibilities and high earning potential, and you might find yourself balancing the financial and emotional needs of growing children with your own financial planning goals.

Finally, as your children approach their teen and young adulthood years, it is important that you set them up for success in college and beyond by building on earlier lessons.

Here are specific ideas for each stage.

Start talking to them about money when they're young

Start early and normalize talking about money. Begin as early as when they are 5 years old. Introduce age-appropriate financial activities that help them understand the value of money and how to manage it.

Making "money memories" with your kids is one way to educate them about financial responsibility while having fun: Giving them a piggy bank to learn about saving, practicing budgeting on family outings and celebrating savings wins are a few ways to teach kids about money, and they can also create positive memories.

Today's kids may never carry as much physical cash as adults, but they still need to understand the value of every dollar. Whether money lives in a wallet or on a phone, the habits of saving, spending intentionally and planning never change.

To help children recognize that continuity, openly discuss financial decisions and share your household budgeting process in simple terms.

Later, this foundation will help as children reach their teen years. You can encourage them to track their spending habits and get a part-time job or step into a small entrepreneurial venture.

Just like any skill, practicing good financial habits over time makes children more adept at managing money as they grow older.

Go digital, but don't ignore physical cash

I send my preteen daughter's allowance through Apple Pay because that is most likely how she'll interact with money as she gets older. It is important for her to learn how to make digital payments and manage her account in a world that continues to move toward "tap" or "double click" to pay.

This also teaches her independence and empowers her to make her own money decisions — and potentially money mistakes. I would rather have her make a $20 purchase that she regrets at age 12, than a $20,000 mistake when she's 22.

While embracing digital tools, I also intentionally use physical cash to teach my daughter about other financial concepts. We talk about where cash comes from and how to count it, and we take physical money to the bank to deposit into her savings account.

I want her to understand that the numbers on the screen in her Apple Wallet represent real dollars, and I want her to be comfortable managing her money both ways.

Teach them about trade-offs

Teens — like all of us — need to understand that every financial decision involves a trade-off. Spending money on one thing means that money won't be available for something else.

For example, buying the latest gaming console might mean saving less for a car, college or future experiences. This concept helps them prioritize and understand the long-term implications of their choices.

Help teens learn to resist the bombardment of messages promoting instant gratification and luxury, often amplified through social media. Help them differentiate between needs and wants, understand the true cost of things (including the impact of debt) and resist the pressure to keep up with trends.

Encourage them to use critical thinking about advertising and social media influencers and emphasize that a healthy money mindset often comes from smart choices and delayed gratification, not just outward displays of wealth.

If they're working, consider helping them open a Roth IRA to teach them about investing early. You should also discuss responsible credit use before they get their first credit card.

Don't stop when they get to college

The goal isn't to raise a child who can balance a checkbook — it's to raise a young adult who feels confident making financial decisions. That confidence comes from hundreds of small conversations and real-life experiences over many years, not one big lesson.

College provides a perfect context for in-depth discussions, both when saving and spending. It's never too early, or too late, to start saving for college.

If you anticipate that your child will contribute to the costs of their higher education, that's something to discuss earlier rather than later. That way, as they grow up, they'll have a full understanding of the plan.

Raising financially savvy children is more important than ever in today's fast-paced, digital world. Teaching your kids about the value of money and how to manage it responsibly can have a lasting impact on their future success.

Related Content

• Credit Cards for Kids and Teens — One Mom's Take
• 4 Practical Ways to Prepare Your Children for Their Inheritance
• 3 Ages, 3 Money Lessons: A Parent's Guide to Raising Financially Savvy Kids
• The 7 Worst Assets to Leave Your Kids or Grandkids
• If You Want to Give Money to a Child in Your Family, Some Options Are Better Than Others

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.

Equifax has agreed to create a $100 million settlement fund over allegations that a coding error caused it to send inaccurate credit scores to lenders in 2022. Roughly 4 million people could be covered by the settlement.

Claims aren't open yet. The proposed settlement still needs final court approval, with a hearing scheduled for January 22, 2027. If approved, eligible consumers will receive information about how to submit a claim for payment.

Equifax has denied wrongdoing, and the settlement does not constitute an admission of liability. Here's what to know about the proposed settlement, who may qualify and what happens next.

What happened with Equifax credit scores?

According to DiCello Levitt, one of the law firms representing consumers in the case, Equifax misreported lower credit scores for about 4 million people who applied for mortgages, auto loans or credit cards between March 17 and April 6, 2022. The coding error resulted in some lenders receiving inaccurate credit scores.

That matters because lenders use credit scores when deciding whether to approve applications and what interest rates and terms to offer. The lawsuit alleges that some applicants were denied credit, charged higher interest rates or otherwise received less favorable terms because of the incorrect scores.

Equifax has maintained that most scores didn't change substantially. The company previously said fewer than 300,000 people experienced a score change of 25 points or more, according to ConsumerAffairs.

Who could qualify for the Equifax settlement?

About 4 million people are estimated to be included in the settlement class. The settlement covers consumers whose credit scores were inaccurately reported because of the coding error.

You may want to pay particular attention to the settlement if you applied for credit during the affected period, including a:

• Mortgage
• Auto loan
• Credit card
• Other credit product

This may be especially relevant if you were unexpectedly denied credit, received a higher interest rate or were offered less favorable terms. However, simply applying for credit during the affected period doesn't necessarily mean you're eligible for a payment.

More information about eligibility and the claims process is expected as the settlement moves toward final approval. We’ll update this story as new details, including how to file a claim, become available.

How much money could you receive?

The proposed settlement creates a $100 million fund that will be used to make payments to people who submit valid claims. However, no individual payment amount has been announced.

How much each person receives will depend on factors including the number of valid claims submitted and how much money remains after court-approved legal fees, administrative costs and other expenses are deducted.

The settlement fund is non-reversionary, meaning money left over from the claims process won't be returned to Equifax.

Can you file an Equifax settlement claim yet?

No. Those affected can't file a claim for the Equifax settlement yet. The proposed settlement has received preliminary approval. This means the case can move forward, but claims aren't open and no payments are being distributed yet.

Once the court approves the settlement notice, people covered by the settlement are expected to have 90 days to submit a valid claim. More information about how to file, eligibility requirements and important deadlines should be provided as the settlement moves forward.

A final fairness hearing is scheduled for Jan. 22, 2027. At that hearing, the court will consider whether to grant final approval to the settlement.

In the meantime, be cautious of emails, texts or websites claiming they can get you an Equifax settlement payment now. Don't pay anyone to file, secure or expedite a claim on your behalf.

What should you do now?

Since claims aren't open yet, there's nothing you need to file right now. However, if you applied for credit during the affected period, it's worth holding on to any records you still have from that application, particularly documents showing a denial, interest rate or other terms you were offered.

Keep an eye out for an official settlement notice with information about eligibility, deadlines and how to submit a claim. Be cautious of unexpected emails or texts promising an immediate payment, especially if you're asked to pay a fee or provide sensitive financial information.

A credit score is only one part of your financial picture

Your credit score can influence the rates and terms you're offered when you borrow, but it's only one piece of your overall financial health. A financial adviser can help you look at the bigger picture, from managing debt and building savings to planning for retirement and other long-term goals.

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

Related content

• $425 Million Google Class Action Lawsuit: Do You Qualify for a Payout?
• Refunds Going Out in $2.5 Billion Amazon Prime Settlement: Are You Getting a Check?
• Capital One $425M Class Action Settlement: Do You Qualify?

Power outages are more than inconvenient; for homes relying on medical equipment, they're a safety risk. Additionally, there's another, quieter crisis hitting homes: The 116% surge in electricity costs over the past 25 years.

To illustrate, the average electricity rate in August of 2000 was 0.091 cents per kWh. In July of 2026, that rate increased to 0.197 cents per kWh, according to the Federal Reserve Bank of St. Louis.

For many homeowners, the conversation around solar use circles back to a single metric: The financial return on investment. However, if you're looking at the next chapter of your life, the true value of these systems extends far beyond a monthly electric bill. It represents building a resilient homestead and moving away from reliance on an outdated and overtaxed grid.

How homeowners can prepare for an unreliable grid

The reality is we are relying on an electrical grid built over 100 years ago. Dr. Michael Stadler, an expert in energy systems and the Chief Technology Officer at Xendee, told Kiplinger this will become increasingly problematic as demand from climate change and AI data centers increases.

The Department of Energy released a report last year titled Report on Evaluating U.S. Grid Reliability and Security. It warns that blackouts could increase one hundredfold in 2030 if the US continues to shutter reliable power sources and doesn't add more firm capacity.

Reliability on an aging network is a cost issue. Most importantly, it's a stability issue too. If you're a homeowner, this creates an almost must-have shift away from traditional means to energy sovereignty. A solar and battery system can serve as an insurance policy, ensuring your home remains powered and secure even with increasing blackouts.

How to make your home more energy independent

One of the shifts is seeing homeowners move away from passive consumption, where you rely on your electric utility/supplier for power, to self-sufficient hubs. Using photovoltaics (PV) and battery storage means you've created a localized microgrid.

This has several advantages for your home's journey toward energy independence. It means that when rolling blackouts or power outages occur, your home will retain power since it isn't relying on the grid. And you can sell your excess power (offsets or net metering) to your local energy company if your state laws allow.

What's more, smart control systems make it easy to manage power. It optimizes how you use and store electricity, and when to sell it, based on real-time grid needs. Dr. Stadler recommends selling offsets during peak demand, when you're likely to earn more for them. This automation not only helps you optimize earnings, but it also protects your home for years to come.

Is the ROI worth it?

While these systems require a significant initial investment, usually in the $20,000 to $40,000 range, federal tax incentives, such as the Clean Electricity Investment Credit, provide a six percent tax credit on the qualified investment. Dr. Stadler notes that if your current rate is at or above 20 cents per kWh, the economics of installing such a system become increasingly favorable.

Keep in mind that your electric rate is only one component of your bill. In my case, I found that the transmission/delivery fee is almost half of what I pay. With solar, the excess energy gained and sold could help offset these delivery fees while reducing your energy reliance on the grid, bringing down costs even more.

Another consideration is that solar is clean energy. In some cases, the energy you receive from your electric company can be dirty. Dirty electricity can take the form of high-voltage spikes, harmonic distortions and surges that, over time, can shorten the lifespan of your appliances and electronics.

Is your home ready for a microgrid?

Keep in mind that not every home will be an ideal fit for a microgrid. Use this checklist to evaluate whether your home has the elements required for a successful transition:

• Roof health: Make sure your roof shingles and structure are in good shape since solar panels last 25 to 35 years. If not, you'll need to budget for a new roof.
• Sun exposure: Does your home have obstructions such as large trees or neighboring buildings that cast ample shade? This might limit its effectiveness.
• Energy use: Examine the last year of utility bills to determine your average kWh monthly. This is essential for choosing the right-sized system for your home.
• Local regulations: Read up on your state's net-metering policies. Some homeowners associations might also have restrictions on where you place panels.
• Critical load: Determine which appliances you want on during an outage, as this will decide the battery storage system size you need.

Taking these considerations into account can help you determine if your home is ready for a microgrid.

Ultimately, investing in solar isn't only about reducing your electricity bills; it's about building a resilient, energy-efficient asset. Solar is becoming an essential home improvement that secures your property's independence in a future where grid reliability isn't guaranteed.

Making your home more energy independent can be a significant investment. A financial professional can help you build a plan for upgrades such as solar and battery storage while balancing them with your other financial priorities.

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

Related content

• The Hidden Cost Driving Higher Electric Bills and Shorter Appliance Lifespans
• Renters Are Turning to Plug-In Solar as Energy Bills Rise
• Heat Pumps vs Solar Panels: Which Saves You More on Energy Bills?