Tom retired at 67 after 35 years as a CFO. He spent his career managing risk with precision and applied the same discipline to his retirement finances.

His savings are solid, his withdrawal strategy is documented, and his estate plan is current. He walks every morning and sees his doctor twice a year.

By the industry's retirement checklist, he has done everything right.

However, according to a second checklist that may be even more important for a fulfilling retirement, four of his five pillars are missing.

Every retirement planning conversation eventually centers on the same five items:

• Savings rate
• Social Security timing
• Withdrawal strategy
• Healthcare costs
• Estate planning

These are legitimate concerns, well researched and worthy of careful attention. The financial planning industry has spent decades refining tools to address them.

They answer one question with considerable precision: Can you afford to retire?

However, research has identified a second important checklist. Those five pillars have received considerably less attention in planning conversations, generate no tax provisions and do not appear on any financial statement.

The second checklist predicts the quality of your retirement years more reliably than the first checklist. For most retirees, the score on the second checklist determines whether retirement feels like a reward or a long, quiet drift.

Five pillars of a fulfilling retirement

The five pillars of a fulfilling retirement are not a motivational framework. They are a research-based map of the conditions that sustain health, meaning and well-being in later life. Each has a body of longitudinal evidence behind it. Each is plannable. Yet, in most retirement conversations, each is left to chance.

Pillar No. 1: Exercise

Tom has this one covered. The daily walk, the Wednesday golf round, the annual physical and blood pressure well within range.

Golf, it is worth noting, ranks among the top three exercises for retirees alongside cycling and pickleball: The walking, the outdoor exposure and the social dimension compound its value beyond what most people assign it.

Among the five pillars, exercise is the one the financial industry most often acknowledges, though typically as a healthcare cost to plan for rather than as an asset to build.

The distinction matters. Physical activity is not only a hedge against medical expenses. It is also a cognitive protector, a mood regulator and the most accessible form of independence insurance available to a retiree.

Tom has this pillar but has not yet fully valued it.

Pillar No. 2: Intellectual stimulation

Tom reads the Wall Street Journal every morning. He follows the markets, tracks economic indicators and considers himself intellectually engaged. He is not wrong, but he is missing a distinction that the research makes with precision.

Consuming information is not the same as generating it. For 35 years, Tom's role required him to produce: Analysis, decisions, arguments and strategic recommendations with real consequences. That daily cognitive demand kept his mind operating at full capacity.

Reading is maintenance. The brain grows under novelty and demand, not under consumption and repetition.

A 2025 systematic review confirmed that retirement is associated with measurable cognitive decline because structured cognitive demand disappears. Researchers called the mechanism the mental retirement hypothesis. Passive engagement does not prevent it.

Pillar No. 3: Emotional well-being

Tom's professional relationships were genuine. Over 35 years, he built real trust with colleagues, clients and direct reports. Most have moved to different cities and chapters. His marriage is intact and stable, running on parallel tracks that worked well when his career organized his days.

What Tom lacks is what Harvard's Study of Adult Development, the longest-running longitudinal study of human flourishing in history, identified as the single strongest predictor of health and happiness in later life: The quality of close relationships.

Not the quantity. The quality.

Relationships with real depth, mutual accountability and trust that does not depend on a shared project or a professional context.

Tom has acquaintances. He has a history of relationships. That gap is not a character flaw. It is a planning oversight.

Pillar No. 4: Spirituality

This pillar is the one most likely to be dismissed in a financial planning context and the one most consistently validated by the research.

Spirituality, as the research frames it, is not necessarily religious. It is a connection to something larger than oneself: A sense of meaning, a reason to matter beyond the personal, an answer to why the days are worth living.

Tom's career provided this without his noticing. The company's mission, the team's outcomes and the clients' results gave his work a context that extended beyond his own interests.

In retirement, that context disappeared without a replacement being designed. His days are comfortable and, in a way he has not yet named, purposeless.

Pillar No. 5: Hobbies

Tom golfs on Wednesdays. He enjoys it. The research draws a distinction worth making explicit: Activity that passes time pleasantly is not the same as activity that generates meaning. The difference is whether the outcome matters to anyone, including the person doing the activity.

Golf, in this context, is a placeholder, a reasonable one while a person figures out what comes next.

The hobbies pillar, properly understood, is purposeful engagement that fosters identity and contribution outside professional life.

It is the answer to the question retirement eventually forces on every retiree: Who am I when the job is over, and what do I build with what I know?

This is Tom's shakiest pillar. He has not yet found what replaces the sense of contribution his career provided automatically.

The second checklist

Tom is not unusual. He is representative of the retiree the financial planning industry serves most effectively: Financially prepared, psychologically unprepared and genuinely surprised by the gap between the two.

The five pillars are not equally difficult to build. Most people arrive at retirement with one or two already intact. Tom has exercise. His intellectual engagement is passive and insufficient, as research shows. This is a redesign problem, not a rebuild.

The other four pillars are largely absent. The work is to identify which are missing and to treat that absence as a planning problem rather than a personal failing. Absence is not deficiency. It is a design gap, and design gaps have design solutions.

For Tom, securing the four missing pillars does not require dramatic reinvention. Three commitments cover all four.

The first addresses two pillars at once: A role that demands his analytical skills in a context where he holds no authority, such as a nonprofit board, a civic commission or a mentorship program for young finance professionals. That single commitment restores both intellectual stimulation and purposeful engagement.

A standing social commitment with two or three people who depend on his presence, not merely his availability, addresses a third.

And a question he has not sat with long enough to answer honestly addresses the fourth: What would make the next chapter matter to someone other than himself?

None of these are financial decisions. All of them will determine the quality of the years his financial plan is intended to fund.

The first checklist tells you whether you can afford to retire. The second tells you whether retirement will be worth it. Both are necessary. For too long, only one has been completed.

To learn more about designing a fulfilling retirement, pick up my new book, Your Encore Years: The Psychology of Retirement.

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

Nearly every retirement calculator is built to answer the same question: How far am I from having enough saved to retire?

It's an important question, and if you've spent the last 30 or 40 years investing diligently for retirement, you've probably checked your progress more times than you can count.

Then one day you open your accounts, look at the balances and realize you've hit it. You've reached the number you've been working toward all these years. Naturally, you then ask, "Is it really enough?"

That's not the right question. What you should be asking is, "How will I turn my savings into the paycheck I'll be living on for the next 25 or 30 years?" That conversation is vital but, in my experience, far too few people are having it.

Reaching your number tells you that you've accumulated enough assets to support retirement. It doesn't tell you how prepared you are to make the transition from building wealth to living on it.

You've spent 40 years making one financial decision over and over: How much should I save? Retirement hands you a different set of decisions, starting with how much you can safely withdraw, where your income should come from, how taxes fit in and when to claim Social Security.

Each decision carries consequences that can last for decades. That's a conversation a retirement calculator, or an AI agent, simply isn't equipped to have.

Your portfolio has a new job

Managing your finances may have been relatively straightforward during your working life. You earned a paycheck, spent some of it and invested the rest. When the market dropped, you kept contributing because time was still on your side. If you made a mistake, there was another paycheck coming and another opportunity to recover.

Retiring changes the rules. The day your paycheck stops, your portfolio takes over. You're no longer asking how much you can save. Now you're asking how much you can safely spend.

And here's what surprises many new retirees: Two people can earn the exact same investment return and end up living very different retirements. It's not because of what they invested in, but because of how they withdraw the money.

Your discipline got you most of the way there. A strong market may have carried you across the finish line. We tend to assume the day we hit our retirement number is purely a function of years of disciplined saving, but that's only part of the story.

Here's what people easily overlook. A strong bull market may have helped push your portfolio over your retirement goal, but that doesn't necessarily mean it's the ideal time to retire.

If markets weaken just as you begin drawing income, those early retirement years can have an outsized impact on how long your savings last.

That doesn't mean retiring after a strong market is a mistake, or that you should wait around for "perfect" stock market conditions. No one knows when those will arrive.

It does mean that hitting your retirement number shouldn't automatically trigger your retirement date. It should trigger a different question: Not "Can I retire?" but "How should I retire?"

Your savings are only half the story now

Consider two couples who both retire at age 67 with $2 million saved. They invest the same way, earn the same returns and spend the same amount every year. The only difference is how they generate retirement income.

One couple simply withdraw money as they need it. The other intentionally coordinate withdrawals, Roth conversions and Social Security claiming to manage taxes over time.

Twenty-five years later, the second couple could realistically end up with hundreds of thousands of dollars more in after-tax wealth — not because they earned higher investment returns, but because they kept more of what they earned.

Research on retirement income planning has consistently shown that coordinated withdrawal strategies can add significant lifetime value for many affluent retirees. The exact benefit varies from household to household, but one point is remarkably consistent: How you withdraw your money can matter almost as much as how you invested it.

Ignoring withdrawal planning doesn't just cost you a little at the margins. It can blindside you years later, at exactly the wrong time.

Consider what's known as the widow's penalty. A married couple filing jointly enjoy lower tax brackets and a larger standard deduction. When one spouse dies, the survivor typically loses the smaller of the two Social Security checks, but required minimum distributions (RMDs) often remain largely unchanged because the retirement accounts themselves haven't disappeared.

Now much of that same income is taxed using the narrower single-filer tax brackets, while Medicare premium thresholds become much easier to exceed.

The result? It's entirely possible for a surviving spouse to pay tens of thousands of dollars more in lifetime taxes than they would have if the couple had gradually converted some of their traditional IRA to a Roth during the lower-income years they shared together.

Nobody made a bad investment. Nobody timed the market poorly. They simply never looked ahead and asked what their tax picture might look like after one spouse was gone.

There's another cost to not having a retirement income plan — and this one is emotional.

According to a 2025 survey from the Employee Benefit Research Institute, more than three-quarters of retirees say they could actually afford to spend more freely than they do. Yet nearly half admit they continue to hold back because they're afraid they'll eventually run out of money.

Imagine spending 40 years building your retirement savings, only to spend the next 30 afraid to use them.

That's the real cost of not knowing exactly where your retirement paycheck is coming from each month.

If you've just hit your retirement number, celebrate it. You've earned that moment. But before you decide today's the day to retire, take the time to pressure-test the income plan that will support the next 25 or 30 years of your life.

That's where a knowledgeable, fee-only retirement income adviser can make an enormous difference.

Reaching your retirement number answers one important question: Have I saved enough? Retirement immediately asks another: Do I know how to live on it?

Those are two very different questions, and the second one deserves every bit as much attention as the first. That's where retirement planning becomes far more interesting — and far more valuable.

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

Ask a retiree how much income they need, and they'll give you a number. Ask how much cash flow their portfolio generates, and many will give you the same number. Ask what they actually spend, and you'll often get a third answer — or a shrug.

That's the problem. These are three different things, and mixing them up can quietly cost money. Here's a breakdown.

Cash flow is the movement of money, regardless of tax implications.

Move money from savings to checking? Cash flow, but no tax.

Take a qualified withdrawal from your IRA? Cash flow with a tax implication.

Sell $50,000 of stock you bought for $40,000? That's $50,000 of cash flow, but only the $10,000 gain is taxed.

Harvest a loss on a position that's down? That's cash flow, too, and it can actually lower your tax bill.

Much of what moves through your accounts is simply your own money changing seats.

Income is what gets taxed (and it comes with a decision). Income shows up on your tax return:

• Dividends paid
• Interest earned
• Rent collected
• Capital gains realized
• IRA withdrawals taken

Here's the part many people miss: Income comes with a decision. You can spend the money or reinvest it.

Depending on the account, your decisions are taxed differently. For example, in a brokerage account, the dividend (income) is taxed whether you spend it or not. If the dividend comes into your qualified account (IRA or Roth), it's not taxed.

It's important to pay attention to these little differences.

Spending is what's gone. This is the money that leaves your accounts to support you and your lifestyle (groceries, travel, property taxes). Once it's spent, it's gone. It isn't coming back as shares, basis or anything else.

Spending is the number your plan actually has to cover. Not your cash flow. Not your income. Your spending.

The drag many miss

Once the terms are straight and the plan is in place, the leaks start to become visible. Many retirees generate more taxable income than they spend.

A $1 million portfolio in your brokerage account, yielding 3% in dividends, puts about $30,000 of income on your tax return each year, whether you spend it or reinvest it.

Let's say you spend only $10,000 of it — you still pay tax on all $30,000. You wrote the IRS a check for the privilege of reinvesting money you'd already had invested. Do that for a decade, and the drag compounds quietly, every April.

Even withdrawal coordination can make a big difference. A retiree younger than 65 who funds an entire year from long-term capital gains might pay mostly 0% in capital gains tax. That's because only the realized gains count as income.

If they keep their gains/income low enough, they may also be able to lower their ACA health insurance premiums. That's a very different situation than taking a little from an IRA, a little from a brokerage account, collecting dividends along the way and layering on Roth conversions.

Same spending, very different tax bill.

Total return still wins

This is why I push retirees toward "total return" thinking. There's little difference between a stock that grows by 7% and a stock that grows by 4% while paying a 3% dividend.

The grower lets you decide when to realize income. The dividend payer decides for you, every quarter, whether you need the money or not.

Sometimes growth may be better than dividends, and vice versa.

The same is true in real estate: Rent plus appreciation is the whole picture, and the rent is taxed as it arrives.

Control what you can control

Dividend investing is a great way to grow a portfolio or generate income you can spend in retirement. The main problem is that you can't control what a company pays out.

When a dividend stops paying out, the stock may also go down in value, which can feel similar to a stock you have purchased for growth that stopped growing. The market (stocks, bonds, real estate) carries risk, no matter how you look at it.

What you can control is how much you spend from your accounts. In other words, grow your money however you see best, whether it's through growth, dividends or real estate. That's up to you.

Next, separate the growth or payout rate from how much you want to spend.

Lastly, make sure you have a backup plan so you can maintain your lifestyle and spending, regardless of market conditions.

In my book, How to Retire on Time, I call that your Reserves. Other advisers have other names for it.

The bottom line: Don't let someone else's decision (dividend payout, etc.) control your retirement, and make sure you are watching your cash flow, your income and your spending so they all work together efficiently.

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

After several decades as a serial entrepreneur — launching computer magazines in the ’80s and hobby magazines in the ’90s, then running conferences for publishers for two subsequent decades — Carl Landau retired in 2019 at age 64. "I finally felt fatigue," says Landau, who lives in Sacramento, Calif. "I always had so much enthusiasm for it all and realized that I had been doing this for a long time."

That first year of retirement, though, proved challenging. Landau and his wife planned a trip to Portugal for March 2020 — the month and year the world practically shut down thanks to the COVID-19 pandemic. With travel canceled and life on pause, Landau did what entrepreneurs do: He launched a new venture, creating a wry, weekly podcast looking at life and identity post-career that he called I Used to Be Somebody.

Within months, the project had morphed into a second career. "I realized I had built another full-time job," says Landau, adding that he found he had little time to pursue his passion for pickleball, one of the activities he’d most looked forward to in retirement.

So Landau recalibrated again. He scaled back production of the podcast and a companion newsletter to once a month, and he now averages some 12 hours a week at work. The rest of his time is reserved for socializing and recreation (pickleball!). Looking back, he recommends that newbie retirees bake flexibility into their plans to accommodate shifting priorities and unexpected experiences.

"There are going to be ups and downs, particularly if you worked really hard for 40 years and all of a sudden you’re not doing that," he says.

Landau’s story is less a cautionary tale than a template for what comes next, as millions of newly minted retirees are now learning. The post-career years, especially in the beginning, are an ongoing experiment. "No matter how prepared for retirement people are, they are unprepared," says certified financial planner Ross Levin, cofounder of Accredited Investors Inc., a wealth management firm in Edina, Minn.

The impact of "Peak 65"

Thanks to the aging of the massive baby boom generation, the ranks of first-time retirees looking for financial security and purpose in the next stage of life are historically large right now.

Between 2024 and 2027, a record number of Americans will turn 65 or will have already celebrated that milestone birthday, including 4.1 million this year and about the same number next year — a cohort known as Peak 65. All boomers will be at least 65 by 2030.

Many of these freshman retirees understandably face the transition to their next chapter with some trepidation. The percentage of workers who feel confident that they have enough money to live comfortably in retirement fell by 6 percentage points from 2025 to 2026, to 61%, according to a recent survey by the Employee Benefit Research Institute (EBRI) and Greenwald Research.

Among the concerns stoking worries about finances in retirement were inflation, debt, healthcare costs and housing expenses, as well as doubts about the future financial viability of Social Security and Medicare.

Adding to the anxiety: Many near-retirees haven’t spent much time planning for what they will actually do once they’ve put a full-time career behind them. That’s the key takeaway from a 2025 survey by the Financial Planning Association and the Journal of Financial Planning. About half of the financial planners surveyed said their clients were financially prepared to stop working, but only 11% said the people they advise were emotionally prepared for the lifestyle adjustments that retirement entails.

If you’re looking ahead to retiring soon or have recently embarked on the retirement journey, you want to make sure you have both parts of the process covered. Experts recommend these steps to ease the transition from full-time work and to ensure that you flourish in this next chapter.

Rethinking what retirement looks like

Part of the challenge you face as a new retiree is that the definition of this stage of life is changing, as people generally live longer and in better health than previous generations. Yes, the word retirement still typically signifies the end of a long career. But individual paths diverge wildly from there these days.

The classic vision of retirement as full-time leisure and relaxation remains an option. Increasingly, though, many retirees take on part-time jobs, gig work or even encore careers. Some become passionate volunteers or dedicated hobbyists; others go back to school. Some embrace an active role as grandparents or become caregivers to aging loved ones. Often, retirees pursue a mix of these roles that evolves with age.

What’s right for you? The beauty of a long retirement is that you don’t have to figure it all out from the jump or stick with a single vision. It helps, experts say, to view the first year of retirement as a period for gathering information that will help smooth the transition to this next chapter and build a strong foundation — financially, socially and emotionally — for a comfortable, meaningful retirement.

"The first year is a test year," says CFP Lazetta Rainey Braxton, founder of the Real Wealth Coterie, a wealth management firm in New Haven, Conn.

The key, experts say, is to be willing to experiment and to seek out pursuits that offer purpose, keep your body and brain active, and help you maintain social connections. You also need a good idea of how much you can safely spend to make those things happen.

In other words, you need both a purpose plan and a financial plan at the beginning of your first year of retirement. That allows for smarter decision-making and flexibility, helping you adapt as experiences and new data inform your views and the inevitable curveballs come your way.

"If you’re thriving, it’s because you have a personalized vision for what retirement means to you," says Lisa Stornaielo, cofounder of The Future of You, a Boston-based consultancy that helps individuals and corporations navigate the transition to retirement. "Your finances are an important piece.

But what we’ve found is just as important is that people are very clear not only on what they’re retiring from but also on what they’re retiring to, and there’s an intentionality around that."

Treating your first months as a sabbatical

Of course, you’ll need time at first to decompress, exercise, read, and tackle long-delayed home projects or similar tasks. There is immense value in giving yourself permission to relax and enjoy new experiences.

Think of those first few months as the equivalent of taking a sabbatical — a necessary window to recharge mental and physical energies while creating psychological distance from a lifelong work identity.

A sabbatical is temporary; retirement is not. The profound shift in navigating the transition between the working world and retirement comes down to sheer time.

Leaving a full-time career suddenly frees up roughly 2,500 hours each year, calculates executive coach Joe Casey in Win the Retirement Game: How to Outsmart the 9 Forces Trying to Steal Your Joy. "People enter retirement at different ages and with various levels of resources," he writes. "But all new retirees are time-rich."

The core question to ask yourself: How will you invest that newfound wealth of time? What is your purpose? What matters to you? "I encourage people to write some sort of business plan," Landau says. "It doesn’t have to be elaborate. Just list your goals, what you really enjoy doing and the things you don’t like."

Adapting your plan as life happens

Any entrepreneur will tell you that a solid business plan not only increases the odds of success but also accounts for the fact that the blueprint will change multiple times. Take the experience of Joy Norquist, 70, and Ron Wawrzon, 69, who retired — she from a career in insurance compliance, he from working as an operations manager for a small manufacturing company — in 2021 and 2022, respectively.

The Saint Paul, Minn., couple both have pensions, retirement savings and a long-term relationship with a financial planner. They planned to move to Chicago, where Wawrzon is from, but life intervened. Wawrzon faced a health setback (he’s fine now), and Norquist’s mother required months of intensive care following a serious fall. Those initial plans for retirement went on hold.

Meanwhile, the couple discovered part of their post-retirement rhythm almost by accident. One afternoon, for fun, they went to an open house for a condo in a high-rise building in downtown Saint Paul, and they fell in love with the view. The couple moved to the building two years ago. They joined a local walking club, they participate in a weekly study group at a local tavern, and they enjoy movie nights with neighbors and other activities.

Norquist’s mother passed away in late 2024, and the couple spent much of last year dealing with her estate. Now that’s mostly done, but Chicago may no longer beckon and Norquist and Wawrzon are taking their time to decide what comes next for them in retirement. But they view the future with optimism. "We feel like we haven’t really launched yet," Norquist says. "We’re figuring out the rest of our lives from here."

Build your core strategy

As you shift from earning and saving money to spending the fruits of your labor, retirement triggers a cascade of financial decisions, from where to live and how you’ll pay for healthcare to when to start taking Social Security benefits and how much you can safely withdraw from retirement accounts.

Yet only one in four Americans in their sixties has a formal, written financial strategy for retirement, according to a 2025 report from the Transamerica Center for Retirement Studies.

If you’re among them, now is the moment to create a plan — or revisit and update the one you already have. You need realistic data on expenses (needs and wants), liabilities, tax rates and healthcare costs to figure out where you stand and what options make the most sense for your circumstances.

You can work with an adviser (find one at napfa.org, letsmakeaplan.org or garrettplanningnetwork.com) or do it yourself using planning software, such as Boldin (free for the basic version; $12 a month for advanced features) or WealthTrace ($229 a year, standard; $289 a year, deluxe).

Maximize your Social Security payout

Among the most critical decisions to ponder in year one: when to claim Social Security benefits. The earliest you can apply is age 62 and the latest is age 70; the longer you wait, the bigger the monthly payout will be.

For instance, boomers celebrating their 65th birthday this year who wait to file until they hit their full retirement age of 67 — that is, the age at which they’re entitled to 100% of their benefits — will get a monthly benefit that is roughly 43% bigger than if they’d claimed at 62, according to the Social Security Administration. Wait until age 70, and that monthly benefit will be 77% higher than the payout at 62.

Because you can’t outlive your Social Security benefit and the payout is adjusted annually for inflation, the standard advice is to hold off filing for as long as possible — at least until your full retirement age. However, there can be good reasons to claim earlier — if, say, your health is poor, or you’d otherwise need to withdraw too much from savings to pay fixed expenses.

An adviser can help determine the optimal time to claim for your situation, or you can tap online resources for assistance, such as Open Social Security, a free strategy calculator, or planning software such as MaxiFi ($109 a year, standard plan; $149, premier). (For more guidance, see "Perfect Timing: When to Claim Social Security," April.)

Master your portfolio withdrawal strategy

You’ll also need to tackle the puzzle of how much money you can safely withdraw from your retirement portfolio. One common guideline is the 4% rule, developed by retirement researcher William Bengen in the mid ’90s.

It suggests taking out 4% in the first year of retirement (it assumes the portfolio is split roughly 50-50 between stocks and bonds), then adjusting subsequent withdrawals annually for inflation. Historically, Bengen calculated that strategy would ensure you would never run out of money, even in the worst-case scenario for financial markets.

Although the 4% rule is a simple and convenient metric, experience has shown that strictly adhering to it often leads retirees to withdraw less than they can afford to spend, potentially stopping them from enjoying this chapter of life to the fullest. Many experts, including Bengen himself, have revised the initial withdrawal rate upward to the 4.5%-to-6% range.

In his 2025 book A Richer Retirement, for instance, Bengen suggested 4.7% would be a better starting point for withdrawals, and he changed his model portfolio to hold as much as 65% of long-term savings in stocks.

Likewise, CFP Rainey Braxton typically recommends that you withdraw up to 5% the first year — ideally somewhere between 4% and 5% — and possibly a little more, depending on what she calls "the nuance and art of knowing the client’s circumstances."

A popular alternate approach is the bucket strategy, initially developed by CFP and wealth manager Harold Evensky, chair of the Coral Gables, Fla., financial planning firm Evensky & Katz. As Evensky said in a Morningstar interview last year, the strategy was "designed so the client wouldn’t get panicked if the market was falling apart because [they’d know] where the grocery money was coming from."

The basic idea is to set aside enough cash to cover, say, one or several years of living expenses, when combined with Social Security and any other guaranteed sources of income, such as a pension.

Money that you won’t need for several years is then invested in a diversified portfolio of fixed-income securities and equities, which offer the prospect of higher long-term returns but at greater short-term risk. The cash cushion offers peace of mind that you’ll get through the inevitable market slumps without needing to sell depreciated stock or bonds.

Despite the differences between the two strategies, the central takeaway is the same: Spending plans should be dynamic. In essence, the first year of retirement provides a trial run to implement a fluid strategy, allowing you to track your actual lifestyle costs while remaining flexible enough to make adjustments if market or economic conditions or personal priorities shift.

"People think they need to have it all figured out right away," says Andrea Eaton, a CFP at Cornerstone Wealth Advisors in Edina, Minn. "It takes a year to figure out your actual cash needs. It really is a guesstimate initially, and that can be changed up or down. It simply takes time getting used to taking money out versus putting money in."

Discovering your post-career purpose

Newbie retirees often feel unmoored when they are no longer defined by their job and the need to make a living. So it’s important to build a new sense of purpose for your retirement years and have good reasons for getting up in the morning.

"You should be working on what your life will look like before you even retire," Eaton advises. "What is your greater purpose? How are you getting involved in your community? What gives your life meaning beyond working for an income?"

How do you find that purpose now? Stornaielo, who spent 21 years at Fidelity in human resources and executive coaching, warns against getting too caught up in pretentious visions about purpose. She recalls a three-day retreat focused on purpose that she attended while still at Fidelity. The retreat was very serious and high-minded. At the end of it she declared her purpose was to be "the yeast in the bread of life," she laughs. "Whatever that means."

Her purpose mantra now is far simpler and grounded: "Helping people achieve their potential." Also helpful, she says, is not to think of your retirement as the end part of your life. "Don’t get hung up on how much time is left. [The focus should be] what I can do today to feel like I’m making the most of my time."

Finding meaning through community, learning, and giving

For Laura and Ben Cooper, giving back to their community is what’s providing that feeling and sense of purpose in retirement. Laura, 78, a former law professor at the University of Minnesota, became a volunteer teacher in a citizenship program in the Twin Cities when she first retired in 2018.

Along with Ben, 79, a former mathematics professor at Augsburg College in Minneapolis, they’ve since branched out to support a variety of causes that include local arts organizations, environmental groups, nonprofits focused on refugee rights, and their local library system. Freed from the busyness of active careers and raising their now-grown son, they were able to ask themselves, says Laura, "What do we really care about?"

The Coopers manage much of their giving through a donor-advised fund, a tax-advantaged charitable-giving vehicle that works like a personal investment account for philanthropy.

Added benefits of their philanthropic work, they’ve found, are the sense of community and opportunities for continued learning it has given them. They’ve joined outings with Nature Conservancy scientists, attended private theater rehearsals to hear from actors and directors, and learned from experts about international human rights. "Learning is absolutely vital, and we have pretty diverse interests," says Laura.

Conversations with family, friends and acquaintances are a rich resource for thinking about purpose. One technique is to pay close attention to the tasks, conversations and projects that leave you energized rather than drained. Introspection helps, too.

Think back to other major life transitions and see what consistent core values carried you through those shifts. Volunteering, mentoring, taking a course or learning a new skill are activities that also offer useful information.

And some resources can help. Among the books that might provide both inspiration and practical suggestions are: Who Do You Want to Be When You Grow Old? The Path of Purposeful Aging, by Richard Leider and David Shapiro; The Big Shift: Navigating the New Stage Beyond Midlife, by Marc Freedman; and The Second Mountain: The Quest for a Moral Life, by David Brooks.

Evaluating year one to recalibrate year two

At the end of your first year of retirement, Eaton suggests conducting a personal audit.

Ask yourself, What activities brought you the most joy and fulfillment? Which were a waste of time? Are you feeling lonely? Do you need to inject more intentional social interactions, clubs or group hobbies into your life? How is your budget holding up against the reality of retirement? Do you need to scale your spending up or down based on your actual first-year cash flow?

The answers to those questions will help you shape year two of retirement, which in turn will help guide year three. Retirement is iterative by nature — a series of continuous recalibrations. You want to be continuously asking yourself, says Eaton, "What didn’t go well? And how do I want next year to be?"

Know this: Your first year probably won’t look exactly as you imagined it would before you stopped working full-time, and that is perfectly fine. Year one isn’t supposed to be the final draft of your retirement; it is simply the initial run of a grand experiment.

Build a personalized plan with confidence

Retirement is full of important financial decisions, from creating a sustainable withdrawal strategy to deciding when to claim Social Security. A financial planner can help you build a personalized plan with confidence.

Use the Bankrate tool below to connect with a vetted financial planner who can help you create a retirement income strategy that fits your goals:

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

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Sixty-five is an age we treat like a finish line. Work stops. Retirement starts. Nobody questions it.

They should.

That selection of that number wasn't inspired by biology. It came from actuarial arithmetic in another century.

In 1889, Germany's Otto von Bismarck created the first national pension and set the eligible age at 70, then lowered it to 65. He wasn't being generous. Life expectancy in Germany at the time was around 45. Almost nobody would live long enough to collect.

Franklin Roosevelt imported the same number into Social Security in 1935. The average American lived to 61. The math worked for the same reason. Most workers were never expected to touch the benefit.

Neither man was designing for a retirement that lasts 30 years. Neither could have imagined it, and no one rewrote the number once medicine changed the outcome.

That is the part almost everyone misses: 65 was never a biological marker for the end of useful work. It was a budget line, set for a population that lived a third as long as we do now. We kept the number and forgot why it existed.

Meanwhile, the country is living through something demographers call Peak 65. More Americans are turning 65 right now than at any point in our history. More than 12,000 people a day are crossing that line.

Soon, nearly one in five Americans will be 65 or older. Most are walking into retirement following advice written for their grandparents' bodies, lifespans and bank accounts.

Here is the number that should worry you more than any market forecast. A 65-year-old man today can expect to live an additional 18 years; a woman, an additional 21. One in four will reach their 90s.

Retiring at 65 doesn't mean funding a short coda. It means financing a second adulthood, decades long, with no paycheck behind it.

Do the math on what that means for your money

Every year you keep working is a year your savings compound without a withdrawal. It's also a year less that your savings need to cover. That is not one benefit. It is two, working in the same direction at once.

Delay Social Security instead of your paycheck, and the math compounds again: Your benefit grows by roughly 8% for every year you wait past full retirement age, up to 70. Few investments anywhere offer such a guaranteed return.

Run the comparison. A worker who retires at 65 with $600,000 saved, and one who works three more years with the same balance and the same contributions, aren't close to the same outcome.

The second worker adds years of growth and years of savings and shrinks the number of years the money has to last.

Three years doesn't sound like much. On a retirement that may run three decades, it can be the difference between a plan that survives and one that does not.

None of this means grinding through the same job at the same pace until you drop. It means questioning the idea that the only options are full speed or full stop.

There is no single right answer. A construction worker with a bad back is not weighing the same choice as a consultant who sits at a desk. Someone caring for an aging parent has a different calculus than someone with no obligations at home.

The point is not that everyone should work until 70. The point is that 65 should be a choice you make with open eyes, not a deadline you face without reading the fine print.

The workplace is already moving in this direction, even if nobody has given it a name. The share of Americans 65 and older still working has more than doubled in the past 25 years. Among workers 75 and older, it has tripled.

Employers are inventing workarounds because they can't afford to lose the knowledge walking out the door.

• Engineers retire on Friday and return Monday as consultants
• Law partners shift to "of counsel" instead of disappearing
• Hospitals bring back nurses on schedules that fit their lives instead of erasing them from the roster

These aren't formal programs yet. Most companies are improvising, seeing an opportunity, not a wall.

If you are 10 years from a traditional retirement date, start the conversation with your employer now about what a phased exit could look like:

• Reduced hours
• Project-based work
• A shift from full-time to advisory

The earlier you raise it, the more leverage you have to shape it instead of accepting whatever you're offered on your way out.

If a full phase-down is not realistic in your field, look for a bridge.

• Consulting
• Board work
• Teaching what you know

Even a part-time role in a different field can cover living expenses long enough to leave your portfolio untouched and your Social Security benefit growing.

None of this is about loving your job so much that you never want to stop. Some people are done at 65, full stop, and that's a legitimate answer.

The point is that most people aren't choosing 65. They're inheriting it, the way you inherit a hand-me-down that no longer fits, then spending years wondering why the plan feels tight in all the wrong places.

Longevity isn't the problem. It's the reward. Unprepared longevity is the problem, and the retire-at-65 default is one of the clearest ways people back into it without noticing.

The finish line most of us grew up picturing was built for people who didn't get this many extra years. You did. The plan should reflect that.

Before you set a retirement date, run the math on what one, three, or five more years of earning does to the rest of your life. Then decide on purpose, not on a number handed to you by a 19th-century chancellor who never expected anyone to collect.

Related Content

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• Want to Retire at 65? See if You Can Answer These Six Questions
• The New 65? Why the Healthiest Retirees Are Throwing Out the Old Playbook
• The Retirement Risk No One Likes to Talk About: You, Still Here
• After I Was Dropped on a Mountain in Alaska, I Realized What's Missing From My Retirement Plan

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.

Aging in place has its benefits. You can stay in the home you're accustomed to. You're close to friends, family, community, doctors, and caregivers. Plus, you don't have to worry about the headaches and stresses of relocating.

For all those reasons, aging in place is a popular choice for many retirees. How many? According to AARP, 75% of adults aged 50 and older want to remain in their homes and communities as they age.

Remaining in your current home during retirement also presents meaningful financial advantages. Beyond avoiding the considerable expenses associated with a retirement community — which often range from $6,200 to $10,800 per month —there are several less apparent cost savings.

From everyday grocery savings to reduced tax burdens, here are five surprising ways aging in place can protect your nest egg.

(Read our companion story: 5 Unexpected Costs of Aging in Place — Even With No Mortgage)

5 unexpected aging in place savings

1. Cheaper groceries

Eating out can add up, and if you relocate to a retirement community or a new location, you may spend more on meals than if you age in place.

That's because living in a retirement community or assisted living facility usually comes with prepared meals and a set meal plan. Sure, standard meals may be included, but extra meals or guest dining aren't, which can quickly add up. If you live at home, you can cook for yourself, buy food on sale, shop in bulk, and find other ways to save on your groceries.

As for retirees who relocate to a new area, they may spend more money dining out, trying new restaurants in the town as they get a feel for the new neighborhood.

2. Flexible healthcare

Aging in place allows you to control your support costs, saving you serious cash compared to an assisted living facility or nursing home. Instead of paying a steep, flat monthly fee regardless of how much care you actually use, you only pay for what you need. If you require help for a couple of weeks after a fall, you can hire an aide for just that timeframe. If you only need assistance with errands for a few hours a month, you pay solely for those hours.

A non-medical home care aide generally costs $30 to $35 per hour (or $300 to $350 a month) for ten hours of help. Compare that to a full-time facility, which runs $6,200 or more per month, and the savings are substantial. Best of all, the money you aren't spending on a facility can stay invested and continue to grow.

3. Property tax savings

Setting down roots does mean something, even if the younger generations are quick to switch jobs and cut ties. And that loyalty is rewarded for homeowners who stay put in the form of tax breaks that you won't get if you relocate in retirement.

Most states and towns offer some sort of property tax break for residents over the age of 65, whether it's a homestead exemption, senior property tax exemption or a tax freeze. You won't get those immediately if you move to a new home, even if you are over the age of 65. Typically, you must own and live in the property as your primary residence for one to three years before you're eligible.

Staying put means you can collect as much as three years of tax savings, which could amount to hundreds, if not thousands, of dollars in savings.

4. Loyalty and senior discounts

Loyalty pays off, and that's particularly true for retirees who stay put as they age. By remaining in your long-time home, you can get discounts on everything from utility bills to property insurance. Discounts that you might not get if you relocate.

Utility companies tend to offer rate reductions or senior credits to long-term residents, while staying in the same home enables you to keep your policy discounts with your insurer. Staying put also protects you from taking on a brand-new policy at today's inflated market rates. That's good news since homeowner's premiums have jumped nearly 47% nationally over the last five years alone, according to LendingTree.

If you relocate to an area prone to severe weather or natural disasters, like hurricanes in Florida, your homeowners' insurance premiums could soar even higher, wiping out any expected savings from moving.

5. Free support networks

Whether it's close friends, long-time neighbors, or family living nearby, an established support network becomes invaluable as you age, especially if you decide to stop driving. By staying in your home, you can rely on informal favors, like a neighbor driving you to a doctor's appointment or a friend picking up your prescriptions.

If you relocate, a simple trip to the pharmacy or grocery store can easily run $20 or more for a rideshare if you don't have a car or a network of similar help. Relying on private transit services for every errand can quickly add up to hundreds of dollars a month.

Add savings to the list

There is a long list of reasons why people choose to age in place, and saving money isn't typically top of mind. But it is a major added perk, one retirees can comfortably add to their list.

After all, whether it's groceries, home maintenance, insurance, property taxes or support, aging in place offers real savings that go far beyond just avoiding the steep costs of an assisted living facility.

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• The Longevity Blueprint: 4 Everyday Signs You’re Tracked for a Longer Life
• 9 Upgrades That Transform Your Family Home Into a Retirement Oasis

Dividing an estate is a deeply personal matter, but disinheriting a family member requires far more than just omitting a name from your will. Between state spousal laws, federal 401(k) rules, and strict probate requirements, a single paperwork misstep can invite costly court battles and overturn your exact intentions.

Whether you are navigating a second marriage or protecting a child with special needs, testing your estate planning IQ is the best way to spot hidden vulnerabilities. Take our 10-question quiz below to learn the smartest legal tools — from no-contest clauses to non-probate designations — that ensure your hard-earned assets go exactly where you want them.

And don't worry if you miss an answer; you can use the links below the quiz to brush up on disinheriting an heir and estate planning.

More on Estate Planning, from the Kiplinger retirement team:

• 6 Reasons to Disinherit Someone and How to Do It
• Wills Gone Wild: How to Avoid Estate Planning Disasters
• 15 Estate Planning Terms You Need to Know
• Is Your Estate at Risk? The 5 Trusts You Need to Understand
• Revocable vs Irrevocable Trusts: It Comes Down to Control vs Protection
• The Little-Known Tool to Protect Your Retirement Savings in a Divorce

Aging in place is a popular choice for retirees for good reason. Home is where you raised a family, built a life, and rooted yourself in community. Plus, if your mortgage is paid off, you've eliminated one of retirement's biggest expenses.

However, housing costs go far beyond a mortgage and property taxes. If you aren't prepared, these five hidden costs of aging in place can easily throw your retirement budget off course.

(Read our companion story: 5 Surprising Ways Aging in Place Can Save You Thousands in Retirement).

Five hidden costs of aging in place

1. Home modifications

Aging in place might be as easy as relocating to a main-floor guest room, or it could require a complete architectural overhaul. Before committing, make sure your home is suitable for aging in place, and if it's not — that you can afford the necessary upgrades.

Major modifications such as walk-in showers, wheelchair ramps, and widened doorways can range from $2,500 to over $20,000, and Medicare won't cover them. The last thing you want is to find out after retiring that your hallways can't accommodate a wheelchair.

If you aren't sure whether your home is age-in-place ready, take our quick quiz here. Before you decide, ask yourself these three questions first.

2. Chore tax

Mowing the lawn, cleaning the house, tending to the pool and otherwise maintaining the house may seem easy in the early years of retirement, but as you get older, you may not be up for all that physical labor. Hiring someone for all that home maintenance comes at a cost that can add up.

On average, basic lawn maintenance costs $100 to $500 per month, while pool service ranges from $100 to $350 monthly. House cleaning typically costs $120 to $240 per visit, depending on your home's size.

3. Aging home appliances

From the boiler to the refrigerator, if you are aging in place, chances are, your appliances are too. They may be healthy now, but as they get older, they could fall into disrepair and need replacing, which could set you back some serious cash. Plus, homeowners' insurance won't cover a crack in your oil tank or a refrigerator that suddenly stops working.

How much will you be on the hook if you have to replace an old oil tank? Anywhere from $400 to $6,000, according to Angi. Meanwhile, the average cost to replace an HVAC system is $7,500, based on unit type and home size.

4. Transportation costs

If your home is in the suburbs and you lose the ability to drive, getting around can get expensive. That's particularly true if public transportation is inaccessible in your neighborhood or if you don't have a support network that can shuttle you to and from appointments.

Taking a rideshare or taxi to a doctor's appointment, the grocery store, or to visit friends and family can quickly add up. Spending $20 to $40 per trip, or $300 or more per month just to run errands or get to appointments, will eat into your budget fast.

5. Rising homeowners' insurance costs

Even if your mortgage is paid off and homeowners insurance is no longer required, going without it means you are personally on the hook for any damage. That's why most mortgage-free homeowners keep their policies.

If you plan to age in place with peace of mind, be prepared for rising insurance costs. That is especially true in states like Colorado, Minnesota, and Iowa, which saw double-digit premium hikes in recent years. Nationwide, average rates jumped 6% in 2025 alone

Crunch the numbers before aging in place

Aging in place is the goal for many retirees, and for good reason — your home holds your memories, your routine and your community. But before committing to stay put long-term, take an honest look at what it will take to keep your house safe, functional and comfortable. Running the numbers on these hidden expenses today will help ensure your forever home stays a place of comfort — and doesn't become a financial trap later on.

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More than half of U.S. adults have not completed any of their core estate planning documents.

That comes from a recent report by Trust & Will, and this gap in estate planning preparedness is often caused by the misconception that estate planning is reserved exclusively for ultra-high-net-worth individuals, or people with $30 million in liquid or investable assets.

In reality, an "estate" simply refers to an individual's total assets and belongings.

As a CPA, financial planner and wealth adviser, I like to sum up estate planning with the following question: If something happens to you, what happens next?

Elements of an estate plan

An effective estate plan relies on four core documents:

• Last will and testament
• Durable power of attorney
• Healthcare proxy
• Living will

Establishing these safeguards can help carry out your estate planning objectives and may reduce the likelihood that your family will need to navigate a lengthy and complicated probate process.

It is a common misconception that next of kin automatically have the right to step in during a medical or financial crisis. Simply being a son or daughter does not grant them legal authority.

By putting these specific documents in place, you give your loved ones the tools they need to manage two of the most important aspects of your life: Your health and your finances.

Claiming 'control'

The key word in estate planning is control. But what does it actually look like to lose it?

Without a plan, the everyday financial security you've spent a lifetime building can instantly slip out of reach. Reclaiming that control requires appointing a trusted executor and clearly mapping out your beneficiaries.

Crucially, you must communicate with your chosen executor before finalizing your paperwork to ensure they are genuinely willing and able to shoulder this heavy responsibility.

True financial control also means protecting your heirs from their own financial choices. That is why I often help clients "ladder" asset distributions by age or embed specific provisions tailored to unique family dynamics, which helps in seeking to ensure your hard-earned wealth hits the right hands at the right time.

A lack of planning can also impact your control over your health and your family's ability to advocate for you. If a sudden medical emergency leaves you incapacitated, you lose your voice entirely.

Without an advance healthcare directive or a designated medical power of attorney, your loved ones are left guessing in a hospital waiting room, paralyzed by the difficult choices during an already traumatic crisis.

By formalizing your medical wishes in advance, you maintain control over your care. You get to decide which life-prolonging measures you want, or don't want, dictate your preferences for comfort care and legally empower a single, trusted person to speak on your behalf.

Ultimately, healthcare estate planning helps ensure your family members don't have to make difficult decisions in a state of grief and can focus on healing.

Estate planning in the age of AI

We live our lives online, and in the age of artificial intelligence (AI), it is incredibly tempting to use software to automate your estate plan.

While technology can be a valuable resource, it shouldn't replace thoughtful conversations with a qualified financial professional.

Relying on an algorithm introduces a potential liability gap. Estate laws are highly nuanced, and if an AI tool makes a mistake or misses a state-specific loophole, the legal and financial fallout can land on you and your family.

For example, in my home state, we have Tennessee Community Property Trusts, a specialized, revocable joint trust that allows married couples to convert their individual or jointly held assets into community property.

While Tennessee is naturally a "separate property" state, this trust allows couples to opt in to community property laws that may help maximize tax benefits.

These nuances highlight the importance of working with a financial adviser and attorney with boots on the ground in your state who can keep a pulse on new laws or rules and present options you may be interested in exercising.

More importantly, estate planning is not a sterile transaction. It is a road map for your family's most difficult moments.

An algorithm cannot sit with your grieving spouse or guide your children with empathy, but a financial professional who has taken the time to understand your family and its unique dynamics may be a valuable source of guidance and support during a difficult time.

Your action plan

So, where do you go from here? Even if your financial situation doesn't require complex, high-net-worth trusts, there are practical steps you can take today to take charge of your future.

I recommend starting with a personal balance sheet. Bringing your cash flow and assets into clear focus removes the intimidation factor and gives you a concrete starting point.

With that financial snapshot in hand, many individuals begin by establishing the four core documents as a foundation for their estate plan.

From there, remember that an estate plan is a living and breathing document, not a one-time transaction. It may be beneficial to review your plan annually, or sooner if you experience a major life milestone, such as the birth of a child or grandchild.

Your finances will naturally evolve over time, and keeping your plan aligned with your growing assets can help ensure your wishes remain accurate.

Ultimately, this consistent upkeep is what helps create a lasting framework for future generations.

Related Content

• 5 Estate Planning Things You Need to Do Now, From a Financial Planner
• Estate Planning for Singles: 10 Things to Know
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This article was written by and presents the views of our contributing adviser, not the Kiplinger editorial staff. You can check adviser records with the SEC or with FINRA.

Back-to-school brings a familiar cash-flow crunch for parents. Between upcoming college tuition bills, essential supplies, and student loan obligations, families face tough financial trade-offs.

One of the costliest compromises is saving less for later in life.

According to the American Institute of CPAs (AICPA), over half (53%) of personal and parent borrowers say student debt directly hinders their ability to save for retirement. For these households, the default reaction may be to reduce or even pause monthly 401(k) contributions.

However, scaling back 401(k) savings may trigger a higher income tax bill and forfeit compounding growth — all while causing taxpayers to miss out on federal relief. Here's what you can do.

The hidden tax penalty of pausing 401(k) contributions

AICPA data shows that over 70% of parent and personal student loan recipients are worried about their ability to keep up with payments. To cope with this financial pressure, many borrowers may be quietly cutting back on long-term retirement savings.

But reducing pre-tax 401(k) contributions doesn't just free up cash; it can immediately raise your federal tax bill.

What does that look like in practice?

Suppose a family pauses their $8,000 annual pre-tax 401(k) contribution to pay down student loans.

Because 401(k) contributions lower their adjusted gross income (AGI) dollar-for-dollar, pausing them exposes $8,000 to the following potential tax traps:*

• Tax bracket creep: a higher AGI can push a portion of that income into a higher federal marginal tax bracket (e.g., jumping from 22% to 24%).
• Shrinking loan deductions: the student loan interest deduction (worth up to $2,500) phases out at higher income levels, meaning your tax break shrinks just as your taxable income rises.
• Loss of credits and Roth eligibility: a higher AGI can reduce your eligibility for child tax credits, education credits, and direct Roth IRA contribution limits.

*Note: The exact impact depends on your filing status and overall income.

In short, cutting retirement savings to cover student loans may improve cash flow today, but create a financial headache at tax time.

The SECURE 2.0 solution: the 'student loan match'

While it may feel like an all-or-nothing choice: pay off student debt or capture workplace retirement matching funds, you can actually use federal tax law to achieve both.

Thanks to the SECURE 2.0 Act, some employers now provide matching contributions to 401(k), 403(b), governmental 457(b), and SIMPLE IRA plans based on your qualified student loan payments (QSLPs).

How the rule works:

• To qualify, you must be making student loan payments and have a direct legal obligation to repay the loan (guarantors do not qualify).
• Parents paying installments on Parent PLUS loans taken out for their children's education are also eligible for this match (which may provide much-needed relief, as new caps of $20,000 per year and a $65,000 lifetime limit per student went into effect under the 2025 Trump tax bill).
• Total matched loan payments and direct 401(k) contributions combined cannot exceed the annual federal IRS deferral limit ($24,500 for 2026, excluding catch-up contributions).

Here's an example. Say your employer offers a 4% match on your 401(k), and you contribute at least 4% of your salary toward eligible student loans. Your employer can deposit the full match into your 401(k).

You also don't need to send every bank receipt to HR to qualify. Under IRS guidelines, you only need to provide a simple annual certification confirming your payment amounts and loan details.

The bottom line. You receive 100% of your employer's free retirement match money without putting a single new dollar directly into the 401(k) plan yourself. For more information, check out Kiplinger's report on the SECURE 2.0 Act.

How to find out if your employer offers a student loan match

However, not all companies offer student loan matching. So follow these steps to check your options and protect your budget:

1. Ask HR about "QSLP matching": Review your company's 401(k) plan documents to see whether student loan matching is enabled. Because employer adoption is optional, companies must proactively add this feature to their plan.
2. Scale back to a "micro-contribution" (if unsupported): If your employer doesn't offer student loan matching yet and you can't afford the full match amount, try contributing a small amount to your 401(k). Even contributing just 1% or 2% to a tax-advantaged account is better than nothing.
3. See if you're eligible for the $2,500 interest deduction: Check if you qualify for the federal student loan interest deduction. This tax break helps claw back some of the interest you pay to your loan servicer — and best of all, you can still claim the standard deduction.

Strategies for borrowers to protect retirement funds

If your employer hasn't adopted a 401(k) student loan match, here are some further ideas to help balance retirement savings with your monthly budget.

• Look into income-driven repayment (IDR) plans: An IDR plan bases your federal student loan payments on your income and family size instead of your total debt. This lowers monthly payments for some and may free up extra cash to put toward your 401(k). (Keep in mind: Parent PLUS loans have special rules and may need to be combined into a single direct-consolidation loan first.)
• Explore other tax-free employer assistance: Under Section 127 of the tax code, employers can provide up to $5,250 annually in tax-free student loan repayment assistance directly to employees. Ask your benefits department if this student loan benefit is available.
• Time extra payments wisely: If you have extra cash to save, prioritize capturing your full employer 401(k) match before making accelerated principal payments on low-interest student debt. An employer match represents an immediate 50% to 100% return on your investment, a rate that typically outperforms the interest saved by paying down low-rate loans early.

Managing student debt shouldn't force you to sacrifice your long-term financial security. By taking advantage of federal tax law, you may be able to pay down loans today without putting your retirement on hold.

Read More

• Does Your College Student Really Have to File Taxes This Year?
• Don't Overpay the IRS: 6 Mistakes That Could Be Raising Your Tax Bill
• SECURE 2.0 Act Summary: New Retirement Savings Changes to Know

For many retirees, managing taxes becomes just as important as managing investments. The way income is withdrawn in retirement can have a meaningful impact on how much of that income ultimately stays in your pocket.

While tax laws are complex, certain provisions can create valuable opportunities when used thoughtfully.

One such opportunity, sometimes informally referred to as the Big Beautiful Bill, offers a potential tax benefit for retirees who meet specific income thresholds.

Understanding how it works, and how withdrawals are structured each year, can make a noticeable difference in after-tax income. As a financial adviser and owner of New Smyrna Beach Retirement Solutions with more than a decade and a half in the financial industry, I can help with that.

What is the Big Beautiful Bill?

The Big Beautiful Bill is a colloquial term used to describe the One Big Beautiful Bill Act (OBBBA), a tax law that, among other things, allows eligible retirees to claim an additional deduction when their taxable retirement income stays at or below $150,000 per year.

For individuals age 65 and older, this bonus deduction can help reduce taxable income and lower overall tax liability.

On the surface, the rule appears simple. Stay under the income threshold and qualify for the deduction. In practice, however, many retirees exceed income limits unintentionally because they do not fully understand how different income sources are taxed or how withdrawals interact with one another.

Pensions, Social Security benefits, required minimum distributions (RMDs) and investment withdrawals can all contribute to taxable income in different ways. Some income is fully taxable, some partially taxable and some not taxable at all.

Without a clear strategy, it is easy for income to creep higher than expected.

Why withdrawal strategy matters

In retirement, income often comes from multiple sources. Traditional IRAs and 401(k)s are generally taxable when withdrawals are taken. Roth IRAs may provide tax-free income if certain requirements are met. Taxable investment accounts can generate income through interest, dividends and capital gains.

The key to taking advantage of income-based tax deductions is deciding how much to withdraw from each type of account in a given year. Drawing too heavily from tax-deferred accounts may push income above the threshold, while a more balanced approach could help keep taxable income within qualifying limits.

This is where coordination matters. By intentionally selecting the portion of income that comes from taxable, tax-deferred and tax-free sources, retirees may be able to manage their income level more effectively and preserve eligibility for valuable deductions.

This does not mean one account type is always better than another. It means coordination matters.

When withdrawals are planned intentionally, retirees may have more control over their taxable income and greater flexibility to adapt as tax rules and personal circumstances change.

Know what actually counts as taxable income

A practical first step is gaining clarity around what income is fully taxable, partially taxable or not taxable at all. Many retirees assume that income equals cash received, but the tax code treats different sources differently.

Understanding how Social Security benefits are taxed, how RMDs affect income and how capital gains are calculated can help prevent surprises. This awareness creates a foundation for better decision-making before withdrawals are taken.

Map out income before the year begins

Rather than reacting at tax time, retirees may benefit from projecting income at the start of each year. Estimating how much income is needed to support spending allows withdrawals to be structured more intentionally.

This forward-looking approach can highlight potential issues early. For example, it may reveal that a full RMD combined with other income sources would exceed the $150,000 threshold for the bonus deduction for older people. Seeing that in advance creates opportunities to adjust.

Use account diversification to your advantage

Retirees who have savings spread across taxable, tax-deferred and tax-free accounts often have more flexibility. If one source would push income too high, another may help fill the gap without increasing taxable income as much.

This might involve taking smaller withdrawals from traditional accounts in certain years, supplementing income from Roth accounts or being mindful of capital gains in taxable accounts.

Over time, this type of coordination can help preserve eligibility for deductions and reduce unnecessary taxes.

Pay attention to timing

Timing matters in retirement income planning. Some retirees experience lower taxable income in the early years of retirement before RMDs begin. These years can offer planning opportunities.

Others may face income spikes due to large withdrawals, one-time expenses or changes in investment income.

Recognizing when income is likely to rise or fall can help guide withdrawal decisions and avoid crossing important thresholds unintentionally.

A strategy that requires annual attention

Unlike some financial decisions that can be made once and left alone, income planning is ongoing. Tax brackets change, RMDs increase, and personal needs evolve.

Because of this, strategies designed to capture income-based deductions should be reviewed annually. Even small adjustments can make a difference. A slightly different mix of withdrawals, taken at the right time, may help preserve tax benefits that would otherwise be lost.

Regular reviews also help retirees adapt to changes in tax law and market conditions without making reactive decisions under pressure.

The bottom line

The OBBBA's provisions are examples of how thoughtful income planning can support a more tax-efficient retirement. While the bonus deduction for older people may seem modest, the cumulative impact of managing withdrawals carefully over many years can be meaningful.

For retirees, the broader lesson is clear. How income is structured often matters just as much as how much income is received.

Taking proactive steps to understand income sources, coordinate withdrawals and review strategies regularly can help ensure that available tax benefits are not overlooked and that retirement savings are used as efficiently as possible.

Related Content

• Four Keys to Planning Your Retirement Income Distributions
• I Tried a New AI Tool to Answer One of the Hardest Retirement Questions We All Face
• From Buying a New Car to Having a Baby: How the OBBBA Affects Everyday Taxpayers
• 5 Ways the OBBBA Rewards the Midwestern Millionaire: You Won't Want to Ignore These Tax Planning Opportunities
• Should You Jump on the Roth Conversion Bandwagon? A Financial Adviser Weighs In

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

Americans get plenty of advice on how to achieve financial freedom, but not nearly enough on how cybersecurity factors into it.

An investor could do a great job of building assets through investing strategies and portfolios structured to produce income, but then risk it all by failing to put the correct digital safeguards in place. And the need for protection is increasingly critical.

As a large wealth advisory firm, we are seeing more and more examples of investors having their emails compromised or their identity impersonated. What used to be very rare is becoming more frequent.

The FBI's Internet Crime Report revealed that total financial losses in 2024 from suspected internet crime totaled $16 billion, a 33% increase from 2023. People over 60 reported the most losses by age group, which is consistent with other reports showing that older investors are frequently targeted and may be the most vulnerable. And it's likely the numbers will keep increasing.

Company data breaches and hacks have already created a treasure trove of personal information for bad actors to use in their schemes, including Social Security numbers (SSNs), emails, addresses and phone numbers.

That data cannot be deleted or removed from the web once it's out there, nor can you change your SSN or easily change phone numbers or emails without disruption. The only thing you can do is use cybersecurity best practices to protect yourself.

What can happen if you lose access to your email or cellphone number?

You should always use financial institutions (banks or brokerage firms) that have strong data protections in place. But you still have to help protect your own identity and account access to prevent potential takeovers.

If a hacker takes over the email account you use and locks you out, they may be able to gain vital information that then allows them to request cash distributions or transfers from your financial accounts.

While the best-case scenario is that you recover your assets over time, there could be a long period during which you are unable to access your investments, as they may be frozen during the investigation.

Hackers can also take over your cellular number in a scheme called SIM swapping. Having access to your incoming calls and SMS messages allows them to intercept one-time security codes sent to your phone for two-factor authentication (2FA).

If your bank or investment custodian uses these codes for access and the hacker can determine your password, this gives them the keys to the kingdom.

You may not even notice your cellular number has been hijacked right away. Your phone would lose service, and it might just seem like a temporary glitch. But it could be something much more serious.

If an online custodial account is hacked, the hacker can link a new bank account to your investment account and attempt to transfer assets from it. Only prompt attention and action can prevent this type of damage.

Some custodians have certain 'hacking guarantees' in place — but where the liability falls in each circumstance is murky, and you really don't want to have to fight to recover lost assets. This speaks to the critical importance of maintaining unique and strong passwords as well as the most robust forms of 2FA.

Finally, financial institutions may authenticate your identity using an SMS code or similar, so losing access to the device you receive those on, or your email account, may seriously delay their ability to help you in an emergency.

Digital risks — weak passwords and your accounts

Accounts and account management for financial assets are now digital and online. That means if you choose to ignore cybersecurity, you do so at your own risk.

Even if you don't intend to manage your accounts online, at the very least you should set up your profile on each account and enable all the available security and privacy settings, so that someone posing as you can't do so on your behalf.

It used to be that registering your phone number with your bank or custodian was enough. However, due to the growing prevalence of SIM swap attacks, many providers are moving away from SMS-based codes. Using time-based or token-based authenticator apps or passkeys is now the more robust and secure option.

If your institution still primarily offers SMS, see if one-time email codes are available instead. If they are, you can then move on to hardening the security of your email account.

You don't want to lose access to the email accounts your financial institutions communicate with, so enabling all available security controls on your email is a must. This may involve setting up backup 2FA methods, such as authenticator tokens and passkeys, backup codes, and using a unique, complex password. Check whether your email providers offers a security checkup or recommends which security settings to enable to secure your account.

Digital independence also means reducing your reliance on a single platform or point of failure (in case you lose access to it). For example, using a password manager is crucial to security and password hygiene, and many web browsers have them built in.

But using one that isn't built in may help you retain access to all your passwords if you ever lose your primary device or are locked out of it.

Many password manager apps run in the cloud and have accompanying mobile apps. They can also store your unique 2FA tokens.

Taking responsibility for your digital literacy

Given how fast cybercrime is evolving, we all need to educate ourselves on the risks and maintain good cyber hygiene. Digital literacy is now intertwined with financial literacy and protecting your assets, just as diversification helps protect against market risk.

Unfortunately, there is no centralized playbook or one-size-fits-all guide for protecting yourself online. U.S. government agencies, such as the National Institute of Standards and Technology (NIST) and the Cybersecurity and Infrastructure Security Agency (CISA), offer online educational materials for individuals and organizations. AARP also offers some courses and educational content on cybercrime.

Cybersecurity and digital access are important parts of asset protection, just like diversification and other financial planning tools. But they're important for estate planning as well. If a family member passes and their online accounts are locked or next of kin are unable to access them, that creates additional financial headaches, especially if immediate access to funds or liquidity is needed.

A trusted advisory team can be a valuable resource, providing ongoing digital education and assistance, and making sure critical account settings are in place.

Financial advisory professionals with dedicated trading teams that monitor account transactions will also be able to help spot potential fraudulent transactions in real time.

Related Content

• How to Protect Yourself From Rising Financial Fraud, According to an Expert
• Seven Things to Do Right Away If You're a Victim of a Data Breach
• How to Protect Your Privacy While Using AI
• AI Could Derail Everything from Global Financial Systems to Online Privacy: Would You Be Vulnerable to an Attack?
• Trusting Fintech: Four Critical Moves to Protect Yourself

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

The financial professionals who contribute to Kiplinger's Adviser Intel are always here to share expert insights on wealth building and preservation.

The recent article Retirement Milestone Ages Most People Miss (And What to Do About Each One) outlined the key moments in retirement planning from your 50s to your 70s, and how the decisions you make work together to form a coordinated strategy. You can find out now how well-versed you are on the importance of these ages.

This quiz is designed to test how much you know about some of the more obscure milestones. (And don't worry if you miss an answer: You can follow the links below the quiz to brush up on your knowledge.)

Please note that this quiz has been prepared for informational purposes only and is not intended to provide, and should not be relied on for, tax, legal or financial advice.

Read More From Adviser Intel

• Retirement Milestone Ages Most People Miss (And What to Do About Each One)
• The 9 Key Milestone Ages in Retirement
• 5 Quick Tax Tips for Retirees for 2025 and 2026, From a Financial Planner

For many retirees, a pension is one of the greatest financial assets they have.

It provides predictable income, reduces the stress of market volatility and creates confidence that monthly expenses will be covered regardless of how their investments are doing.

But that guaranteed income comes with a trade-off that many people don't anticipate: Taxes. Much of the retirement advice you'll find online assumes retirees have little taxable income beyond Social Security and occasional withdrawals from savings. That's often not the case for pension recipients.

I know this because, as a CERTIFIED FINANCIAL PLANNER® and the founder and CEO of Peak Retirement Planning, I specialize in serving those with pensions. Between pension payments, Social Security and required withdrawals from retirement accounts, many retirees discover they're paying more in taxes than they ever expected.

The good news is that these challenges can often be managed with thoughtful planning (I wrote a book for those with pensions, The 2% Club, that you can request for free here).

Below are 13 ways a pension can reshape your retirement tax strategy.

No. 1: Your pension may keep you in a higher tax bracket

Many workers assume they'll automatically move into a lower tax bracket once they retire, and while that can be true for some households, retirees with pensions often experience something different.

Consider these three primary sources of retirement income:

• Pensions
• Social Security benefits
• Withdrawals from traditional retirement accounts such as 401(k)s, IRAs, TSPs, 403(b)s or deferred compensation plans

Each source may seem manageable on its own, but combined, they can produce enough taxable income to keep retirees in the same tax bracket, or even a higher one, than during their working years. That's why retirement tax planning should begin well before required distributions begin.

No. 2: Required minimum distributions can make the problem worse

Many retirees focus on today's tax bill but overlook how their taxes could evolve over the next 20 or 30 years. Required minimum distributions (RMDs), which generally begin at age 73 or 75, depending on your birth year, force you to withdraw a portion of your tax-deferred retirement savings annually.

Those required withdrawals typically increase as you age. If your investments continue growing over time, your account balances might also increase, resulting in even larger RMDs later in retirement.

This creates more taxable income, potentially pushing you into higher tax brackets, increasing Medicare premiums and affecting other aspects of your retirement plan.

No. 3: Retirement income is more connected than you think

Many retirees think about each income source independently, but in reality, every piece of your retirement income affects the others.

Your pension provides guaranteed income. Social Security may become taxable depending on your total income, and withdrawals from traditional retirement accounts add even more taxable income to the equation.

Because of the way these income sources interact, one decision can create a ripple effect throughout your tax picture. Coordinating them instead of managing each in isolation leads to better long-term outcomes.

No. 4: Higher income can increase capital gains taxes

Taxes in retirement aren't limited to ordinary income. Long-term capital gains have their own tax rates, currently 0%, 15% and 20%, but your taxable income determines which rate applies.

For retirees with substantial pension income, qualifying for the 0% capital gains rate might be difficult.

In addition, RMDs that aren't needed for spending are sometimes reinvested in taxable brokerage accounts, where future appreciation can generate additional capital gains taxes.

Understanding how investment income fits into your broader tax strategy can help reduce unnecessary taxes over time.

No. 5: Your pension may cause more of your Social Security to be taxable

One of retirement's biggest surprises is that Social Security isn't always tax-free. Depending on your overall income, up to 85% of your Social Security benefits may become taxable.

For retirees with sizable pensions, this often isn't a temporary issue. Pension income alone can push total income high enough that most or all of Social Security remains taxable throughout retirement.

While you might not eliminate this entirely, planning the timing of retirement account withdrawals and other income sources can sometimes reduce the overall tax burden.

No. 6: Medicare premiums are also affected by income

Taxes aren't the only expense influenced by retirement income. Medicare uses your modified adjusted gross income to determine whether you'll pay the income-related monthly adjustment amount (IRMAA), which increases premiums for Medicare Part B and Part D.

Higher pension income, larger RMDs and significant retirement account withdrawals can all contribute to crossing an IRMAA threshold. Even modest planning several years before Medicare enrollment could help reduce these additional healthcare costs.

No. 7: Don't overlook the widow's penalty

Retirement tax planning shouldn't stop with today's circumstances. When one spouse dies, the surviving spouse often experiences what financial planners call the widow's penalty. The surviving spouse generally:

• Loses one Social Security benefit
• Files taxes as a single taxpayer rather than married filing jointly
• Receives a smaller standard deduction
• Faces narrower tax brackets

This typically results in higher taxes despite having less household income.

Preparing for this possibility before it occurs can make a significant difference in a surviving spouse's financial security.

No. 8: Roth conversions may be especially valuable for pension holders

Because pension recipients often expect higher lifetime taxable income, Roth conversions frequently become an important planning tool.

A Roth conversion moves money from a traditional IRA or similar retirement account into a Roth IRA. Taxes are paid on the amount converted today, but future qualified growth and withdrawals are generally tax-free. Conversions can also reduce future RMDs.

The objective isn't necessarily to pay the least tax this year. Instead, it's to pay the lowest taxes possible over your lifetime, and in many cases, paying a reasonable tax rate today could help avoid larger tax bills decades later.

No. 9: There's no universal Roth conversion formula

A misconception about Roth conversions is that everyone should convert the same amount each year. The appropriate strategy depends on several factors, including:

• Your current tax bracket
• Expected future tax brackets
• Future RMD projections
• Medicare premium thresholds
• Social Security taxation
• Potential widow's penalty
• Estate planning goals
• Future tax law changes

Looking only at this year's tax return might lead to missed opportunities, and long-term projections often provide a clearer picture of whether a conversion makes sense.

No. 10: Tax diversification creates more flexibility

Many retirees have accumulated most of their savings inside tax-deferred retirement accounts. While those accounts provide valuable tax savings during working years, relying exclusively on them in retirement can limit your flexibility.

Creating a mix of assets in traditional retirement accounts, Roth accounts and taxable brokerage accounts gives retirees more choices when determining where to draw income, and that flexibility can make it easier to manage tax brackets from year to year.

No. 11: Where you hold investments matters, too

Asset location can be just as important as asset allocation. Different investments might be better suited for different account types.

For example, investments with higher long-term growth potential could benefit from being held inside Roth accounts, where future appreciation can occur tax-free.

Meanwhile, taxable brokerage accounts can offer favorable capital gains treatment and potential step-up-in-basis benefits for heirs.

Matching investments with the most appropriate account type can improve after-tax outcomes without changing your investment strategy.

No. 12: Pension distribution decisions have tax consequences

Some pensions offer a choice between receiving lifetime monthly income or taking a lump-sum distribution. While taxes shouldn't be the only factor in that decision, they deserve careful consideration.

Evaluating how each option affects future taxable income, Roth conversion opportunities, survivor benefits and long-term retirement goals can help retirees make a more informed choice.

No. 13: Charitable giving can reduce taxes

For retirees who regularly support charitable organizations, philanthropy can become part of an effective tax strategy. Qualified charitable distributions (QCDs) allow individuals age 70½ and older to donate directly from an IRA to qualified charities. Those distributions can satisfy charitable goals while reducing taxable income.

Donor-advised funds (DAFs) may also benefit retirees who wish to bunch charitable deductions, donate appreciated investments or simplify future giving.

These strategies can support causes you care about while improving tax efficiency.

Your taxes in retirement shouldn't be an afterthought

Many people build retirement plans around investments, income and spending, and taxes are often addressed only after those decisions have been made.

For retirees with pensions, that approach can leave meaningful planning opportunities on the table.

Taxes influence nearly every aspect of retirement, from investment withdrawals and Medicare premiums to Social Security, estate planning and charitable giving. Viewing taxes as the foundation of your retirement strategy, rather than an annual exercise, can help you make more informed decisions over the course of retirement.

After all, it's not simply about reducing this year's tax bill. It's about creating a retirement income strategy that remains efficient, flexible and sustainable for decades to come.

Related Content

• 10 Retirement Fixes You Can Implement Today to Strengthen Your Financial Plan
• When Is a Roth Conversion a Bad Idea? 6 Situations Retirees Should Consider Carefully
• This Changes Your Social Security Decision (Especially if You're in the 2% Club)
• Do You Need $1 Million-Plus to Retire if You Have a Pension?
• Many Retirees With a Pension and $1 Million-Plus Do These 7 Things (and Regret It Later)

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.

People other than spouses who inherit annuities can be hit hard with taxes. But there are ways to lessen the blow.

Here's the background.

Unlike qualified financial accounts such as IRAs and 401(k)s, most nonqualified accounts don't provide tax deferral. A nonqualified deferred annuity, however, allows earnings to accumulate tax-deferred.

This is a major benefit of annuities because deferral lets your money compound faster without taxes eroding your returns.

Generally, only a surviving spouse can inherit a "nonqualified annuity" and enjoy full tax deferral for their lifetime, assuming no interest withdrawals are made.

But the IRS and state tax collectors eventually will take their share of all the accumulated taxes that were put off. The "nonspouse" beneficiaries will pay those taxes.

If a beneficiary takes the proceeds as a lump sum or large distributions over a few years, they might get kicked into a higher tax bracket. For an annuity with a large untaxed gain, a lot of the money would go to the taxman.

Fortunately, a nonspouse beneficiary can spread out payments and taxes to ultimately net more money:

• Annuitization is one way
• The annuity stretch is another way, if your annuity company offers it

The default method can cause a tax bomb

The default way is the five-year rule. Nonspouse beneficiaries can always take up to five years to receive the proceeds. They can take them gradually or in a lump sum anytime up until the fifth anniversary of the owner's death.

Spreading proceeds over five years sounds good, but there's a problem: An annuity normally includes both reinvested gains and nontaxable principal. The gains are distributed first.

Consider an annuity with $100,000 in gains and $100,000 in principal. The beneficiary won't receive the tax-free principal until after receiving all of the gains.

Someone who inherits this annuity and takes proceeds evenly over five years would still have $40,000 of additional taxable income in year one, which would likely result in a higher federal income tax bracket and perhaps a higher state tax rate.

Someone who waits five years would have that $100,000 taxable gain plus any additional interest earned in the interim.

For some people, however, delaying can pay off. For instance, in year one, the individual could be working and in a high tax bracket, but in year five, they could be retired and in a lower tax bracket.

Annuitization: More tax deferral

The other option that's usually available is annuitization. Here, the nonspouse beneficiary directs the insurer to annuitize the proceeds: Turn the money into a stream of income for either a set period of time or a lifetime. Nearly all insurers provide an annuitization option.

Besides guaranteed monthly income, annuitization offers continuing partial tax deferment. Each payment includes both taxable gains and nontaxable return of premium (the "exclusion amount").

Annuitization can be a great choice, but you give up flexibility. Once you've annuitized, there's no cash value. You've traded that for long-term income.

I'm a big advocate of having a lifetime annuity. It offers guaranteed income you can't outlive — your own private pension that serves as longevity insurance.

But I recognize that many are unwilling to exchange cash liquidity for future income.

Stretching it out without annuitizing

The stretch method is more complex but worth considering. Here, the beneficiary receives monthly, quarterly or annual payments based on his or her life expectancy according to an IRS table.

Since the payments are spread out over the life expectancy, annual income tax bills are smaller. And the additional taxable income is far less likely to push the recipient into a higher tax bracket than a lump sum.

The money remaining in the annuity continues to grow tax-deferred.

Flexibility is another plus. Many insurers allow the beneficiary to stop the scheduled payments and take the remaining balance as a lump sum.

What happens if the beneficiary dies prematurely? Suppose the beneficiary's life expectancy was 20 years, but he or she dies after just 10 years. Most insurers permit a properly named successor beneficiary (such as a grandchild of the original owner) to continue receiving the remaining payments. This is an important advantage of the stretch option.

Not so fast!

Unfortunately, a beneficiary often can't use the stretch plan because the issuing insurance company has to be willing to support it. My ballpark estimate is that perhaps only 15% to 20% of companies do.

Nonspouse beneficiaries generally have one year from the death of the annuity owner to set up the stretch distribution. Only people — not trusts or charities — can choose it. Only nonqualified annuities are eligible.

When available, the stretch option can be applied to a multi-year guarantee annuity (MYGA), which behaves much like a bank certificate of deposit, or an indexed annuity.

Ask questions

No one distribution method is best across the board. Fortunately, if there are multiple beneficiaries, each one is free to choose the option that is best for them.

If you're an annuity buyer, ask your agent if the issuing insurer offers a stretch option if that's important to you.

If you're a nonspouse beneficiary, consider your tax situation and financial needs and compare your two or three distribution options before you decide on one.

Ken Nuss is the founder and CEO of AnnuityAdvantage, a leading online provider of fixed-rate, fixed-indexed, and lifetime income annuities. Ken is a nationally recognized annuity expert and widely published author. A free rate comparison service with interest rates from dozens of insurers is available at www.annuityadvantage.com or by calling (800) 239-0356. The firm also offers an income-annuity quoting service. There are no fees or charges for the firm's services; 100% of the client's money goes to work for them in their annuity.

Related Content

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• For Your Fixed-Income Pot, Consider an Annuity That Behaves Much Like a Bank CD
• Are You Retiring Soon and Need Income? An Immediate Annuity May Sound Boring, But Hear Me Out
• Too Scared to Dive Into a Fixed-Rate Annuity? Interest Rates Make It Worth Dipping Your Toe In
• Income and Life Expectancy Not Adding Up? An Annuity Could Solve the Equation

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.

Proposed legislation targeting "mega" retirement accounts has put high-net-worth IRAs and 401(k)s back in Washington's crosshairs.

The bill would force wealthy account holders to take mandatory distributions and block new contributions — a response to data showing some investors have accumulated multi-million-dollar balances through early-stage private equity and startups.

But while similar proposals have stalled in the past, this bill may reflect a broader policy trend. The legislative effort coincides with recent U.S. Department of the Treasury measures targeting other "aggressive planning" strategies like Section 351 ETF exchanges.

So whether this specific measure advances through Congress or not, the debate highlights key considerations for long-term tax, liquidity, and asset-location planning.

Here's what high-earning IRA account holders need to know in 2026.

Newly proposed limit cap on IRAs and 401(k)s

Sen. Ron Wyden (D-Ore.) and Rep. Richard E. Neal (D-Mass.) recently introduced legislation to cap IRA and 401(k) balances for high-net-worth accounts.

But the proposed restrictions don't apply to everyone with a large account balance. Instead, to trigger mandatory withdrawals and contribution bans, a taxpayer must meet two criteria in the same tax year:

• High-income floor: Modified adjusted gross income (MAGI) over $400,000 for single filers (or $450,000 for married couples filing jointly).
• Total asset cap: Combined retirement balances exceeding $10 million across all traditional IRAs, Roth IRAs, and defined contribution plans (like 401(k)s and 403(b)s).

If passed, the legislation would bar any individuals meeting both rules from making further contributions to their tax-advantaged retirement savings accounts for that year.

Additionally, forced withdrawals of the aggregate excess would be required (more on that below).

The two-tiered forced withdrawal rule

For high earners with over $10 million in affected accounts, the proposal requires accelerated withdrawals from tax-advantaged accounts. Yet the withdrawal rules are slightly different depending on how much you have saved for retirement.

Traditional IRAs and 401(k)s are normally subject to required minimum distributions (RMDs) beginning at age 73 or 75, under the SECURE 2.0 Act. By requiring a 50% payout of the aggregate excess over $10 million, this proposal creates a much steeper payout schedule that applies regardless of age.

Additionally, while Roth accounts are funded with after-tax dollars and allow tax-free withdrawals without lifetime RMDs, the bill targets high-net-worth Roth IRAs by requiring excess funds to be transferred to standard taxable accounts (if an account is worth $20 million or more).

Once forced money leaves a Roth, it enters a regular brokerage or bank account. From that day forward, any dividends, interest, or capital gains generated by those funds are subject to annual federal and, where applicable, state income taxes.

Why it's proposed (and why it faces resistance)

Wyden and Neal introduced their mega-IRA cap legislation in conjunction with Joint Committee of Taxation (JCT) data showing that over 32,000 Americans hold more than $10 million in tax-advantaged accounts.

Notably, the data presented a core group of about 200 individuals who hold an average of $409 million each — largely through early-stage private equity or startup investments placed inside self-directed IRAs, as reported by The Wall Street Journal.

"Tax-preferred retirement accounts are not supposed to be a loophole for the ultra-rich to shelter immense fortunes," Wyden stated in a press release. "They’re a lifeline for working Americans who may not otherwise have a dignified retirement.”

However, this is not the first attempt at a cap. A similar provision was included in early drafts of the Biden-era Build Back Better Act before lawmakers removed it from the final bill.

The primary pushback came from the financial services industry, including groups like the Retirement Industry Trust Association (RITA) and alternative asset custodians.

Critics claimed that forcing rapid distributions on private equity, startup stock, or real estate assets would force account holders to sell non-public assets at fire-sale prices just to satisfy cash distribution mandates.

Congressional Republicans and conservative think tanks, like The Heritage Foundation, also opposed these measures. They claimed that forcing new distribution rules onto existing balances would unfairly penalize investors who followed the law as originally written.

What high-net-worth investors should watch in 2026

While the debate over this specific bill continues, the renewed discussion signals that mega-retirement accounts remain in the legislative limelight. High earners and savers can use these proposed rules as a "stress test" for their long-term estate and tax plans:

• Diversify across account types. Holding all your wealth in a single tax-deferred vehicle can create legislative risk, or, at the very least, increase your total lifetime tax burden. Spreading assets across traditional, Roth, and taxable brokerage accounts gives you flexibility to manage your adjusted gross income (AGI) if distribution rules or federal tax brackets shift.
• Build liquidity alongside private assets. Self-directed IRAs containing private equity, startup stock, or real estate face liquidity risks when required distributions apply. Maintaining liquid buffers, like public equities or cash equivalents, may help prevent forced sales of illiquid assets during regulatory changes or normal RMD years.
• Keep alternative asset valuations audit-ready. IRAs holding private stock or real estate may draw increased IRS scrutiny because misvalued assets can trigger accidental "self-dealing" or other prohibited transactions. Thus, keeping annual, independent appraisal records could help your portfolio stay compliant if valuation enforcement tightens.

For high earners, watching Washington is wise, but you don't have to wait for a final vote on a key piece of legislation. A flexible tax plan built on true asset diversification remains one of the single best protections against an ever-shifting tax code.

Read More

• 6 Tax Reasons to Convert Your IRA to a Roth (and When You Shouldn't)
• SECURE 2.0: New Retirement Savings Changes to Know
• 2026 IRA and 401(k) Contribution Limits
• 5 Retirement Tax Traps to Watch This Year

Cash is king in retirement, and keeping more of it in your portfolio is always a priority. Fortunately, saving money doesn't always require cutting back. Sometimes it just takes changing how you pay.

By paying certain everyday expenses upfront, you can unlock significant discounts. Monthly payments include processing fees, administrative overhead, and transaction risks for providers, so many reward customers who pay in full, upfront.

From property taxes to annual subscriptions, prepaying these five recurring bills can yield serious savings without altering your lifestyle.

5 everyday bills to prepay now

1. Annual property taxes

Even if you paid off your mortgage, you're still on the hook for annual property taxes, and depending on which state you live in, the price can be hefty. For example, there are 18 states with annual property taxes of $4,000 or more. New Jersey ranks highest with annual property taxes of $7,580.

In some states, including Florida, you get a discount if you pay your annual property tax in a single upfront payment, which eliminates monthly processing fees. In Florida, that discount can be as much as 4%, depending on how early you pay.

2. Lawn care and pest control

Prepaying for lawn maintenance and pest control services can yield about a 5% savings, but it typically locks you into an annual contract.

Before you sign with a provider, make sure you understand the cancellation terms, service guarantees, and auto-renewal clauses. If you use a local contractor, ask if they offer an additional discount for paying the entire year upfront in cash.

3. Streaming subscriptions and memberships

This strategy works best if you are already loyal to your streaming services, warehouse clubs or gym and plan to keep them all year. By switching from monthly billing to an annual plan, you can unlock discounts ranging from 10% to 25%.

Take Amazon Prime as an example: paying $139 for an annual membership instead of $14.99 per month saves you over $40 a year, and that's just one service. Do that with all your subscriptions, and the savings can add up.

4. Dental and elective medical care

If you have the cash, offering to pay upfront for dental or elective care rather than using a payment plan can yield discounts ranging from 5% to 15%.

You have an even bigger advantage if you have a Health Savings Account (HSA). Paying out of pocket lets the HSA balance grow tax-free, and because there is no deadline to reimburse yourself, you can save your receipts and withdraw those funds tax-free later in retirement.

5. Long-term care insurance premiums

Paying insurance premiums annually instead of monthly can yield substantial savings, and long-term care policies are no exception. Most insurers add a 3% to 8% surcharge when you split an annual bill into monthly payments, but writing one check eliminates those extra fees. Depending on your carrier and policy size, switching to an annual payment can easily save you hundreds of dollars each year.

A word of caution

Only prepay these expenses if you have the extra cash on hand. If making a lump-sum payment forces you to sell off investments during a market downturn, you expose yourself to a sequence of returns risk, which can create a retirement shortfall later on. But if you can swing it, prepaying these five everyday bills is one of the easiest ways to unlock hundreds in savings without touching your lifestyle.

Related content

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People with retirement savings in a traditional IRA or 401(k) often experience a moment of panic when their balances grow and they realize they'll soon be on the hook for required minimum distributions (RMDs). RMDs can not only create a tax headache but also have additional consequences, such as raising retirees' income to the point where higher Medicare costs apply.

That's what makes Roth conversions so appealing. By moving money from a traditional IRA or 401(k) into a Roth IRA, you can enjoy tax-free gains in that account, take tax-free withdrawals, and avoid RMDs completely.

That is the scenario facing a 69-year-old engineer with a full-time salary earning $140,000 a year, a case recently considered by financial experts. With RMDs looming at age 73, there's a narrow four-year window to move money into a Roth IRA before mandatory withdrawals begin. And while that conversion may be smooth sailing if you're sitting on a $200,000 or $300,000 balance, converting a $1.2 million account is a whole other story.

The problem is that Roth conversions are a taxable event. If you convert one-fourth of your $1.2 million account per year over four years and continue collecting a $140,000 salary, your near-term tax bill could be huge. And you could end up costing yourself a lot more money in Medicare premiums if that conversion results in income-related monthly adjustment amounts (IRMAAs), or higher IRMAAs than what you're facing now.

That doesn't mean you don't have options, though. Here's how to pull off a Roth conversion under these circumstances.

Focus on tax brackets, not dollar amounts

If you're looking to convert a $1.2 million account before RMDs set in, you may be inclined to move $300,000 per year to achieve that goal. James Comblo, partner at Prosperity Capital Advisors, cautions that this approach may not work out in your favor.

"I would not divide $1.2 million by four and assume $300,000 a year is the answer," Comblo says. "Where I usually start with clients is by looking at how much room is available in each tax bracket. Filing status changes the entire calculation."

As Comblo explains, at a $140,000 salary, a single taxpayer is already in the 24% federal tax bracket before converting a single dollar. A married couple filing jointly, however, could land in the 12% bracket if they have enough available deductions.

In other words, depending on filing status, "the same salary can create two completely different conversion budgets and outcomes," Comblo says.

Running the numbers, we see that for a single tax-filer, adding a $300,000 conversion would push a meaningful amount of income into the 35% tax bracket. For a married couple, Comblo explains, most of that same conversion would fall into the 22% and 24% brackets. Only a small portion would reach 32%.

Social Security could complicate things

If you're 69 years old and earning $140,000 a year, you may not need Social Security. But the delayed retirement credits awarded to filers who hold off on taking benefits past full retirement age stop accruing at age 70. As such, that's typically considered the latest age to file for Social Security.

Comblo cautions that once Social Security starts, your taxable income increases, making it harder to stay within lower tax brackets during a Roth conversion.

"A Roth conversion can also cause more of the Social Security benefit to become taxable. The two decisions affect each other," he says.

A conversion could impact Medicare costs

Another issue with making a Roth conversion that is too large in any given year, says Comblo, is that it increases modified adjusted gross income.

"Medicare looks back two years when calculating Part B and Part D surcharges," Comblo explains. "A large conversion at age 69 could raise Medicare premiums at age 71."

IRMAAs aren't necessarily a reason to avoid Roth conversions, Comblo says. However, he advises, "It does mean the extra premiums need to be included in the calculation."

Re-evaluating the RMD "crunch"

Another thing Comblo cautions against is assuming leaving money in a traditional retirement account creates a crisis.

"A $1.2 million IRA at age 73 would produce a first-year RMD of roughly $45,000 under the current IRS life-expectancy factor," he explains. The taxes you pay on your RMDs may be lower than the taxes you'd pay on conversions.

Comblo also points out that starting RMDs at 73 does not end the Roth conversion window.

"The RMD has to come out first, and it cannot be converted," he says. "Once the required amount has been distributed, additional dollars can still be converted to a Roth. The planning becomes more complicated after 73, but the opportunity does not disappear."

Leveraging legacy goals

A Roth conversion may not be totally necessary in the situation above. From a tax perspective, leaving the money where it is could result in lower taxes.

In fact, Robert Jeter, CFP, founder and financial planner at Back Bay Financial Planning & Investments, LLC, says, "It's likely that they are in peak earnings of their career, and doing a Roth IRA conversion will almost certainly increase their lifetime tax bill."

But while a Roth conversion may not be the savviest move from a tax-minimization standpoint, Jeter says it could support an estate-planning goal — namely, reducing beneficiaries' tax liability.

"One of the best levers for Roth IRA conversions is talking about legacy goals as well as understanding the financial situation — specifically, the income situation of the beneficiaries," he says.

If your children, for example, inherit your Roth IRA, their distributions won't be taxable. If they inherit a traditional IRA, they'll owe taxes on their withdrawals, which they'll be forced to take so as to empty the account within 10 years. And if your heirs end up having to take those withdrawals during their peak earning years, at the family level, your total tax bill could be higher.

That, says Jeter, could make the case for a Roth conversion now despite having a large salary.

"I always categorize this as keeping money in the family," he says.

If your motivation to do a Roth conversion stems from wanting to leave a tax-free inheritance, one compromise is that your heirs could cover the conversion taxes with the understanding that more dollars would likely come back to them later, Jeter explains.

Four conversion strategies to compare

Ultimately, says Comblo, in this situation, there are four basic strategies worth looking at:

• Don't do any conversions. Let the IRA grow and take RMDs as required.
• Convert enough each year to fill the 24% tax bracket.
• Convert and use part of the 32% bracket, but only if the long-term projections support paying that rate today.
• Complete smaller conversions while collecting that $140,000 salary and do larger conversions once you're no longer working.

For each strategy, Comblo recommends comparing lifetime taxes, Medicare premiums, future RMDs, after-tax cash flow, the Roth balance at different ages, and what ultimately reaches beneficiaries, if that's important.

But ultimately, he says, "The conversion amount should come from the math, not from the size of the IRA."

Read More

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Many successful families have a high degree of confidence in their financial plans. They've saved well, invested thoughtfully, purchased insurance, built equity in a home, created an estate plan and worked hard to provide stability for the people they love.

But there is one area that can still catch even the most prepared affluent families off guard: The cost and complexity of future care.

The issue is not simply whether a family has enough assets. The real question is whether those assets are organized, accessible and structured in a way that can support care decisions if health, mobility or cognitive capacity changes.

Waiting until care is needed can limit options, increase stress and force families into decisions they might not have made with more time and planning.

Future care planning isn't just a health care issue. It's a family financial planning issue.

Healthcare and custodial care are not the same thing

One of the most common misunderstandings that families have is the difference between medical care and custodial care.

Medical care generally involves doctors, hospitals, prescriptions, surgeries, rehabilitation and treatment for illness or injury. Most people expect Medicare or health insurance to play a role in those costs, depending on the situation and coverage.

Custodial care is different. It generally refers to help with the activities of daily living, such as bathing, dressing, eating, moving around the home, using the bathroom or managing basic day-to-day needs. This care might be provided at home, in an assisted-living setting, in a memory care community or in a nursing facility.

That distinction matters because standard health insurance and Medicare generally don't cover long-term custodial care in the way many families assume they will. Medicare might cover certain short-term skilled care needs under specific circumstances, but it's not designed to fund years of ongoing assistance with daily living.

For families that haven't planned for this distinction, the realization often comes at the worst possible time; when a parent has fallen, a spouse has received a diagnosis, or adult children are trying to determine what level of care is needed and how it will be paid for.

One of the most common, and potentially costly assumptions families make is believing that Medicare will pay for help at home with activities such as bathing, dressing or other daily needs. In most cases, when that assistance is the only care someone needs, Medicare doesn't cover it.

The same misunderstanding often applies to assisted living: Medicare doesn't pay for the room, board and ongoing custodial care associated with assisted living, although Medicare coverage might still apply to separately covered medical services a resident receives. Families who assume otherwise can find themselves facing significant expenses they never built into their financial plan.

The cost is not just financial

When families think about future care, they often focus on the dollar amount. That is important, but the cost of care is broader than the monthly bill.

There is the emotional cost of making decisions under pressure. There is the logistical cost of coordinating care among family members, physicians, facilities, aides and financial professionals. There is the opportunity cost for adult children who might need to step away from work or their own families. There is the relationship cost when siblings disagree about what should happen or who should pay.

There is also the cost of uncertainty.

If no one knows where accounts are held, whether long-term care insurance exists, who has power of attorney, what income is available or what a parent's wishes are, every decision becomes harder. A family that is already dealing with a health event might also be forced to reconstruct an entire financial life at the same time.

That is why future care planning should begin with organization.

Review income, assets and liquidity before care is needed

A strong care plan starts with a clear picture of the resources available.

Families should review income sources such as Social Security, pensions, retirement plan distributions, annuity income, investment income and business or rental income.

They should also understand major expenses, including property taxes, mortgages, insurance premiums, charitable commitments, family support obligations and lifestyle spending.

From there, the question becomes: If care were needed, how would it be funded?

• Would the family draw from taxable investment accounts?
• Retirement accounts?
• Cash reserves?
• Home equity?
• Would selling a second home or investment property be considered?
• Are there assets that are illiquid or emotionally difficult to sell?
• Are there trusts or estate planning structures that could complicate access to funds?
• Is one spouse financially secure if the other needs care for an extended period?

For wealthier families, the issue might not be whether the money exists. It could be whether using that money for care disrupts other goals, such as supporting a surviving spouse, leaving assets to children, preserving real estate, funding charitable commitments or maintaining flexibility in the estate plan.

This is where planning matters. Families should understand not only what they own, but how those assets could be used under different care scenarios.

Understand what long-term care insurance actually provides

Some families purchased long-term care insurance years ago and have not reviewed the policy since. Others assume they don't need it because they've accumulated significant wealth. Both assumptions can create blind spots.

If a policy exists, it's important to understand the details.

• What triggers the benefit?
• How many activities of daily living must someone be unable to perform?
• Is there an elimination period before benefits begin? How much does the policy pay per day or per month?
• Is there an inflation rider?
• How long do benefits last?
• Does the policy cover home care, assisted living, nursing home care or memory care?
• Are there shared benefits for spouses?

These details matter because a long-term care policy might not fully cover the level of care a family wants. It could provide meaningful support, but still require additional personal resources.

For families without coverage, the planning conversation is different. They might need to decide whether they're comfortable self-funding care, whether hybrid insurance solutions make sense, or whether assets should be repositioned to create more liquidity and flexibility.

The right answer varies. The important thing is not to make assumptions.

Look beyond premiums when evaluating Medicare coverage

Long-term care is not the only health-related expense families should consider. Medicare coverage decisions themselves can also have significant financial implications, particularly when someone develops a serious illness and requires extensive treatment.

Under Medicare, Part B generally leaves beneficiaries responsible for 20% of the Medicare-approved amount for many covered outpatient services after the deductible is met. Medicare also has no annual out-of-pocket limit unless the individual has supplemental coverage. During a long course of treatment, those costs can become significant at precisely the moment a family is focused on a health crisis rather than a financial one.

That is one reason the choice of Medicare coverage deserves more than a simple premium comparison. Medigap policies are designed to help cover some of the coinsurance, co-payments and deductibles left by Medicare, while Medicare Advantage plans have annual out-of-pocket limits for covered Medicare services but might use provider networks and require prior authorization for certain services. The trade-offs are different, and the least expensive option upfront might not necessarily be the best fit for every family.

Families should also understand that Medicare decisions made at 65 could become more difficult to change later. Depending on the circumstances and state law, someone who later wants to move from Medicare Advantage to original Medicare with a Medigap policy might face limited enrollment opportunities or medical underwriting.

For families building a future care plan, Medicare coverage is another variable worth reviewing early, alongside long-term care insurance, liquidity and estate planning, rather than revisiting it after a serious diagnosis.

Consider the home as both an asset and a care decision

For many families, the home is central to future care planning.

Most people would prefer to remain in their homes as long as possible. That can be a wonderful goal, but it requires planning.

• Is the home safe for aging in place?
• Are there stairs, bathrooms or entryways that may become difficult?
• Could in-home care be brought in?
• Would one spouse be isolated if the other passed away? Would adult children be nearby enough to help?

Aging in place might also be more expensive than families expect, particularly if around-the-clock care becomes necessary.

On the other hand, downsizing, moving closer to family or transitioning to a senior living community might offer more support but can involve emotional and financial trade-offs. Families might need to weigh property taxes, maintenance, capital gains issues, estate goals and the emotional attachment to a long-time home.

This is not merely a real estate decision. It is a lifestyle, safety, liquidity and family decision.

Know when elder law planning might be relevant

Elder law planning could become important when families are concerned about asset protection, Medicaid eligibility, incapacity planning or the legal authority needed to act on someone's behalf.

Affluent families sometimes assume elder law planning doesn't apply to them. In reality, it can be highly relevant, especially when care needs are complex, family dynamics are sensitive or assets include real estate, trusts, business interests or illiquid holdings.

An elder law attorney can help evaluate powers of attorney, healthcare proxies, Medicaid planning options, asset titling and legal strategies for preserving flexibility. This should be coordinated with the family's financial adviser, CPA and estate attorney so decisions are not made in silos.

That coordination is critical. A decision that appears beneficial from one perspective could create tax, estate, liquidity or family consequences elsewhere.

Waiting limits your choices

The biggest mistake families make is waiting until care is needed.

By then:

• The preferred care community might have a waitlist
• The home might not be safe
• Insurance options may no longer be available
• Legal documents could be outdated
• A parent might no longer have capacity to make changes
• Siblings might disagree
• Assets could be difficult to access quickly

Planning earlier creates choices.

It allows families to:

• Clarify wishes
• Review resources
• Update documents
• Understand insurance
• Identify trusted decision-makers
• Discuss how care would be funded before emotions are running high

That is not pessimistic planning. It's empowering planning.

The goal is not to predict every health event or future care need. No family can do that. The goal is to build a roadmap so that if circumstances change, the people you love aren't left guessing.

For families that have spent decades building wealth, future care planning is one of the most important ways to protect not only the assets, but the dignity, independence and peace of mind those assets were meant to provide.

Related Content

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• Which Type of Long-Term Care Insurance Works for You?
• How to Pay for Long-Term Care
• Mom Needs Medicaid for Nursing Home Care. Should I Spend Down Her Assets to Qualify?
• You Don't Want It, But You Should Plan for It Anyway: An Expert Guide to Long-Term Care

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

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

Dear Wealth Wise: My partner and I are both 75, with an approximate net worth of $1.5 million. I am retired and he is still working. When he retires, we will both have fairly generous pensions and Social Security. Right now, we have a fairly aggressive portfolio with a tenth of it invested in a momentum tech stock. We are around 60% stocks and 40% fixed income (the classic 60/40 portfolio). The fixed income is primarily held in bonds and high-interest CDs. Is our strategy too aggressive for our age? We live modestly and have no debt. I have a long-term care policy. He does not. — Comfortably Cautious

Dear Comfortably Cautious: Between your partner’s current salary and your future guaranteed income from pensions and Social Security, you are in an enviable position relative to the retirement savings and income of most people in their 70s. Given this scenario, you have the luxury of letting your $1.5 million portfolio continue working hard in the market, but with some limitations.

When you're in the process of building wealth for retirement, it's generally a good idea to invest heavily in the stock market, whether by holding individual company shares or relying on exchange-traded funds. Once you're actually retired or getting close to retirement, it's important to be more careful.

This doesn't mean you need to dump your stocks altogether. But retirees are commonly advised to limit their stock holdings to protect against market volatility. Let's see what the experts have to say.

A portfolio that's 60% stocks is generally reasonable

It's important to maintain a reasonably robust stock allocation in your portfolio during retirement so your money is able to grow and, ideally, outpace inflation.

Nathaniel Tilton, private wealth adviser and owner of Tilton Wealth Management, says this investment mix can certainly be reasonable.

"The key question," he says, "is whether your portfolio is designed to support your lifestyle or to maximize growth. At this stage, it should primarily do the former."

Matthew Gaffey, President at Corbett Road Wealth Management, says a 60% portfolio may not be too aggressive for some retirees. But it really depends on the specifics of your situation.

"If the majority or all of your expenses are covered by your pensions and Social Security, it's highly likely that you're not too aggressive and could potentially even take on more risk if creating a legacy was of higher importance and you chose to do so," he says.

However, Gaffey cautions, "If the pensions and Social Security are only covering a fraction of your projected spending, it would be critical to examine your withdrawal rate relative to the remainder of your portfolio to determine an appropriate level of risk."

Finally, given that your partner is still working, you are presumably not drawing down the investment portfolio. That also points to your ability to take on more investment risk.

Concentration risk is an issue

While a 60% stock allocation in retirement doesn't automatically scream trouble, Tilton says you may be taking on undue risk with your specific approach.

"The biggest concern isn’t your overall allocation. It’s the concentration risk. Having 10% of your portfolio in a single momentum-driven tech stock introduces a level of volatility that’s typically unnecessary at this stage of life," he says.

As Tilton explains, a sharp decline in that single position could have an outsized impact, even if the rest of the portfolio is well-constructed.

"I’d suggest gradually reducing concentrated positions, maintaining a diversified allocation, and ensuring your fixed income is structured not just for yield, but for liquidity and flexibility," he says.

Keep in mind that selling off 10% of a $1.5 million portfolio ($150,000) in a highly appreciated stock could trigger a huge capital gains tax bill. Consult a tax adviser for a strategy to unwind this holding efficiently.

Your reaction to volatility makes a difference, too

Gaffey cautions that too much portfolio risk could be a dangerous thing, more so because of your potential reaction than a short-term portfolio decline.

"For many," he says, "a different mindset sets in after their normal working paychecks stop. … It was easy to ride out market volatility when they were working. … After they flip the retirement switch, suddenly the money they've saved for years becomes more real to them, and they become more sensitive to the potential impact that every price movement in the market could have."

The danger, Gaffey explains, is "the investor overestimating their risk tolerance in an up market, followed by a risk adjustment and overreaction to market volatility."

In other words, if you don't actually have as high a risk tolerance as you think you do, you may be tempted to liquidate assets out of fear when the stock market takes a dive. That could result in permanent portfolio losses that are tough to recover from, so it's important to be mentally prepared for a temporary decline in portfolio value.

Make sure you're looking at the big picture

A portfolio like this isn't overly concerning to Christopher Walsh, financial advisor at Capital Choice Financial Group.

"If you’re both getting pensions and Social Security and living modestly with no debt, you likely aren't going to need to touch that $1.5 million for day-to-day living," he says. "In that case, the market can do its thing, and a little aggression isn't likely to hurt you."

A potentially bigger issue, says Walsh, is where that $1.5 million is being held. If it's in qualified accounts subject to required minimum distributions (RMDs), such as traditional IRAs or 401(k)s, Walsh explains, Medicare surcharges known as IRMAAs could become a real issue.

"The tax conversation is way more important here than the asset allocation conversation," Walsh says.

The other thing that jumps out to Walsh is the long-term care gap.

"Traditional long-term care coverage at that age is going to be difficult and expensive," says Walsh, referring to the fact that only one of you has a policy. However, he says, "If you have non-qualified assets, there are asset-based long-term care options worth looking at. The RMDs are actually going to push money into non-qualified territory over time anyway, so that's worth a real conversation."

You're not in bad shape, but the plan needs some tweaks

All told, you can relax (for the most part)! You're in a reasonably strong place when it comes to retirement income. But a few modifications to your plan and investments may be warranted.

"Overall, you’re in a good position, but a bit more emphasis on simplicity, diversification, and risk management would go a long way," says Tilton.

Walsh agrees.

"The investments aren't what I'd lose sleep over here," he says. "The taxes and the long-term care gap are the things that could actually hurt you."

Addressing those key factors could put you in an even more solid position as you glide into this next stage of life.

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.

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With inflation still hammering retiree budgets, retirees may want to stress-test a simple but powerful benchmark: Can retirees realistically travel (or live abroad temporarily) on $100/day?

The short answer is ‘yes,' but with no shortage of qualifiers and caveats.

"Living on $100 per day would be fairly easy to do as a nomad, since you can easily find an apartment for rent for $1,000 or less per month in dozens of desirable countries, including in capital cities or in beach areas," said Tim Leffel, a travel book writer and author of the book A Better Life for Half the Price.

Leffel’s book covers 19 countries where living on less than $100 per day is feasible, and he says he and his wife now live in Mexico for less than $2,000 per month.

"That's without being at all careful about what we spend," Leffel noted. "We own our own home outright that we're regularly upgrading, but since most people in our city of Guanajuato pay $500 to $900 for rent, we would still be well under $100 a day for two of us even if we rented."

Leffel said there are cheaper places to live than in Mexico, even within Latin America. "Currently, that would include Guatemala, Nicaragua, parts of Panama, Colombia, much of Peru, Brazil, and Bolivia," he noted. Sometimes Argentina too, but it's a financial roller coaster there depending on what the government is up to."

"There are countries in Europe where people are spending far less, like Bulgaria, Albania, Hungary, and Romania," Leffel added.

How to start living abroad on $100 per day

Setting up stakes outside the U.S. for $100 or less per day is more of a mindset than a financial exercise, Leffel said.

"You don’t have to stretch a buck when living abroad," said Leffel. "Your expenses drop in half if you pick the right place."

He said that when in Mexico, for instance, "we go out to eat twice as much, attend more cultural events and don't even ask the prices when shopping for fruit and vegetables. We even have a weekly housekeeper for under $100 per month, for a three-bedroom/two-bath house plus an office."

Adopting that mindset means living like a resident rather than a tourist on a short vacation. "$100 per day may be sufficient for retirement travel if individuals can create a lifestyle similar to what locals live versus a tourist's 7 to 10 day vacation," said travel expert Jiayi Wang, founder of The Diary Of A Nomad.

Wang demonstrates this in Chiang Mai, Thailand, where her daily expenses average around $100. She typically spends $40 on a basic apartment or guesthouse, $20 on local meals, $8 on public transit, $12 on activities like cafes or museums, and $20 on miscellaneous needs like insurance, laundry, and mobile data.

Wang points out that staying longer allows you to spread your costs out over many months, including airfare, initial deposits, and utility setups.

Additionally, using local markets, eating at neighborhood restaurants, taking buses/trains, and renting apartments/homes for a month versus daily hotel rooms are great ways to save a buck when living on $100 a day, Wang said.

Navigating local banking and currency fees

Opening a local bank account abroad typically requires standard documentation: a passport or government ID, proof of local residency or a valid visa. Alternatively, multi-currency digital banks like Revolut or Wise offer easier workarounds for international travel.

ATM and card transactions also carry hidden costs. Swiping cards or making international ATM withdrawals can trigger foreign transaction fees and big out-of-network charges. This is especially the case when using credit cards to make cash advances. To limit these kinds of fees, you should carry a debit card that reimburses foreign ATM fees, including Charles Schwab or Capital One and a credit card that has no foreign transaction fees.

Finally, when a card terminal asks whether to pay in U.S. dollars or local currency, always choose the local currency. That's because choosing your home currency triggers Dynamic Currency Conversion (DCC), in which international banks charge inflated exchange rates and additional fees.

Visa thresholds and exit taxes

One major mistake U.S. retirees make when moving abroad is underestimating visa and residency costs, focusing primarily on airfare and rent.

“U.S. retirees often get surprised by renewal fees, border runs, the required insurance, or banking requirements,” said Dovi Geretz, Chief Technology Officer at SlickTrip, a real-time flight price alert platform. “Those expenses can add up quickly and disrupt even the most carefully planned long-term travel budget.”

Most popular destinations require a retirement or long-term residency visa to stay beyond tourist limits. While these programs attract international retirees, they carry upfront costs: application and legal fees, document translations, background checks, medical exams, and income verification. These requirements can easily add hundreds or thousands of dollars to a budget before signing a lease.

Retirees should also recognize that extended stays can trigger unexpected international tax obligations. Many popular destinations follow the 183-day rule, meaning that if you stay in the country for more than half the year, you may be considered a local tax resident subject to local income taxes in addition to your U.S. reporting.

Certain U.S. tax provisions, such as foreign tax credits, generally help citizens avoid double taxation. However, navigating dual filing requirements takes smart planning. U.S. retirees planning to split time between countries should track their days and work with an international tax specialist to ensure they don't accidentally trigger tax residency overseas.

Make sure to account for healthcare costs

One of the biggest mistakes people make when trying to determine how their retirement dollars will stretch while traveling is failing to include healthcare costs in their estimates.

"Medicare generally doesn’t pay for any medical treatment outside of the U.S.," Wang said. "Travel medical insurance or international coverage must be included in the costs of traveling and should never be considered an option, but rather a required expense."

Generally, travel medical costs are framed by the country where the insurance is needed. For instance, travel insurance in Costa Rica costs about $215 for a 12-day trip.

Medical insurance costs in Thailand, however, clock in at about $96 for the same 12-day trip. Consequently, it’s up to the traveler to determine how much of their $100-per-day budget should be spent on healthcare costs.

Renting longer term can help you save

Being creative about living arrangements can stretch a travel budget.

"Long-term rentals are much cheaper than short-term rentals," said Clay Cary, senior trends analyst at CouponFollow. He said that moving less often reduces transportation and hotel costs. "Therefore, slow travel is always more cost-effective."

Cary also advises living like a local to keep expenses low: shop at neighborhood grocery stores, use public transit, visit free cultural attractions, and eat where locals eat. Travelers often overlook hidden costs such as parking, transit passes, and daily upscale restaurant costs, which add up quickly depending on the location.

Location choice ultimately dictates the budget. As travel writer Tim Leffel points out, a $100-a-day budget goes much further in Southeast Asia than in Central America: "$100 per day would be tough in Costa Rica, but in Thailand, you could budget for it." He notes that in Thailand, you can cover rent, food, transport, entertainment, and healthcare for around $3,000 a month, or roughly $100 per day.

3 travel tips that accommodate a $100 per day budget

Use local transportation whenever possible: Usually, buses, trains, and metro systems are reliable and inexpensive when compared to taxis and rental cars," said Dovi Geretz, chief technology officer at SlickTrip, a real-time flight price alert platform. "Also, retirees who embrace public transit will save money daily and often experience destinations more authentically than travelers staying inside tourist bubbles."

Always choose destinations where healthcare is affordable and accessible. Many retirees underestimate how quickly medical costs can affect a travel budget.

"That’s why countries with quality private clinics, lower prescription prices, and affordable travel insurance options can help retirees protect both their health and long-term financial stability when overseas," Geretz said.

Eat where the locals eat, rather than rely on tourist districts or international chains: For inexpensive yet fun dining experiences, look for street markets, family-owned cafes, and lunchtime specials, as they often offer fresher food at a fraction of resort prices.

"Retirees who shop locally and occasionally cook at home can dramatically reduce daily expenses, all while enjoying a more immersive cultural experience," Geretz added.

Avoid these travel budget mistakes: Often, U.S. retirees overpay when moving abroad because they insist on having amenities they are used to at home, such as dishwashers or dryers, buying unneeded health insurance despite low local medical costs, or maintaining a car in walkable cities with cheap transit where a cross-town taxi might cost $4 and a bus just $0.50, Leffel said.

Phone charges can also break your budget. "An immediate and easy way that retirees can save each month significantly is evaluating their cell phone plan," said Thad Hwang, Founder and CEO of Goji Mobile.

Most Americans overpay by staying with mainstream carriers that hike rates or by buying excess data. Switching takes minutes, can save you $70 to $100 monthly without affecting coverage, and frees up more cash, Hwang noted. Additionally, many carriers now offer international roaming packages directly on existing lines, eliminating the need for third-party eSIMs while traveling.

Remember you're not on vacation

Perhaps the biggest mistake in living abroad on $100 per day is treating relocation and traveling as a permanent vacation.

“Many people underestimate how fast the budget can be eaten by restaurant meals, transportation, tours, and accommodation in hotels,” Cary said. Another error is failing to calculate additional fees, including taxes, resort fees, parking, and travel insurance.

“Retirees tend to move too frequently,” Cary said. “Flying and relocating every couple of days increases the overall expenses by two times. Those who spend more time in the same place get a better value for their money."

What does $100 per day buy retirees abroad?

Methodology: Estimated budgets are based on housing costs from Numbeo and Expatistan, health insurance estimates from international insurers including Cigna Healthcare and Allianz Partners, and retirement guidance from the U.S. Department of State, International Living and the Social Security Administration regarding overseas benefits. Costs are representative mid-2026 estimates for a single retiree renting a modest one-bedroom apartment and will vary by neighborhood, exchange rates and lifestyle.

Why retirees like it

• Relatively inexpensive private healthcare 
• Established expat and retiree community 
• Low-cost public transportation and dining 
• Long-standing retirement visa options

Hidden costs

• International health insurance premiums typically increase substantially after age 65. 
• Retirement visas require financial documentation and periodic renewals. 
• Flights to and from the U.S. can significantly affect annual spending. 

Primary sources: Numbeo; Expatistan; International Living; Cigna Healthcare Global; Allianz Partners; Thai immigration guidance.

Why retirees like it

• High-quality healthcare system 
• Safe communities and reliable infrastructure 
• Well-developed transportation network 
• Residency pathways available for qualifying Americans 

Hidden costs

• Housing costs in Lisbon and Porto have climbed sharply in recent years. 
• Rental inflation has outpaced overall inflation in many coastal markets. 
• Residency, taxes and healthcare planning can increase total costs. 

Primary sources: Numbeo; Expatistan; International Living's Global Retirement Index; Portuguese government residency guidance; OECD housing statistics.

Why retirees like it

• Close proximity to the U.S., making family visits more affordable 
• Large English-speaking retiree communities 
• Lower housing costs than many U.S. retirement markets 
• Well-developed private healthcare system in many cities 

Hidden costs

• Medicare usually does not pay for healthcare outside the U.S., so retirees must buy private insurance, local coverage, or pay out of pocket.
• Buying property near the coast or an international border requires setting up a bank trust and paying fees.
• Residency visa requirements and renewal fees are increasing.

Primary sources: Numbeo; Expatistan; International Living; U.S. Department of State country information; Centers for Medicare & Medicaid Services guidance on overseas coverage.

Note: These estimates represent moderate lifestyles for a single retiree renting locally in mid-2026. Actual costs vary based on exchange rates, housing choices, healthcare needs, and travel frequency. They are intended as planning estimates rather than fixed budgets.

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A few weeks ago, when I took a look at my retirement accounts, I felt good. My wife, Liz, and I were on target for our retirement strategy.

Our retirement plan has us both working for an additional three to five years or so. Working later has been part of our retirement strategy so we can support our children more now, rather than through an inheritance later on.

We want to cover medical school tuition for our son for another couple of years. We paid for vet school for our daughter and want to pay for her upcoming wedding.

We're also renovating a beach cottage for our retirement home.

Even with these expenses, we were on track.

Recently, after almost 45 years at her company, Liz, at age 64, was told her position had been eliminated. Now, everything feels different.

This was not the plan

We don't know yet if Liz will retire or take on a new job. We aren't in trouble financially. We have always lived within our means and been diligent savers, and we have some of our IRAs invested in annuities with guaranteed income options.

This wasn't the plan, though, and we don't want to rush into any decisions. We're meeting with our financial professional soon to discuss our options.

I have talked for years about the risk of an early retirement as part of my job working with financial professionals. Yet, I hadn't seriously considered the possibility that our retirement wouldn't happen on our timeline, even though it is common.

It's common to leave the workforce earlier than you thought, especially for reasons outside of your control. About two in five (42%) of Americans retire earlier than expected, often for reasons outside of their control, according to the 2026 Annual Retirement Study from the Allianz Center for the Future of Retirement.

Unexpected job loss was the second-most-common reason to retire earlier than anticipated after health issues that prevent performing their job.

We all need to think about this

So, now I get it. We all need to seriously think about the risk of an early retirement.

Beyond the financial impact, an unexpected early retirement can take an emotion toll as well. It can have a psychological impact on both the individual and their family. Liz describes it as a grieving process.

As we make financial decisions, it's important to recognize these emotions and avoid making major financial moves based on them. This is where our financial professional will become an invaluable partner.

Here are the five areas that anyone nearing retirement should be thinking about now, not later, to understand the risk of early retirement.

1. Can you actually afford to stop working?

Considering if you can stop working is complicated. In our situation, we've gone from two incomes to one. Her severance gives us some breathing room. We need to evaluate if we can afford for her to not work again and still achieve our financial goals now and for retirement.

Starting over again late in your career can also be daunting. It's even more daunting for Liz, who worked for the same company for more than 40 years.

It often also takes longer for older workers to find a new job. On average, workers over age 65 spend 39 weeks unemployed, and workers between ages 55 and 64 are unemployed for 36.9 weeks, according to the U.S. Bureau of Labor Statistics.

Younger Americans are unemployed for shorter durations.

2. How will your savings change?

If we're living on one income and covering the same expenses, something has to give. And it may be our ability to keep saving — at the time when saving matters most.

Our plan assumed we'd keep contributing to our 401(k)s for a few more years. Many people do this since these are typically some of your highest-earning years.

I've been making catch-up contributions to boost our retirement savings while we still could. Now, I'm not sure we can keep doing that.

The closer you get to retirement, the more valuable those final contributions can be. Catch-up contributions are designed for this stage of life — to help you make up ground and take advantage of tax-advantaged growth when time is limited.

We're now asking:

• Do we keep prioritizing savings, or preserve cash flow?
• Do we reduce contributions to maintain flexibility?
• How does stopping now affect our long-term outlook?

When retirement happens earlier than expected, time can be a big constraint. You don't have as many years left to contribute or recover from changes.

3. When should you claim Social Security?

We hadn't planned to claim Social Security anytime soon. Like a lot of people, we assumed we had time to figure that out. Now, we don't.

I've reached my full retirement age, so I could claim my full benefit today, and it would not be reduced since I've reached full retirement age — but that would prevent me from receiving delayed retirement credits.

Liz could claim as well, but her benefit would be reduced if she starts before her full retirement age. If she starts Social Security and then does end up going back to work, she may have her benefit reduced if she earns over the maximum allowed while on Social Security before your full retirement age.

All of this leaves us weighing a real tradeoff: Should I file for benefits now or wait for higher benefits later?

Social Security is often the foundation of retirement income since it provides a guaranteed income stream that lasts for life and typically increases with cost-of-living adjustments.

But when you claim has a big impact on your retirement income strategy. Claiming early can reduce benefits by as much as 30%, while delaying can increase them by about 8% per year until age 70.

For couples, there's another layer. The survivor benefit is based on the higher earner's benefit. Claiming early could permanently reduce income for whoever lives longer.

This decision connects to everything else — how much we withdraw from retirement accounts, how we manage taxes and whether Liz goes back to work. The right decision for you depends on your savings, your health and your income needs.

4. Where will your health insurance come from?

The only thing more expensive than health insurance is not having health insurance.

When you lose your job, you often lose your health insurance. Liz is eligible for Medicare in a few months. That leaves a short, but potentially costly, period of time when she will need medical coverage.

Fortunately for us, since I am working, Liz can get health coverage through my employer.

There is no such thing as claiming Medicare early. So if we were younger, and I did not have health coverage through my employer, this could be a significant extra expense we would have to cover.

Health expenses will likely increase in retirement as you find yourself needing more healthcare services. Don't underestimate the potential cost of healthcare in retirement.

5. How will your tax strategy change?

Most of our retirement savings are in tax-deferred accounts. That has helped us lower our taxable income while working and let those investments grow tax-deferred. But now, those deferred taxes are coming due.

Every dollar we withdraw to fund our lifestyle counts as taxable income. We have after-tax investment accounts and small Roth IRAs, so we need to incorporate those into our strategy as well.

That means we're not just deciding how much to take out — we're deciding how much of it we'll actually get to keep.

You need to calculate how much to withdraw in order to fund your level of spending after taxes.

You also have to be deliberate about how and when you take money out. Those withdrawals can push us into a higher tax bracket, increase how much we pay for Medicare and affect how much of our Social Security is taxed.

We had planned on converting a portion of our IRAs into Roth IRAs over a period of time before our required minimum distributions (RMDs) begin. We are not sure we can still afford to do that — yet another question for our financial adviser.

Taxes don't go away in retirement — they just show up differently.

Liz and I are now personally experiencing the reality that retirement rarely unfolds exactly as planned. We know we are more fortunate than others, but part of it was due to planning, keeping a budget and trying to avoid extravagant expenses while still enjoying our lifestyle.

Flexibility is just as important as discipline when it comes to retirement planning. By thinking through the what-ifs now and seeking trusted guidance, we can make more confident decisions in moments of uncertainty.

Even for those of us who prepare carefully, timing can change overnight.

Allianz Center for the Future of Retirement® conducted the 2026 Annual Retirement Study in January 2026 with a nationally representative sample of 1,000 respondents age 25+ with an annual household income of $50K+/$75K+ (single/married) OR investable assets of $150K+.

The Allianz Center for the Future of Retirement® produces insights and research as a part of Allianz Life Insurance Company of North America.

Allianz Life Insurance Company of North America and Allianz Life Financial Services, LLC do not provide financial planning services.

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

Estate tax planning is crucial if you want your beneficiaries to inherit as much of your wealth as possible. Without a solid tax plan, part of your estate might be lost to liabilities that could have been prevented.

The SECURE Act generally requires most non-spouse beneficiaries to fully withdraw inherited retirement account assets within 10 years of the original owner's death, eliminating the "stretch IRA" that allowed lifetime payouts.

One of the largest tax hits for an estate can be retirement accounts such as traditional IRAs and 401(k)s. Beneficiaries must pay standard income taxes on those withdrawals based on their income tax brackets.

State inheritance and estate taxes can vary depending on where the deceased lived or owned real estate. State laws may apply an estate tax, which is levied on the overall estate, or an inheritance tax, which impacts the beneficiary receiving the assets.

Some states have much lower exemption thresholds than the federal government, resulting in unexpected tax bills for moderate estates.

Capital gains tax is another area of estate planning that requires careful consideration. This tax can be triggered if the asset appreciates after the date of the decedent's death and before it is sold.

An estate going through probate or administration may also generate its own income through stock dividends, interest on estate bank accounts or rent on properties. The estate's executor is responsible for paying taxes on that income during the probate process.

Surviving spouses may also face the "widow's tax" or "widow's penalty" — a higher federal income tax burden, usually starting the year after their partner dies, when they switch from "married filing jointly" to "single" filer status.

Even though total income is often reduced (due to the loss of one Social Security benefit, usually the lower one), the tax rate applied to the remaining income is higher, and the standard deduction is 50% lower than it is for married filing jointly status.

Required minimum distributions (RMDs) from retirement accounts can also add to taxable income, potentially pushing a surviving spouse into a higher tax bracket.

Advantages of thorough estate tax planning include:

• Liquidity management. Planning ensures the estate has enough cash to pay taxes without forced sales of property or family businesses.
• Controlling asset distribution. Proper documentation ensures assets are distributed according to your wishes rather than state intestacy laws.
• Avoiding probate. Tools such as trusts and beneficiary designations bypass the lengthy, public and costly court-supervised probate process.
• Protecting beneficiaries. Trusts can protect inherited assets from creditors, lawsuits or mismanagement by heirs.

Strategies for mitigating estate-related taxes

Estate tax planning involves proactive legal and financial strategies to minimize estate and gift taxes on wealth transferred to heirs. It is essential to preserve your legacy, prevent a significant portion of your assets from going to the government and ensure your loved ones receive their intended inheritance smoothly.

Here are some key components of estate tax planning:

1. Trusts

Specialized trusts can shift taxable assets out of your estate, provide ongoing management or cover estate tax costs. Examples include irrevocable life insurance trusts (ILITs) and spousal lifetime access trusts (SLATs).

An ILIT removes assets from your taxable estate, effectively freezing their value for estate tax purposes. A SLAT allows one spouse to make gifts to an irrevocable trust for the other spouse, removing assets from both estates while retaining access to the funds.

2. Lifetime gifting strategies

Using the annual gift tax exclusion (which allows transferring a set amount to as many people as you want, tax-free), you can reduce the overall size of your taxable estate.

For the 2026 tax year, the limit is $19,000 per recipient. Married couples can split gifts and give up to $38,000 per recipient.

3. Charitable giving

Directing assets to qualified charities through charitable remainder trusts (CRTs), donor-advised funds (DAFs) and qualified charitable contributions (QCDs) can reduce the taxable estate while providing income or tax deductions.

With a CRT, you can donate stock or real estate to charity while generating an income stream for yourself or your beneficiaries for life or a set term. Along with providing a partial tax deduction, it defers capital gains taxes and passes the remaining assets to charity.

A DAF is a specialized giving account allowing a person to make a charitable contribution, receive an immediate tax deduction and recommend grants from the fund to eligible charities.

A QCD allows people 70½ or older to transfer up to $111,000 ($222,000 for a married couple) annually from a traditional IRA to a qualified charity, tax-free. The amount counts toward RMDs but is excluded from taxable income.

QCDs can be made from traditional IRAs and inherited IRAs. The donation must be made directly from the IRA custodian to the charity; the donation cannot go to a private foundation or donor-advised fund.

4. Roth IRA conversions

Converting traditional IRAs and 401(k)s to Roth IRAs leaves your beneficiaries a tax-free inheritance of your retirement accounts. This is especially important given that non-spouse beneficiaries are generally required to empty inherited retirement accounts within 10 years.

Roth IRAs are not subject to RMDs. And by paying the income tax on the converted amount during your lifetime, the size of your taxable estate is reduced.

5. Business succession planning

This strategy minimizes the taxable value of your business. For valuation discounts, you transfer partial shares to family members. Establishing a family limited partnership (FLP) or transferring growing assets to trusts removes future business appreciation from your estate.

6. Step-up in basis

Step-up in basis is a tax provision that adjusts the cost basis of an inherited asset to its fair market value on the date of the previous owner's death. All unrealized capital gains accrued during the original owner's lifetime are erased, reducing or eliminating the capital gains tax a beneficiary owes when they sell.

Due to the step-up rule, it's often more tax-efficient to leave appreciated assets to beneficiaries by a will or trust instead of gifting them while you're alive.

Clarity and financial stability for loved ones

Estate tax planning is ultimately about more than reducing taxes — it is about creating clarity, protecting the people you care about and preserving the values you want your wealth to support.

Without a thoughtful strategy, families can face unnecessary tax burdens and financial complications during an already emotional time.

By proactively addressing retirement accounts, estate taxes, capital gains exposure and income tax considerations for surviving spouses, you can help ensure that more of your assets pass efficiently to your loved ones.

Dan Dunkin contributed to this article.

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

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

Over the coming decades, a significant transfer of wealth is expected to take place, shaping how Americans spend, invest, and plan for long-term financial security. Commonly referred to as the Great Wealth Transfer, this shift will move substantial assets from baby boomers to younger generations.

Today, baby boomers hold approximately $85 trillion in assets — more than half of the total wealth in the United States. This is expected to pass to millennials and Gen Z over time.

While 55% of millennials and 41% of Gen Z expect an inheritance within the next five years, nearly three-quarters of Americans report feeling unprepared to manage a significant financial windfall.

This transition carries important personal and financial considerations. Families who plan intentionally can help preserve financial, relational, and legacy capital, while those who do not may face unnecessary tax consequences, strained family dynamics, or diminished long‑term wealth.

Navigating the Great Wealth Transfer requires more than just a legal checklist — it calls for an intentional approach that emphasizes preparation, communication, and responsibility.

To bridge the gap between expectation and readiness, families should consider a set of practical steps designed to protect both financial outcomes and family relationships.

By focusing on a few core best practices, families can turn what may feel like an overwhelming transition into a clear, structured process. Below are several ways families can prepare for the road ahead.

1. Set the stage for inheritance with financial literacy

The transfer of assets is not just a single moment in time — it is a long-term process that unfolds over many years. Effective preparation begins with instilling financial responsibility and education early in life.

Start with the basics. Teach children the purpose of saving and the fundamentals of budgeting, connecting these lessons to real-life practice through allowances, goal-setting and spending decisions.

While ensuring they understand the fundamentals of money may seem elementary, it lays the foundation for how they will perceive, manage and respect wealth throughout their lives.

Equally important is modeling financial transparency — speaking openly and regularly about family finances in age-appropriate ways. Establishing a culture of communication around money helps remove confusion while reinforcing shared values and long-term vision.

When heirs grow up in an environment where financial decisions are normalized, they develop both confidence and alignment with the family's mission and objectives. This is not just a habit to build, but a lasting family practice that will lay the foundation for life's major financial decisions.

2. Establish the framework before engaging heirs

Before wealth is shared, intent should be defined. Many clients come to us grappling with how much to leave to their heirs. Often, this concern stems from parents' desire to empower their children rather than undermine their drive. I often hear people say they want to leave their

children enough wealth to give them freedom and opportunity, but not so much that it removes their motivation or sense of purpose. At its heart, wealth planning isn't just about transferring assets — it's about passing on opportunity and responsibility in equal measure.

One effective way to clarify this balance is by creating a family mission statement. This document outlines your values and purpose, providing future generations with clear context for the role wealth is meant to play in their lives.

By putting your "why" in writing, you establish a shared reference point that helps guide decision-making over time.

Once your mission is clear, the next step is ensuring the financial plan supports it. Working with an advisor, families should:

• Audit the inventory. Review every asset, title and beneficiary designation to ensure no detail is left to chance.
• Close the gaps. Scrutinize estate documents for "loose provisions" or ambiguities that could later spark conflict or confusion among heirs.
• Develop the road map. Create a cohesive distribution strategy, providing your family with a vetted, actionable plan rather than a collection of disconnected documents.

Once your internal strategy is set, the next natural question is: "When do I involve my children?" While there is no universal timeline, their college years are often an ideal entry point.

At this stage, heirs are facing real financial decisions, making legacy conversations more tangible and relevant.

3. Let heirs learn in practice

The ultimate measure of success is observing whether preparation translates into wise financial stewardship. To bridge the gap between theory and practice, many families use annual exclusion gifts as "practice capital."

This approach provides heirs with a meaningful but measured opportunity to make financial decisions with real-world consequences. Rather than waiting for a massive, one-time inheritance event, it allows families to observe decision-making patterns over time.

As they reach specific milestones, responsibility scales, often by granting them shared control as a co-trustee or encouraging them to talk directly with family advisors.

This approach provides valuable insight into an heir's underlying financial philosophy by answering key questions:

• Do they make smart financial decisions?
• Do they seek professional counsel?
• How do they evaluate risk?
• Can they balance long-term opportunity with immediate gratification?

The patterns that emerge are the single greatest predictors of whether an heir is truly ready to safeguard the family legacy.

4. Maintain a trusted advisor relationship

As heirs become more involved in the transfer process, a financial advisor often plays a central role in helping families communicate clearly and stay aligned. This role becomes increasingly important as the plan grows in complexity and additional family voices enter the conversation.

An advisor's primary task is to translate technical details into clear, actionable guidance, helping the family align expectations and manage diverse perspectives. Specifically, they work hand-in-hand with families to help navigate the following pillars of wealth management:

• Tax implications. Advisors clarify how income, capital gains and estate taxes may impact the net value of an inheritance, explaining the triggers and strategies used to mitigate these costs.
• Asset structure and liquidity. Not all assets are created equal. Advisors help heirs distinguish between liquid and illiquid holdings, ensuring they understand the unique constraints and timelines associated with different types of wealth.
• Trust and estate vehicles. Since many transfers occur through complex structures, advisors educate inheritors on how specific trusts function and the distinct roles and responsibilities required by each.
• Philanthropy and values. While heirs may be aware of a family's charitable heart, they often don't understand the mechanics. Advisors explain the nuances of donor-advised funds, charitable trusts and community partnerships to ensure the family's impact continues.
• Governance and decision-making. When wealth is shared, leadership roles must be clearly defined. Advisors help heirs understand their rights and responsibilities within family governance structures to prevent friction.

A proactive partnership with an advising team helps mitigate generational risk and grants heirs the time and tools necessary to prove themselves as capable stewards. By bridging the gap between complexity and clarity, a dedicated advisor provides the peace of mind that a legacy is not just being passed down, but is being set up to thrive.

While the scale of the Great Wealth Transfer is significant, the principles behind successful stewardship are familiar. By defining your mission, educating your heirs through phased practice, and leveraging the expertise of a dedicated advisor, you ensure that your wealth remains a catalyst for opportunity rather than a source of conflict.

Ultimately, proactive planning transforms a complex financial event into a lasting family success story where your values remain the most significant legacy you leave behind.

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

This year marks two meaningful milestones in my life: 30 years of marriage and 30 years in business with our financial services firm.

Those anniversaries have made me more aware of how quickly life changes. Two people close to me — one on my side of the family and one on my wife's — have been facing ongoing challenges involving health, independence and long-term care.

Watching these situations unfold has changed the way I think about this topic, both as a family member and as a financial adviser.

Over the past 30 years, I have helped many families prepare for retirement and make difficult decisions involving aging parents. As our clients have aged — and as these issues have become more personal — the importance of planning before a crisis has become increasingly clear.

Families often imagine predictable progression: A loved one lives independently, eventually needs more help and then moves permanently into assisted living or a nursing facility.

Real life is rarely that orderly.

A person may move from independent living to a hospital, rehabilitation center or long-term-care facility and later return home. A temporary arrangement can become permanent. A plan that worked several months ago may no longer be safe or affordable.

Many families hold off on planning until they feel certain about what lies ahead. That certainty rarely arrives. A better approach is to create a plan that can adjust as health, independence and care needs change.

Here are five places to begin.

1. Discuss care before there is a crisis

These conversations are uncomfortable because they involve aging, independence, money and mortality. That is also why families tend to postpone them.

Do not begin by telling a loved one where they should live. Start by asking:

• What would be most important to you if you needed help?
• Would you prefer to remain at home, even if outside care were required?
• Who would you trust to make financial or medical decisions?
• What would make you feel that independent living was no longer safe?

The goal is not to settle every future decision. It is to understand the person's wishes while they can still participate fully.

Waiting until a hospitalization may force a family to make major decisions in only a few days.

2. Make sure the legal authority exists

Being a son, daughter, spouse, niece or nephew does not automatically give someone the authority to manage another person's finances or make medical decisions.

Families should review whether the individual has an updated financial power of attorney, health-care proxy or medical power of attorney, living will and HIPPA authorization permitting medical information to be shared.

The people named in those documents should understand their responsibilities and know where the documents are stored.

Financial institutions may also have their own procedures for recognizing powers of attorney. Addressing those requirements in advance can prevent delays during an emergency.

Because laws vary by state, an estate-planning or elder-law attorney should review the documents, particularly after a move or major change in health or family circumstances.

3. Understand what Medicare does — and does not — cover

One common misunderstanding is that Medicare will pay for long-term custodial care.

Medicare may cover qualifying short-term skilled nursing or rehabilitation following an illness or injury. It generally does not cover ongoing help with activities such as bathing, dressing, eating or using the bathroom when custodial care is the only need.

Some Medicare Advantage plans now offer limited supplemental benefits, such as personal care visits or minor home modifications, so it is worth checking the specific plan rather than assuming traditional Medicare rules apply across the board.

Families can be caught off guard when a covered rehabilitation stay ends but their loved one still cannot safely return home.

Potential funding sources may include income, savings, retirement accounts, long-term-care insurance, home equity, veterans benefits or Medicaid for those who qualify.

Medicaid rules differ by state. Before transferring assets, changing ownership or making large gifts, speak with an elder-law attorney. A well-intentioned decision can create unintended consequences.

4. Build a flexible cash-flow plan

Long-term-care planning should not assume one setting at one fixed cost.

Consider several possibilities:

• Help from family
• Part-time or full-time home care
• Independent or senior living
• Assisted living
• Memory care
• Skilled nursing care

Estimate how income and assets would support each option. Identify which accounts might be used first and consider the tax impact of withdrawals from IRAs or other retirement accounts.

Maintain enough accessible cash for deposits, moving expenses, home modifications or private caregivers.

The plan should be revisited after every major transition. A budget created for independent living may no longer work after assisted living begins. Someone returning home may need funds redirected toward caregivers, transportation or home safety.

5. Divide responsibilities before one person becomes overwhelmed

In many families, one person gradually becomes the default caregiver, financial organizer and emergency contact. That person may also be working, raising children or managing other responsibilities.

Discuss who will handle specific tasks. One person might communicate with doctors, another manages bills and insurance, and another coordinate transportation or facility visits.

Create a secure list containing important contacts, medications, insurance information, advisers, attorneys, account locations and recurring expenses.

Families should also identify signs that the current arrangement needs to change. Repeated falls, missed medications, unpaid bills, unsafe driving, poor nutrition or caregiver exhaustion may signal the need for more support.

The goal is not to take away independence prematurely. Sometimes preserving independence requires accepting help.

Planning cannot remove emotion

Even the best financial plan will not make these decisions easy.

Family members may disagree. A loved one may resist help. Health can improve and then decline again. Families may wonder whether they are doing too much, too little or making the wrong decision.

After 30 years in financial planning, I have learned that the most important conversations are not always about investments. They are often about independence, dignity, family responsibilities and how financial resources can support the people we love.

Planning cannot remove the uncertainty. It can give families a framework for responding to it.

You may not know what kind of care a loved one will need, when it begins or how long it will last. But you can make sure the right conversations have occurred, the legal documents are in place, the financial resources are understood, and the responsibility does not fall unexpectedly on one person.

When an aging family member's needs keep changing, the plan must be able to change with them.

Securities and advisory services offered through Commonwealth Financial Network®, member FINRA/SIPC, a Registered Investment Adviser. Fixed insurance products and services are separate from and not offered through Commonwealth Financial Network. Certified Financial Planner Board of Standards Inc. owns the certification marks CFP®. CERTIFIED FINANCIAL PLANNER™ in the U.S., which it awards to individuals who successfully complete CFP Board's initial and ongoing certification requirements.

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

You might know that certain ages matter in retirement planning: 59½, 62, 65 … these numbers come up in articles, in conversations, in the back of your mind when you're wondering whether you're on track.

Knowing a number exists and knowing what to do with it are different things.

I've worked with many people in their 50s and 60s who pay close attention to their finances for the first time, or finally getting serious after years of unmet intentions.

What I've consistently found, as a financial planner and educator with more than a decade of experience, is that the milestones themselves aren't the hard part; it's that nobody lays them out in order.

Here's my attempt to do that.

Age 50: The catch-up window opens

Turning 50 unlocks one of the first major financial planning opportunities you might not be fully taking advantage of, and I say that having watched plenty of people sail right past it.

Once you reach age 50, you can make catch-up contributions to your retirement accounts, putting away more than the standard annual limit.

For 2026, the standard 401(k) contribution limit is $24,500. At 50, you can add an additional $8,000, bringing your total to $32,500 per year.

For IRAs, the 2026 limit is $7,500, with a $1,100 catch-up for those 50 and older, for a total of $8,600.

If you feel behind on retirement savings, this is the moment to recalibrate. The math of compounding can still be significant in your 50s. Extra contributions in your 50s still have 10 to 15 years to grow before you need them.

Age 55: The HSA catch-up and the rule of 55

Two useful planning tools arrive at age 55.

If you're enrolled in a high-deductible health plan, you become eligible for a $1,000 catch-up contribution to a health savings account (HSA).

For 2026, the standard HSA contribution limit is $4,400 for self-only coverage and $8,750 for family coverage. The catch-up brings your individual limit to $5,400 and family limit to $9,750 if age 55 or older.

An HSA is one of the most tax-efficient accounts available for retirement: Contributions are pretax, growth is tax-free, and withdrawals for qualified medical expenses are tax-free as well.

You must be enrolled in an HSA-eligible high-deductible plan to contribute, and you generally can't make HSA contributions for any month you're enrolled in Medicare.

The second tool is the Rule of 55. If you separate from service during or after the calendar year in which you turn 55, you might be able to take penalty-free withdrawals from your current employer's 401(k) or 403(b).

This rule doesn't apply to IRAs, and your plan must permit these distributions, so confirm the rules with your plan administrator before relying on this strategy.

Age 59½: Penalty-free withdrawals begin

If you think 59½ is too old to celebrate a half birthday, think again.

At age 59½, you can begin taking withdrawals from your IRAs and 401(k)s without the 10% early withdrawal penalty. You'll still owe income taxes on pretax distributions, but the penalty disappears.

Many people are better off leaving retirement assets untouched as long as possible. Reaching 59½ doesn't mean you should start withdrawing. It means you have flexibility you didn't have before.

I've had clients who spent years feeling trapped by the penalty, not realizing how close they were to having real options. Knowing the gate is open changes how people think about their plan, even when they have no intention of walking through it yet.

Age 60: A different door for surviving spouses

Most people assume their own Social Security benefits can't start until age 62. For widows and widowers, there's an earlier option.

Surviving spouses can begin collecting Social Security survivor benefits as early as age 60. Claiming at age 60 generally means accepting a permanently reduced survivor benefit, so the timing deserves careful consideration.

The planning angle that's often missed is this: Survivor benefits aren't subject to deemed filing. A surviving spouse might be able to claim survivor benefits first and let their own retirement benefit continue growing, then switch later at 70 for a higher amount. The reverse approach works, too.

I've heard from widows who had no idea this flexibility existed and had already left significant money on the table by defaulting to whatever Social Security suggested at the window.

The difference between a thoughtful strategy and a default one can add up to tens of thousands of dollars in lifetime income.

If you've lost a spouse and haven't had this conversation with a financial planner or a Social Security specialist, have it before you file anything.

Ages 60 to 63: The super catch-up

The SECURE 2.0 Act introduced a higher catch-up limit for people in this specific age range, and most haven't heard of it yet.

Individuals age 60, 61, 62 and 63 who participate in a 401(k), 403(b), governmental 457 plan or the federal Thrift Savings Plan are eligible for a super catch-up contribution.

For 2026, that limit is $11,250, which is significantly more than the $8,000 catch-up available at 50. Someone in this window can contribute up to $35,750 to their 401(k) in 2026 alone.

For anyone trying to maximize retirement savings in their final working years, this four-year window can be one of the most valuable opportunities to accelerate tax-advantaged savings.

One important planning note: If your prior-year FICA wages from your current employer exceeded $150,000 in 2025, SECURE 2.0 generally requires your catch-up contributions to be made as Roth contributions using after-tax dollars.

Not every employer plan has implemented these changes in the same way, so it's worth confirming with your plan administrator how your plan handles catch-up contributions.

Age 62: Early Social Security

At age 62, you can begin claiming your own Social Security retirement benefit.

Claiming before your full retirement age reduces your monthly benefit permanently, and the reduction can be substantial depending on how early you file.

Meanwhile, delaying benefits until age 70 results in a higher monthly benefit because delayed retirement credits stop accruing at age 70.

For most people in good health, the math tends to favor patience, but longevity, cash flow needs and your overall plan factor into the right answer.

Age 63: Watch your income for Medicare's sake

This is the one that tends to sting the most when people find out about it too late.

Medicare uses a two-year lookback to set your premiums, which means your income at 63 directly affects what you'll pay when you first enroll at 65. If your income exceeds certain thresholds in those lookback years, you'll owe IRMAA, or the income-related monthly adjustment amount, an additional surcharge on top of your standard Medicare Part B and Part D premiums.

In 2026, IRMAA kicks in at $109,000 in modified adjusted gross income for single filers and $218,000 for married couples filing jointly.

The surcharges operate as cliffs, not gradual phase-ins. Crossing a threshold by even a dollar triggers the full surcharge for that tier, which can add thousands per year to your Medicare costs.

Before generating a large amount of additional income, such as from a Roth conversion or significant capital gains, estimate both the income tax consequences and any potential IRMAA surcharge. Looking at only the tax bill can lead to expensive surprises two years later.

Not sure if you're going to be impacted by IRMAA? Take advantage of a retirement planning tool to project your income sources and see for yourself. (Note: I am head of support and a financial planning educator at Boldin.)

Age 64 and 9 months: Start your Medicare clock

For most people, Medicare's initial enrollment period opens three months before your 65th birthday and closes three months after the month you turn 65.

Missing this window can result in late enrollment penalties that stay with you permanently. Set a reminder now.

Medicare's rules are complex enough that it pays to spend some time with a specialist before the window opens, not after.

Age 65: Medicare begins, HSA contributions end

At age 65, you're eligible for Medicare. Once you're enrolled in any part of Medicare, you generally can't make HSA contributions for any month you're covered by Medicare.

Funds already in the account remain yours to use for qualified medical expenses tax-free, and you can use the money for any expense without penalty, though non-medical withdrawals will be taxed as ordinary income.

Many people contribute aggressively to their HSAs in their late 50s and early 60s specifically to cover healthcare costs in retirement. If that's your strategy, plan around the contribution cutoff.

Age 70½: Qualified charitable distributions

At age 70½, a valuable tax planning opportunity becomes available for people who are charitably inclined and own an IRA.

A qualified charitable distribution allows you to direct up to $111,000 per year (in 2026) from your IRA directly to a qualified charity, and if you're married, your spouse can do the same from their own IRA, for a combined total of $222,000.

If you're already subject to required minimum distributions (RMDs), the amount counts toward satisfying your RMD for the year while remaining excluded from your taxable income. This is a useful tax planning tool, particularly for people who take the standard deduction.

Ages 73 to 75: RMDs

At some point, the IRS requires you to start withdrawing from tax-deferred retirement accounts regardless of whether you need the money. RMDs catch more people off guard than almost anything else in retirement planning.

When RMDs begin depends on your birth year. If you were born from January 1, 1951, to December 31, 1959, they start at 73. If you were born on or after January 1, 1960, they begin at 75.

Failing to take your RMD results in a 25% penalty on the amount that should have been withdrawn. The penalty might be reduced to 10% if the mistake is corrected in a timely manner and other IRS requirements are met.

The real issue is that large RMDs can push you into a higher tax bracket, make more of your Social Security taxable, and trigger IRMAA surcharges you weren't expecting.

Planning around RMDs in advance, through Roth conversions, charitable giving or careful withdrawal sequencing, is one of the most underrated conversations in retirement planning.

These milestones don't exist in isolation

Every conversation I have with someone approaching retirement eventually comes back to the same point: These decisions don't happen in a vacuum.

How you handle catch-up contributions in your 50s affects your tax situation in your 60s, which affects your Social Security timing, which shapes your RMD exposure a decade later. The decisions compound over time in both directions.

You don't have to figure this out alone. Whether you work with a financial planner or use retirement planning software, mapping these milestones in advance and testing different scenarios can help turn a long list of rules into a coordinated retirement planning strategy.

The more decisions you make proactively, the fewer costly surprises you're likely to face later.

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

Most "America 250" travel guides will point you toward the crowded, cobblestoned streets of Philadelphia or Boston — and while those historic hubs certainly earned their place in the history books, the true American story doesn't end at the original 13 colonies. If you are looking to give your grandchildren a deeper sense of the nation's heritage, the best classroom isn't a packed museum line; it's the open road.

These four itineraries trade predictable monuments for sweeping coastlines, ancient mountain passes and hidden historic stops, offering a compelling backdrop for passing down stories and building memories.

Out West: the Pacific Northwest & the corps of discovery

Trace the final leg of the expedition that reshaped America: a road trip following the Columbia River Gorge from Portland to Astoria's Fort Clatsop, ending where Lewis and Clark first saw the Pacific at Cape Disappointment.

The route: Portland to Columbia River Gorge to Astoria (Ft. Clatsop) to Cape Disappointment

Columbia River Gorge: Drive past stunning waterfalls and stop at the Columbia Gorge Discovery Center to learn how the expedition navigated these treacherous waters. The Columbia Gorge Discovery Center’s Raptor Program is capable of wowing kids and adults. You can visit the enclosure of resident bald eagles Liberty and Ferguson, ages 17 and 23 respectively, for free.

Lewis and Clark National Historical Park (Fort Clatsop): Located in Astoria, Oregon's oldest city, is a replica of the log fort where the expedition spent the brutal winter of 1805–1806. Kids can interact with rangers dressed in buckskins, try their hand at making candles from tallow and explore the dense coastal rainforest.

Cape Disappointment State Park: Cross into Washington to see where the expedition finally saw the Pacific Ocean. The dramatic clifftop lighthouse is unforgettable. It's still in use and open for tours. Visitors can also wander through the ruins of World War II-era bunkers and coastal defense batteries.

• Summer bonus: Chasing waterfalls & picking berries. Summer brings long, gloriously sunny days to the Pacific Northwest. Stop at the 620-foot Multnomah Falls and hike without needing a rain jacket. Take a detour through the Hood River Fruit Loop, where the kids can pick fresh berries and cherries.
• Fall bonus: The salmon run & coastal mist. October brings the legendary salmon runs to the Columbia River. You can visit the Bonneville Lock and Dam to watch thousands of massive salmon leap up the underwater "fish ladders." Plus, the coast at Cape Disappointment gets its signature dramatic, misty autumn aesthetic.

The South: The southern campaign & Overmountain victory (North Carolina & South Carolina)

While the Northeast gets the credit for 1776, the Revolutionary War was actually won in the South. This trip blends rich Southern history with the spectacular background of the Great Smoky Mountains. The Carolinas are hosting extensive "SC250" and "NC250" events, featuring large-scale autumn encampments and live blacksmithing.

The route: Charlotte (NC) to Kings Mountain to Cowpens (SC) to Asheville (NC).

Kings Mountain & Cowpens National Battlefields: These two parks preserve the sites of back-to-back American victories. The Kings Mountain State Park visitor center offers an interactive junior ranger program that explains how frontier "Overmountain Men" turned the tide of the war. Cowpens National Battlefield commemorates a decisive battle in the Revolutionary War, which ended in defeat for British forces under General Charles Cornwallis.

The mountain finish: End the trip by driving into Asheville to experience the lush greenery in the summer and peak foliage of the Blue Ridge Mountains in the fall.

• Summer bonus: Lake Lure & mountain streams. Beat the Southern summer heat by sliding into the cool, mountain waters. You can stop at Lake Lure (where Dirty Dancing was filmed) for a beach day surrounded by green mountains, or take the kids gem mining and tubing down the French Broad River.
• Fall bonus: Peak Blue Ridge foliage & reenactments. October is the absolute pinnacle for leaf-peeping in Asheville. Additionally, early autumn is when the park service hosts the Overmountain Victory Trail celebrations, featuring massive living-history encampments where volunteers walk the exact path the frontier militia took to the battlefields.

The Southwest: a crossroads of cultures

To truly celebrate the American tapestry for America 250, look to the Southwest, where Indigenous, Spanish and Anglo histories collided to shape the nation. Long before the first bricks of the thirteen colonies were laid, these high-desert landscapes were home centuries of rich cultural exchange.

The route: Albuquerque to Santa Fe to Taos

The Santa Fe Plaza: Celebrate America's diverse roots in the oldest capital city in the U.S. Families can explore the Palace of the Governors, part of the New Mexico History Museum, and buy authentic jewelry directly from Native American artisans under the portal.

Pecos National Historical Park: Just outside Santa Fe, this park features the ruins of an ancient Pueblo village alongside a 17th-century Spanish mission church, right on an old Santa Fe Trail trade route. It brilliantly illustrates the centuries of history that predated 1776.

Taos Pueblo: Take a day trip to a living Native American community that has been inhabited for over 1,000 years. Located at the base of the beautiful Sangre de Cristo Mountain range, this National Historic Landmark is open on weekends only from 9 am to 4 pm. If you've got an American Girl Doll fan, you can visit the Hacienda de los Martinez, which was the inspiration for the doll Josefina Montoya's home. It's a seven-minute drive from downtown Taos.

• Summer bonus: Santa Fe Indian Market & alpine hikes. While lower elevations are hot, Santa Fe and Taos are at high altitudes and stay quite comfortable. (For those who might be sensitive to altitude, keep in mind that you may need time to acclimate.) August brings the world-famous Santa Fe Indian Market, a celebration of Native American art, music and food. You can also take the chairlift up Taos Ski Valley for high-alpine summer hiking.
• Fall bonus: The balloon fiesta & roasting chiles. Early October features the Albuquerque International Balloon Fiesta, when hundreds of hot-air balloons fill the sky at dawn. The smell of autumn, and the official "state aroma", in New Mexico is the aroma of fresh green chiles being roasted in giant tumbling drums on every street corner.

The Midwest: innovation, labor & The Great Migration (Illinois & Indiana)

The trip through the Midwest tells the story of how America transformed from an agrarian society into an industrial superpower. Taking a road trip through Illinois and Indiana reveals the grit, innovation and diverse voices that built modern America.

The route: Chicago (Pullman) to Indiana Dunes to Fountain City (Coffin House) to Indianapolis

The Pullman Centennial: Visit the Pullman National Historical Park, a preserved 1880s company town that highlights the American labor movement and the pivotal role of the African American Pullman Porters.

Indiana Dunes National Park: Just across the state line, hike towering sand dunes framed by brilliant oak trees, celebrating America's conservation and National Park legacy. As part of their "The 1966 Hiking Challenge," the park is offering 19 weekly ranger-led hikes every Saturday at 8:00 am through August.

The Indiana State Museum (Indianapolis): They are hosting dedicated America 250 programming, including exhibits on the Underground Railroad in the Midwest, showcasing the region's commitment to freedom and human rights.

The "Grand Central Station" legacy: This unassuming brick house in Fountain City, Indiana, is where Levi and Catharine Coffin helped more than 1,000 freedom-seekers escape to safety. It's arguably the most successful "station" on the entire Underground Railroad.

They have an interactive visitor center next to the historic home that does a fantastic job of translating this heavy history into digestible, moving stories for children. You can tour the home and see the internal hiding places, including a hidden upstairs closet where entire families were concealed behind furniture, and a basement kitchen built with a secret indoor well so neighbors wouldn't see the Coffins hauling extra water for guests.

• Summer bonus: Lake Michigan beach days. This history trip can turn into a legitimate beach vacation. Indiana Dunes National Park features miles of sandy beaches and warm lake water that feels like the ocean without the salt. In Chicago, you can take a boat cruise down the river to stay cool.
• Fall bonus: Apple orchards & haunted trails. The drive from the Indiana Dunes down to the Coffin House takes you right through Indiana’s agricultural heartland. Stop at Huber's Orchard or Tuttle Orchards for fresh apple cider slushies, pumpkin picking and corn mazes. Additionally, Indianapolis hosts fantastic historic autumn ghost tours that weave local history with spooky seasonal fun (best for older kids or teens).

More on America's 250th Birthday

• America's Cost of Living at 200 vs 250: How Affordable is American Life Now?
• America at 250: The 3 Economic Headaches That Haven't Changed Since 1976
• How Has Retirement Changed in the Last 50 Years? Take Our Quiz
• Financial Advice From America's Founding Fathers
• Which Presidents Are on the Social Security Payroll?

After 43 years advising families through nearly every kind of wealth transfer imaginable, I've noticed something.

The families who struggle almost never struggle because of the tax plan. They struggle because nobody had a real conversation before the money moved.

That's not how most coverage of the Great Wealth Transfer sounds. Trusts, tax brackets and estate structures dominate the conversation — and for good reason.

An estimated $124 trillion is projected to change hands in the U.S. over the next two decades, and a lot of it runs through complicated legal and tax mechanics. Getting those right matters.

But mechanics aren't what decides whether a family holds together or comes apart once the money actually moves. I've watched technically flawless estate plans blow up because the heirs were blindsided by decisions they'd never once discussed.

I've also watched messier, less elegant plans work just fine, because the family had already done the harder work of talking to one another.

Here's something that should concern every family with real assets on the line. The Federal Reserve's Survey of Consumer Finances found that the average inheritance families actually received came in well below what they expected to receive, and the gap was largest among the wealthiest families surveyed.

Most people read that as a planning or market-timing issue. I read it as a symptom. If your family's expectations and the actual plan don't match, it's a sign the plan was never really discussed out loud. The dollar figure is just the first thing to surface.

The conversation that gets skipped

Early in my career, I learned a set of principles from my mentor, Joe Gabriele, that I've carried ever since. Chief among them: Attack problems head-on, with complete transparency. That applies to markets. It applies just as much to families.

Most parents I work with have a will. Many have trusts. Far fewer have ever sat their adult children down and explained why the plan looks the way it does, what they'll be responsible for or what the family actually expects of them once the money arrives.

I had a client years ago, a business owner worth several million dollars, who built a detailed estate plan and never once discussed it with his three kids.

When he passed, one child assumed the family business would be split evenly. Another had quietly been promised it outright, years earlier, in a conversation nobody else knew about.

The estate plan was airtight. The family took over a year to speak to one another again.

Money didn't break that family. Silence did.

What I ask families to do instead

I don't tell clients to simply "loop in the kids." That's not specific enough to be useful, and vague advice rarely survives contact with an actual family.

What I ask them to do is sit down, together, and walk through these questions before a single dollar moves:

• What is each person actually going to inherit? In plain terms, not legal language.
• Why was the plan structured this way? What was the reasoning?
• What responsibilities come with it? A business, a property, a caregiving role for a sibling?
• What does the family want this money to accomplish two generations from now?

None of these require a lawyer in the room. They require the parents to be willing to have an uncomfortable conversation while they're still healthy enough to lead it.

I've sat in on dozens of these meetings. They're rarely as bad as clients fear, and the families who have them almost never end up blindsided later.

Why this matters more for advisers, and for families, than people realize

I'm at a stage in my career where I think about succession constantly, not just for my clients but for my own practice. My son and business partner are actively involved in the business today.

What I've learned firsthand is that transferring a book of business is the easy part. Transferring the judgment, the relationships and the reasons behind decades of decisions is the hard part.

It has to be modeled and explained. It can't just be inherited by default.

Families face the same challenge with wealth. A trust document tells your heirs what they'll receive. It doesn't tell them why, and it doesn't prepare them to carry it forward responsibly.

That gap is where families come apart, and it's entirely preventable.

Where to start

If you're in the position of planning a transfer, start smaller than you think you need to. Pick one conversation, maybe the reasoning behind your estate plan, and have it this year.

If you're an adult child who suspects your parents haven't had these conversations, you can be the one to raise it. In my experience, most parents are relieved when their kids ask.

The tax and legal mechanics of the Great Wealth Transfer will get sorted out. That's what estate attorneys and advisers are for.

The part that actually determines whether your family thrives afterward is the conversation nobody wants to schedule. Schedule it anyway.

Related Content

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• Think You're Too Busy to Do an Estate Plan? In 3 Hours (Seriously), You Could Save Your Heirs Months (or Years) of Stress and Heartache

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.

Signing up for Medicare isn't as clear-cut a process as some might think. That's because enrollees have a big decision to make — stick with original Medicare (Parts A and B) and pair it with a Part D drug plan, or sign up for an all-in-one Medicare Advantage plan.

As of February 2026, more than 35 million people were enrolled in a Medicare Advantage plan. And enrollment in Medicare Advantage has increased steadily in recent years, with 19% of eligible Medicare beneficiaries signing up in 2007 versus 54% in 2025, reports KFF, a nonpartisan health policy research, polling, and news organization.

It's easy to see why so many people find these plans appealing. Many Medicare Advantage plans have $0 premiums, and most also offer supplemental benefits beyond what original Medicare covers.

Plus, some enrollees like the security of an annual cap on out-of-pocket spending, which Medicare Advantage plans offer. Original Medicare does not, though a supplement (Medigap) can help cap costs to a large degree.

That doesn't mean Medicare Advantage plans are perfect, though. Enrollees who ditch Medicare Advantage often cite limited provider networks and strict prior-authorization rules.

Mark Prip, a Medicare supplement insurance agent at Policy Guide, says, "If you've kept up with the headlines over the last year or two, you've seen Medicare Advantage undergo a significant shift. More than a million Medicare beneficiaries have been affected by Medicare Advantage plan terminations, consolidations, and service-area exits due in part to lower federal reimbursement rates."

Prip also explains that to combat these lower reimbursement rates, many insurance companies have been shrinking provider networks and ending contracts with large hospital systems across the country.

Given these and other constraints, Medicare Advantage may simply be a poor fit for some people. Here are three signs you may want to stick with original Medicare instead.

1. You don't have great health

There's a common saying that people in good health tend to do well with Medicare Advantage, while those in poor health tend to lose out financially. Scott R. Maibor, Managing Director at Senior Benefits Boston, says there's some truth to that generalization.

"For someone with multiple or severe health issues, a Medicare Advantage plan may prove to be ultimately more expensive than traditional Medicare with a supplement due to the higher copays and maximum out-of-pocket limit," he says.

Just beware of the "Medigap trap." Those supplemental insurance policies that wrap around Original Medicare can be almost impossible to get if you enroll in Medicare Advantage first and try to switch back later. In most cases, you can only sign up for Medigap plans without facing medical underwriting during the first six months after you become eligible for Medicare, though state rules do vary.

Another reason you might prefer original Medicare if you have a chronic illness? Out-of-pocket prescription drug costs under Part D are capped at $2,100 annually (for 2026).

Danielle K. Roberts, co-founder of Boomer Benefits, a national Medicare insurance agency, says Medicare Advantage plan maximum out-of-pocket limits matter more than some people realize.

"If you're managing a serious illness or anticipating frequent medical care, make sure to ask yourself, 'If I had a year with significant medical expenses, could I comfortably afford to reach that maximum?'" she says.

On the other hand, Roberts points out that Medicare Advantage plans aren’t automatically the wrong choice just because someone has health issues.

"They can be an excellent idea for many people, especially those with certain health conditions or life situations who qualify for both Medicare and Medicaid," she says.

Roberts also explains that Medicare Special Needs Plans (SNPs), a type of Medicare Advantage plan, are designed specifically for people with certain health conditions or who are dual-eligible for Medicaid and are "actually one of the strongest examples of how Medicare Advantage can work well."

As of February 2026, more than 8 million people were enrolled in an SNP, accounting for 83% of total Medicare Advantage enrollment growth over the previous year, per KFF.

2. You plan to split your time between different ZIP codes or travel frequently

Because Medicare Advantage plans limit enrollees to specific provider networks, Prip cautions that people who travel a lot may run into issues.

"While most plans will cover you out of state for medical emergencies, seeking care at specialty facilities in another state can become a real issue because of Medicare Advantage provider networks," he explains. "So if you're someone who travels frequently or simply wants the option to seek specialty care anywhere in the country, Medicare Advantage may not be the best fit."

Maibor agrees and says snowbirds or retirees with providers in two locations may find it difficult to use a Medicare Advantage plan.

3. You don't have the patience for constantly changing rules and providers

Another issue with Medicare Advantage plans? The rules aren't set in stone. And that could make managing care cumbersome.

"I think the main reason Medicare Advantage may not be a good fit for someone is if they're not comfortable keeping up with the rulebook that comes with these plans," Prip says.

"Whenever we conduct a needs analysis with a client, we ensure they understand exactly how Medicare Advantage works," Prip continues. "For example, I ask them, 'Are you OK knowing that your current medical providers who are in network today may not be in network in the future? Are you OK with having to switch doctors if your insurance company is no longer contracted with your medical providers?'"

Prip says that if you live in a smaller town and don't travel often, Medicare Advantage may be a more suitable option. However, he says that for those who want freedom, flexibility, and fewer surprises, original Medicare with supplemental insurance may be a better, less confusing choice.

How to choose the right Medicare Advantage plan

Medicare Advantage is wrong for some people but right for others. If you're in the latter camp, it's important to know how to choose the right one. To that end, Roberts says the key is not to get hung up on premium costs.

"The first thing I'd do is verify that your doctors, specialists, hospitals, and preferred pharmacy all participate in the plan's network," she says.

Next, Roberts says, you should make sure every prescription you take is covered by the plan's formulary and see what your copays will actually be. From there, you can compare each plan's out-of-pocket maximum.

Roberts says you should also estimate the cost of a major medical event.

"Understanding what you could owe if you need surgery, chemotherapy, or frequent specialist care is just as important," she says.

Finally, Roberts advises, don't let extra benefits drive your decision. They can seem tempting, but you may not end up needing or using all of them.

"I always tell people to choose the plan that gives them confidence they'll have access to the care they need at a cost they can comfortably afford," she says.

Read More

• What Medicare Covers When You Travel in the US and Abroad
• How Medicare Advantage Costs Taxpayers — and Retirees
• Problems with Medicare Advantage Plans Keep Mounting
• What Does Medicare Not Cover? Eight Things You Should Know

Three decades ago, buying a stock required a phone call to a broker, a sizeable fee and the confidence to act on limited information.

Today, a client can analyze their portfolio, stress-test retirement plans and execute trades before finishing their morning coffee. I've seen this transformation unfold remarkably quickly over the course of my career in this industry, and it is still accelerating.

But as technology has made financial planning faster, cheaper and more transparent, it has also introduced a new category of risk — the illusion of certainty. More data and authoritative-looking outputs do not always produce better decisions. And in retirement planning, the gap between what technology can model and what it cannot understand is consequential.

From gatekeeping to empowerment

The shift in financial access over the past generation has been profound. High fees and limited platforms once kept most investors dependent on intermediaries for even basic transactions. The emergence of online brokerage accounts, zero-commission trading and real-time data fundamentally changed that dynamic — and the nature of the adviser-client relationship itself.

Clients come to meetings better informed, ask sharper questions and hold advisers to a higher standard of transparency. That accountability is healthy. It pushes advisers to be more rigorous and to communicate with greater clarity.

Technology has freed advisers from operational tasks that once consumed a disproportionate share of the day. Investment selection, trade execution and portfolio rebalancing were painstaking manual processes at one time.

Today, they are largely automated. That shift allows advisers to direct their attention toward the work that matters most: Understanding a client's values, goals and concerns in ways that no algorithm can replicate.

The promise — and limits — of artificial intelligence

Artificial intelligence (AI) has become the most discussed tool in financial planning — and with good reason. AI-powered platforms can process vast datasets, generate retirement projections and identify tax-planning opportunities in a fraction of the time it would take a human adviser working manually.

But while I'd recommend using AI tools to prepare for advisory meetings, they can't replace them. When clients arrive having already worked through an initial plan, the conversation moves past the basics to focus on the decisions that are genuinely complex.

• How do we plan for a child with special needs?
• What does retirement look like for someone who intends to keep working part-time?
• How do we balance competing obligations to aging parents and a college-bound teenager?

These are not questions AI can answer without truly knowing the client, and they are often the most significant.

There is also a subtler risk that plays out more than once in any advisory practice. Clients often assume that because a plan was generated by a sophisticated platform, it is fully personalized to their situation.

In reality, AI outputs are only as good as the inputs they receive. A projection built on incomplete or inaccurate information can create overconfidence — a false sense of retirement readiness that goes unexamined because the output looks authoritative. The plan may be technically sound but emotionally incomplete.

It's important to view AI not as a threat but as infrastructure — a foundation that makes advisory work faster and more precise, while leaving the interpretive and relational dimensions of planning firmly in human hands. The financial advisers who thrive in this environment are not those who resist technology, but those who integrate it thoughtfully.

Beyond the headline technology

AI has been behind some of the most consequential improvements in financial planning. Tax planning is a good example. AI-assisted platforms can now model complex strategies around Roth conversion timing, charitable giving and capital gains harvesting — work that previously required hours of manual effort.

Advisers still review and refine these outputs, but the platform does most of the analytical heavy lifting, enabling more sophisticated planning to reach a broader range of clients.

Automation has simplified everyday financial management for clients as well. AI-powered note-taking tools now capture meeting conversations accurately and feed them into client management systems.

Context from one meeting is preserved and accessible in the next, which is incredibly valuable for maintaining continuity in long-term advisory relationships.

Where human judgment remains irreplaceable

Perhaps the clearest illustration of technology's limits can be seen at the transition from accumulation to distribution — the shift from building wealth to drawing it down. This phase involves products and strategies, including certain annuities, long-term care solutions and income-layering approaches that are typically available only through licensed advisers.

A client relying entirely on self-directed digital tools may not know these options exist, let alone understand how to evaluate them. Bridging that gap is what advisers are for.

Then there is behavioral finance. Markets decline. Plans require revision. Life circumstances change in ways no projection anticipated. In these moments, an adviser's role is not primarily analytical — it is steadying.

The conversations that matter during a market downturn, job loss or unexpected health crisis have nothing to do with spreadsheets.

Helping someone hold a long-term perspective when emotion is pulling in another direction is a distinctly human skill, and one with real financial consequences.

Avoiding costly mistakes in times of volatility can impact retirement outcomes as much as years of disciplined saving.

As automation handles more of the technical work, advisers get to focus on the aspects of planning that are most personal, complex and consequential. That is not a smaller role — it is a more meaningful one.

A more useful question

The right question about technology in retirement planning is not whether to use it. The better question is how to use it well and where to recognize its limits.

The clients who navigate this environment most effectively treat digital tools as a starting point, not a final answer. They use AI platforms to build initial frameworks, then bring them to an adviser who can pressure-test the assumptions, account for the intangibles and translate a spreadsheet into a plan that reflects how they want to live. Technology makes that conversation more efficient. It does not eliminate the need for it.

In a world where financial data is more accessible than ever, the scarcest resource in retirement planning is no longer information. It is the discernment to use it wisely —and that is still a very human strength.

Related Content

• In 2026, the Human Touch Will Be the Differentiator for Financial Advisers
• The Future of Financial Advice Is Human: Gen Z Trusts Advisers, But AI Skills Matter
• Sorry, But AI Alone Doesn't Cut It for Financial Planning
• I'm a Personal Finance Expert: Here's the Truth About Using AI to Plan Your Retirement
• So Your Employer Doesn't Offer a 401(k)? That's a Challenge, Not a Dead End

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.

Think you need $1 million or more to retire happily? You're not alone. Northwestern Mutual's 2026 Planning & Progress Study found that Americans think they need $1.46 million to retire comfortably. High-net-worth Americans think they need even more — an average of $2.67 million. Meanwhile, conventional wisdom says you should save at least 10 times your annual salary.

But here's the reality: many retirees do just fine with far less.

You don't have to spend your entire working life chasing a seven-figure benchmark. Combined with Social Security and smart estate planning, a retirement fund of $300,000 to $400,000 is often enough to enjoy a comfortable, stress-free retirement.

Matt Twiford, fractional CFO and Managing Director of the Pegacom Group LLC, notes, "While it would be nice to have $1 million in retirement, not having it doesn't mean you can't enjoy a good quality of life and feel somewhat financially free."

Here are 6 practical reasons why a "modest" retirement fund may be more than enough to be happy in your golden years.

1. Keeping your spending in check prevents lifestyle creep

On average, Americans have roughly one year's worth of their current annual income saved in tax-advantaged accounts. For most households, that figure hovers around $80,000, according to a SmartAsset study. That's far less than $300,000 and worlds away from the magic number of $1.46 million. Other surveys suggest that only about half of retirees have any retirement savings at all.

Even so, retirees who paid off their mortgage years ago and have annual expenses of about $45,000 to $50,000 avoid the stress that can come with maintaining a more extravagant lifestyle — or lifestyle creep (increased spending on non-essentials and making luxuries feel like necessities).

Paying down or paying off a mortgage and resisting expensive vehicles and gadgets can save thousands over time and make a happy retirement possible even with limited savings.

2. Moving to a lower-cost area can stretch your retirement dollars

Location plays a big role in retirement finances. Living in high-cost states such as Hawaii, California, New York, or Massachusetts takes a much bigger bite out of your budget than living in places such as Tennessee, Arkansas, Oklahoma, or Missouri. Choosing a lower-cost state frees up more money for travel, family, or charitable giving, rather than sinking more cash into housing, taxes, utilities and healthcare.