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

This time, we hear from a married 56-year-old plumber in Cincinnati who's still working. He reports a salary of $60,000 to $105,000.

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

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

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

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

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

The Basics

How did you make your first $1 million?

Slow and steady. Began contributing to my first company-sponsored 401(k) at age 26 and received a 50% match up to 6%, which is about all I could afford to contribute at the time (6%).

When I left that company, I transferred my balance, which wasn't much, to a self-directed traditional IRA and picked some funds.

Began a new job making more money and contributed to their 403(b). Each year when I got a raise, I increased my contribution amount.

Somewhere along the way, I also opened a Roth IRA and a brokerage account and contributed what I could, when I could.

And that is what I am currently doing, though now I focus on maxing out the Roth as soon as possible.

One point to add is that I never once pulled anything out, no matter how bad the market got, like in 2008. I stayed the course, and it has paid off, so far.

I also never sought out the latest stock or trend. I just picked quality mutual and index funds and let it ride.

What are you doing with the money?

I am still building my wealth over the next four years, when I plan to retire at 60.

The Fun Stuff

Did you do anything to celebrate?

Not yet. I will in four more years when the house is paid off, and I tell work to shove it!

What is the best part of making $1 million?

Feeling like I have a chance at a comfortable retirement.

Did your life change?

No. $1 million isn't what it used to be.

Does anyone know you're a millionaire?

No. It is nobody's business but mine.

Any plans to retire early?

Planning to retire at 60 — four more years.

Looking Back

Anything you would do differently?

Contribute more and maybe start earlier.

What advice would you give to your younger self?

Start early.

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

No, just watched a lot of investing videos on YouTube. But if I were to get a book, it would probably be The Total Money Makeover by Dave Ramsey.

Did you work with a financial adviser?

Never worked with a financial planner until recently. Giving it a "trial" run to see if the fees are worth it.

Looking Ahead

Plans for your next $1 million?

I'll figure it out when I get there.

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

Spend less than you make. Don't rack up debt.

You don't need a new phone or car every year or two. The borrower is a slave to the lender — save up to buy what you want/need with cash. The interest saved will help build wealth.

Don't fall for the latest trends, like bitcoin/crypto. Instead, pick some good mutual/index funds and contribute regularly.

Do you have an estate plan?

Not yet.

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

The best index or mutual funds to invest in.

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

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Things that go bump in the night aren't the only frights retirees should fear this Halloween season; their retirement accounts might just scare the bejesus out of them.

That's especially true in the current environment, where inflation is rising, gas prices are elevated, and a U.S. mid-term election is around the corner. Short-term portfolio dips might be scary, but the true nightmares lie in these five hidden traps.

5 Spooky Retirement Investment Moves to Avoid

1. The monster you invited in

You may have heard this AI stock is the next Nvidia, or this option play using an upside-down multi-way spread trade (whatever that is) will make you rich; if you don't understand it and still invest in it, Brant Wong, head of retirement solutions at Principal Asset Management, says that is one of the scariest things an investor can do.

"With any retirement account, for any investor, there are always different investments, different returns, and risks," says Wong. "It's important to understand how these things work." If you don't, you might make mistakes, leading to buying high and selling low, which is what true portfolio horror stories are made of.

2. Zombie investments

If you've switched jobs over the years, or aren't completely on top of your finances, you may have one or more of these: zombie investment accounts. These are old 401(k) accounts, stocks you forget about, or the same investment in multiple ETFs or mutual funds. All of those zombie investments cost you money in fees, redundancy and lost growth. They can be downright frightening, says Patrick Marcinko, a financial adviser at Bogart Wealth.

"Here's an easy fix. At least once a year, look at everything you own and why you own it. If you can't explain why, it's worth looking at it," he said. "It's very important to have an inventory."

To get started, you could search for lost 401(k) accounts.

3. Panic and run

In horror movies, you want everyone to run for the exit or get away from the axe murderer. But doing that when markets are going south, especially when you have a plan, can lead to a bloodletting, warns Wong. Just look at what happened after the Great Recession in 2008 and 2009. Everyone who didn't sell recouped their losses and then some. History has proven that over and over.

"You may want to escape and get away, but with investments it's not that simple," said Wong. "There's risk mitigation, which is why it's important to understand the investment and to make moves to optimally derisk the portfolio." If you have a plan in place and the markets are dropping, don't react, warns Wong. Stick to the plan and ride out the fright show to live another day.

4. Putting all your screams in one basket

Maybe you had stock options at your job, owned a stock that did well over the years, or, for whatever reason, one investment has taken on a life of its own and now represents a big chunk of your investment portfolio. If that rings true, you are committing what Jaime Quiros, CFP and Portfolio Manager at FBB Capital Partners, says is a grave mistake.

"Too much concentration can hurt you in a downturn or if something happens," he says. "Think about Enron, think about Lehman Brothers." Quiros was referring to two companies that collapsed, taking their share value along with them. "You don't want too much of one stock, especially in retirement," said Quiros.

5. Flying blind

One of the most haunting things any retiree can do that will doggedly follow them in retirement is to lack a financial plan. Without one, you may react when things go bad, which could create shortfalls later in life. "The scariest thing in retirement isn't a market drop," said Marcinko. "It's one you didn't plan for."

Avoiding the financial horror movie

Investing in retirement doesn't have to be scary and spooky this Halloween season. By making sure you have a plan, your investments aren't overconcentrated in one area and that you stay the course once you are on track, you can put all those ghouls, goblins and demons to bed once and for all.

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Where do you turn for investment advice? Your parents? A financial adviser? Or that charismatic guy on TikTok who claims he's making a fortune trading stocks?

Long before TikTok, Reddit and YouTube became popular sources of investment advice, my wife and I spent many Friday nights watching Wall Street Week with Louis Rukeyser on PBS. It was entertaining, educational and a great introduction to the sometimes confusing world of investing.

Years later, I was fortunate to work at Fidelity Investments, where I spent 17 years interviewing financial experts and writing about investing, retirement and personal finance. I was surrounded by colleagues who understood how money works, the importance of managing risk and the value of investing for the long term.

I'm thankful for that experience. But I wonder where younger investors are getting their financial education today.

Increasingly, the answer is social media. And while there are plenty of knowledgeable financial professionals sharing useful information online, there are also people whose investment advice can do more harm than good.

Welcome to the world of finfluencers — social media personalities who offer financial tips, investment recommendations and sometimes promises of quick riches.

When popularity is mistaken for expertise

A recent study suggests investors have good reason to be cautious.

Estonian legal services firm Legalaes analyzed 1,764 finance-related videos across YouTube, TikTok, Instagram and Facebook, representing more than 692 million views. It classified 29% as misleading under its criteria, which included questionable investment claims, guarantees and certain promotional practices*.

Even more concerning, those videos averaged roughly 556,000 views, compared with 326,000 for videos without those warning signals.

The Legalaes study also found that only 2.2% of the 1,266 creators sampled had demonstrable relevant financial qualifications. Fewer than 12% of the videos included disclaimers or had them on the creator's profile.

Trading tips and technical analysis had the highest incidence of misleading signals, at 40.6%. YouTube had both the highest percentage of misleading videos and the highest percentage of content classified as accurate.

Closer to home, a FINRA Investor Education Foundation study (pdf) found that 61% of investors ages 18 to 34 had made an investment decision based on a recommendation from a social media personality. That compares with 31% of investors ages 35 to 54, and just 6% of those 55 and older.

Social media is clearly influencing how Americans invest. The question is whether investors know enough to distinguish useful financial education from advice that could cost them money.

Here are seven ways to protect yourself.

1. Don't confuse a good story with good investment advice

Remember the old Wall Street saying, "When the ducks quack, feed them"?

Scott Hanson, co-founder of Allworth Financial and longtime host of the Money Matters radio show and podcast, says investors should beware of people promoting the latest hot investment, including triple-leveraged exchange-traded funds.

"The most dangerous advice is not always obviously false," Hanson says. "It often begins with an accurate fact, removes the investor's personal context and turns it into a universal recommendation."

An investment might make sense for someone with decades until retirement, considerable savings and a high tolerance for risk. It might be entirely inappropriate for someone saving for a first home or preparing to retire.

Hanson also recalls a neighbor who once sold investment products, dropped his financial licenses and continued selling anyway. "It took the financial regulators a couple of years, but he eventually got caught, and it's likely that a few clients got burned in the process," Hanson says.

The lesson? Before following someone's financial advice, find out who's giving it and whether they're qualified.

2. Check credentials — and make sure they fit the advice

Financial certifications can be confusing. But a few respected designations are worth knowing.

A Chartered Financial Analyst (CFA) typically has specialized investment analysis and portfolio management training. A Certified Financial Planner (CFP®) focuses on comprehensive financial planning, while a Certified Public Accountant (CPA) specializes in accounting and taxation.

Credentials alone don't guarantee good advice. But they provide a useful starting point.

You can verify an investment professional's registration and disciplinary history through Investor.gov, the Securities and Exchange Commission's investor education website, or FINRA BrokerCheck. The CFP Board and CFA Institute also maintain credential-verification resources.

Keep in mind that someone providing general financial education online may not be required to register as an investment adviser. But if that person offers individualized investment recommendations or wants to manage your money, understanding their regulatory status becomes especially important.

And remember: A large following, polished videos and impressive testimonials are no substitutes for professional qualifications.

3. Follow the money: What's the finfluencer selling?

There's nothing inherently wrong with financial educators earning a living from newsletters, advertising, sponsorships or online courses. Plenty of credible experts do.

But consumers deserve to know how those experts are compensated.

Ernie Wingard, an adviser at Capital Choice Financial Group in North Richland Hills, Texas, says investors should be suspicious when a financial personality talks almost exclusively about one product.

"If they are only talking about indexed universal life or whole life insurance and not providing alternatives, that may suggest they're only licensed to sell in one area," Wingard says. "They may be pushing those products because they're the only ones they are licensed to offer."

The same applies to trading strategies.

Wingard says someone who focuses exclusively on day-to-day trading decisions, without discussing taxes, retirement planning or investment alternatives, may primarily be promoting a trading newsletter or educational course.

That doesn't automatically make the information worthless. But it should prompt another question: Is this person trying to educate me, or turn me into a paying customer?

Vignesh Coumarane, founder of Richmond, Virginia-based InvestEd, recommends a simple test: Look at the incentives.

"What's their motivation?" he asks. "You should see what the source gets if you follow their advice. Someone earning money from a newsletter or article may have different interests than yours."

4. Don't let FOMO become your investment strategy

One of the biggest threats to investors, young and old, is FOMO, or fear of missing out.

You've probably seen the pitches: Don't miss the next big thing. Get in now. This investment could change your life.

The excitement is contagious, especially when social media feeds are filled with screenshots of extraordinary returns.

"People want to latch onto shiny investments. It makes them feel good. They are told that now is the time to get in," says Michael Schramm, author of the forthcoming book Emotional Finance.

Schramm, a CFA, points to speculative investments, including cryptocurrencies, that can attract intense attention on platforms such as Reddit but may not make sense for every investor.

His advice is refreshingly simple: Take a deep breath. Ask yourself whether the recommendation feels legitimate. If it feels like a scam, it may well be one.

I'd add another suggestion: Give yourself 24 hours before acting on an investment idea discovered on social media.

A legitimate long-term investment strategy generally won't disappear because you took a day to investigate it.

5. Beware of guaranteed returns and secret strategies

There are few guarantees in investing. And if someone promises unusually high returns with little or no risk, that's a warning sign.

Investment disclosures routinely remind investors that "past performance does not guarantee future results." It's a message worth remembering when you encounter someone boasting about spectacular trading profits.

Be especially cautious about strategies involving borrowed money, highly leveraged investments or putting a substantial portion of your savings into a single stock or cryptocurrency.

Bridge Jackson, founder of Seattle-based fintech startup OUIvest, believes one of the biggest problems with financial advice on social media is that visibility can easily be mistaken for credibility.

A large following, sophisticated graphics or screenshots showing profitable trades tell investors little about whether the creator is qualified or whether the investment is suitable for them.

Jackson encourages investors to ask three questions: Who is giving the advice? How do they benefit if I follow it? And can I independently verify what they're telling me?

Those are good questions to ask before putting your hard-earned money at risk.

6. Do the math before you invest

One of the best ways to evaluate financial advice is to ask the person giving it to explain the numbers.

Coumarane says his first test is whether a creator shares the reasoning, assumptions and calculations behind a recommendation.

If someone suggests buying a particular investment, paying down debt or changing your savings strategy, you should be able to understand how the recommendation applies to your financial situation.

"If you cannot see the math, it is a sign that it may not be genuine," he says.

For example, someone might recommend paying off a low-interest mortgage rather than investing. But what's the mortgage rate? What's the expected investment return? What are the tax implications? How much emergency savings do you have?

Without that context, the advice is incomplete.

You don't have to be a financial analyst to ask reasonable questions. And if the person offering the advice can't explain the assumptions in plain English, consider that another warning sign.

7. Use social media to learn, but verify before acting

Despite these warnings, social media can be an excellent resource for younger investors who are just beginning to understand money.

Jackson believes financial education needs to meet younger people where they are.

"Newbie investors, age 20 to 30, don't want to go to Fidelity or Schwab. So they go online," Jackson says. "But they need basic financial literacy education, so we're making it more fun with gamification and AI."

That's an encouraging development. We need more accessible, engaging financial education, especially for people who may not have parents, teachers or experienced advisers to turn to.

But education and individualized investment advice are two different things. A video explaining how compound interest works can be valuable. So can an introduction to index funds, retirement accounts or the risks of borrowing money to invest.

A stranger telling you to put half your savings into a particular stock is another matter.

Before investing, compare claims with independent information from the SEC, FINRA, established financial institutions and primary company disclosures. If you're working with a financial adviser, ask how the idea fits into your overall plan.

The bottom line: Be curious, but be careful

I'm glad younger generations have so many ways to learn about investing. It's certainly more convenient than waiting until Friday night to watch Wall Street Week.

But access to financial information doesn't automatically translate into financial knowledge.

The best financial educators help you understand risk, evaluate alternatives and make thoughtful decisions. They're transparent about their qualifications, compensation and the limitations of their advice.

The ones to avoid rely on urgency, exaggerated promises, get-rich-quick schemes and a steady drumbeat of recommendations that always seem to lead to another product or subscription.

So keep learning. Follow knowledgeable financial professionals. Ask questions and build a network of trusted sources.

Just remember that having a million followers doesn't make someone a financial expert. And before you invest a dollar based on something you saw online, do your homework.

When it comes to your money, buyer beware.

*Legalaes methodology: The study relied on rule-based text analysis rather than individual manual fact-checking. Its misleading classification therefore should not be equated with proof that every flagged video contained false information. The Legalaes study classified 29% of sampled videos as misleading under its own criteria, which included certain promotional practices — not necessarily factually incorrect advice.

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We may earn compensation when a customer clicks on a link, when an application is approved, or when an account is opened. We may not cover every available offer. Our relationship with advertisers may impact how an offer is presented on our site but our editorial selection of products is made independently. Terms apply to American Express benefits and offers. Enrollment may be required for select American Express benefits and offers. Visit americanexpress.com to learn more. We calculate a typical annual reward for each card, assuming $36,000 spent annually and less any annual fee. Interest rates, fees, rewards and other terms listed in this article are subject to change. Before you apply for a credit card, check its current terms and conditions with the issuer.

American Express and Airbnb are teaming up to give travelers more ways to earn rewards and save on vacation rentals at the same time. The new partnership, announced October 22, 2026, brings more than 1 million Airbnb listings worldwide to American Express Travel, along with expanded Membership Rewards opportunities and new benefits for eligible cardholders.

For travelers who already use Airbnb for family vacations, extended business trips or weekend getaways, this partnership could make American Express cards more rewarding. Eligible cardholders can earn up to 5X Membership Rewards points on qualifying prepaid Airbnb stays booked through Amex Travel.

Cardholders with the American Express Platinum Card® or The Business Platinum Card® from American Express can also access up to $850 in combined annual statement credits, including an expanded $600 Lodging Credit and a new $250 Airbnb Experiences Credit. Terms Apply.

However, there's a catch. The biggest statement credits are tied to Airbnb Luxe properties, and travelers must meet specific booking requirements to qualify. That means the new benefits may be more valuable to luxury travelers than those looking for affordable accommodations.

Here's how the partnership works and what to consider before booking your next Airbnb stay.

How to use the $600 American Express Lodging Credit for Airbnb stays

One of the biggest changes from the new partnership is the expansion of the $600 Hotel Credit, now called the $600 Lodging Credit. Previously, the benefit covered eligible prepaid hotel reservations through Fine Hotels + Resorts® and The Hotel Collection.

Now, cardholders with the American Express Platinum Card® or The Business Platinum Card® from American Express can also use the credit toward qualifying Airbnb Luxe stays.

Airbnb Luxe is Airbnb's collection of high-end vacation rentals, including luxury estates, spacious villas and other premium accommodations. Standard Airbnb listings don't qualify for the credit.

To use the Lodging Credit on Airbnb, eligible cardholders must book a prepaid Airbnb Luxe stay of at least two nights through Amex Travel using their eligible card.

The $600 annual benefit is divided into two periods:

• January through June: Up to $300 in statement credits.

• July through December: Up to $300 in statement credits.

Unused credits don't carry over between periods, so cardholders can't apply the entire $600 toward one reservation in a single half of the year.

For example, if you book a qualifying two-night Airbnb Luxe stay for $1,300 in November, you could receive up to $300 in statement credits, assuming you haven't already used your credit for the second half of the year. The booking must be processed during the applicable benefit period, but you don't have to complete your stay before that period ends.

There's another important change coming for eligible cardholders who prefer hotels. Starting January 1, 2027, Fine Hotels + Resorts® reservations must be at least two nights to qualify for the Lodging Credit. Previously, eligible one-night stays could qualify. The Hotel Collection already requires a minimum two-night stay.

This change could make the benefit less flexible for travelers who frequently book single-night hotel stays or short business trips.

What's the catch with the new $250 Airbnb Experiences Credit?

American Express is introducing a new benefit that allows eligible cardholders to receive up to $250 annually in statement credits for Airbnb Experiences. These activities include guided tours, cooking classes, cultural excursions and other experiences hosted by local experts.

However, the credit isn't automatically available to everyone with the American Express Platinum Card® or The Business Platinum Card® from American Express. Cardholders must first book a qualifying prepaid Airbnb Luxe stay through Amex Travel to unlock the benefit.

Once the qualifying reservation is confirmed, eligible cardholders can receive up to $250 in statement credits for qualifying Airbnb Experiences purchased directly through Airbnb using their eligible card.

There's also a time limit. The Experiences Credit is available only for the remainder of the calendar year in which the qualifying Luxe reservation is confirmed.

For example, if you confirm a qualifying Airbnb Luxe reservation in November 2026, you could unlock up to $250 toward eligible Airbnb Experiences. However, you would need to make qualifying purchases before the end of 2026. The credit doesn't remain available for another 12 months.

Not every Airbnb Experience qualifies. Experiences that redirect customers to certain third-party booking platforms are excluded, so check the payment process before making a reservation.

How many Membership Rewards points can you earn on Airbnb stays?

The new partnership allows eligible American Express cardholders to earn between 2X and 5X Membership Rewards points on qualifying prepaid Airbnb bookings through Amex Travel. The rewards rate depends on which card you use. Terms Apply.

Here's how many points you could earn on a qualifying $2,000 Airbnb stay:

Cardholders with the American Express Platinum Card® or The Business Platinum Card® from American Express can earn 10,000 Membership Rewards points on an eligible $2,000 booking. At an illustrative redemption value of one cent per point, that's approximately $100 in rewards value.

Meanwhile, eligible American Express® Green Card holders could earn 6,000 points, while other qualifying Membership Rewards cards could earn 4,000 points on the same reservation. The Green Card's 3X rate is an existing travel rewards benefit that also applies to eligible Airbnb bookings made directly through Airbnb.

Keep in mind that Membership Rewards points don't have a fixed dollar value. Their value depends on how you redeem them, whether for travel, gift cards or other eligible options.

Should you book Airbnb through Amex Travel or directly through Airbnb?

The new partnership gives American Express cardholders another way to earn rewards on vacation rentals. However, that doesn't necessarily mean booking through Amex Travel will always provide the best value.

Before reserving a property, compare the total cost and booking conditions through both platforms. Look at the final price, including cleaning fees, service fees, taxes and other charges. Prices may differ between booking options, so it's worth comparing the total cost before making a reservation.

Availability may also differ because the Amex Travel partnership includes a selection of Airbnb's global inventory rather than every property on the platform. Cancellation policies are another important consideration, especially for business travelers whose plans may change unexpectedly. Review the property's cancellation terms and any applicable deadlines before paying.

One convenience of the partnership is that Airbnb continues handling reservations, host communications and customer support. Although travelers discover participating properties through Amex Travel, they complete their reservations through Airbnb and manage their stays there.

It's also important to distinguish between earning and redeeming Membership Rewards points. Cardholders can earn bonus points on qualifying Airbnb reservations through Amex Travel, but they can't currently use Membership Rewards points to pay directly for these stays at checkout. Eligible cardholders may have the option to redeem points for a statement credit after the transaction posts, although redemption values can vary.

Is the Amex and Airbnb partnership worth it for travelers?

The American Express and Airbnb partnership could benefit frequent travelers, particularly those who already have the American Express Platinum Card® or The Business Platinum Card® from American Express and regularly book upscale accommodations.

For cardholders who prefer luxury vacation rentals, the ability to use the $600 Lodging Credit on qualifying Airbnb Luxe properties adds flexibility. The new $250 Airbnb Experiences Credit could provide additional value if they already plan to book activities or tours during their trips.

However, the benefits may be less appealing to travelers who typically book inexpensive vacation rentals or shorter stays. Standard Airbnb properties don't qualify for the Lodging Credit, and cardholders can't unlock the Experiences Credit without first making a qualifying Luxe reservation.

If you're considering opening an American Express Platinum Card® primarily for the Airbnb benefits, calculate how much you'd actually save based on your normal travel habits. Don't assume you'll receive the full $850 in value every year.

Most importantly, avoid spending more on a luxury rental simply to qualify for a statement credit. If you already enjoy premium Airbnb stays, the partnership offers more ways to earn rewards and potentially reduce travel costs.

For everyone else, the biggest advantage may be the opportunity to earn additional Membership Rewards points on accommodations they were already planning to book.

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I moved to the Lowcountry in South Carolina in 2006. I told my wife I'd give it five years, and then I wanted to go back to Indiana, where I'm from. Twenty years later, I'm still here.

I'm a financial adviser, CFP® and Certified Financial Fiduciary®. My firm, Coastline Complete Wealth, is in Bluffton, which is the mainland side of Hilton Head Island and about 45 minutes from Savannah.

Almost everyone I meet who moves to this area seems to have vacationed on Hilton Head first. The island may be what draws them in, but then they discover that moving a little farther inland can buy them a newer home, more space and considerably more for their money.

For someone coming from an expensive market in the Northeast, seeing what their money can buy in South Carolina can feel like they're playing Monopoly.

And they're coming. According to the latest U.S. Census Bureau estimates, South Carolina is the fastest-growing state, and Jasper County, right here in the Lowcountry, is the nation's fastest-growing county.

What I'm seeing isn't unique to this area. Whether you're considering South Carolina, Florida, Georgia or somewhere else, vacationing there and retiring there are two very different things (I even wrote a book on this topic, Lowcountry Retirement). And buying a less expensive house doesn't necessarily mean retirement will be less expensive.

If you're going to move here, understand what it costs to fully commit

The Lowcountry can be an expensive place to live, but it can become a really expensive place to own a second home.

South Carolina property taxes are one thing to pay close attention to. A qualifying primary residence is generally assessed at 4% of fair market value versus 6% for a second home, and primary residences are also exempt from school operating taxes.

I recently met with someone who had bought a home here as a second property, having looked at the previous owner's property tax bill of roughly $6,000 on Zillow. He couldn't believe it when his first tax bill was more than $36,000.

South Carolina is a very property-tax-friendly state, but you have to do it right. A second home doesn't get the same favorable treatment as your primary residence.

Insurance is another consideration. We've had several hurricanes affect the region over the years, and insurance companies have been pulling back from coastal areas. Most homeowners insurance also doesn't cover flooding, so make sure you price both homeowners and flood coverage before you buy.

I have a handful of clients paying around $2,500 a month between homeowners' association fees and club dues. That's $30,000 a year before we've talked about property taxes, insurance, utilities, landscaping or maintaining the house.

In some parts of the country, $2,500 a month might be an entire mortgage payment. Here, it can just be the cost of belonging to the community.

Rent before you buy — and see what living here is actually like

I met with a couple earlier this year who had a flat overlooking the Hudson River. They were considering the Lowcountry and had just started looking at houses. A couple of days later, he called to tell me they'd bought a house in Sun City on their first trip here.

If you're seriously considering retiring here, get an Airbnb for the month of August. See what you think about the heat and humidity, and sit in the traffic on a Saturday when it's check-in day on Hilton Head Island.

Then come back and get an Airbnb in December, when we just throw on a fleece and say 55 is cold. You need to experience the place as someone who lives here, not someone who's here for a week.

You also need to think about what happens when you move somewhere everybody else likes to vacation.

For about two months every year at our house, it seems like we're shuffling one group of visitors out just in time to bring the next one in. They don't want to cook spaghetti every night. They want to go out to dinner, go to Hilton Head, play golf and do the things people do on vacation. They're on vacation even though you're not, and you're probably going along for the ride.

That's one of the great things about living here, but it also becomes part of your retirement lifestyle and spending. If your children, grandchildren and friends are going to visit regularly, plan for that too.

What does your retirement actually cost?

The biggest financial concern I see usually isn't that people haven't accumulated enough money. Quite the opposite. Many of the people I meet have substantial assets, and it's not unusual for someone sitting across from me to have $2 million or more saved for retirement. What surprises me is how many have no idea what their lifestyle actually costs.

I'll sit across from a couple who may have been earning $300,000 a year before retirement, and when I ask what they expect to spend, they'll say something like, "Well, if we can't live on $100,000 a year, something's wrong."

That's not a retirement budget. That's an arbitrary number. It may have been 20 years since that couple actually lived on $100,000 a year, so why would we assume they're suddenly going back to that lifestyle in retirement?

Start with reality. Look at what you actually spent over the past 12 months, subtract the expenses that will disappear in retirement and add the things likely to increase: Travel, golf, eating out, visitors and the carrying costs of the new house.

Once you know what your retirement is likely to cost, the next question is where the money is going to come from. A retirement plan should determine how you'll use Social Security, investments and retirement accounts to fund that lifestyle while considering the taxes you'll pay along the way.

The goal isn't to figure out the lowest number you can possibly live on. It's to build a plan that lets you afford the retirement you actually want.

I love this place, and you couldn't drag me out, so don't let me talk you out of coming. Just do it the right way. Understand what the lifestyle will actually cost and build a retirement plan around it.

You may find out, like I did, that five years turns into 20 pretty quickly.

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• You Fell In Love With Italy on Vacation, But Don't Move There Without Trying This First
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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.

When it comes to estate planning, avoiding probate is one of the main motivators.

Whether it's designating beneficiaries or putting assets in a living trust, there are several ways assets can be directly transferred to heirs without going through probate.

But simply shielding assets from probate doesn't automatically mean assets will be distributed the way you intended. Sometimes, the same strategies used to avoid probate can unintentionally override other parts of an estate plan, potentially leaving loved ones without the protection you put in place.

Consider a father who has two adult children with different financial needs. One receives government benefits that have income and asset eligibility requirements. The other struggles with substance abuse and isn't able to responsibly manage a large inheritance.

To accommodate both children, the father creates a revocable living trust with separate trusts made for each. This allows the father to leave an inheritance to both while also keeping protections they need in place.

Later, the father opens a bank account and purchases an annuity, naming both children as beneficiaries.

Once he dies, the bank account and annuity proceeds go directly to the children instead of the trusts that were created. While naming the children as beneficiaries of that account allowed the father to keep his assets out of probate, it also bypassed the protections he deliberately built into his estate plan.

While avoiding probate is an important part of the plan, it shouldn't be the only consideration in this process. A beneficiary's situation can matter just as much as how the assets get transferred.

For example, a beneficiary might receive government benefits that have income or asset restrictions, struggle with substance abuse or managing money, or could be dealing with a personal matter such as a divorce.

Leaving an inheritance to someone in one of these situations could jeopardize future benefits, leave money vulnerable or bring new financial responsibilities they might not be prepared for or capable of handling.

Instead of having assets transferred to them outright, you might choose to open a trust so you can manage the inheritance and determine when and how distributions are made.

However, those protections only work if the assets are directed to the trust. Naming the individual as the beneficiary rather than the trust itself could make the trust irrelevant altogether.

While trusts can be helpful in protecting and managing assets, they're only one tool in the estate planning process. Reviewing how assets are titled and who's designated to receive them after you die is important.

Look at bank and investment accounts, retirement accounts, real estate, life insurance policies and annuities. A beneficiary designation or other transfer arrangement on a particular asset could determine where it goes once you die, even if that overrides protections you've established elsewhere in your plan.

Avoiding probate is just one of many considerations when it comes to building an estate plan. What's most important is making sure your assets are transferred to the people you intended in a way that accounts for their needs and circumstances.

For some, naming beneficiaries directly is enough. Others might find additional protections are necessary. Regularly reviewing your estate plan, making adjustments as needed, will ensure the strategies you use to avoid probate don't work against your estate plan.

Related Content

• How to Leave a Legacy to Your Loved Ones — and Keep Probate Out of It
• Estate Planning Advice on Social Media Isn't All Garbage, But It Can Still Cost You Dearly
• The Simple Legal Document Families Need to Protect Their Kids (But Don't Know About)
• I'm a Financial Adviser: This Is Why Unmarried Same-Sex Couples Need an Estate Plan
• Don't Disinherit Your Grandchildren: The Hidden Risks of Retirement Account Beneficiary Forms

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

The new documentary You Can See Everything about Theranos founder Elizabeth Holmes hit screens with a bang this month. Directors Nathan Fielder and Lance Oppenheim kept the movie a secret until its premiere, and buzz has been building about what it reveals.

It was certainly unexpected for Fielder to make a documentary about Holmes. He's worked in his own particular sort of reality TV for years, first with the show Nathan For You and next with The Rehearsal. While these shows tap into the human psyche in their own ways, as he says in You Can See Everything, he's far from an expert on chemistry or the Theranos case, and over the course of the filming, he seems increasingly confused about what he's doing there, which is also a central point of the documentary.

So much of this movie has been kept hush-hush, and it's an enjoyable experience to watch it unfold in a theater. So: If you haven't seen the movie yet and don't want to read any "spoilers," stop reading now before we get into the nitty-gritty.

While the documentary is ostensibly about Holmes, it's also about her partner, Billy Evans, and their relationship. After Holmes goes to a federal prison camp to serve her sentence for defrauding investors, Evans reveals on camera that he has power of attorney (POA).

He says that the power of attorney gives him the right to do many things on Holmes' behalf. The documentary shows him tweeting online from Holmes' X account, not indicating that it's not her posting (and not asking for her approval for what he writes), and creating an AI avatar of her likeness. He is also working on a new business with her, although he says he is largely making decisions on their behalf while she's imprisoned.

"The documentary shows how far people assume a POA reaches," Debra Taylor, managing partner and wealth adviser at Carson Wealth, tells Kiplinger.

So, what exactly does power of attorney give a person the right to do, and how does it work?

1. What "powers" does a power of attorney grant?

A power of attorney (POA) is a legal document that grants someone, called an agent, authority to make decisions on a person's behalf in the event of their incapacitation. Typically, one document grants medical power of attorney, and one grants financial power of attorney. As the names suggest, one gives the right to make healthcare decisions, while the other covers finances.

"A broadly drafted financial POA can give an agent authority over the principal's business interests," Taylor explains. "Certain powers, such as making gifts, changing beneficiaries or creating trusts, generally must be granted expressly. Many states require specific language in the document to authorize sensitive transactions such as gifting or certain banking transactions."

Does that mean, then, that a person could, say, speak on another's behalf outside of specific decisions?

"A POA lets an agent sign and transact on the principal's behalf. It does not make the agent's opinions the principal's words. In most states, an agent has no right to access the content of the principal's email and private messages unless the document specifically grants it," Taylor says.

2. Can power of attorney be triggered by incarceration?

In the movie, Evans said Holmes signed the POA document, giving him power to make business decisions for her. But does an incarceration always trigger a POA to go into effect?

"Powers of attorney are governed by state law, so the rules on when a POA can take effect, and what it can authorize, vary from state to state," Taylor says.

There are different types of POAs. A durable POA goes into effect once signed and remains in effect unless the principal cancels it or dies. A limited POA gives authority for specific matters and can have time parameters for when it's valid. A springing POA, meanwhile, takes effect when a specific, predetermined event happens, such as mental incompetence.

"Most of these 'springing' POAs are tied to incapacity, but many states let you name another trigger, such as incarceration, and designate a specific person to confirm in writing that it happened," Taylor says. "In many cases, a durable POA that is effective immediately makes the most sense. This is because a springing document forces your agent to prove the trigger occurred, and banks can be slow to accept that proof exactly when someone needs to act."

3. Do you have any recourse if you believe your POA agent is acting against your best interests?

"An agent is a fiduciary. The law requires them to act loyally in your best interest, avoid conflicts of interest and keep records of every transaction," Taylor says.

If you are in this situation and are not incapacitated, you can revoke the POA. Taylor recommends doing so with a signed written revocation and notifying every institution that has a copy of the POA.

Assuming you are not incapacitated, you also have the ability to sue for breach of fiduciary duty. "Serious misuse can be prosecuted as theft or financial exploitation," Taylor says.

4. What can you do if you think someone else's agent is misusing their powers?

The documentary makes it clear that Fielder doesn't trust what Evans is doing, although Holmes herself doesn't express any misgivings.

If you're a third-party observer and believe someone with POA is acting against the principal's best interests, there are some things you can do, although it somewhat depends on your relationship to the principal.

If you're a family member, heir, caregiver or government agency, you can petition a court to review the agent's conduct, Taylor explains. If a case involves an older or vulnerable adult, you can report concerns to Adult Protective Services.

Additionally, financial institutions can play a role. "Banks can refuse to honor a POA when they suspect abuse and report it, and brokerage firms can place temporary holds on suspicious withdrawals and trades for older or impaired clients," Taylor says.

"If the person still has capacity, though, a court will generally defer to their choices," she adds.

5. Should you assign your spouse or partner POA?

"A spouse is usually the right first choice since no one knows your finances and wishes better," Taylor said. "The weak spot is timing."

That's for a few reasons. First, you will be aging together, so it's possible you'll need help at the same time and therefore can't serve for each other. For this and many other reasons, it's recommended that you also name a backup POA.

Additionally, of course, there's the possibility you divorce. "Many states end a spouse's authority automatically once a divorce is filed or finalized, but not all of them, so update your documents the day you separate," Taylor says.

Taylor also points out that Holmes and Evans are not legally married, which means that if they were to break up, it would not automatically end the POA in the way a divorce would in many states. If Holmes wanted to revoke it, she would have to actively do so.

"In blended families, adding an adult child as co-agent, or requiring your spouse to report to one, heads off a lot of conflict later," Taylor says.

If you have a POA, you should review it "every few years and whenever you move," Taylor advises, so that it doesn't become out of date or invalidated by a state law.

Ultimately, Taylor says, "The best protection is built in before you sign: Name a successor agent and require the agent to report periodically to a second person."

It's important to remember that You Can See Everything is a movie constructed around the idea of suspicion. Don't let the movie scare you off the idea of POAs: They help ensure that your finances and/or healthcare can be appropriately managed in the way in which you want them to be.

And when it comes to Holmes and Evans in particular, we have to go back to that old adage: You never really know what's going on in someone's relationship ... even if you're a documentary crew filming their every waking moment.

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Stocks closed lower Friday as geopolitical uncertainty ramped up and Treasury yields and oil prices climbed. Market participants also looked ahead to next week's jam-packed earnings and economic calendars, which feature quarterly results from several mega caps, as well as the October Fed meeting.

At the close, the blue-chip Dow Jones Industrial Average was down 1.2% at 52,215, the broader S&P 500 was 0.5% lower at 7,623, and the tech-heavy Nasdaq Composite was off 0.2% at 25,955. The Dow managed to hold on for a weekly win, but the S&P 500 and Nasdaq were lower week over week.

Treasury yields resumed their climb on Friday. The yield on the 2-year (+5.1 basis points at 4.686%), 10-year (+4.8 bps, 5.001%) and 30-year (+4.2 bps, 5.329%) Treasuries were all higher at the close.

Oil prices rose, too, after Iran said it is prepared to attack should the U.S. and Israel resume strikes against Tehran. Front-month West Texas Intermediate crude futures climbed 3.8% to $103.27 per barrel, and are now up 14% for the month to date.

Despite higher yields and lofty energy prices, the Federal Reserve is widely expected to keep interest rates unchanged when its October meeting concludes next Wednesday afternoon.

Looking for more timely stock market news to help gauge the health of your portfolio? Sign up for Closing Bell, our free newsletter that's delivered straight to your inbox at the close of each trading day.

"Recent inflation readings have been on the warm side — especially at the producer level — but a wave of Fed speakers suggesting there was no rush to raise rates has provided a strong counterpoint," says BMO Chief Economist Douglas Porter, who adds that a "cooldown in the AI sector and milder job growth" have taken the heat off the central bank.

Still, he expects the Fed to raise interest rates in December and March.

American Express sinks on layoff news

In single-stock news, American Express (AXP) dropped 3.7%, making it the worst Dow Jones stock today. This came after the credit card giant said it is cutting 5% of its workforce to make it "leaner, more agile, and also to prepare for AI," as Chief Financial Officer Christophe Le Caillec told CNBC.

AXP had nearly 77,000 employees at the end of 2025, which suggests roughly 3,850 jobs will be eliminated. The company said it took a $336 million restructuring charge in Q3 as a result.

Still, American Express reported third-quarter earnings of $4.68 per share, up 13% year over year and more than analysts expected. Revenue of $20.1 billion also exceeded estimates. Additionally, AXP raised the low end of its full-year earnings-per-share guidance.

Wall Street remains upbeat toward the blue chip stock, too. Of the 30 analysts covering AXP who are tracked by S&P Global Market Intelligence, 10 say it's a Strong Buy, five have it at Buy and 15 rate it at Hold. This works out to a consensus Buy recommendation.

Bloom Energy sinks on cash flow concerns

Elsewhere on the earnings calendar, Bloom Energy (BE) slumped 11.2% after the manufacturer of fuel cells, which are used to power data centers, reported its third-quarter results.

While BE reported higher-than-expected third-quarter earnings and revenue and raised its full-year guidance, its free cash flow and operating cash flow were both negative.

"Bloom Energy is spending a lot of money striving to boost its fuel cell production fivefold, so some naysayers are worried about its cash burn," says Louis Navellier, InvestorPlace analyst and host of the Navellier Market Buzz. "I want you to know that companies like Bloom Energy have such massive order backlogs, so I disagree with criticisms of Bloom Energy's ramp-up."

Next week is a big one for earnings, too, with Alphabet (GOOGL, -1.2%), Caterpillar (CAT, -2.4%) and Amazon (AMZN, -1.0%) among those reporting.

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• How Much Do You Know About Stock Market Seasonality? 
• A Split Congress Could Spell Big Stock Gains Into 2027

Too much information about stock market seasonality can lead to overload and bad decisions for investors. Just enough can be fun, even valuable if properly deployed.

Indeed, traders and speculators who specialize in technical analysis take advantage of inefficiencies created by retail investors going too deep on those kinds of things.

And even among the experts, you'll find an amusing variance in how they define things such as the "Santa Claus Rally."

At the same time, as some of the greatest asset allocators who ever lived will tell you, the stock market is a reflection of us, our emotions and our psychology.

Warren Buffett said it's a "popularity contest" in the short term, a "weighing machine" in the long term. He also described it as "a church with a casino attached."

Those are colorful words from one of the best who ever did it. Basically, though, it is a barometer of human behavior, including our emotions and psychology, as well as what we choose to consume and when.

Think about it for a second: It's October, so you're probably pulling out your sweaters and corduroy, maybe prepping to do some leaf work in the yard, perhaps watching football, possibly hitting a pumpkin patch.

As much as we want to understand ourselves and how we behave as investors, we can also profit from seeing how our decisions plus those made by others like us aggregate over time.

So seasonality offers another reference point along that journey, a map based on history and data to use as you approach prevailing terrain.

But it's just a guide.

And this quiz is for edutainment purposes only.

More on investing from the Kiplinger team:

• Now Is the Best Time to Make These 6 Financial Moves (You'll Thank Yourself in December)
• What the Midterms Mean for Your Stock Portfolio
• Stop Waiting for the Perfect Moment to Invest: There Isn't One
• How to Pick the Right ETF for Your Financial Goals
• The Best All-in-One ETFs to Keep Your Investment Portfolio Simple
• The 5 Best Long-Term Investment Stocks to Buy for Steady Returns
• Best Stocks to Buy for Rising Interest Rates This Fall
• 5 Stocks to Avoid as Interest Rates Rise This Fall
• 5 Best Momentum Stocks to Buy for More Upside in 2027

When the calendar flips to 2027, a series of Social Security updates will impact your wallet. These changes cover everything from taxes and monthly benefits to how the agency handles fraud.

These changes don't only impact retirees — they also affect current workers and their families. Workers need to keep an eye on accumulating enough Social Security credits to qualify for survivors benefits, correct errors in their earnings record and understand how much of their wages will be subject to the 6.2% Social Security tax.

Let's look at what's different in 2027.

1. Social Security cost of living adjustment (COLA) for 2027 is 3.6%

The 2027 COLA is 3.6%, up from last year's 2.8%. This matches the estimate provided by David Payne, staff economist for the Kiplinger Letter.

Older people are caught in a "COLA catch-22." A higher COLA means more money for retirees, but it results directly from higher inflation. Conversely, a lower COLA means less inflationary pressure, but it provides less money to help retirees with rising costs such as medical expenses and housing.

"There’s a lot on the line financially right now for older Americans: one in five have no retirement savings, and more people feel financially insecure this year than last. That makes Social Security’s cost-of-living adjustment (COLA) critically important. It helps millions of Americans keep up with rising costs for groceries, routine bills, health care and other everyday expenses," said Dr. Myechia Minter-Jordan, CEO of AARP.

According to the SSA 2027 fact sheet, the 3.6% increase will translate to an additional $75 per month for the average retiree. In January 2027, the average payment will be $2,170, up from the pre-COLA amount of $2,095. Married couples will see an average increase of $117, raising the average monthly benefit for couples to $3,355 from $3,238.

Remember, the SSA automatically deducts the Part B premium from the Social Security benefits of most Medicare recipients. So any monthly increase will be reduced by higher Part B premiums.

2. November digital notification deadline to learn 2027 increase

In an October blog post, the SSA noted that beneficiaries wishing to view their official 2027 COLA notice online through their personal my Social Security account must establish their online account by November 18, 2026. Otherwise, the SSA will mail the notice in December.

Account holders can also choose to receive text or email alerts when a new message, including their COLA notice, is available in their personal my Social Security account Message Center.

3. Maximum Social Security benefits

For workers retiring at age 70 in 2027, the maximum possible monthly benefit increases to $5,358, up from $5,181 in 2026. To qualify, you'd need to have earned at or above the earnings cap ($192,300 for 2027) for 35 years — an achievement that requires consistently high income throughout your career.

Claiming without any delayed retirement credits reduces this amount; those retiring at full retirement age (FRA) in 2027 will see a maximum monthly payout of $4,188, an increase of $36 over last year's maximum of $4,152.

 4. Social Security tax limit

Social Security caps the amount of income you pay taxes on — and get credited for — when benefits are calculated. The Social Security tax limit in 2027 is $192,300, up $7,800 from $184,500 in 2026. The tax limit is indexed to inflation and is likely to rise in 2028.

The increase in the wage base will translate into paying a maximum total tax of $11,922.60 for 2027. Social Security will stop withholding taxes once you reach the maximum income amount for the year. However, there is no cap on Medicare taxes, meaning your total wages are subject to the 1.45% tax.

There's also an additional 0.9% Medicare tax for individuals earning more than $200,000 per year, $250,000 for married couples filing jointly, or $125,000 for married people filing separately. These numbers don't increase annually; they're statutory and not subject to indexing for inflation. Employers are responsible for withholding this amount from your paycheck, although they're not required to match it.

5. Earnings test: You can earn more from work in 2027 while collecting benefits

Continuing to work while collecting Social Security may reduce your monthly benefit check due to a rule called the Social Security earnings test. Fortunately, those limits typically rise every year, leaving more of your monthly Social Security intact.

The SSA temporarily withholds $1 of a worker's benefits for every $2 earned above $25,560 (or $2,130 a month) in 2027, up from $24,480 (or $2,040 a month) in 2026.

The year when you reach FRA, the test is more generous — you only forfeit $1 in benefits for every $3 in 2027 earnings above $67,920, an increase of $2,760 over the 2026 limit of $65,160. Once you reach your FRA, there is no limit on earnings for the remainder of the year, and any withheld benefits are restored.

For beneficiaries younger than full retirement age (FRA) throughout 2027: The annual earnings limit is $25,560; $1 in benefits will be withheld for every $2 earned above this limit.

For beneficiaries reaching FRA in 2027: The annual earnings limit is $67,920; $1 in benefits will be withheld for every $3 earned above this limit until the month the beneficiary reaches FRA.

 6. Earning Social Security credits in 2027

Workers need to earn slightly more in 2027 to secure quarterly work credits (quarters of coverage) toward the 40-credit minimum required to qualify for retirement benefits.

In 2027, earning 1 credit requires $1,970 in covered wages, up $80 from $1,890 in 2026. To earn the maximum 4 credits for the year, a worker must earn $7,880 in 2027, a $320 increase from $7,560 in 2026.

Why it's important. You must earn a minimum number of Social Security credits to qualify for retirement benefits. The SSA can't pay you benefits if you don’t have enough credits.

The SSA also uses the number of credits you’ve earned to determine your eligibility for retirement or disability benefits, Medicare and your family’s eligibility for survivor benefits.

Once you earn the 40 credits, earning more credits won’t increase your benefit payment. Instead, your retirement benefit is based on your highest 35 years of inflation-adjusted earnings.

7. A single point of contact for identity theft victims

Victims of Social Security number theft and misuse have new relief under the Improving Social Security's Service to Victims of Identity Theft Act (H.R. 5345). Signed into law on October 7, 2026, the law requires the SSA to provide affected individuals with a dedicated, single point of contact to manage and coordinate their case through resolution.

While it does not issue automatic benefit checks or new Social Security numbers, it eliminates the need to deal with a different representative during follow-ups. The single-point-of-contact requirement takes full effect for cases beginning April 5, 2027.

8. Supplemental Security income (SSI) payment limits

The 3.6% COLA applies to Supplemental Security Income (SSI) federal benefit rates, which officially take effect for the 2027 tax year. Because January 1 is a federal holiday, eligible individuals and couples will see these updated payment amounts starting on December 31, 2026.

For an eligible individual, the maximum monthly benefit rises to $1,029 in 2027, up from $994 in 2026. For an eligible couple, the maximum monthly rate increases to $1,544 in 2027, compared to $1,491 in 2026. Additionally, the allowance for an essential person rises from $497 to $516 per month.

9. Disability income thresholds

The SSA has updated the monthly earnings thresholds for Social Security Disability Insurance (SSDI) recipients. These benchmark increases allow beneficiaries to earn higher wages before impacting their monthly disability benefits or triggering evaluation periods.

For non-blind disabled workers, the substantial gainful activity (SGA) threshold is $1,770 per month in 2027, up from $1,690 per month in 2026. For statutorily blind workers, the limit increases to $2,950 per month in 2027, up from $2,830 per month in 2026. Meanwhile, the earnings threshold required to count toward a trial work period (TWP) month increases to $1,270 per month in 2027, rising from $1,210 per month in 2026.

Other important changes effective in 2027

For more information about other 2027 changes, read:

8 Changes Coming to Medicare in 2027

Medicare 2027 Projections: Here's How Much Your Monthly Premiums Are Estimated to Rise

Projected 2027 IRMAA Brackets and Surcharges for Medicare Parts B and D

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The above picture was taken from my seat in Seattle at (sadly) the U.S. soccer team's last 2026 U.S. World Cup game.

I had tossed around the idea of going since the U.S. qualified for the round of 32, but I came up with too many excuses to take it seriously. It wasn't until the day before the game when my wife said, "Memories over money — just do it." More on that later.

The best emails I get from clients at Exit 59 Advisory, where I am president, feature phrases such as:

"I just got back from…"

"I just booked…"

"I just committed to…"

The best, best emails are the ones that include the part above and then the same quote from my wife: "Memories over money."

Now I know this seems counterintuitive coming from a financial planner, but let me explain.

Think of money as the base of Maslow's hierarchy of needs. I am not diminishing its importance. I am not diminishing the need for financial security to be happy in retirement.

Basically, every academic study agrees that we need financial security, along with health and social connection, to experience true happiness in retirement.

What is diminishing, to use that word once more, is the return you get beyond the security point. Beyond security, money can:

• Buy you freedom
• Buy you time
• Buy you memories

To be clear, all of our clients have financial plans. All of those plans have a line item for expenses like those. If you want to build your own, you can access our planning software.

When my wife and I were first married and had no kids, we caught the travel bug. When we had kids, we thought we would press pause, at least on the bigger trips. We didn't.

Many people told me that the kids wouldn't remember the trips. And we felt OK about that. We were still enjoying the trips. Our kids are now 8, 4 and 1:

• Our oldest, Vivian, recently brought up the name of a bunny on a farm we visited in Austria
• Our middle child, Lucy, talks about seeing the Statue of Liberty in "Yew Nork"

If my young children remember these trips fondly, even when everything didn't go exactly as planned, I would bet they'd be even more impactful for your adult children and grandchildren.

Carl Richards, a fellow financial planner who is part of my speaking agency and is a former New York Times personal finance columnist, has a Venn diagram sketch with "experiences" in one circle and "people you love" in the other, with an arrow pointing to the overlap and the label "spend money here."

So this is not just about travel. It is about spending money to create memories or creating memories that don't require spending.

My extended family has been gathering for Sunday dinners almost every weekend since 2011. Experiences, whether they involve a trip, a meal or a walk, provide more bang for your buck than material purchases.

You get the benefit of anticipation, the actual experience and the memory — bang for your buck from experiences in three phases.

So the Sunday night before the U.S. squared off against Belgium in Seattle, I booked a flight, one night at a hotel and a ticket to the game. As you probably know, the game did not go our way, but I have no regrets about going.

There are two more important lessons here.

First, even bad experiences or experiences with bad parts can become good memories. Three years later, we are able to laugh about my daughter getting sick on a transatlantic red-eye.

The last lesson is the concept of "contrast." One reason I got so much joy out of such a ridiculous itinerary is because of how much it contrasts with my day-to-day life. If this were something that was normal or not special, I would have been one of the five people in the front row scrolling their phones during the game.

As you know, I spend my days looking for every avenue to help you accumulate a healthy balance sheet, to save you money on taxes and otherwise optimize your financial situation.

I've also been doing this long enough to say that those who convert their financial balance sheet to a memory balance sheet tend to be happier.

Memories over money!

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• The Secret to Life, Liberty and the Pursuit of Happiness? It Isn't Money. A Financial Planner's Take on the American Dream
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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.

Some of the greatest investors in history have famously favored a substantial home-country bias for U.S. investors, meaning a portfolio overwhelmingly weighted toward American stocks.

Perhaps the most famous example is Warren Buffett. Beyond his long-running optimism ("never bet against America"), the Berkshire Hathaway chairman emeritus has left remarkably simple instructions for how money left for his wife should be invested after his death: 90% in a low-cost S&P 500 index fund and the remaining 10% in short-term Treasury bonds.

Vanguard founder John Bogle expressed a similar preference. Despite Vanguard becoming one of the world's largest providers of international mutual funds and exchange-traded funds (ETFs), Bogle argued that foreign stocks weren't necessary for a well-diversified U.S. investor. He generally favored a heavy U.S. allocation and suggested that investors who wanted global diversification limit it to no more than 20% of their equity portfolio.

Today, however, international exposure remains a standard component of many professionally constructed portfolios. Owning stocks outside the U.S. can reduce dependence on a single country's economy, market valuations, sector composition and currency while providing exposure to companies and industries that aren't well represented domestically.

If you're a do-it-yourself investor, that leaves a practical question: How much international exposure, if any, should an ETF portfolio actually have?

Below, we'll examine the case for and against investing abroad, look at how some of the largest global equity ETFs divide their portfolios between U.S. and international stocks and highlight low-cost ETFs that can help you build an international allocation.

Why allocate to international stocks?

Despite the U.S. stock market's stellar performance over the past decade and its outsized influence on global markets, it's still just one basket.

Diversification can mean spreading investments across large-, mid- and small-cap stocks, value and growth styles, and all 11 stock market sectors.

It can also mean investing across different countries. One of the most instructive ways to visualize is with an asset return map spanning 2017 through 2026 from the BlackRock Investment Institute.

Sometimes called an "asset-class quilt," this type of chart ranks the annual returns of different asset classes, geographies and market segments:

Even during a period when U.S. equities performed exceptionally well overall, they didn't lead every year.

Chinese equities outperformed U.S. stocks in 2017, 2019 and 2020, while European equities took the lead in 2025. Emerging-market equities also delivered superior returns during several periods.

There is no readily discernible pattern an investor could have reliably used beforehand to move between these markets at exactly the right time.

Indeed, that's one of the arguments for owning the broader basket and allowing market dynamics to determine which regions contribute most to returns over time.

History also offers a more painful example of why geographic diversification can matter. The U.S. stock market experienced what is commonly called the "lost decade," generally referring to the period encompassing the aftermath of the dot-com bubble and the 2007-09 global financial crisis.

From January 1999 through December 2009, U.S. stocks produced an annualized total return of just 1.7%, according to Portfolio Visualizer. Adjusted for inflation, the annualized return was actually negative at -0.8%.

International developed markets did better at 4.1% annually, or 1.6% after inflation. Emerging markets were the standout, returning 13.7% annually and 10.9% after inflation:

With hindsight, it's easy to say that a young investor should simply have kept dollar-cost averaging into U.S. stocks at depressed valuations. Living through the experience is different.

Few investors have unlimited tolerance for watching a portfolio effectively go nowhere for a decade and actually lose purchasing power after inflation.

And there's no rule saying a future period of underperformance must last only 10 years. Japan provides a particularly sobering example.

The Nikkei 225 peaked at 38,915 at the end of 1989 following an enormous asset bubble. Japanese equities subsequently collapsed, and the country's economic difficulties became known first as the "lost decade" and eventually the "lost decades."

The Nikkei didn't surpass its 1989 record until February 2024, more than 34 years later.

That history provides a useful thought experiment for U.S. investors. How much of today's preference for U.S. stocks reflects their genuinely attractive characteristics, and how much reflects recency bias after an unusually strong period of relative performance?

If you'd been a Japanese investor near the end of 1989, after years of exceptional domestic returns and with Japan representing an enormous share of global equity markets, how comfortable would you have been putting virtually your entire stock allocation into Japan for the next three decades?

There are legitimate advantages to a U.S. home-country bias. Holding domestic stocks avoids the direct currency fluctuations that come with owning foreign assets denominated in euros, yen, pounds and other currencies.

U.S. stocks can also be simpler from a tax perspective. Foreign investments may involve withholding taxes on dividends and other complications, while qualified dividends from eligible U.S. companies can receive preferential federal tax treatment.

Those are worth considering, but they are generally secondary portfolio-construction considerations rather than the starting point. Asset allocation determines how much you hold in stocks vs bonds and, within equities, how broadly you diversify across countries and regions.

Those decisions should primarily reflect your objectives, risk tolerance and time horizon. Tax treatment, currency exposure and the particular ETFs used to implement the allocation come afterward.

What the leading global equity ETFs do

If you believe adding international stocks makes sense, the next question is the one that tends to cause analysis paralysis: How much should you allocate outside the U.S.?

There are two practical approaches. The first is to let market capitalization determine the allocation automatically. The second is to choose your own target allocation and periodically rebalance the portfolio back toward it.

Market cap is simply a company's share price multiplied by its number of shares outstanding. A market-cap-weighted global index extends that concept across countries.

As the collective market value of one country's companies increases relative to the rest of the world, that country receives a larger weight. If it decreases, its weight falls.

There are several advantages to this approach. Turnover tends to be low because you're not constantly trying to decide which country deserves a larger allocation.

If China, India or another market eventually becomes a much larger share of the global stock market, its allocation can increase naturally. If U.S. stocks continue outperforming and maintaining their dominant share of global market cap, you continue to benefit from that, too.

You're not systematically selling winners simply because they've exceeded an arbitrary geographic target. It's about as hands-off as international diversification gets.

For many investors, that's also the difficult part. It requires resisting the temptation to tinker with allocations based on whichever country has recently performed best or worst.

There isn't, however, one universally authoritative definition of the "global stock market." Different index providers define their investable universes differently, and the resulting U.S.-vs-international allocation can vary considerably.

Consider the iShares MSCI World ETF (URTH). It tracks the MSCI World Index, and an investor using URTH as a reference point might therefore arrive at a 70% U.S./30% international equity allocation.

But the MSCI World Index has an important limitation: Despite its name, it covers only developed markets. Emerging markets such as China, India, Taiwan and Brazil are excluded.

Contrast that with the Vanguard Total World Stock ETF (VT), which tracks the FTSE Global All Cap Index. Here, U.S. stocks account for roughly 60% of the portfolio.

One major reason is that VT includes emerging markets, which collectively account for approximately 10% of the fund.

The alternative is to choose an international allocation yourself. You might decide on 10%, 20%, 30%, 40% or even 50% of equities outside the U.S.

The exact percentage is arguably less important than selecting an allocation that you understand and can realistically stick with through periods when either U.S. or international stocks are lagging.

You can backtest different combinations indefinitely and fit the data to find the U.S.-international split that would have produced the best historical result. But that optimization is inherently backward-looking.

The winning allocation over the previous decade tells you what worked during that particular decade, not what will work during the next one.

If you set your own target, the more important decision is establishing a systematic rebalancing policy.

One approach is calendar-based, such as reviewing the portfolio quarterly or annually and restoring the target weights. Another is threshold-based, where you rebalance only after the U.S. or international allocation moves a predetermined amount away from its target.

Rebalancing doesn't necessarily require selling, either. Investors who are still accumulating can direct new contributions toward whichever allocation has fallen below its target.

That can be particularly useful in taxable accounts, where selling appreciated ETFs may realize short- or long-term capital gains and create an immediate tax bill.

Ultimately, a lot of the debate over international stock allocation amounts to splitting hairs. If you've already decided that geographic diversification belongs in your portfolio, much of the important work is done.

Choose an allocation you can maintain, establish rules for rebalancing it and avoid repeatedly changing the plan based on whichever market happens to be leading at the time.

Currency hedging adds another wrinkle

Another thing investors should understand before dismissing the historical performance of international stocks is that returns haven't always been driven solely by the underlying companies. Currency movements can either help or hurt a U.S. investor's return, sometimes substantially.

Consider the iShares Core MSCI EAFE ETF (IEFA). It invests across developed markets outside the U.S. and Canada, meaning its underlying stocks trade in currencies such as the euro, Japanese yen, British pound and Swiss franc. But IEFA itself trades in U.S. dollars, which creates an additional source of return and risk.

If the U.S. dollar strengthens against those foreign currencies, the value of the foreign investments translates into fewer dollars, creating a headwind for a U.S. investor. If the dollar weakens, the opposite occurs: Those foreign assets translate into more dollars, providing a tailwind even if the underlying stocks themselves haven't performed any better.

ETF issuers are well aware of this, which is why many offer currency-hedged versions of their international funds. IEFA's counterpart is the iShares Currency Hedged MSCI EAFE ETF (HEFA).

HEFA provides similar developed-market equity exposure. But this fund seeks to hedge its foreign currency exposure back to the U.S. dollar, reducing the effect of exchange-rate movements on returns.

Over the 12.6-year period through September 24, this distinction made a substantial difference. According to Testfolio, HEFA produced a 10.7% annualized return, compared with 7% for IEFA. Cumulatively, that worked out to approximately 260.7% vs 135.1%.

Assuming distributions were reinvested and ignoring taxes and trading costs, a $10,000 investment would have grown to approximately $36,069.62 in HEFA vs $23,509.48 in IEFA.

Does that mean HEFA is inherently the better international ETF? No. It means currency hedging was beneficial over this particular period, during which the U.S. dollar strengthened substantially against several developed-market currencies. The hedge insulated HEFA from much of that currency headwind.

If the U.S. dollar instead weakens against those currencies, the relationship can reverse. An unhedged international ETF such as IEFA can benefit from the currency translation, while a hedged ETF such as HEFA largely gives up that tailwind.

All else being equal, the same mechanism that helped HEFA during a strong-dollar environment can work against it during a sustained period of dollar weakness.

If you have a shorter time horizon or a particular desire to isolate the performance of foreign stocks, you may prefer to hedge some or all of your currency exposure. Over a multi-decade horizon, however, predicting currency movements becomes extremely difficult, and exchange rates can move through lengthy cycles in either direction.

If you don't have a strong view, there's nothing wrong with splitting the difference. A 50/50 allocation between hedged and unhedged international exposure, periodically rebalanced, reduces the need to make an all-or-nothing bet on the future direction of the U.S. dollar.

As with the international allocation itself, having an investment policy you can follow may be more useful than continually trying to predict which currency regime comes next.

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Most people know the basics of building financial security include saving consistently, investing for growth, managing debt and preparing for retirement.

The challenge facing many Americans is that financial strategies tend to focus on numbers while overlooking something equally important: Family communication.

Lincoln Financial's latest Consumer Sentiment Tracker found that 78% of families surveyed haven't had an in-depth conversation about life insurance, for example. It also found that 60% of adult children believe their parents have life insurance coverage in place, while only 44% of parents say they do.

The disconnect extends beyond life insurance. Similar gaps exist around retirement income, healthcare costs and wealth transfer.

What I find interesting isn't just the data. It's what it reveals about how families approach a financial strategy.

Many people assume critical decisions have already been discussed. They assume their spouse understands the decisions that have been made. They assume their children know where important documents are. They assume their parents have taken care of everything.

Sometimes those assumptions are right, but often they're not.

That's why I believe financial protection starts with conversation.

Why communication is becoming more challenging

Today's families are juggling more financial responsibilities than ever.

Many adults are trying to save for retirement while helping children through college. Some are supporting aging parents while managing mortgages, careers and their own long-term goals. Others are navigating questions about healthcare, caregiving and legacy at the same time.

As financial realities become more complex, communication becomes more important. Yet this is often the first thing to get postponed.

Nobody wakes up on a Saturday morning excited to talk about life insurance, healthcare costs or estate decisions. These conversations can feel uncomfortable. They can feel premature. Sometimes they can even feel unnecessary.

After all, if everything seems fine today, why bring it up?

The problem is that many financial decisions don't become important when they're made. They become important years later.

The families that seem most confident in their financial decisions aren't necessarily the ones with the largest portfolios or the most sophisticated strategies. In many cases, they're the families that have created clarity around who is responsible for what, what protections are in place and what they want their future to look like.

Life insurance awareness starts with creating clarity through conversation. That may sound simple, but many families still haven't taken that first step.

Life insurance is part of a bigger financial picture

One of the reasons life insurance gets overlooked is because people often think about it separately from the rest of their financial strategy.

Retirement preparation goes in one bucket, investments go in another, and insurance sits somewhere else.

But in reality, every financial decision is connected.

The amount of risk someone is willing to take in an investment portfolio may depend on the protections they have elsewhere. Meanwhile, healthcare needs, estate planning considerations and family obligations can all affect the type of financial protection that makes sense for a specific situation.

That's why I've long believed life insurance should be considered alongside saving, investing and preparing for retirement as part of a comprehensive financial strategy.

It's important to ask whether someone's overall strategy reflects the life they're building today and the responsibilities they want to prepare for tomorrow.

A family with young children may have different priorities than someone approaching retirement. A business owner may need different protection than a salaried employee. Someone caring for aging parents may face entirely different financial considerations.

The goal isn't to arrive at a universal answer.

The goal is alignment between financial decisions and financial realities.

Moving from assumptions to informed decisions

The good news is that closing the conversation gap doesn't require a complicated financial approach.

Most families don't need to start with spreadsheets, policy reviews or legal documents.

They need to start with goals.

Ask questions like:

• What are we trying to protect?
• Who depends on us financially?
• What would happen if one source of income disappeared?
• Are there responsibilities we haven't accounted for?
• Does everyone understand the decisions and protections in place today?

Those questions tend to open the door to more meaningful discussions about financial protection, retirement goals and long-term priorities.

From there, families can begin identifying areas that need more attention and move from assumptions to informed decisions.

Five ways to close the conversation gap

1. Treat life insurance as part of your financial strategy

Review life insurance the same way you'd review retirement accounts, investments or estate documents. Financial protection deserves a seat at the table alongside every other major financial decision.

2. Identify who's impacted

Financial decisions rarely impact just one person. Consider spouses, children, aging parents, business partners or anyone who depends on your financial wellbeing.

Talking across generations helps create a shared understanding of responsibilities, priorities and expectations before important decisions need to be made.

3. Start with goals, not policies

People connect more easily to conversations about family, security and future priorities than they do to policy features or coverage amounts.

Focus first on the people and goals you're trying to protect. The technical details can follow.

4. Check assumptions against reality

Ask yourself what you're assuming to be true. Then verify it.

• Do family members know where important documents are located?
• Have beneficiary designations been reviewed recently?
• Would the people who matter most know what steps to take if something happened tomorrow?

Assumptions are often where financial gaps begin.

5. Bring a financial professional into the conversation

A financial professional can help evaluate protection needs, identify blind spots and ensure life insurance is viewed within the context of a broader financial strategy.

Their role isn't just to recommend solutions. It's to help create clarity and guide informed decision-making.

A better way to think about life insurance

Lincoln's research suggests that for many families, there are important financial conversations left to have. The issue isn't a lack of interest in protecting loved ones. Most people care deeply about that.

The issue is that many families have never confirmed whether everyone's understanding of the family's financial decisions and protections matches reality.

Closing the conversation gap won't solve every financial challenge, but it can help families create clarity before it becomes urgent.

And it can help ensure life insurance plays the role it was intended to play from the beginning: Helping protect the life families are building today.

The conversation doesn't have to be perfect. It just has to start.

Lincoln Financial is the marketing name for Lincoln National Corporation and its affiliates, including issuing insurance company The Lincoln National Life Insurance Company, Fort Wayne, IN, and wholesaling broker-dealer, Lincoln Financial Distributors, Inc., Radnor, PA. LCN-9117890-090926

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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.

Stocks closed mostly lower Thursday as poorly received Magnificent 7 earnings and concerns about AI spending sparked a sell-off across the tech sector. Ahead of next week's Federal Reserve meeting, market participants are also worrying about how rising oil prices will impact inflation and interest rates.

At the close, the tech-heavy Nasdaq Composite was down 2.6% at 26,008 and the broader S&P 500 was 1.2% lower at 7,663, while the blue-chip Dow Jones Industrial Average ticked 0.02% higher to 52,867.

Oil prices climbed after President Donald Trump said late Wednesday that the U.S. is not currently negotiating with Iran to end the war in the Middle East. Front-month West Texas Intermediate crude futures rose 3% to $100.06 per barrel, and are now up nearly 11% month to date.

Meta sinks on free cash flow worries

Meta Platforms (META) was one of the biggest drags on the Nasdaq Thursday, with the Facebook parent sliding 7% after earnings, marking its worst day since July.

Meta's third-quarter revenue of $64.6 billion beat Wall Street's estimate, as did its fourth-quarter revenue forecast. But earnings of $3.83 per share fell short, and free cash flow turned negative as spending on its AI initiatives ramped up.

The company raised the low end of its full-year capex, now expecting to spend between $135 billion and $145 billion, compared to its previous outlook of $130 billion to $145 billion.

"In our view, Meta is entering a capex harvest cycle, with three years of investment in frontier AI models beginning to translate into both stronger near-term advertising performance and accelerating adoption of AI products," says UBS Global Research analyst Stephen Ju. "We believe Meta can further improve ad targeting and content recommendations through optimized versions of its Muse model, creating upside to our 2027 and 2028 revenue forecasts."

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Meta also said its board of directors approved the establishment of non-voting Class C shares, which will be publicly traded and distributed to those who own its Class A common stock and Class B super-voting shares.

The Class C shares will begin trading in January 2027, and the price of the Class A shares will "reflect the effect of a two-for-one stock split," says Meta.

Part of the reason Meta is creating the new Class C shares, the company explains, is to preserve CEO Mark Zuckerberg's voting control and ensure he remains in California to lead the company, both of which were at risk pending passage of California's proposed wealth tax in November. It will also help fund the company's AI expansion plans.

Tesla falls after earnings

Tesla (TSLA) was another Magnificent 7 stock that slumped after its late-Wednesday turn on the earnings calendar, with the electric vehicle (EV) maker shedding 3.1%.

The company reported third-quarter earnings of 48 cents per share on revenue of $28 billion, which was higher than analysts expected, but lower than the year prior.

TSLA also said operating expenses jumped 39% in Q3, which dragged on margins. Additionally, the company lowered its full-year capex forecast to $20 billion from $25 billion.

"With regard to a potential merger with SpaceX (SPCX, -9.1%), I think I said everything that should be said yesterday, tap-dancing through a minefield there," noted CEO Elon Musk on Tesla's earnings call. "And yes, that's it. "

Procter & Gamble has its best day in six years after earnings

Procter & Gamble (PG) found itself on the positive side of the ledger after earnings, rising 5.6% — the Dow Jones stock's best day since March 26, 2020, when it rose 6.4%, according to Morningstar.

The consumer products giant reported higher-than-expected fiscal 2027 first-quarter earnings and revenue, while volume growth jumped 2.4% year over year.

"We are getting the balance between pricing and product improvements, package improvements, claims, communication and retail execution right," Chief Financial Officer Andre Schulten said on the earnings call. "But it's also a very fragile balance that we want to make sure we don't compromise on, so we will price, and we will price with innovation, not jeopardizing the top-line momentum."

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After the first increase to the federal funds rate in three years following the September Fed meeting, you're probably looking closely at your holdings, as well as across the market, for stocks to avoid as interest rates rise.

With inflation issues still persistent and a clear desire from the central bank to stabilize prices, the future likely includes higher rates. Naturally, that will disrupt both stock and bond markets.

If you're focused on long-term growth, obviously you shouldn't abandon the market altogether because of short-term volatility prompted by uncertainty about interest rates.

However, rising interest rates can cause big problems for certain businesses that depend on borrowing, need frequent refinancing or generate too little cash to cover their financial obligations.

As rates rise, these activities become more costly and eat into profitability. Although higher rates aren't guaranteed, the 10-year Treasury yield has already hit its highest level in more than two decades.

That means investors have ample data to show that borrowing costs and Treasury yields are already having an impact, particularly on firms with weak share-price performance and uncertain paths to stronger profits.

The following companies face a combination of financial and business headwinds that could make them particularly vulnerable in the months ahead as interest rates rise.

Here are five stocks to avoid as interest rates rise.

Data is as of October 21.

Boeing

• Market value: $151.9 billion
• Sector: Industrials

Boeing (BA) has a long road ahead as it works to restore profitability and investor confidence following years of production problems, safety concerns and costly delays. That task will be even harder as rates rise.

The aerospace manufacturer faces elevated borrowing costs, along with its substantial debt burden limiting financial flexibility while it attempts to improve manufacturing efficiency.

In September, the firm's CEO acknowledged that stabilizing production of the 737 MAX was taking longer than expected and delays in increasing production of its 787 Dreamliner also persist.

With some $26 billion in debt and operations currently in the red this fiscal year, strong demand for new aircraft alone can't cause this industrial stock to take off.

Higher financing costs would make an increasingly delayed turnaround even more expensive, and shares have declined by double digits in 2026 in part because of these challenges.

The fact that its customers may also face borrowing headwinds for big-ticket Boeing planes makes the situation even less attractive.

Carnival

• Market value: $36.9 billion
• Sector: Consumer discretionary

Carnival (CCL) faces a challenging combination of substantial debt, rising operating expenses and sensitivity to consumer spending.

This last point is particularly noteworthy, as Carnival typically is not catering to the highest tier of consumers. And many of its customers could see purchasing power eroded significantly by higher interest rates.

That one-two punch could make the cruise operator particularly vulnerable if interest rates remain elevated, as it faces operational headwinds even as its itineraries become less budget-friendly for travelers.

The company has roughly $25 billion in debt, and some $2.5 billion scheduled to mature in 2027 and another $4 billion is maturing in 2028, according to SEC filings. At the same time, operating expenses are on the rise in 2026 thanks to elevated fuel prices.

Small wonder shares of the consumer discretionary stock are down about 25% from their February highs before the U.S. bombed Iran. Although demand for cruises hasn’t crumbled yet, a combination of higher rates and higher costs make Carnival a risky bet.

Crown Castle

• Market value: $33.5 billion
• Sector: Real estate

Crown Castle (CCI) is a real estate investment trust (REIT) that specializes in telecommunications infrastructure. Among specialty REITs, it's certainly a stable business. But it's also not exactly growing at breakneck speed given market saturation.

What's more, maintaining and growing a network of cell phone towers for lease to wireless service providers takes significant capital, and CCI's debt load and recent business transition make it vulnerable if interest rates continue to rise.

The company has been restructuring its operations and selling its fiber businesses to focus more heavily on wireless towers. Proceeds from the asset sale seem a good thing, as they're intended to help reduce the firm’s massive debt load of about $30 billion.

But the move also leaves Crown Castle more dependent on tower leasing from wireless carriers that face their own spending crunch amid rising telecom borrowing costs.

In fact, the company has forecast a decline in 2026 site rental revenue that reflects these challenges. And with a leadership transition at the company that includes the third CFO since 2025, the company's ongoing changes bring these financing challenges into greater focus.

Lucid Group

• Market value: $1.3 billion
• Sector: Consumer discretionary

Lucid Group (LCID) has long been a high-risk investment as the luxury electric vehicle maker has looked to build out its global footprint and become a leader in the emerging EV category.

However, Lucid has struggled to match its production with demand. Lack of profitability, rising rates and a risk of consumer borrowing headwinds create even bigger problems going forward.

The company's latest delivery figures of 3,806 vehicles for the third quarter show just how small LCID stock is compared with other automakers.

Even if you look past the intense competition in the market to gain share, high manufacturing costs and the challenge of reaching true scale are daunting.

The company has cut jobs as part of its cost-reduction efforts and a hope to reduce cash burn, but there's little room for execution problems or slower build-out if this stock is going to live up to the growth promises of the past year or two.

And while higher financing costs are a practical concern, equally troubling is a gut-wrenching drop of about 80% in the last 12 months as investors have given up on this one-time momentum darling.

A combination of financial woes and Wall Street pessimism creates an awfully tough hill to climb for this EV company.

Vornado Realty Trust

• Market value: $6.1 billion
• Sector: Real estate

Another real estate leader, Vornado Realty Trust (VNO) is exposed to two challenges that can be particularly damaging when interest rates are high: a tough office property market and the cost of financing a massive commercial real estate portfolio.

The New York-focused landlord has been working to improve occupancy in the last year or so, but big-ticket office properties continue to face pressure from changing staffing patterns in the age of remote work.

Shares remain about half of where they were right before the pandemic of 2020, and the fact that rates are now at multi-decade highs put even more pressure on this struggling real estate leader.

Its debt obligations provide a more immediate reason for caution.

Recently, mortgages have been sent to "special servicing" as a sign of potential default. Although Vornado secured forbearance agreements to soften the blow for several months, interest and payments continue to accrue.

That delay could allow for asset sales to fund refinancing, but the current high interest rate environment makes the timing of those deals very painful.

Investors should closely watch VNO as a prime example of the kind of stocks to avoid as interest rates rise.

With limited balance sheet flexibility and a steady increase in borrowing costs, it's no wonder shares of this REIT are down about 14% in the last 12 months.

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The federal government's TreasuryDirect.gov website is the only place online where you can buy and redeem U.S. savings bonds. You can also use TreasuryDirect to purchase securities such as Treasury bills, notes and bonds, as well as Treasury inflation-protected securities (TIPS).

Recently, TreasuryDirect introduced changes to how its users access their online accounts. Last year, it discontinued a tool for tracking down unredeemed bonds. And those who request certain services may face a months-long wait for the Treasury to complete the task.

Here's what you should know.

A new way to log in.

As of late October, TreasuryDirect is requiring customers to log in to their accounts with ID.me, a digital identity-verification service. You may already have an ID.me account to log in to other government or business websites; taxpayers use it to access records with the IRS, for example. Those who have an ID.me account may need to take some additional identity-verification steps before using it to access TreasuryDirect.

If you need to create an ID.me account, you'll provide information including your Social Security number and a photo of government-issued identification, such as your driver's license or passport. You may also have to submit a photo of yourself taken with your smartphone's camera.

Tracking down unclaimed bonds.

Last year, TreasuryDirect discontinued its online Treasury Hunt tool, which customers could use to search for missing or unredeemed savings bonds. The service ended because a provision in the SECURE 2.0 Act called for the Treasury to share information on some unredeemed, matured bonds with the states, which can include them in their unclaimed-property databases. But the program is still in the works, and you can't yet count on using these databases to find bonds.

If any of your bonds have been lost, stolen or destroyed, you can fill out and mail FS Form 1048 to request a claim. Provide any details about the bonds that you have on hand, including the purchaser's Social Security number as well as bond serial numbers and issue dates.

Significant delays.

Prepare for a long wait if you submit a form by mail. Requests for lost, stolen or missing savings bonds take 11 months or more to process, according to the TreasuryDirect website. Converting paper savings bonds to an electronic format may take nine months or longer, and cashing in paper bonds could take at least three to five months. A high volume of requests is causing the delays, according to the Treasury.

If you're planning to cash in paper bonds, send the request (using FS Form 1522) several months before you need the money, suggests David Enna, founder of Tipswatch.com. If the total redemption value of the bonds is more than $1,000, you'll have to sign the form in the presence of a notary or another certifying officer. Send the request via certified mail to the address listed on the form, with a return receipt requested, Enna advises.

Alternatively, you may be able to cash in paper savings bonds at a local bank or credit union. But many limit the service to customers who have an account with the institution.

If you're counting on savings bonds to cover a major expense, timing matters. A financial adviser can help you evaluate your options, plan for potential delays and determine how your savings bonds fit into your broader financial strategy.

Use the tool below to connect with a vetted financial advisor:

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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As we approach the 2026 midterm elections on November 3, affordability is a major concern for many voters across the United States.

People already worry about rising grocery and housing costs, insurance premiums, utility bills, and gas prices. Meanwhile, homeowners, in particular, are also concerned about another expense that keeps climbing: property taxes.

The average property tax bill on a single-family home reached $4,427 last year, up 3% from the year before, according to real estate data firm ATTOM. For households already feeling squeezed, that bill adds to the cost of staying in a home they may have already spent years paying for.

Some potentially good news? Some states are responding. This November, voters in seven states will decide on various property tax measures designed to provide some relief. Here’s what you need to know before you vote.

2026 ballot measures related to property taxes

Some of the following measures would cut bills for qualifying homeowners. Others would slow how quickly property tax assessments can grow, expand exemptions for specific groups, or limit what the state can do in the future.

Florida: Property tax Amendment 3 bigger homestead exemption

Florida voters will weigh two property-tax measures on the November ballot.

Amendment 3 would raise the non-school homestead exemption to $150,000 in 2027 and $250,000 in 2028, then adjust it for inflation.

It would also cut the annual assessment cap on non-homestead property from 10% to 5% for non-school taxes, let local governments expand exemptions further, and limit how they spend property-tax revenue.

Residents who weren’t in Florida on December 31, 2026, would get the larger exemption starting in their fifth qualifying year.

Amendment 2 would exempt farm equipment and other tangible personal property used for agriculture or agritourism beginning in 2027.

Supporters say larger exemptions mean immediate savings for homeowners and farmers. Critics warn that lost local revenue could squeeze police, fire, and other services, or shift costs onto other taxpayers.

Wyoming: New exemption for primary residences

Wyoming’s Initiative 1 would exempt 50% of the assessed value of a qualifying primary residence.

• The exemption would cover the structure, not the land beneath it, and would have no value cap.
• Owners would need one year of Wyoming residency and six months of occupancy in the prior tax year.
• It would stack on a 2025 exemption covering 25% of the first $1 million in value for owner-occupied single-family homes.

Proponents say the measure offers broad relief to people who live in their homes year-round. Opponents argue that, without a cap, the biggest dollar savings would go to owners of the priciest homes, while counties and schools could face shortfalls.

Oklahoma: Tighter limits on property tax assessment increases

Oklahoma’s State Question 847 would slow how fast a property’s taxable value can rise.

• Current caps of 5% for most locally assessed real property and 3% for homestead and agricultural land would fall to 4% and 1.75% beginning in 2027.
• The full value freeze for eligible older adults age 65 and older would become income-based limits.
• Older adults with the lowest income would keep a zero-increase limit. Others in Oklahoma would face caps of up to 1.75%.

Supporters say tighter caps bring predictability when housing markets heat up. Critics note that caps limit increases in value (but not in bills), since local governments can still raise rates, and some seniors now protected by a full freeze could lose that certainty.

North Carolina: Capping local property tax increases

North Carolina voters will decide whether to amend the constitution to limit increases in local property tax levies.

• The property tax levy amendment doesn't set a specific percentage. Lawmakers would write the limits later and could allow exceptions.
• A cap on the state government’s overall levy doesn’t necessarily mean an individual bill cannot rise.

Supporters say a constitutional check would restrain local spending and give taxpayers certainty. Critics say the open-ended wording leaves key details to future legislators and could hamper growing communities’ ability to fund schools and services.

Louisiana: Five property tax measures

Louisiana has the longest ballot when it comes to property taxes, with measures generally falling into three categories: help for specific homeowners, changes to local rate-setting, and incentives to fix up neglected property.

• Amendment 1: Lets the surviving spouse of a deceased veteran with a service-connected disability transfer a homestead exemption to a new home one time.
• Amendment 6: Adds an exemption for homeowners 65 and older who already qualify for the income-based assessment freeze. It rises with age to $30,000 in assessed value at 81 and older, with local approval required.
• Amendment 9: Raises that freeze’s income limit from $100,000 to $150,000, with inflation adjustments starting in tax year 2028.
• Amendment 2: Lets taxing authorities that have levied below their maximum raise rates toward a rate authorized in a prior year after reassessments.
• Amendment 10: Allows local exemptions for rehabilitated blighted or derelict properties.

Supporters call the first three targeted help for people on fixed incomes, while critics note they benefit only those who qualify and can reduce local revenue. Additionally, some backers say Amendment 2 gives local governments flexibility, and Amendment 10 revives neighborhoods.

But some opponents fear higher tax rates and short-term revenue losses with some of the measures.

Georgia: More land eligible for preferential tax treatment

Georgia’s Amendment 1 would double the maximum acreage one owner can enroll in the Conservation Use Valuation Assessment program, from 2,000 to 4,000 acres.

• The program taxes qualifying agricultural, timber, and conservation land on its current-use value rather than its market value.
• Owners must commit to keeping the land in eligible use. Georgia homeowners generally wouldn’t be affected.

Supporters say the change helps large farms and timber operations stay in business and keeps working land from being sold for development. Critics argue it shifts more of the tax burden onto other owners and mainly benefits large landholders.

Tennessee: Amendment 2 constitutional ban on a state property tax

Tennessee’s Amendment 2 would prohibit the Legislature from imposing a statewide property tax on real, personal, or mixed property.

• Notably, Tennessee has no such tax today, so the amendment wouldn't change current bills.
• Local property taxes levied by counties and cities would stay as they are.

Supporters see a permanent safeguard against a future tax increase. Critics say it ties lawmakers’ hands for a tool they might not use.

Property tax: What to know before voting

Property tax measures offer relief in different ways, and the details determine who benefits.

• Homestead exemptions reduce the portion of a primary residence’s value subject to tax.
• Assessment caps limit how quickly taxable value can rise, but don’t necessarily cap the bill.
• Senior exemptions and freezes often depend on age, income, and residency.
• Limits on local levies restrict how much a government can raise overall, with no guarantee of a lower bill for every homeowner.
• Agricultural and other targeted exemptions mostly benefit qualifying property owners, not homeowners across the board.

Before casting your ballot, make sure you know who qualifies for each measure, when the new rules take effect, and how a measure could affect your home’s taxable value.

It's also important to consider how or whether a measure might affect your bottom line in the near term or further down the road.

Related

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• Property Tax Changes Older Homeowners Should Watch in 2026
• Midterm Election Tax Measures Target High Income

If you are a homeowner, you've already noticed your home insurance premiums aren't just creeping up. For many, they're soaring – up nearly 37% nationwide over the last decade, according to data from the Federal Reserve. Meanwhile, car insurance premiums have jumped over 50% in the same time period.

The impact has hit some states harder than others, and a study published this week by Bloomberg Intelligence found that the problem is so widespread that most homeowners are now spending more on insurance than they are on property taxes.

Between higher mortgage rates and higher home prices (which come with higher property taxes), homeowners in today's market are already feeling squeezed. Tacking on soaring insurance rates is just one more thing inflating your monthly escrow payment. Here's what the study found and what you can do about it.

Insurance premiums are a bigger burden than property taxes for most homeowners

In October, the average cost of home insurance nationwide hit $2,808 per year, according to Insurify. But some states are seeing even more expensive home insurance premiums. Nebraskans, for example, have seen rates soar 79% over the last 10 years, according to the Bloomberg analysis.

Among the major reasons cited for the historically high rates are increased climate change-related risks as well as rising home values and the rising cost of repairs. Similar reasons are cited for car insurance, which the study also tracked.

When the two are bundled together, the total cost amounts to a substantially higher bill than property taxes for homeowners in 75% of counties nationwide. On average, Bloomberg found that home insurance alone is about 14% more expensive than property taxes in these counties. When you add in car insurance, the average price difference hits 30%.

In some regions, particularly in the Southeast, insurance premiums can be as much as four times higher than a typical property tax bill.

Ways to lower your insurance premiums

Seeing headlines like this at a time when just about every other part of your budget is also hurting from inflation is hard. While you may not be able to completely reverse the skyrocketing prices you're seeing, there are some steps you can take to push the rates you pay back down.

Before you buy a house

If you don't own a home yet and this news is making you reconsider whether you're ready to take the leap, here are some tips to try before the move to minimize your future monthly payments:

• Buy less house. While a big house sounds nice, more house means more coverage requirements. If you're willing to make a slight tradeoff – even downsizing your search from, say, a four-bedroom to a three-bedroom or the same room count but in a smaller footprint – you'll be rewarded with lower premiums.
• Look for newer construction. This strategy can be tricky to balance. New construction is typically cheaper to insure, but the home price might be higher than something a little older. It's probably not worth buying a more expensive home purely in hopes of seeing a lower insurance bill. But if you're deciding between two homes at a similar price point, the newer one might come with slightly lower rates.
• Check the flood hazard zone. The FEMA flood maps are an imperfect tool for evaluating a home's actual flood risk. But insurance companies do use those flood zone designations when setting rates. Choosing a home with a lower risk according to the map can lead to savings on insurance.
• Find the closest fire station. A home that's minutes away from a fire station will cost less to insure than one that's further out. Spotting a fire hydrant on the street is also a good sign that an insurer will view this as a lower-risk property.
• Skip the backyard pool. Alright, if your heart is set on having your own pool, get it. But know that the pool will mean a higher insurance premium. They're seen as a liability hazard by most insurers. So if it isn't on your "must-have" list, it's better to skip the pool and use your premium savings (and pool maintenance savings) to instead get a membership to a gym that has a pool or a local community pool.

If you're already a homeowner

For those who already own a home, you might feel like your options are limited. Moving into something cheaper to insure might be out of the question if you locked in an interest rate far lower than what's available today. But you do still have some tricks up your sleeve to tamp that premium back down:

• Replace your aging roof and systems. If your home is older and in need of a new HVAC system or new roof, making those upgrades (and then telling your insurer about it) can lead to serious savings. The same goes for older plumbing and wiring – though those can be more costly and difficult to replace if you're not already planning a major renovation.
• Do some DIY fireproofing. For those in California or other places with a higher fire risk, taking steps to fireproof your home can result in lower premiums. In some cases, the savings could be in the thousands if the fireproofing is enough to get you off the FAIR plan and onto a standard home insurance policy. If that's your goal, call your insurer ahead of time and find out what kind of fireproofing measures you should do to make the switch.
• Pay your policy in full up front. This works for both home and car insurance. Many insurers offer a paid-in-full discount that can knock a couple hundred bucks off of your bill. It's not exactly a windfall, but it's an easy way to trim your costs down a bit.
• Raise your deductible. If you have a healthy emergency fund, it can be worth leveraging that to lower your premiums. A higher deductible means you're agreeing to shoulder more of the costs of any covered damages. But if your emergency fund can bear the deductible amount, that tradeoff could shave another couple hundred bucks off of your bill.
• Shop your insurance ahead of every renewal. Switching home insurance won't always lead to savings, but it often will. It only takes a few minutes to compare quotes online and could end up saving you hundreds every year. If you don't find a cheaper quote, at least you will know for sure that your current rate is the best available.

Start the hunt for a better rate with our home insurance comparison tool below:

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Who likes paying taxes? Let me see a show of hands.

OK. No one.

Still, taxes are part of investing, and sometimes the determination to avoid them can lead to a worse financial decision than simply writing the check.

I know because I've done it.

Like many investors, I've held on to winners too long, in part because I feared paying a large capital gains tax bill. In 2021, I watched a roughly $1,500 investment in Adobe (ADBE) balloon to nearly $90,000. It was also a high-income year for me, so I decided not to take the profits.

Looking back, that feels like a mistake. Adobe shares subsequently fell dramatically from their 2021 highs. I was worried about the tax consequences of selling and, at the same time, suffered from a healthy dose of FOMO: What if I sold and the stock kept going up?

It didn't.

That experience has made me much less resistant to selling big winners in retirement.

Why is it so hard to let go of a successful investment? Maybe we become attached to the company. Maybe we like believing we're great stock pickers. Or perhaps the capital gains tax feels like an immediate, certain loss while the possibility of a future stock decline seems distant and theoretical.

For some investors, that can lead to tax paralysis: refusing to sell an appreciated investment primarily because of the tax bill, even after the position has grown far larger than makes sense for the portfolio.

When taxes become a behavioral problem

Behavioral finance helps explain why.

One phenomenon is sometimes called the tax-lock effect. An investor continues holding an asset that no longer fits his or her risk tolerance, investment thesis or desired asset allocation because selling would trigger a capital gains tax.

Then loss aversion enters the picture.

The concept, associated with psychologists Daniel Kahneman and Amos Tversky's prospect theory, holds that people tend to feel the pain of losses more strongly than the pleasure of comparable gains.

For a wealthy investor sitting on a large, appreciated position, writing a six-figure check to the IRS can feel like losing money rather than enjoying the result of a successful investment.

The potential future loss from owning too much of one stock can be harder to picture.

Jason Lilly, a financial adviser with Tenere Wealth Advisors in Hyannis, Massachusetts, sees several behavioral biases come together when clients resist trimming successful holdings.

Last year, he worked with a client who had about $1 million invested in Apple (AAPL). The client loved Apple products — "we are Mac people" — creating an emotional attachment to the company. Recency bias reinforced the reluctance to sell: The stock had been performing well, so why assume that would change?

Lilly approached the problem gradually. "As an adviser, my No. 1 fiduciary role is to help clients protect the downside. So that's how I frame the conversation. This client has 10,000 shares of Apple. We sold 100 shares at $290. Then the stock bumped up to $310 and an element of seller's remorse kicked in."

Lilly reminded the client that those 100 shares represented only about 1% of the Apple position.

"I continue to underscore the importance of having a highly diversified portfolio and a comprehensive financial plan. When I can get clients to truly see the big picture and look 10 years down the road, then they get more comfortable paying capital gains taxes," Lilly says.

For clients like these, Lilly and his team can also establish a capital gains budget for the next one to three years. Rather than treating every taxable sale as an unpleasant surprise, the investor decides in advance how much in gains he or she is comfortable realizing. So taxes become part of the plan.

When you may need a CPA

Tax planning for wealthy retirees can quickly get complicated.

Financial advisers increasingly use tax-planning software to model strategies, but an adviser generally is not a CPA or licensed tax professional. For higher-net-worth families, coordination among the financial adviser, CPA and estate-planning attorney can become increasingly valuable.

Some investors may benefit from engaging a CPA specifically for long-range tax planning. John Barut, CPA and owner of Providence Consulting CPA, PLLC in Charlotte, North Carolina, offers retirement tax planning for clients who want to estimate what their tax burden could look like five, 10 or even 25 years into retirement.

The exercise can incorporate stress testing the impact of Roth conversions, charitable giving, Social Security claiming decisions, required minimum distributions (RMDs) and tax-bracket management on the portfolio over time. Instead of evaluating each decision separately, the idea is to see how the pieces interact over decades.

Barut recently worked with a retired married couple in their 50s who had approximately $7 million in traditional IRA assets. Doing nothing with those accounts for the next 10 to 15 years could mean substantial required minimum distributions later in retirement. He developed a multiyear Roth-conversion strategy. This year, the couple plans to convert $250,000 from traditional IRA assets to a Roth IRA — and willingly pay the associated income tax now.

"This couple may live another 40 or 50 years and have to pay taxes every year on portfolio gains. But with an aggressive Roth conversion strategy, we can demonstrate how this couple can reduce their total tax burden by approximately $12 million over their lifetime. That's a significant savings," Barut says.

The exact result of any Roth strategy depends heavily on future tax rates, investment returns, longevity and other assumptions. But the larger lesson applies to many retirees: Sometimes paying taxes today can improve the long-term plan.

The hidden risk may be the stock, not the tax

Jamie Botsko, a senior family office wealth adviser at Greenleaf Trust in Grand Rapids, Michigan, works with wealthy families that have highly concentrated stock positions.

"HNW clients often misconstrue capital gains taxes as the primary risk when selling appreciated assets, when the actual risk is market decline and potential wipeout of their holdings because of a concentrated position," Botsko says.

Consider an investor with several million dollars tied up in the stock of one company. Perhaps the shares came from decades of executive compensation, an early investment in the business or ownership of a company that later went public.

The investor may have an extremely low cost basis. Selling creates a large taxable gain. Doing nothing, however, leaves a substantial portion of the investor's retirement wealth dependent on the fortunes of one company.

For clients with significant concentrated positions, Botsko may consider strategies such as charitable remainder trusts, exchange funds, variable prepaid forwards and long-short strategies, depending on the investor's circumstances.

"The key issue is not the tax hit itself, but rather the market risk that could derail clients' retirement plans. Proper planning should focus on diversification rather than tax avoidance," Botsko says.

A charitable remainder trust, for example, can allow someone with highly appreciated assets and charitable intentions to contribute those assets to an irrevocable trust. The trust may sell the assets and reinvest the proceeds without immediately triggering capital gains tax at the trust level. The donor or another beneficiary receives payments according to the trust terms, with taxes generally recognized as distributions are received. The remaining assets eventually pass to the designated charity.

An exchange fund takes a different approach. Investors contribute concentrated shares to a pooled fund containing stocks provided by other investors. In return, they gain exposure to a more diversified portfolio without immediately selling the original shares and realizing the gain. These vehicles can carry substantial restrictions, costs and complexity, so they aren't appropriate for everyone.

Other strategies, according to Botsko, including prepaid variable forwards and certain long-short approaches, can be even more complicated and typically require specialized tax, legal and investment advice.

"The goal isn't necessarily to eliminate taxes. It's to keep taxes from dictating the entire investment strategy," says Botsko.

Give yourself permission to enjoy your wealth

There is another side to tax paralysis that often emerges in retirement: Some investors become so reluctant to realize gains that they hesitate to spend money they can comfortably afford to spend.

Jason Dall'Acqua of Crest Wealth Advisors in Annapolis, Maryland, sees this with clients who have spent their working lives saving and investing.

The fear of not having enough can be healthy. It encourages saving, investing and planning. But habits built over 30 or 40 years don't disappear when someone retires.

Dall'Acqua recalls one client who takes an expensive family vacation each year but still wants reassurance that the expense is affordable, despite having sufficient assets. "An emerging part of my role is to help clients enjoy their wealth through meaningful experiences while addressing their concerns about spending," Dall'Acqua says.

Sometimes that means selling appreciated investments and paying taxes. No one enjoys doing that. But the purpose of accumulating wealth isn't simply to preserve every dollar indefinitely. Retirement portfolios are ultimately there to support your retirement, he says.

Lilly tells clients to view a capital gains tax bill from a different perspective. "This is a ‘good' problem to have. Think ahead. Be proactive. We appeal to clients' qualms about paying taxes on concentrated stock positions by using patience and framing the conversation around strategies like capital gains budgets, charitable giving, and gifting appreciated assets to manage taxes effectively."

Barut makes a similar case for looking ahead. "Having a better handle on future taxes — which many retirees don't plan for in their retirement budget — takes some of the uncertainty out of retirement planning. No one enjoys paying taxes, but showing clients their current and future tax burden makes them more open to tax mitigation strategies like Roth conversions and charitable giving," he says.

There may be one final psychological hurdle worth clearing: A capital gains tax bill usually exists because an investment made money. The true challenge is deciding when and how to pay some tax today to help protect the wealth you'll need tomorrow.

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There's more than one good reason why U.S. investors have Portugal in their sights. Ultra-high-net-worth individuals and switched-on investors regard it as a fast-growing entry point into the EU marketplace.

They view significant investment from the likes of Microsoft, which recently pledged to invest $10 billion in new AI data centers in Sines, as a clear indicator that it's an up-and-coming investment hotspot.

They're also attracted to its relaxed lifestyle, and the political and economic stability it offers, seeing it as a potential escape route if geopolitical disruption further impacts their lifestyle at home.

What U.S. citizens need to do to purchase property

Portugal has no nationality-based restrictions on property purchases, whether residential, commercial or new builds, but there are plenty of other rules around buying a property and seeking residency.

The first step for any U.S. citizen seeking to buy property is to get a Portuguese tax number, known as an NIF. It's essential for getting contracts signed, opening bank accounts and paying taxes. It's also required when registering property ownership.

Non-EU buyers will also need an in-country fiscal representative to comply with local tax obligations, such as municipal property taxes and Portugal's requirement for a local contact for non-EU citizens.

You can apply for an NIF online, or in person by pre-booking an appointment at a local tax office.

Bank accounts and legal representation

A Portuguese bank account is a must-have. Without one, buyers will be unable to pay a deposit on a property, utility bills or taxes. Although non-resident bank accounts are available, they will be subject to compliance checks. An in-country account will help to simplify any bureaucracy you may encounter.

Securing the services of a Portuguese lawyer, although not mandatory, is advised. They'll be needed for title checks, registry searches, contract reviews and deed signings.

Lawyers also need to perform due diligence, including verifying land registry certificates, dealing with the tax registry, securing a habitation license and handling any debts or encumbrances associated with the property purchase.

The buying process

Buyers must follow these steps once they've established a bank account, secured a NIF and contracted a legal representative:

• Negotiate the property purchase terms
• Instruct the local lawyer to complete due diligence
• Sign a promissory contract (CPCV)
• Pay a deposit typically ranging between 10% and 30%
• Register ownership when the deed is complete

All of this can be done remotely by power of attorney.

Note that a CPCV is a binding contract. If the seller withdraws, they will need to pay double deposit compensation to the unsuccessful buyer. If the buyer withdraws, they will be liable for a similar level of compensation.

Tax implications for U.S. buyers

Buyers are required to pay a property transfer tax known as IMT. Currently, non-residents pay a flat 7.5% IMT on residential purchases, although the current rules allow for exceptions — for example, if the buyer becomes a Portuguese tax resident within two years of the purchase.

Other annual taxes, such as municipal property tax (IMI) vary by municipality. Mortgage terms for non-residents include higher interest rates and stricter lending criteria.

U.S. citizens holding Portuguese bank accounts may also have U.S. reporting obligations. Foreign accounts may need to be reported through a Foreign Bank Account Report (FBAR) if their combined value exceeds $10,000 at any point during the year.

Taxpayers whose foreign financial assets exceed separate, higher thresholds may also need to file IRS Form 8938 under the Foreign Account Tax Compliance Act.

Given the potential complexity of the tax implications for U.S. citizens, professional cross-border tax advice is highly recommended.

2026 market conditions

Portuguese properties remain a compelling investment proposition, with prices rising rapidly as its popularity grows. The national average rise stands at 19.8%, according to Statistics Portugal (INE), with higher increases in Lisbon and Porto.

Mortgage rates are currently between 3% and 4%, although non-resident mortgage rates are generally higher. This is softened to a degree by the comparative strength of the U.S. dollar, which still provides significant buying power and relatively good value.

Portugal still offers a stable, transparent and accessible property market. Its attractions are clear, but U.S. investors must understand the tax, legal and procedural requirements they'll need to complete before committing.

Portugal Pathways connects internationally mobile individuals and families with specialist cross-border wealth management, estate planning and tax advisory services. Through its network of regulated advisers and family office professionals, it helps clients structure, preserve and transfer wealth across multiple jurisdictions.

Related Content

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• You Don’t Want to Retire in Portugal: Here Are Three Tax Reasons Why
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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.

Do you need a steady paycheck in retirement, or are you ok with withdrawing money as you go? Not sure? Then you aren't alone.

We spend decades focused on accumulating money for retirement, but give little thought to how we'll spend it when we retire. Will we create a guaranteed stream of income deposited in the bank each month, or will we pay as we go, taking solace in the fact that the money is there when we need it?

The paths are vastly different. If you choose the guaranteed route, it means taking a portion of your savings and turning it into a steady paycheck, typically through an annuity. If you choose the pay-as-you-go route, it means making periodic withdrawals from your retirement account when you need the funds.

Which approach is right for you depends on several personal factors: your cash flow (steady monthly income), longevity (how long your retirement will last), and temperament (your ability to manage withdrawals on your own)

The decision is not as clear-cut as saving money in a 401(k), is it? Before you decide if you need some guaranteed income in retirement, ask yourself these three questions.

1. Does your guaranteed income cover your living expenses and if not, are you ok with that?

For most retirees, fixed income comes from either Social Security, a pension, other income like real estate, or a combination of some of the above. That money replaces the paycheck from working and typically covers monthly expenses. Sometimes the money is not enough, and retirees have to tap their savings to make up the difference. If that sounds familiar and you're ok with that scenario, then you probably don't need guaranteed income.

But if you're not comfortable with that scenario, guaranteeing the portion of your expenses not covered by Social Security and other fixed income would probably provide peace of mind.

"I would argue that if you cover most of the essential spending with guaranteed income, that takes out a lot of stress in retirement," said Nick Nefouse, global head of retirement solutions and head of LifePath, Multi-Asset Strategies & Solutions at BlackRock.

The key is to guarantee some, not all, of your retirement income, warns Barb Pietrangelo, a financial planner at Prudential Wealth Advisors. After all, retirement can easily last 30 years, so you still need some of the money to grow and compound.

Pietrangelo says to tally your monthly expenses against your recurring income, then ensure guaranteed income fills any gap. "The general rule of thumb is 70% of spending, but that is not always true," said Pietrangelo. "Look at your checkbook or charge card for the last three to six months to see what you are spending on a regular basis."

The easiest way to turn retirement savings into a monthly paycheck is via an income annuity. With this, you get guaranteed income for life, but it comes at a cost. Accessing your money early means high surrender fees, and you'll have no built-in inflation protections unless you pay extra.

2. Will you be ok if the stock market drops and takes your retirement portfolio along with it?

One major benefit of guaranteed retirement income is freedom from market anxiety. Stock drops, high unemployment, or economic slumps won't stop your checks — unlike living strictly off an investment portfolio.

An investment portfolio fluctuates with the market, carrying inherent risk and potential losses. If you can handle market volatility and potential shortfalls, self-managing your withdrawals may work best. But if market swings will keep you up at night, an annuity offers a more reassuring alternative

"Would you be ok if the market dropped? Would you still have enough income to pay yourself forever? Most people wouldn't," said Pietrangelo. "With guaranteed, you don't have to worry about that. But always pair it with another savings vehicle."

3. Is certainty important to you?

Is longevity on your side? Are you worried about running out of money in retirement? If you answer yes to either question, then guaranteeing a portion of your retirement income may be for you. After all, by doing so, you ensure the money will last as long as you do. If you live to 100, you will get a monthly payout until then.

Plus, you'll know exactly how much you get each month. For some people, that certainty is all the permission to spend they need.

"People don't like talking about life expectancy; they like being certain about the ability to spend," said Nefouse. "With guaranteed income, you're more certain; you're more willing to take more risks, take that extra trip."

Take your time before deciding

Whether to guarantee income or withdraw as you go is as unique a decision as your retirement plan. But one thing is for sure: it's not something you should choose blindly. Both approaches have pros and cons.

Guaranteed income gives you peace of mind, but you give up growth and flexibility. Withdrawing as you go provides the potential for appreciation and continued portfolio growth, but there's also more risk. Ultimately, finding the right balance is about matching your money to the lifestyle and comfort level you want.

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The 2026 midterm election season has been a nail-biter. Republicans entered the contests with one of the slimmest margins of control of the House of Representatives in history and seem poised to lose power. The Senate is likely, but not certain, to stay red. But an awful lot can happen in the final weeks and days to turn the tide one way or the other.

One thing is much more predictable, however: The stock market almost always shakes off the uncertainty that leads up to a midterm election and performs well in the third year of a presidency.

Midterm years are choppy, with a bias to the downside. Since 1926, the U.S. stock market has delivered its weakest annual returns in midterm years, on average, rising just 7.5%, compared with an overall average annual return of 12.4%, according to data from BlackRock analysts Bryan Wood and Mark Peterson. The two most recent midterm years have been the two worst years for the S&P 500 Index since 2008: In 2022, stocks fell 18.1%; in 2018, they dropped 4.4%.

Three cheers for year three of a presidential cycle

By contrast, the S&P 500 hasn't lost money in the third year of a presidential term since 1939. We must note that past performance is no guarantee of anything. But we'll also note that in 2023 the pattern played out with an S&P 500 return of 26.3%.

Why is this post-midterm effect so powerful? Because financial markets hate uncertainty, and wrapping up the midterm elections typically reduces political and policy uncertainty — especially when the result is a divided Congress or a significant loss of seats for the president's party, making policy advancements harder to achieve. "Legislative gridlock reduces policy risk and supports additional equity upside, all else equal," says Barclays Capital public policy analyst Michael McLean.

McLean notes that since World War II, the president's party has lost seats in 18 of 20 midterm elections, with 1998 and 2002 the exceptions. The average loss was 25 seats. (The average job-approval rating for presidents was 50% in this period, a good 10 percentage points above President Trump's numbers in August.)

Currently, Republicans control the presidency and both houses of Congress. (The Supreme Court, although not partisan, has a majority that are conservative, Republican-appointed and business-friendly.) The Republican margin in the House sat at just three in August, the smallest majority in 92 years. The Democrats are widely expected to win enough seats to gain control of the chamber.

It's an uphill battle for Dems in the Senate, where Republicans have a 53-47 margin. Although Democrats need to gain just four seats, only 10 of the 35 races this year are competitive, McLean says, and Trump won seven of those 10 states in the 2024 presidential election.

Most election watchers who are modeling the intersection of politics and the markets are planning for a Democratic House and Republican Senate. That scenario, combined with a Republican president, has produced an average annual return in the S&P 500 of 13.7% since 1933, says Keith Lerner, the chief market strategist at Truist Advisory Services. That's the second-best mix for annual returns, behind a Democratic president, Democratic Senate and Republican House. A Republican president with a fully Democratic Congress, however, has produced just 4.9% average annual returns, the worst performance of any combination.

The analysts at LPL Financial say that although a split Congress means investors should expect fewer large legislative changes, they could see more volatility around key issues such as government funding and the debt ceiling. Democrats will likely use House committees to revisit changes the Trump administration made at the Consumer Financial Protection Bureau (CFPB) and to push for greater regulation of banks and prediction markets, LPL believes. Trump will continue to use executive orders and regulatory rulemaking to boost his agenda.

Congressional gridlock isn't guaranteed, however. BCA Research posits a 60% chance of Democrats pulling off an upset and winning the Senate. In that case, restoring the powers of the CFPB would likely graduate from a committee-hearing topic and become legislation that reaches the president's desk, awaiting signature or a veto.

Even in the event of a Democratic sweep — or, less probably, a continuation of Republican control — small majorities in either direction would be likely to limit the party in power's agenda to "more incremental and contested policy outcomes," predict LPL's analysts. And any vetoes by Trump would probably withstand override attempts.

So what's an investor to do when it comes to translating political moves into portfolio moves? You might guess that our advice is to stick to your long-term plan, but keep the following in mind:

1. Don't sit on your hands until the balloons drop

Waiting for post-election certainty could mean missing out. Those hefty third-year gains don't always wait for January 1. Historically, the market begins to rally about one month before midterm elections as polling data starts providing a clearer expectation of the outcome, according to Wood and Peterson, the BlackRock analysts.

Since 1970, the six-month periods immediately following a midterm election have produced an average return of 14.1%.

2. Be careful about handicapping post-election market winners

Many analysts suggest that post-midterm stock gains are broad and difficult to predict by industry. That doesn't stop investors from trying — several high-flying space stocks, for example, had terrible summers as investors figured rising Democratic fortunes meant less funding for the Defense Department, including space exploration.

But Truist's Lerner says that although conventional wisdom often suggests certain sectors should benefit from specific election outcomes, history shows things often unfold very differently than expected. Economic and business trends shape returns more than political headlines, he says.

An exception might be the technology sector, say the Barclays analysts. They note that tech stocks are perennial post-midterm winners because they are among the biggest beneficiaries of a drop in policy uncertainty, particularly with regard to trade and national security issues. Tech tops the sector leaderboard by a wide margin for 12-month post-midterm returns, according to Barclays, outperforming the S&P 500 in all but one midterm election cycle since 1990.

3. Don't obsess over politics

Keep in mind that the mitigation of U.S. political uncertainty is only one part of the risk equation for investors. Matt Gertken, the chief geopolitical strategist at BCA, says there is a tendency to lump all political and geopolitical risks together, from tariffs to the control of the Strait of Hormuz to the U.S. midterm elections to China's global ambitions.

To do so is "misleading," he says. "The midterm election pales in comparison to Hormuz or Taiwan risks."

4. Check your biases

What investors should not do, analysts say, is let their own political preferences prompt investment choices.

Wood and Peterson of BlackRock cite an extreme example to make a point: Since 2013, a $100,000 investment in the S&P 500 would have grown to $398,000 by the start of 2026 if left fully invested. But had investors moved to cash whenever their preferred political party lost the presidency, returns would have been dramatically lower — $214,000 if you pulled out with a Republican president or $186,000 if a Democrat prompted your exodus.

"Letting politics guide investment decisions comes at a significant cost," they say.

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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Investing is complex, and human beings are wired to make predictable mistakes, which is why you should consider enlisting a good financial adviser — someone who doesn't just manage your money, but also your behavior.

They help you stay disciplined when every instinct screams at you to do something, which happens to even the most experienced investors.

Successful relationships aren't built on promises of market-beating returns or sophisticated strategies. They're built on trust. But trust can't exist without transparency.

Transparency begins with asking the right questions to cut through the marketing language and sales pitches and reveal what really matters.

1. What is your investment philosophy?

By asking about an adviser's investment philosophy, you can learn whether you're dealing with someone who understands how markets actually work or someone who's still chasing yesterday's performance.

You want to hear about evidence-based investing, broad diversification and rules-driven approaches. The adviser should be able to explain the relationship between risk and return without resorting to jargon or promising to eliminate risk entirely.

2. How will you invest my money — and why?

This question digs deeper into the practical implementation of their philosophy. The answer should be directly connected to your personal financial plan and cash flow needs, not some generic model portfolio.

Think of your investments as a portfolio for life and focus on the long term, not on a series of day-to-day, short-term objectives. You want to hear about specific rebalancing rules, tax-management strategies and how investment policy flows from your individual circumstances.

When it comes to designing the actual investment plans, experienced advisers can help devise a sensible combination of relatively risky and relatively riskless assets such as money market funds to point you to the best, most likely path to reach your goals.

They can run simulations to demonstrate the full range of potential outcomes for different modeled portfolios, so you can understand the tradeoffs in designing the right mix to suit your goals, preferences and risk appetite.

The adviser should be able to explain why they've chosen specific asset classes, how they'll manage taxes in taxable accounts and what triggers will prompt rebalancing. Most important, they should connect every recommendation back to your specific situation.

3. How do you get paid, and for what?

When someone's compensation depends on how often they can get you to trade or which products they can sell you, that creates what economists call a principal-agent problem.

Your interests and theirs aren't aligned. You want a clear explanation of all fees, not just the adviser's management fee, but every underlying cost including fund expenses, trading costs and custody fees. Ask when fees change and whether financial planning is included or costs extra.

4. Do you work with people like me?

When an adviser knows exactly who they serve best, they can develop specialized knowledge about the unique challenges those clients face. They understand the emotional and practical aspects of your situation because they've guided many others through similar circumstances.

5. Can you show me a sample plan and your planning process?

A question such as this might separate the professionals from the product salespeople. A real financial adviser should be able to show you examples of their work, demonstrate how they approach scenario planning and outline their implementation process.

A good way to start is with an honest self-assessment that helps you know where you stand now and where you want to get to, evaluating all aspects of your financial health (such as your savings and spending habits.)

Think of it as a financial checkup that can help clarify your goals, needs, and preferences. How is your brain wired? Are you comfortable taking more risk or less? You want to see evidence of comprehensive planning that goes beyond investment allocation.

6. What's your background — and why this profession?

One adviser I know often starts first meetings with a story. He explains that his father suffered a rare brain illness, and while the family had some safeguards (a will, a mandate, disability insurance), they were still left struggling.

That experience shaped his mission: to make sure no family he works with is ever left unprepared. "You'll tell me things you wouldn't tell your spouse or best friend," he says. "I take that seriously." Clients don't just learn his credentials; they learn his reasons.

Look for advisers who can tell a coherent story about why they do this work and how their experience shapes their approach. The best advisers often have personal experiences with money — sometimes painful ones — that drive their commitment to helping others avoid similar mistakes.

7. Who is your custodian? How is my money protected?

You want to understand how your assets are held and protected, separate from the adviser's business. Third-party custody means your money is held by an independent organization such as Charles Schwab or Fidelity, not by the adviser themselves. This protects you if something happens to the advisory firm.

You should also understand SIPC insurance coverage and any additional protections. Bernie Madoff was able to run his Ponzi scheme for so long partly because he served as both investment adviser and custodian, giving him complete control of client statements and making independent verification impossible.

8. How often will we meet — and about what?

Regular communication is essential for maintaining trust and keeping your plan on track. You want to understand not just the frequency of meetings but what will be covered in those discussions. It's crucial to communicate clearly and often.

An adviser can add value by explaining carefully what they're doing when forming portfolios and by setting appropriate expectations. That way, whether performance is good or bad, the investors can feel alright about the decisions that they made upfront.

By putting cadence and content on the table from the start, advisers eliminate one of the biggest sources of client anxiety: Silence. These conversations should cover changes in your life circumstances, progress toward goals, tax planning opportunities, and any adjustments needed in your strategy.

The frequency of these meetings should match your needs and preferences. Some clients want monthly check-ins, while others prefer semi-annual reviews. What matters is that the schedule is predictable and the meetings are substantive, because having a routine builds long-term discipline.

9. Who will be on my team, and who does what?

Modern advisory practices often involve teams rather than individual advisers. You want to understand the roles of different team members, whom your primary contact will be and how decisions get made. You should know whether you'll be working with the named adviser or primarily with associates. Understand the experience levels of different team members and how work gets allocated.

What's the escalation path for complex decisions or unusual situations? The best advisory teams have clear role definitions and good communication systems. You shouldn't feel as if you're being passed around randomly, but you also shouldn't expect to monopolize the senior adviser's time for routine account maintenance.

Before your meeting, consider some of these questions yourself. Think of them as conversation starters, prompts that open feelings and life priorities that often stay hidden.

You'll go into your meeting with a better sense of what you need.

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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.

All three main equity indexes were lifted by general optimism about the AI revolution on Wednesday, with incoming data showing an actual return on investment for one of its major players. Whether that trend persists is the controlling question for markets, with more earnings and guidance from the new economy's leaders on the immediate horizon.

By the closing bell, the tech-heavy Nasdaq Composite was up 1.1% at 26,702, the broad-based S&P 500 had added 0.6% to 7,757, and the blue-chip Dow Jones Industrial Average was higher by 0.7% at 52,856.

Price action in the bond market was relatively muted, with the 2-year Treasury yield up 2.3 basis points to 4.81%. Yields on the 10-year (+0.6, 5.123%) and the 30-year (-1.2 bps, 5.413%) Treasuries drifted mostly sideways.

"The recent volatility in the AI trade may have rattled the market," observes Morgan Stanley Wealth Management Portfolio Manager Daniel Skelly, "but it's arguably a healthy development, especially given a backdrop of solid growth and strong earnings."

Skelly acknowledges that concern about spending is "merited given the boom-bust nature of some previous US innovation episodes." At the same time, he concludes, "The long-term AI capex cycle remains intact and should continue to favor large players with strong balance sheets."

Why a SpaceX-Tesla merger is only a matter of time

SpaceX (SPCX, +7.8%) announced its presence on the earnings calendar with authority after the closing bell on Tuesday, including a big bottom-line beat driven by rapid growth for its Super Intelligence and Starlink segments.

But the bigger news might be what CEO Elon Musk said about the biggest potential M&A transaction in stock market history, a long-rumored tie-up between SpaceX and Tesla (TSLA, +3.4%).

According to Musk, the boards of both SpaceX and Tesla have formed special committees to talk about a merger between the two companies.

"I do think there's a lot of merit to combining the companies," Musk said during a conference call to discuss SpaceX results. "There's a lot to be gained from cooperating on developing superintelligence software."

Nobody knows anything, especially about the future. But even a limited data set indicates the probability the SPCX and TSLA boards see the situation the same way their CEO sees it is a lot closer to 100% than it is to 0%.

What that deal means for AT&T

AT&T (T, -6.5%) also reported expectations-beating top- and bottom-line results for its third quarter. Management raised its full-year earnings guidance, and AT&T is accelerating its stock buyback program, too.

Revenue was up 5.3% year over year to $32.3 billion, vs a FactSet-compiled consensus estimate of $31.7 billion. Earnings per share came in at 65 cents vs estimates of 60 cents. AT&T said 2026 EPS will be $2.40, up from a range of $2.25 to $2.35 offered in July.

"The accelerated growth we delivered this quarter shows our structural advantages to lead the next era of connectivity," CEO John Stankey said in a statement. "We are accelerating the pace of our planned share repurchases this year to approximately $10 billion, reflecting our confidence in our market position."

But the blue-chip dividend stock still fell sharply on Wednesday. AT&T reported 379,000 new postpaid subscribers, missing a consensus forecast for 379,300. That's also down from 432,000 new adds in the second quarter.

Postpaid subscribers generate long-term recurring revenue. Deterioration here is an indicator of competitive pressures from existing market participants such as Verizon Communications (VZ, -2.2%) and T-Mobile US (TMUS, -2.5%).

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Despite what Stankey said about its structural advantages and its position in this emerging era of connectivity, markets are also pricing the potential impact on the prevailing market-share pie of new service providers such as SpaceX.

T (down 4.7% through October 20 vs -0.7% for the S&P 500), VZ (-2.3%) and TMUS (-7.9%) have all suffered since October 8, when SpaceX accelerated its plans to launch a consumer wireless telecom business with an $8 billion spectrum purchase that will allow Starlink to compete with the incumbents.

Meta's latest muse

Tesla and fellow Magnificent 7 stock Meta Platforms (META, +0.5%) are reporting third-quarter financial and operating results after the closing bell. Independent tech analyst Luke Lango is particularly bullish on the latter.

"Meta heads into earnings as a frontier AI contender, not just an ad company, and the market hasn't fully priced that shift. The core business is humming, and we expect revenue to clear the $63.3 billion consensus by $1 billion or more on growth north of 20%, a pace few mega caps can touch."

According to Lango, Meta's brand-new Muse is the real story after the AI agent "topped 10 million downloads in about six weeks, a launch pace only a dozen apps have ever hit."

The analyst cites SpaceX's "blowout" earnings as evidence that agents and the computing power to support them "are already making real money." As Lango sees it, this totally reframes the capex debate. "When compute is this scarce and this valuable," he writes, "a bigger spending plan isn't recklessness, it's a land grab."

Lango is looking for Mark Zuckerberg's outfit to post strong ad numbers and "hard" Muse metrics. "At roughly 20 times next year's earnings," the analyst concludes, "Meta is one of the cheapest ways to own the AI agent era."

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Recovering from identity theft can feel like a full-time job, but a newly enacted federal law aims to eliminate at least one major headache. Signed into law on October 7, 2026, the Improving Social Security’s Service to Victims of Identity Theft Act (H.R. 5345) promises to end the exhausting "call center scavenger hunt" for victims of Social Security number (SSN) fraud.

"Americans recovering from identity theft should not have to fight through layers of red tape to receive help. With President Trump’s signature, victims will have a trained Social Security Administration employee responsible for coordinating their case and seeing it through to resolution," said the legislation's sponsor, Representative David Kustoff (TN-08).

The provision takes effect 180 days after enactment. The Social Security Administration (SSA) has a six-month implementation window, making the official effective date April 5, 2027.

During this 180-day transition period, the SSA must establish internal protocols, train designated staff and set up the casework routing systems needed to assign single points of contact for victims.

What the law does for victims

Under the bipartisan legislation, the SSA is now required to assign identity theft victims — as well as individuals whose Social Security cards are lost or intercepted in the mail — a single, dedicated point of contact. Rather than explaining your situation to a different representative every time you call, you will work with one trained SSA employee who is tasked with maintaining your case records and coordinating across agency departments until your issue is fully resolved.

Rep. Kustoff introduced the legislation after constituents reported getting bogged down in a long, confusing process to resolve Social Security identity theft. A release from the Ways and Means Committee noted that "an individual may be faced with multiple, different processes requiring them to speak to multiple, different SSA employees before the issue is resolved" and "victims report they are often provided conflicting information and advice."

And data breaches continue to rise. In 2024, there were 3,158 data compromises and more than 1,800 included SSNs; these numbers were up in 2025, with 3,322 data compromises reported and SSN-related data exposed in 2,243 of the breaches, according to the Identity Theft Resource Center's 2024 and 2025 data breach reports.

What you should do if your SSN is compromised

While this administrative fix streamlines agency support, taking swift personal action remains crucial to protecting your finances. Here are four steps to take when your Social Security number is stolen.

• Contact the SSA: Report fraudulent activity directly to the SSA Office of the Inspector General at oig.ssa.gov or call 1-800-269-0271. Check your earnings records and benefit status by logging into your my Social Security account at ssa.gov/myaccount.
• Lock your Social Security number: Locking your SSN is a strategic move that shuts down the two most common avenues for fraud: illegal employment and unauthorized access to your government records.
• File an FTC report: Visit identitytheft.gov to report the theft and receive a personalized recovery plan.
• Freeze your credit: Contact all three major credit bureaus — Equifax, Experian and TransUnion — to place a free freeze on your credit reports, preventing identity thieves from opening new accounts in your name.

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Bundling isn't just for home and auto insurance anymore. Walmart and Sam's Club are taking a similar approach, giving shoppers a way to save by combining two memberships.

Launched on October 20, the new bundle combines Walmart+ and Sam's Club Plus for $120 a year. Purchased separately, the memberships would cost $218 annually, making the bundle a potential $98 savings.

With holiday shopping around the corner, the timing couldn't be better for shoppers looking to stretch their budgets. But before signing up, here's what you need to know about the benefits, savings and a few catches worth considering.

What if you already have a Walmart+ or Sam's Club membership?

If you're already paying for Walmart+ or Sam's Club, you don't have to wait until your membership expires to take advantage of the new bundle. Walmart is offering several upgrade options, depending on which membership you currently have.

For households that regularly shop at both retailers, this could mean keeping the benefits they already use while paying less each year.

Here's how the membership options compare:

Is the new membership worth it before the holidays?

For households that regularly shop at both retailers, the new bundle could be an easy way to save without changing shopping habits. Buying groceries in bulk at Sam's Club and picking up everyday essentials at Walmart can be especially useful during the holidays, when grocery bills and to-do lists tend to grow.

My family already has memberships at both retailers, and we've found having both worthwhile. With a busy household and both stores nearby, we have the flexibility to shop where it makes the most sense.

There are a few catches to consider, though. Free scheduled delivery requires a minimum $35 order at Walmart and $50 at Sam's Club. The 2% Sam's Cash benefit applies only to eligible purchases, and the new bundle doesn't come with a free trial. It also renews automatically each year unless you cancel.

Before switching, check how you're currently paying for Walmart+. The American Express Platinum Card® and and the American Express® Business Gold Card offer statement credits that cover the monthly Walmart+ membership fee, up to $155 annually.

Switching to the new annual bundle means losing those credits. Members receiving discounted memberships through AARP, USAA or other promotional offers could also lose their existing savings. Check your benefits before making the switch.

Ultimately, the $120 bundle makes the most sense if you already shop at both stores or plan to use the benefits regularly. Consider how often you visit each retailer, whether you'd use the delivery services and what you're currently paying for memberships. The potential $98 savings is appealing, but only if you're getting your money's worth.

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A drafty window doesn't just represent a chilly room. Think of it as a vacuum, sucking your home's energy and your money out the window.

This comes at a time when some households will pay more for energy over the winter. The U.S. Energy Information Administration recently released its winter fuels outlook for 2026-27. In it, the EIA states that homes using natural gas and propane as the primary heating fuel will face lower prices this year.

Meanwhile, homes using electricity can expect prices to climb around 4%. Fortunately, a pocket thermal camera can pinpoint exactly where your home is bleeding money, so you can reduce energy waste regardless of the heating source.

How does a pocket thermal camera work?

Many pocket thermal cameras connect to your smartphone through a USB-C port or are handheld. The camera detects heat signatures through infrared radiation and converts them into a color-coded map.

Here are three to consider. I picked these due to their higher customer ratings, versatile features and ease of use:

What makes these devices so helpful is that they can detect energy waste around your home. You can run them around your home's doors, windows, electrical panels and HVAC to see if there are significant temperature differences.

As you scan the area, it assigns different colors to temperatures. Red, orange or white indicate hotter areas, while blue, purple or black indicate cooler areas. Once complete, it creates a thermogram you can view on the camera or your smartphone's screen.

So, what does this mean? The tool helps you detect temperature differences in key areas of your home. If you run it over your window and that area is blue while the rest of the room is orange, you could have a window leak. If you've never used one before, I'll show you how to test your home.

How to scan your home for energy waste

Here's how to conduct a thermal scan of your home's key energy waste zones:

• Windows: Stay a few feet back and scan the outer frame, window sash and pane edges. As you scan, watch the map for blue or purple zones, indicating drafts or faulty seals.
• Exterior doors: Trace the door's perimeter, focusing on the weatherstripping, threshold (the horizontal strip at the bottom of the door) and bottom sweep, where cooler air creeps in.
• Electrical panels and outlets: Scan outlets and light switches for any signs of drafts. For the main breaker panel, look for hot zones, which can indicate poor wiring or electrical overload.
• HVAC ductwork and vents: Point the camera at the return and supply vents as the system runs to ensure the airflow is evenly distributed. For ductwork, run the camera to find any disconnected joints or insulation gaps.

I found problems; how do I fix them?

Fixing a drafty window or door is relatively simple. For windows, apply weatherstripping or caulking to improve insulation. For doors, inspect the weatherstripping every fall and replace it when it shows wear.

The door sweep is another key. When it flattens, remove it, measure the door width, cut a new one from U-shaped vinyl, and slide or screw it into place.

The threshold may also need adjusting over time, especially if you notice a gap at the bottom of the door. Turn the screws to raise or lower the plate until it aligns with the door sweep.

For electrical issues, I always recommend contacting a local electrician. They can inspect your wiring and load to determine why parts of your panel overheat.

For HVAC ductwork, seal leaking joints with duct sealant (mastic) or foil tape, and wrap uninsulated ducts in exposed areas, such as attics, with duct insulation. These steps can prevent thermal loss and lower your energy bills.

Maximize your winter savings

A pocket thermal camera can take the guesswork out of winterizing your home by showing you where leaks are. By detecting invisible drafts, gaps and insulation failures early, you can make repairs that lower your heating costs while keeping your home warm and cozy all winter long.

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I'm sitting on the sofa in my office, which is in Virginia. Looking out the window, I can see both Virginia and Maryland. There's an often-incorrect assumption that when you cross the bridge from Virginia into Washington, D.C., your taxes jump. The reality is much more complicated.

Income taxes, which is how we often gauge whether taxes are "high" or "low," do go up if you move into D.C. But property taxes come down. So, if you're retired, you may actually be better off in D.C.

However, D.C. has an estate tax, and Maryland has an estate and an inheritance tax, so depending on your balance sheet, you may be better off staying in Virginia. You can see how things can get complicated quickly.

My goal in this article, as a CFP® and president of Exit 59 Advisory, is to help you avoid making a big decision on where you move in retirement for tax purposes — which I think is often a mistake in and of itself — without understanding the full tax picture.

Five taxes to consider

1. Income tax

You've heard of people moving from California to Texas. We have several clients in the process of changing residency from New York to Florida. This isn't because Texas has delicious BBQ or because Florida has Publix. It's typically because folks want to ditch the income tax. While this is almost always the most consequential tax when you're working, that isn't always the case for retirees.

Nine states don't tax earned income. However, like the federal government, most states do have a progressive income tax, where the rate rises with your income. Be sure you understand that progression and what effective or average rate you're likely to pay.

When we have a relocation in retirement in a client's financial plan, it becomes pretty clear what will happen to their income, capital gains and estate taxes, all else being equal. We recently had a client moving from California to Texas and were able to tell them how much money they would save, and therefore, could spend elsewhere. We used specialist software to do that, and you can use our subscription to access it for free.

2. Capital gains tax

Capital gains rates are more favorable than income tax rates at the federal level as a way to incentivize investment. The same cannot be said about state treatment of capital gains.

In most states that levy an income tax rate, the same rate is applied to capital gains. When my parents sold their (not so) forever home in Maryland, it basically looked as though the capital gain was income. It was taxed at the same rate.

There are some notable exceptions. Washington state, for example, doesn't have an income tax but does have a capital gains tax. If your savings are all in retirement accounts, you don't have too much to worry about. But let's say you sold a business and almost all your assets are in non-retirement accounts. For you, Washington state may not be a good tax destination.

3. Sales tax

I'm a (perhaps too) proud graduate of the University of Delaware. Delaware is often referred to as the "tax-free state." Incorrect. Delaware doesn't have a sales tax. It does have income and property taxes, though those property taxes are extremely low by the beaches. Take notes, Florida.

Sales taxes are more straightforward, except that there are adjustments on certain types of purchases. Like to eat out? Then Washington, D.C., is no good. To be clear, the food is good. Like to drink? Avoid Washington state.

4. Property taxes

You might be unpleasantly surprised when you arrive in Texas for the BBQ or Florida for the Publix, and you're presented with a massive property tax bill. As the saying goes, "There's no such thing as a free lunch."

States need income, and that income gets raised somewhere. The key is landing in a state where that somewhere or someone is not you. If you're looking at a second home, you could consider renting instead of buying, so long as you can still satisfy the residency requirements.

Another thing to evaluate when it comes to property taxes is the property's assessed value, which can sit close to the market value or far below. A high tax rate on an assessed value much below market value may not sting as much as you think.

5. Estate and inheritance taxes

While estate and inheritance taxes are often used interchangeably in the context of death taxes, they are not the same. Estate taxes are levied on the decedent's estate. Inheritance taxes are paid by the beneficiary.

Fewer and fewer states have either of these taxes. As of this writing, 17 jurisdictions. However, if you have enough money and haven't done enough planning, estate taxes can be punitive. Before you move because of it, see if you can plan around it.

Why the full picture is even more nuanced

There's an exception to every rule in our tax code, and nothing is black and white. While an income tax rate may be high on the surface, many states exempt retirement income sources such as Social Security, pensions and retirement account distributions. Many have income phaseouts or caps on those exemptions.

Property taxes can be discounted in multiple jurisdictions if you meet certain requirements.

And let's not forget the cost of living. You may be someone who had spreadsheets for all of the above but still wound up with astronomical grocery bills, mortgage payments and restaurant bills because you weren't the only one who moved to Florida during Covid.

If you do want to move for tax purposes retirement, my hope is that you go in with your eyes wide open.

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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.

To help you understand the trends surrounding business and technology and what we expect to happen in the future, our highly experienced Kiplinger Letter team will keep you abreast of the latest developments and forecasts. (Get a free issue of The Kiplinger Letter or subscribe.) You'll get all the latest news first by subscribing, but we will publish many (but not all) of the forecasts a few days afterward online. Here's the latest…

Launching data centers into space is a moonshot. It’s hard to see the tech expanding beyond niche uses, even given a decade or more to develop. But big bets and upcoming activity are worth watching.

Start with Google recently launching its first test computer chips, known as Tensor Processing Units (TPUs), to see how they handle the harsh conditions of space, such as the vibrations of spaceflight, radiation and extreme temperatures. Google is working with satellite firm Planet to see if AI chips survive space phenomena that can "wreak havoc on electronics."

Others working on the tech include Starcloud, K2 Space, Blue Origin, Axiom Space and Cowboy Space. Nvidia, too, has a specific chip design for the stress of orbit. Before the recent Google launch, there were others who had similar tests.

SpaceX will dominate the field

SpaceX’s long-term plans overshadow all the rest: Annually launching thousands of data centers that use up to 100 gigawatts of power. (The largest data center on Earth, owned by SpaceX, uses about 1 gigawatt of power.) The vertically integrated juggernaut has a massive edge by controlling its own rocket and satellite-manufacturing facility.

"We believe orbital AI compute is an incredibly difficult technical challenge that only we can solve at scale in the near term," SpaceX said in its IPO prospectus.

CEO Elon Musk says SpaceX’s orbital data centers will start launching in 2027 and that the company has plans to build a network of up to 1 million orbital data centers. The satellites will be 100 feet high with a 250-foot wingspan, covered in solar panels and an 1,800-square-foot radiator with liquid cooling. For now, SpaceX is using Nvidia chips, but the space giant eventually wants to build its own chips at its Terafab facility in Texas.

AI data centers could come to dominate the payloads of its rockets, just as Starlink satellites have. In fact, SpaceX’s orbital data centers are the only payload that could even come close to creating the demand for hourly Starship launches, another of Musk’s goals.

The long list of technical challenges

Why go to space? To bypass the power and physical constraints on Earth. Sunlight is unlimited and five times more powerful in space, a big draw for power-hungry AI computing. Plus, leaving our atmosphere makes activist opposition, pollution concerns and other issues vanish.

But there’s a long list of obstacles to overcome. In addition to spaceflight vibration, radiation and extreme temperatures, the vacuum of space has no airflow, so intense heat from AI chips needs to be radiated with large metal panels. Many consider that a major challenge, but Musk isn’t fazed.

"For some reason there's been a bizarre debate about radiators in space," he said at a SpaceX presentation this year. "It's safe to say, SpaceX knows how to do heat rejection in space, with 10,000 satellites in orbit."

Orbital data centers also need to be connected to each other by high-bandwidth lasers and send data speedily back to Earth. Data delays would seriously limit the usefulness of many applications. Meanwhile, chip failures and other technical issues may have to be fixed by robots in space. And the chips will have to be replaced every 5 years or so, if not more often because of the harsh conditions.

After you solve the technical issues, the business model looks brutal when compared with traditional data centers on land. Advocates counter that they see launch costs plummeting over the next decade-plus, courtesy of SpaceX’s supersized Starship, as the chips and satellite tech drastically improve and demand for AI zooms ahead.

Google has admitted that its plans rely on SpaceX vastly driving down the cost of launching data centers. Google sees this possibly happening by 2035, if Starship takes flight nearly 200 times per year with packed payloads. And if SpaceX passes cost savings in its launches to its outside customers.

In a white paper, Starcloud argues that if launch costs fall and orbital data centers are scaled up, space systems will have lower operating costs than the hulking chip-packed facilities in Northern Virginia, Texas and elsewhere. That stems from lower energy and cooling costs, along with ditching the permitting challenges and physical constraints on land.

Breakthroughs are on the way

Expect breakthroughs in coming years, proving the tech is viable, if exceedingly costly. But don’t expect a viable alternative to traditional data centers on Earth anytime soon, even with serious power constraints and rising opposition to data centers.

SpaceX bets that a huge, profitable business emerges someday. "Over the long term, however, we expect Earth’s finite resources will not be able to sustain the immense computational demands of advanced AI models," according to the company’s prospectus. Still, SpaceX notes the risk that even if space is commercially viable, a serious slowdown in AI’s growth could make terrestrial data centers sufficient to handle future computing needs.

If commercial customers do emerge in the 2030s, the likeliest buyers are governments and the military, which would be more willing to pay a premium for research or security.

This forecast first appeared in The Kiplinger Letter, which has been running since 1923 and is a collection of concise weekly forecasts on business and economic trends, as well as what to expect from Washington, to help you understand what’s coming up to make the most of your investments and your money. Subscribe to The Kiplinger Letter.

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When a windfall arrives, the mental accounting trap is immediate: Cash feels like "found money" rather than hard-earned principal.

This cognitive shift can give rise to 'sudden wealth syndrome' — a distortion of financial judgment in which a sudden windfall or inheritance creates the illusion of infinite purchasing power.

From a balance sheet perspective, sudden wealth can be destructive not because of emotion, but because it can convert the windfall into permanent fixed liabilities. Many inheritors fall prey to lifestyle creep, high-risk investments and guilt-driven financial requests from friends and relatives.

To ensure long-term wealth preservation, beneficiaries must shift from an emotional mindset to a professional one.

Here are seven ways to safeguard a windfall and build multigenerational financial security.

1. Enforce a mandatory 'decision freeze'

Before deploying a single dollar, place the capital in high-yield savings accounts, short-term Treasury bills or money market funds. Spread funds across institutions to remain under FDIC insurance thresholds of $250,000 per depositor per bank.

How this protects your money. Temporarily parking your funds creates a crucial "decision-free zone." This cooling-off period halts impulse choices and gives you the time to assemble a team of qualified professionals — such as tax strategists, estate attorneys and financial advisers. Stepping back allows you to build a thoughtful strategy, ensuring your windfall transitions safely into enduring wealth.

2. Divide your windfall into strategic buckets

Rather than treating an inheritance as one lump sum, divide the windfall into distinct financial buckets using a disciplined allocation framework. Consult a financial professional to help you decide how much to allocate to each bucket and to refine your investment choices.

• Long-term investment growth. index funds, ETFs and investment-grade bonds
• Financial foundation & debt reduction. create a six-to-12-month emergency fund, maintain a high-yield savings account and eliminate high-interest debt
• Near-term goals & real estate. fund a primary home down payment and/or capital improvements to a new or existing home
• Controlled fun / guilt-free bucket. use for travel, major purchases and family gifts

How this protects your money. Allocating a strict 5% to 10% "fun bucket" creates a psychological circuit breaker. It satisfies immediate lifestyle desires without eroding the 90% core engine required for long-term compounding.

3. Wipe out high-interest liabilities first

Pay off variable credit card debt, personal loans or high-rate auto financing immediately before committing to long-term market investments. Paying off any lingering student loan debt will also save you money on interest.

How this protects your money. Retiring an 18% or 22% interest liability delivers an immediate, risk-free return equivalent to that APR. It permanently reduces monthly baseline overhead and creates greater budget flexibility.

4. Build an objective advisory team

Assemble a fee-only certified financial planner (CFP), a certified public accountant (CPA), and an estate attorney. Avoid commission-based brokers or product sellers pitching complex, illiquid instruments.

How this protects your money:. A CPA ensures compliance with tax rules (such as SECURE Act 10-year distribution rules for inherited IRAs), while a fee-only adviser acts as an objective barrier between the inheritor and impulse decisions.

5. Pass the no to your financial team

Requests for loans, business seed funding or gifts from friends and extended family are a leading driver of rapid wealth depletion. You might feel bad saying no even though it's the best thing to do.

How this protects your money. By shifting distribution authority to a formal policy or advisory team, the inheritor uses a scripted defense: "My estate plan and financial adviser manage all portfolio distributions under a fixed annual schedule, so I cannot write personal checks." This removes personal conflict while preserving relationships.

6. Avoid converting cash into recurring liabilities

A common pitfall is purchasing high-maintenance assets — such as luxury vehicles, second homes or boats — using lump-sum cash.

How this protects your money. A lump-sum inheritance can drain quickly when tied to permanent, recurring liabilities such as property taxes, HOA fees, maintenance and insurance premiums. Covering ongoing fixed costs strictly with earned income safeguards the underlying inheritance.

7. Adopt the 4% rule for perpetual cash flow

To treat the windfall as a true income-generating asset rather than a declining balance, establish a sustainable withdrawal rate, such as the 4.0% rule.

How this protects your money. On a $1 million invested portfolio, the 4% rule would generate $40,000 in annual supplemental income while allowing the underlying principle to compound alongside inflation, ensuring the capital survives indefinitely.

Spending that has financial return

Here are concrete, financially sound ways to allocate an inheritance that transform a one-time cash windfall into long-term financial resilience:

Pace yourself

An inheritance is far more than a financial buffer; it's the physical representation of someone else’s life's work, passed forward to create opportunity. Treating a windfall with intention doesn't mean locking every dollar away in a vault and forgoing life's pleasures — it means establishing clear guardrails so your capital works for you, rather than disappearing beneath lifestyle inflation.

By pausing before acting, funding productive assets and protecting your principal with a disciplined financial plan, you can transform a one-time inheritance from short-lived "mad money" into enduring financial freedom and multigenerational security.

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California can be a wonderful place to retire. The great weather, access to outdoor activities, good food and diverse culture are some reasons retirees choose the Golden State.

That said, retiring there comes with its unique financial considerations. The cost of living is high, state taxes can take a big bite out of retirement income, and housing, transportation and healthcare costs can add up quickly. The overall cost of living in California is roughly 40% to 45% higher than the national average.

Retiring comfortably in California requires careful planning and consideration. If you're taking a do-it-yourself approach to retirement in California, here are a few areas to consider.

Get a good handle on your expenses

One of the first steps in planning for retirement is understanding what it costs to maintain your lifestyle. This might sound obvious, but many of my clients come to work with me at Halbert Hargrove because I am a CFP® professional and wealth adviser.

I review my clients' bank and investment account information and help them analyze and understand how much they spend on a monthly or annual basis. While many of my clients know how much money they have in their bank accounts, they often don't have a clear understanding of how much they spend on a regular basis.

I recommend starting with your regular fixed expenses. Think housing, utilities, insurance, transportation and healthcare premiums. Then consider the expenses that don't occur every month: Vacations, home repairs, property taxes or helping family are examples of some.

Knowing your nondiscretionary expenses (what you need to spend), vs your discretionary expenses (what you want to spend), is helpful. If the stock market has a challenging year, knowing where you have the flexibility to cut back can help you adjust your withdrawals while you wait for the market to recover.

Plan for healthcare beyond Medicare

California is home to some of the greatest medical institutions and hospitals in the nation including Cedars-Sinai Medical Center, Stanford Health Care, UC San Diego Health and UCLA Ronald Reagan Medical Center. But medical planning goes beyond finding the best doctors for the care you need.

California retirees need to budget for Medicare premiums, Medigap or Medicare Advantage, Part D (prescriptions), dental, vision, long-term care and any out-of-pocket expenses. Knowing the average cost of healthcare as a starting point can help, but age, location and tobacco use can impact costs.

There's another issue: Higher taxable income can increase Medicare premiums through IRMAA (income-related monthly adjustment amount). This is a surcharge added to your monthly Medicare Part B and Part D premium if your income is above certain limits.

What this means for retirees is a large IRA or 401(k) withdrawal might create a tax bill today and potentially higher Medicare premiums later.

Pay attention to California taxes

In addition to a higher cost of living, California has one of the highest state income taxes in the U.S. State income taxes start at 1% and go up to 12.3%, plus an additional 1% for taxable income over $1M. This matters quite a bit when retirees are drawing from large IRAs, 401(k)s or pension plans, as the net distribution from a pretax account can be considerably lower after you account for taxes.

Long-term capital gains tax, which is triggered by the profit you make from the sale of an asset held for more than a year, is also taxed in California using the same ordinary income rate that's applied to withdrawals from pretax retirement accounts.

At the federal level, long-term capital gains are taxed at a more preferential rate, so California is unfortunately unique in this regard. For retirees with substantial investment income, this can really increase their tax liability.

One silver lining — California does not tax Social Security benefits, disability or survivor benefits, so retirees who live primarily on these types of income have less tax exposure.

Don't forget housing, property taxes and home insurance

For many retirees, homes can make up a large portion of their net worth. This is especially true for California, where the prices of homes have skyrocketed throughout the years.

I frequently hear my clients recount how they bought their first homes for tens of thousands of dollars, and have watched the property grow into a multimillion-dollar assets.

A retiree in that situation might have substantial equity in their home, but a low-cost basis and property tax assessment. That can make a decision such as downsizing or moving to a retirement community much more complicated than simply looking at the price of the new home.

Before moving, consider the complete cost of the new property, including property taxes, homeowners' insurance, homeowners' association (HOA) dues and maintenance.

A smaller or less expensive home might not lower monthly expenses by much, all things considered.

When it comes to property taxes, keep in mind that Proposition 13 imposes a 1% cap on the tax rate and a 2% maximum for annual increases, offering some protection from long-term owners.

If you're a homeowner age 55 and older who wants to move from one California home to another, Proposition 19 allows you to transfer the lower assessed value of the primary residence to a newly constructed or replacement principal home. Eligible adults can use this tax transfer benefit up to three times.

Keeping your California retirement on track

Retirement in California can be expensive, but for many people, the lifestyle is a significant factor in their decision to live here. Understanding the costs, staying flexible and recognizing how each financial decision affects others can help you make informed choices while enjoying this chapter of life.

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

Stocks finished mostly higher Tuesday as long-term Treasury yields retreated and oil prices eased back. A round of well-received earnings reports helped offset disappointing housing data, with more corporate reports due out after tonight's close — including results from mega caps Netflix (NFLX, -1.7%) and SpaceX (SPCX, -0.1%).

At the end of Tuesday's session, the blue-chip Dow Jones Industrial Average was up 1% at 52,495, the broader S&P 500 was 0.3% higher at 7,712, and the tech-heavy Nasdaq Composite was marginally lower at 26,424.

Yields on the 10-year (-2.1 basis points to 5.115%) and 30-year (-5 bps to 5.423%) Treasury notes helped lift the main equity benchmarks, as did falling oil prices. Front-month West Texas Intermediate crude futures shed 0.9% to $102.75 per barrel, though they remain nearly 14% higher month to date.

Looking for more timely stock market news to help gauge the health of your portfolio? Sign up for Closing Bell, our free newsletter that's delivered straight to your inbox at the close of each trading day.

3M jumps on Amazon data center deal

3M (MMM) was the best Dow Jones stock on Tuesday, rising 5.8% for its best day since July, after the industrial conglomerate's beat-and-raise quarter.

In Q3, the company said earnings grew 14.2% year over year to $2.50 per share — more than Wall Street expected — while revenue was up 4.2% to $6.6 billion, slightly below analysts' estimates. 3M also expects full-year earnings per share of $9.10 to $9.15, up from its previous forecast of $8.80 to $8.95.

While earnings were impressive, Wall Street also cheered a separate announcement from 3M regarding "an expanded strategic commercial relationship with Amazon (AMZN, +0.07%) to deploy and scale 3M's optical connectivity and other Data Center related products."

According to a regulatory filing (pdf), the deal gives Amazon the option to purchase 3.2 million MMM shares over the next seven years, contingent upon several milestones, including $6 billion in sales of 3M's optical connectivity and other data center-related products.

Ally Financial hikes its dividend by 17%

Elsewhere on the earnings calendar, Ally Financial (ALLY) rose 1.0% after the top online bank reported third-quarter earnings of $1.34 per share, up 16% year over year, on revenue of $2.3 billion (+9% YoY). The results surpassed Wall Street's expectations.

Separately, the financial firm said its board of directors approved a 17% increase to its quarterly dividend. This marks the first time since late 2021 that Ally Financial hiked its payout.

Braze soars 52% on Salesforce buyout

In non-earnings news, Braze (BRZE) shares shot up 51.7% Tuesday on news that Salesforce (CRM, -0.01%) will buy the customer engagement platform in an all-cash deal valued at roughly $5.66 billion.

Salesforce says the transaction is expected to close in fiscal 2028, and upon completion, "Braze's real-time engagement and AI decisioning capabilities are expected to complement all four layers of Salesforce's architecture — Data 360, Customer 360, Agentforce, and SIForce."

Earlier this month, BofA Securities analyst Tal Liani double-upgraded Salesforce to Buy from Underperform (the equivalent of Sell).

"Our prior concern centered on AI-driven disintermediation," Liani wrote in a note about the blue chip stock. "However, conversations with CIOs and other market participants suggest that large enterprises (more than small-to-medium-sized businesses) are unlikely to replace platforms that house their business logic, data, workflows and compliance frameworks."

And AI, he adds, "should deepen dependence on these platforms." He believes that Salesforce has a credible AI strategy and is poised for strong free cash flow generation.

Housing starts, pending home sales fall short

In economic news, data from the Census Bureau showed building permits slipped 0.2% from August to September to a seasonally adjusted 1.4 million. Housing starts, meanwhile, plunged 5.2% month over month in September to 1.2 million.

"The affordability challenges hurting transaction momentum have builders significantly slowing their construction pace, as this morning's September housing starts data posted the second-worst number since the pandemic recession in 2020," says José Torres, senior economist at Interactive Brokers.

Building permits, he adds, were "less dim," with construction companies focused "on apartment rentals rather than single-family projects."

Separate data from the National Association of Realtors showed that pending home sales slumped 7.3% from August to September, and were down 11.3% year over year. Torres points to "elevated mortgage rates and lofty valuations," which are offsetting "the positive impacts of buoyant stock market performance, healthy hiring and subdued unemployment."

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To help you understand the trends surrounding business and technology and what we expect to happen in the future, our highly experienced Kiplinger Letter team will keep you abreast of the latest developments and forecasts. (Get a free issue of The Kiplinger Letter or subscribe.) You'll get all the latest news first by subscribing, but we will publish many (but not all) of the forecasts a few days afterward online. Here's the latest…

As Anthropic and OpenAI dominate the headlines, plenty of younger AI companies are nipping at their heels.

Those companies are still able to raise gobs of cash from venture capitalists and other investors at ever-higher valuations (despite concerns of overspending and the risk of an AI bubble) as investor enthusiasm for AI outruns its immediate business prospects.

Most of the money is being used to buy computing power for start-ups’ own data centers or outside cloud computing. Ultimately, that means the money fuels higher sales of Nvidia graphics processing units, as well as central processing units and memory.

Anthropic is valued at $1.2 trillion, followed by OpenAI’s $852 billion. Both Anthropic and OpenAI expect to go public at far higher valuations.

Other top companies are Databricks, Cognition, Ramp, Thinking Machines Lab, Project Prometheus, Safe Superintelligence, VAST Data, Perplexity and Sierra. China’s ByteDance, the owner of TikTok, has a valuation of $480 billion. China’s DeepSeek is valued at $59 billion.

Private valuations are a moving target. These days, the target is moving steadily higher, as new funding rounds from eager investors push valuations up.

Sources: CB Insights, “State of AI: Q3 2025”; company press releases; news reports

Some highly valued start-ups have tiny staffs and no product or revenue, at least not yet, with investors betting big on the founders as visionaries. Others have soaring sales, as is the case with leaders Anthropic and OpenAI, but are spending even faster than revenue is rising.

The different solutions highlight the varied AI ecosystem. Databricks is a cloud platform for massive amounts of data and analytics, for example. Project Prometheus, which is backed by Amazon founder Jeff Bezos, focuses on robotics and other physical hardware. Perplexity has a free AI-powered search engine.

Investors are betting that there’s room for many winners in the AI race.

This forecast first appeared in The Kiplinger Letter, which has been running since 1923 and is a collection of concise weekly forecasts on business and economic trends, as well as what to expect from Washington, to help you understand what’s coming up to make the most of your investments and your money. Subscribe to The Kiplinger Letter.

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As many people in the U.S. are dealing with high prices for everyday expenses, the growing gap between wealthy households and everyone else is a topic of debate. Now, United Airlines CEO Scott Kirby is weighing in, calling for a national wealth tax and inheritance taxes that could approach 100% for some.

In an interview with The New York Times published October 18, Kirby was asked about declining public trust in corporate executives. He responded:

"Wealth inequality has become a danger to our society, and we need to address that. We should have a national wealth tax — it won't work by state because people will just move. And I think we should have inheritance taxes that get close to 100 percent at some level. I would pay them."

Kirby, who is reportedly worth over $125 million, didn't offer a detailed plan for how new taxes would work. But his comments raise interesting questions about tax fairness in the United States.

The Center for American Progress reports that the wealth gap is the widest it's been in 30 years, with the top 1% holding nearly 32% of the nation's total wealth (roughly $55 trillion in assets). Meanwhile, the bottom 50% holds only about 2.5% of U.S. wealth.

To better understand what a national wealth tax could mean, it helps to look at what the U.S. tax system currently does and doesn't tax.

Types of income the IRS taxes

In the U.S., many types of income are taxable, including wages and certain investment gains. But the IRS generally doesn't tax accumulated wealth.

• For example, if someone's stock portfolio increases in value, they generally don't owe capital gains tax on those gains until they sell the investments, though other tax rules may apply.
• A national wealth tax, if ever approved, would require people to pay tax on the value of their assets even if they hadn't sold anything or received additional income.

However, the U.S. government can tax some wealth transferred after death. When applicable, the estate, not the heir, generally pays the federal estate tax, which tops out at 40%. But because the exclusion is so high, many estates owe no federal estate tax.

For people who die in 2026, the federal lifetime estate tax exemption is $15 million per person ($30 million for couples).

Also worth noting: Some states have their own estate taxes, with different rules and exemptions. For instance, five states — Kentucky, Maryland, Nebraska, New Jersey, and Pennsylvania — tax certain inheritances.

The takeaway? Under current federal law, inheriting money doesn't automatically mean owing federal income tax or inheritance tax. The outcome depends on the asset type, the estate's circumstances, and the state involved.

What would a wealth tax change?

A wealth tax would generally target a person's net worth — generally, the value of their assets minus their debts at a given time — rather than the income they earn in a year.

Imagine someone owns $50 million in investments and other assets and has $5 million in debt. Their net worth would be $45 million. Under a hypothetical wealth tax on net worth above $20 million, some of that wealth could be subject to tax even if the person earned relatively little income that year.

Of course, the details would matter. Lawmakers would need to decide which assets count, how to value them, what threshold triggers the tax, and how often to collect it. Valuing private businesses, art, and other assets that don't trade on public markets could be especially complicated.

Interestingly, and as Kiplinger has reported, California voters will weigh in on similar questions this November.

• Proposition 40, on the November 3 midterm elections ballot, would impose a one-time tax of up to 5% on certain covered assets held by billionaires who were California residents on January 1, 2026.
• Covered assets would include businesses, securities, art, and intellectual property.
• Real estate, pensions, and some retirement accounts would generally be excluded.

Advocates say the measure is intended to raise money primarily for healthcare, with additional funding for education and food assistance. Estimates suggest it could generate tens of billions of dollars in temporary revenue over several years.

Opponents argue that the billionaire's tax could drive wealthy residents away and weaken state finances over time. A state analysis estimates that tax flight could reduce annual income tax revenue from billionaires by less than $1 billion.

The California proposal is a one-time state tax aimed at billionaires, not a recurring "wealth tax." But it highlights some of the same issues lawmakers would face in designing a broader national levy, including which assets to include, how to value them, and how to limit opportunities to avoid the tax.

Meanwhile, other states are debating tax changes aimed at high earners, though these proposals concern income rather than total wealth.

• Colorado voters will consider Amendment 87, which would replace the state's flat 4.4% income tax with graduated rates, including higher rates for people earning more than $500,000.
• Washington state voters, meanwhile, will decide whether to repeal a new 9.9% tax on annual income above $1 million.

The difference between wealth taxes and inheritance tax

It's also important to note that a wealth tax and an inheritance tax target different things. A wealth tax would generally apply to assets a person owns, while an inheritance tax applies to money or property someone receives from a person who has passed away.

An inheritance tax is also different from an estate tax. An estate tax is generally assessed on the estate before assets are distributed to beneficiaries. An inheritance tax (when applicable) is imposed on the recipient.

In any case, a tax rate approaching 100%, as suggested by Kirby, on very large inheritances would represent a major change from current federal law.

Supporters of higher inheritance taxes often argue that taxing large transfers of wealth could help reduce wealth concentration and raise money for public services. Critics counter that high rates could make it harder to pass family businesses or other assets to the next generation, potentially forcing heirs to sell assets to cover a tax bill.

The effects would depend heavily on how any new tax would be designed, including the size of the exemption, the rate schedule, and how assets such as closely held businesses would be treated.

And of course, there's politics: passing a national wealth tax would be difficult in a deeply divided Congress.

What new taxes mean for your financial plan

For now, Kirby's comments don't change the tax rules for your investments or inheritance. Most families also don't need to worry about the federal estate tax.

But if you're concerned about tax liability, don't overlook state taxes. Some states have estate tax exemptions well below the federal limit, and as previously mentioned, certain states tax some inheritances and estates.

As a result, depending on where you live and where the person leaving you assets lived, state taxes could affect how much you or your heirs ultimately keep.

Consult a trusted tax advisor or certified financial planner who knows your financial circumstances.

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