Six Ways to Pay Off High-Interest Debt (and Still Save for the Future)
Trying to dig yourself out from underneath a growing pile of high-interest debt can often feel like you’re working hard to defeat something that will never truly end. Once you shovel out a nicely sized hole, a high interest rate fills it right back in, adding a little extra on the top.
Add trying to save money toward your future goals, and you have what seems like an impossible task to achieve. However, it’s a real challenge many people are facing — and one that is possible to overcome.
Whether it's student loans, credit cards or personal loans, paying down debt without sacrificing your long-term financial goals requires a smart, strategic approach.
Here, financial industry experts from Kiplinger Advisor Collective offer tips for how to best navigate this all-too-common obstacle, as well as how to build momentum, reduce financial stress and make meaningful progress without putting your future on pause.
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Get out of debt and reach your goals sooner by starting with a well-thought-out plan.
Raising a family is one of life's most rewarding journeys, but it's also one of the most expensive.
As of 2023, raising a child from birth to the age of 18 could cost an average of $331,933, according to Northwestern Mutual.
Between child care, housing costs and saving for college tuition, it's easy to feel like you're constantly playing catch-up. As a financial planner and a parent, I know firsthand how overwhelming it can be to juggle it all.
The good news is you don't need to make millions or have a crystal ball to create stability. A few smart financial habits can help make a world of difference. This article contains five important financial tips that every young family should know.
Kiplinger's Adviser Intel, formerly known as Building Wealth, is a curated network of trusted financial professionals who share expert insights on wealth building and preservation. Contributors, including fiduciary financial planners, wealth managers, CEOs and attorneys, provide actionable advice about retirement planning, estate planning, tax strategies and more. Experts are invited to contribute and do not pay to be included, so you can trust their advice is honest and valuable.
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When children are young, it can be hard to meet immediate costs, let alone save for the future, but these five habits can help build lasting financial security.
How Much Life Insurance Do You Need?
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Unpredictable markets are rough on retirement planning. They also complicate the issue of how much life insurance is right for you. Standard rules of thumb — such as buying coverage equal to eight times your annual income — aren’t always appropriate, and while they can be helpful, online calculators will sometimes tell you to raise your coverage by $1 million even if you already have insurance.
The truth is, many factors influence how much life insurance you need. From how much your family depends on your income to whether or not you need life insurance to cover other expenses like your kids' college education or your final expenses, different factors can dramatically impact how much life insurance you need.
Instead of just aiming for a higher number than you think you need, take the time to do some math and figure out how much coverage is enough to secure your family's financial future. Here's how to figure out how much is right for you so you don't end up overpaying for too much coverage or undercalculating how much your life insurance beneficiary needs.
To figure out how much life insurance you need, take a systematic approach instead of relying on rules of thumb.
Do You Need Disability Insurance? Three Things to Know
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When it comes to comprehensive wealth planning, it's crucial to consider all aspects of financial security.
Discussions around insurance often prioritize life insurance and less frequently focus on disability insurance, but in general, Americans are about 3.5 times more likely to become disabled than to die in any particular year.
In the event that you become disabled and are unable to work, disability insurance can help safeguard your financial stability and function as a cornerstone of a holistic plan.
If you don’t already have coverage, you may want to discuss your options with your financial adviser or your insurance agent.
If you’re considering disability insurance, here are a few things to keep in mind:
Disability insurance can help replace some of your income during unexpected life events. Here are the basics, courtesy of a financial professional.
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Millions of borrowers are falling behind on student loan payments, triggering steep credit score drops. If you or your family carry student debt, here's what you need to know now.
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NYSUT NOTE: You don’t need to live with credit card debt. Take your finances into your own hands with the help of the counseling program from the NYSUT Member Benefits Corporation-endorsed Cambridge Credit. With nationally-certified counselors, Cambridge Credit can help members find the most efficient way to become debt free.
Long-Term Care Insurance: 10 Things You Should Know
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When you imagine your retirement journey, you likely picture trips to the beach, leisurely days with the grandkids and lots of time for hobbies. A lengthy stay in a nursing home probably isn’t part of that vision. Yet nearly 70% of Americans turning 65 will need some long-term care and support.
“Everyone thinks they’ll be in the 30%, but the numbers say to plan otherwise,” says Beth Ludden, senior vice president of long-term care product development at Genworth.
The nationwide average daily cost for a shared room in a long-term care facility is $305, with an average annual cost of $111,32, per the most recent data from Genworth’s Cost of Care Calculator 2024. The range across the country can vary significantly, from a low of about $175 per day in parts of Texas and Louisiana to approximately $1,000 per day in parts of Alaska and California.
While Medicaid can pay for long-term care, it generally only kicks in after you’ve spent down virtually all of your assets. Before then, you typically have three options. “You can either pay for everything yourself, a family member can take care of you, or you can buy long-term care insurance,” says Jesse Slome, executive director of the American Association for Long-Term Care Insurance.
Long-term care (LTC) insurance can protect your assets so all of your lifelong savings don’t go to a facility or home healthcare service. However, these products are expensive and have other limitations.
Here’s what to know:
It can have a high cost and limited choices, but long-term care insurance can make the difference as you age.
15 Estate Planning Terms You Need to Know
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Estate planning, though often perceived as complex and confusing, becomes less daunting with increased understanding. While initiating the process may seem overwhelming, a well-executed and thorough estate plan serves as a crucial initial step in safeguarding your family and legacy.
What are the essential steps? What truly matters? And what do all those unfamiliar terms signify? To help you navigate this process, I've compiled and clarified 15 estate planning terms you should understand.
Sometimes industry jargon can turn otherwise understandable concepts into stumbling blocks. Here are simplified explanations, definitions and uses for some estate planning tools.
I'm a Financial Professional: It's Time to Stop Planning Your Retirement Like It's 1995
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When you hear the word "retirement," what picture comes to mind? For many, it's still some version of the classic image: Clock out at 65, cash in your pension or Social Security and settle into 20 golden years of golf and grandkids.
That version may have worked in 1995. But today? It's as outdated as floppy disks.
In my work helping clients prepare for retirement, I see a very different picture emerging. One that's longer, more fluid and far more personal. If you're still planning your retirement based on old rules, it's likely time to rethink your strategy.
Today's retirement isn't the same as in your parents' day. You need to be prepared for a much longer time frame and make a plan with purpose in mind.
Can Both Spouses Collect Social Security Benefits? Quick Facts You Need
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If you’re 62 years of age or older, Social Security can provide you with a source of income when you retire or when you can no longer work due to a disability. When it comes to benefits, both spouses can receive Social Security, which is based on their individual earnings records and at what age they claim benefits. In other words, one spousal payment does not offset or affect the others.
That aside, Social Security has a maximum family benefit, which is the maximum amount you can collect monthly based on your earnings record. Although there is a formula for determining a beneficiary's maximum benefit amount, right now, the maximum amount is between 150% to 180% of the primary beneficiary’s full retirement benefit, according to the SSA.
What Retirees Must Know About Telehealth
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© 2020 The Kiplinger Washington Editors Inc.
One Family's 529 Journey: A Guide to Smart College Savings, From a Parent Who's Also a Financial Professional
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Our nest is now empty.
We recently dropped off our youngest child to start his first year of college. It's been a long journey not just for him and his two older sisters who already earned their bachelor's degrees, but for us as parents.
Our journey to help pay for all our children's college education began soon after they were born, when we opened 529 savings accounts for each of them, set up automatic monthly contributions and automatically raised the amount we contributed each year.
Our 529 accounts have been a key reason we've been able to pay for their college.
And yet, I learned that most parents are not taking advantage of the benefits of a 529 account for education savings.
In a recent Vanguard survey, 69% of parents reported using a traditional bank savings account for their children's education-related expenses, despite these accounts often offering interest rates trailing the pace of inflation before factoring in taxes.
With September being College Savings Month, I wanted to share some tips for saving for a loved one's education.
529 savings plans have been key to funding my three children's college journeys. Here are some tips for saving for a loved one's education, based on my experience as a parent.
© 2020 The Kiplinger Washington Editors Inc.
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There’s Medicare Part A, Part B, Part D, Medigap plans, Medicare Advantage plans and so on. We sort out the confusion about signing up for Medicare—and much more.
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From Piggy Banks to Portfolios: A Financial Planner's Guide to Talking to Your Kids About Money at Every Age
Younger Americans are getting a constant stream of news and information from social media — including financial and investing tips from influencers and other "experts."
But is the information they're getting credible? With this backdrop, as a parent, how do you discuss money and investing with your children while instilling a strong financial foundation?
In a new study from Ameriprise Financial, 72% of the about 3,000 parents surveyed said they personally take responsibility for teaching their children about money. Nearly all — an incredible 97% — said they talk with their kids about finances to some degree.
Many parents actively involve their children in family financial decisions as a way to teach money values and principles beginning at a young age.
The Kiplinger Building Wealth program handpicks financial advisers and business owners from around the world to share retirement, estate planning and tax strategies to preserve and grow your wealth. These experts, who never pay for inclusion on the site, include professional wealth managers, fiduciary financial planners, CPAs and lawyers. Most of them have certifications including CFP®, ChFC®, IAR, AIF®, CDFA® and more, and their stellar records can be checked through the SEC or FINRA.
If you're wondering how to have open, honest and age-appropriate conversations with your children, here are some tips segmented by age.
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From toddlers to young adults, all kids can benefit from open conversations with their parents about spending and saving. Here's what to talk about — and when.
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With Mortgage Rates Dipping, Is Now a Good Time to Buy a House?
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From toddlers to young adults, all kids can benefit from open conversations with their parents about spending and saving. Here's what to talk about — and when.
PERSONAL FINANCE
From Piggy Banks to Portfolios: A Financial Planner's Guide to Talking to Your Kids About Money at Every Age
Finance Fundamentals
When children are young, it can be hard to meet immediate costs, let alone save for the future, but these five habits can help build lasting financial security.
I'm a Financial Planner and a Parent: Here Are Five Money Habits Every Young Family Should Have
To figure out how much life insurance you need, take a systematic approach instead of relying on rules of thumb.
How Much Life Insurance Do You Need?
Quit putting it off, because it's vital for you and your heirs. From wills and trusts to executors and taxes, here are some essential points to keep in mind.
Student Loan Delinquencies Are Hurting Credit Scores — Even for Parents and Grandparents
Family Finances
LIFE INSURANCE
student loans
ESTATE PLANNING
HOME INSURANCE
Protect your home and your wallet with these easy, affordable upgrades that may qualify you for insurance discounts.
5 DIY Home Security Upgrades That Can Lower Your Insurance Premium
Sometimes industry jargon can turn otherwise understandable concepts into stumbling blocks. Here are simplified explanations, definitions and uses for some estate planning tools.
15 Estate Planning Terms You Need to Know
CARS
If buying a car is on your to-do list, and it's been a while since you went shopping for a new one, this guide will help avoid any nasty shocks in the showroom.
10 Things You Should Know About Buying a Car Today, Even if You've Bought Before
Here's why it's so important to have a family conversation about life insurance and financial planning. It may be easier than you think.
debt
Six Ways to Pay Off High-Interest Debt (and Still Save for the Future)
LONG-TERM INSURANCE
It can have a high cost and limited choices, but long-term care insurance can make the difference as you age.
Long-Term Care Insurance: 10 Things You Should Know
COLLEGE
529 savings plans have been key to funding my three children's college journeys. Here are some tips for saving for a loved one's education, based on my experience as a parent.
One Family's 529 Journey: A Guide to Smart College Savings
RETIREMENT PLANNING
The Great Wealth Transfer is well underway, yet too many families aren't ready. Here's how to bridge the generation gap that could threaten your legacy.
SOCIAL SECURITY
Both spouses can collect Social Security based on their individual earnings records and at what age they claim benefits
Can Both Spouses Collect Social Security Benefits? Quick Facts You Need
I'm a Financial Adviser: You've Built Your Wealth, Now Make Sure Your Family Keeps It
MODERN RETIREMENT
Today's retirement isn't the same as in your parents' day. You need to be prepared for a much longer time frame and make a plan with purpose in mind.
I'm a Financial Professional: It's Time to Stop Planning Your Retirement Like It's 1995
Retirement Living
A half-point dip may not be enough to offset closing costs. Here's the magic number that makes refinancing pay off.
mortgages
My Mortgage Rate is 6.5%. Should I Refinance If Rates Fall By Half a Point?
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Disability insurance can help replace some of your income during unexpected life events. Here are the basics, courtesy of a financial professional.
INSURANCE
Do You Need Disability Insurance? Three Things to Know
Financial Learning Center Resources
Need a Financial Planner?
Both spouses can collect Social Security based on their individual earnings records and at what age they claim benefits
Financial Learning Center
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There’s Medicare Part A, Part B, Part D, Medigap plans, Medicare Advantage plans and so on. We sort out the confusion about signing up for Medicare—and much more.
There’s no one-size-fits-all formula for how much you’ll need.
Emergency Funds: How to Get Started
You worked hard to build your retirement nest egg. But do you know how to minimize taxes on your savings?
RETIREMENT
10 Questions Retirees Often Get Wrong About Taxes in Retirement
It’s often smart to borrow to boost your income and your assets.
Good Debt, Bad Debt: Knowing the Difference
CREDIT & DEBT
MEDICARE
Medicare Basics: 11 Things You Need to Know
SOCIAL SECURITY
Why visit a government office to get your Social Security business done? You can do much of that online.
14 Social Security Tasks You Can Do Online
Finding the lowest rate to protect you and your vehicle can be a challenge.
Reshop Your Car Insurance
INSURANCE
Parents may now use money from their 529 college-savings plans to help their children pay off student loans.
A New Way to Pay College Loans
STUDENT LOANS
Kiplinger Today
People have lots of questions about the new $3,000 or $3,600 child tax credit and the advance payments that the IRS will send to most families in 2021. Here are answers to some of those questions.
CORONAVIRUS AND YOUR MONEY
MOBILE VERSION TO BE COMPLETED AFTER DESKTOP APPROVAL
There are limits on what debt collectors can do to recoup what you owe. If you have medical debts, you have even more rights.
ESTATE PLANNING
How to Keep Tabs on Your Credit Reports
Free weekly access is ending, but several services let you view your credit files more than once a year.
CORONAVIRUS AND YOUR MONEY
RETIREMENT
You might be surprised to see some of the things you'll find yourself spending less or more on in your golden years.
10 Things You'll Spend Less and More on in Retirement
Retirement Living
CORONAVIRUS AND YOUR MONEY
The pandemic has created significant challenges for all types of senior living communities.
A COVID Storm Hits Senior Living
TRAVEL
Retirees wanting to take a cruise should plan for additional safety measures, such as temperature checks and wearing a mask in public areas.
How Cruise Ships Are Setting Sail During COVID
Use our road map to find an advisor who will truly look out for your best interests.
Financial Planning
How to Find a Financial Planner You Trust
Financial Learning Center Resources
Need a Financial Planner?
Long-Term Care Insurance
Auto and Home Insurance
Mortgage Discount Program
Synchrony Bank
Savings Program
403(b) Field Guide
IRS Direct File: What You Need to Know for 2025
With Mortgage Rates Dipping, Is Now a Good Time to Buy a House?
The Trump administration has ended this free IRS tax filing program. Find out what's happening and what it means for you.
Now that the Fed has started cutting rates, is it a good time to think about getting back into the market?
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If you've avoided the most common estate planning mistakes, your family will thank you.
BUYING A HOME
TAXES
ESTATE PLANNING
Protect Your Family's Future: Avoid These 12 Common Estate Planning Mistakes
Kiplinger Today
I'm a Financial Adviser: You've Built Your Wealth, Now Make Sure Your Family Keeps It
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The most significant wealth transfer in history, an estimated $84 trillion, is underway as Baby Boomers pass on their fortunes to their Gen X and Millennial heirs.
But most families aren't ready, and the cultural divide between generations may make it more complicated than ever to preserve that legacy.
Until recently, Baby Boomers enjoyed unprecedented generational dominance, not only as the wealthiest generation but also the largest generation by population.
While Millennials have since come to outnumber the Boomers, the postwar generation still represents the wealthiest generation in U.S. history, holding more than 50% of the nation's household wealth.
As Baby Boomers continue to exit the workforce, the wealth they've built — fueled by decades of substantial salaries and asset growth — is beginning to move to their children and grandchildren, with ripple effects across family dynamics, the economy and the wealth management industry.
The Great Wealth Transfer is well underway, yet too many families aren't ready. Here's how to bridge the generation gap that could threaten your legacy.
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Inflation tops health care costs as the biggest concern, and many preretirees are boosting their saving rate.
Living a Life of Purpose after Retirement: 3 Action Steps to Take
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When someone asks about what you do, the answer shouldn’t be, “I’m retired.” There is more to the second half of your life … a lot more.
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3 Strategies to Avoid Running
Out of Money in Retirement
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For a financially sustainable retirement that could last 30 years or more, here are three ways to help manage your risks and avoid financial roadblocks in your golden years.
The trend of increasing life expectancy means that Americans are much more likely to live 25, 30 or even 35 years in retirement. The benefits of this trend include spending more time with your family and a higher chance of meeting your great-grandchildren. The downsides include the increased potential for running out of money close to the end of this retirement.
Today’s retirees can expect to live 40% longer than those who retired 70 years ago. Recent research reveals that affluent Americans are likely to live longer. This means that if you’ve had consistent access to health care and high income, you are more likely to enjoy a longer lifespan. Men in the top quintile of income born in 1960 will live on average 12.7 years longer than men who are in the lowest quintile of income; for women the equivalent is 13.6 years.
These raw numbers can be headache-inducing. However, the implications are profound. What they mean basically is that those who have recently retired or who are getting ready to retire, one out of three women and one in five men can expect to live to 90 years or beyond.
As retirements lengthen, they require more financial resources to support not only day-to-day expenses, but also the increased health care expenses that can crop up due to aging. It’s no surprise then, that 60% of pre-retirees surveyed by Allianz fear running out of money in retirement.
Fortunately, holistic retirement planning built around three strategies — minimizing taxes, managing savings and reducing market downside risks — can mitigate the risk of running out of money in retirement.
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You’ve scrimped and saved, but are you really ready to retire? Here are some helpful calculations that could help you decide whether you can actually take the plunge.
See if you can relate to this … You have contributed to a 401(k), 403(b) or other employer-sponsored account at work, maybe you’re paying extra on the mortgage or have already paid it off, you keep cash on hand for those unexpected expenses or upcoming big-ticket purchases and you often wish there was a way to pay less in taxes.
You have worked for 30 or 40 years and are at or approaching Social Security eligibility and are now looking at when to take Social Security to maximize your benefits.
Sound familiar? Now, here’s what often comes next … You look at the account statements and begin to wonder whether the investments you have are the right ones to own for where you are in life. You begin weighing your options for making withdrawals from your retirement accounts. You aren’t sure exactly how this is done, and you’re nervous about the risk of a stock market pullback and the possibility of running out of money. And then it happens, you begin searching the internet for answers. (That may even be how you ended up here!) After a lot of searching and reading you realize that there are just too many opinions to choose from, and you resort to simply eliminating options that you’re not as familiar with or have heard negative things about. Then you take what’s left and try to put together a coherent strategy while continuing a search to find information that supports what you have contrived.
This is an all-too-common situation. Maybe this is exactly where you are or perhaps it describes something similar, but either way, you wouldn’t be reading this far into the article without some truth to what I am describing.
Regardless of the details, what you do next is critical to your long-term success. The decisions you make will determine the trajectory of your financial future, and it’s imperative to have a good plan to follow.
How to Know When You Can Retire
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You’ve scrimped and saved, but are you really ready to retire? Here are some helpful calculations that could help you decide whether you can actually take the plunge.
See if you can relate to this … You have contributed to a 401(k), 403(b) or other employer-sponsored account at work, maybe you’re paying extra on the mortgage or have already paid it off, you keep cash on hand for those unexpected expenses or upcoming big-ticket purchases and you often wish there was a way to pay less in taxes.
You have worked for 30 or 40 years and are at or approaching Social Security eligibility and are now looking at when to take Social Security to maximize your benefits.
Sound familiar? Now, here’s what often comes next … You look at the account statements and begin to wonder whether the investments you have are the right ones to own for where you are in life. You begin weighing your options for making withdrawals from your retirement accounts. You aren’t sure exactly how this is done, and you’re nervous about the risk of a stock market pullback and the possibility of running out of money. And then it happens, you begin searching the internet for answers. (That may even be how you ended up here!) After a lot of searching and reading you realize that there are just too many opinions to choose from, and you resort to simply eliminating options that you’re not as familiar with or have heard negative things about. Then you take what’s left and try to put together a coherent strategy while continuing a search to find information that supports what you have contrived.
This is an all-too-common situation. Maybe this is exactly where you are or perhaps it describes something similar, but either way, you wouldn’t be reading this far into the article without some truth to what I am describing.
Regardless of the details, what you do next is critical to your long-term success. The decisions you make will determine the trajectory of your financial future, and it’s imperative to have a good plan to follow.
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How to Know When You Can Retire
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You’ve scrimped and saved, but are you really ready to retire? Here are some helpful calculations that could help you decide whether you can actually take the plunge.
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How to Know When You Can Retire
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You’ve scrimped and saved, but are you really ready to retire? Here are some helpful calculations that could help you decide whether you can actually take the plunge.
See if you can relate to this … You have contributed to a 401(k), 403(b) or other employer-sponsored account at work, maybe you’re paying extra on the mortgage or have already paid it off, you keep cash on hand for those unexpected expenses or upcoming big-ticket purchases and you often wish there was a way to pay less in taxes.
You have worked for 30 or 40 years and are at or approaching Social Security eligibility and are now looking at when to take Social Security to maximize your benefits.
Sound familiar? Now, here’s what often comes next … You look at the account statements and begin to wonder whether the investments you have are the right ones to own for where you are in life. You begin weighing your options for making withdrawals from your retirement accounts. You aren’t sure exactly how this is done, and you’re nervous about the risk of a stock market pullback and the possibility of running out of money. And then it happens, you begin searching the internet for answers. (That may even be how you ended up here!) After a lot of searching and reading you realize that there are just too many opinions to choose from, and you resort to simply eliminating options that you’re not as familiar with or have heard negative things about. Then you take what’s left and try to put together a coherent strategy while continuing a search to find information that supports what you have contrived.
This is an all-too-common situation. Maybe this is exactly where you are or perhaps it describes something similar, but either way, you wouldn’t be reading this far into the article without some truth to what I am describing.
Regardless of the details, what you do next is critical to your long-term success. The decisions you make will determine the trajectory of your financial future, and it’s imperative to have a good plan to follow.
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How to Know When You Can Retire
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You’ve scrimped and saved, but are you really ready to retire? Here are some helpful calculations that could help you decide whether you can actually take the plunge.
See if you can relate to this … You have contributed to a 401(k), 403(b) or other employer-sponsored account at work, maybe you’re paying extra on the mortgage or have already paid it off, you keep cash on hand for those unexpected expenses or upcoming big-ticket purchases and you often wish there was a way to pay less in taxes.
You have worked for 30 or 40 years and are at or approaching Social Security eligibility and are now looking at when to take Social Security to maximize your benefits.
Sound familiar? Now, here’s what often comes next … You look at the account statements and begin to wonder whether the investments you have are the right ones to own for where you are in life. You begin weighing your options for making withdrawals from your retirement accounts. You aren’t sure exactly how this is done, and you’re nervous about the risk of a stock market pullback and the possibility of running out of money. And then it happens, you begin searching the internet for answers. (That may even be how you ended up here!) After a lot of searching and reading you realize that there are just too many opinions to choose from, and you resort to simply eliminating options that you’re not as familiar with or have heard negative things about. Then you take what’s left and try to put together a coherent strategy while continuing a search to find information that supports what you have contrived.
This is an all-too-common situation. Maybe this is exactly where you are or perhaps it describes something similar, but either way, you wouldn’t be reading this far into the article without some truth to what I am describing.
Regardless of the details, what you do next is critical to your long-term success. The decisions you make will determine the trajectory of your financial future, and it’s imperative to have a good plan to follow.
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How to Know When You Can Retire
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You’ve scrimped and saved, but are you really ready to retire? Here are some helpful calculations that could help you decide whether you can actually take the plunge.
See if you can relate to this … You have contributed to a 401(k), 403(b) or other employer-sponsored account at work, maybe you’re paying extra on the mortgage or have already paid it off, you keep cash on hand for those unexpected expenses or upcoming big-ticket purchases and you often wish there was a way to pay less in taxes.
You have worked for 30 or 40 years and are at or approaching Social Security eligibility and are now looking at when to take Social Security to maximize your benefits.
Sound familiar? Now, here’s what often comes next … You look at the account statements and begin to wonder whether the investments you have are the right ones to own for where you are in life. You begin weighing your options for making withdrawals from your retirement accounts. You aren’t sure exactly how this is done, and you’re nervous about the risk of a stock market pullback and the possibility of running out of money. And then it happens, you begin searching the internet for answers. (That may even be how you ended up here!) After a lot of searching and reading you realize that there are just too many opinions to choose from, and you resort to simply eliminating options that you’re not as familiar with or have heard negative things about. Then you take what’s left and try to put together a coherent strategy while continuing a search to find information that supports what you have contrived.
This is an all-too-common situation. Maybe this is exactly where you are or perhaps it describes something similar, but either way, you wouldn’t be reading this far into the article without some truth to what I am describing.
Regardless of the details, what you do next is critical to your long-term success. The decisions you make will determine the trajectory of your financial future, and it’s imperative to have a good plan to follow.
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How to Know When You Can Retire
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You’ve scrimped and saved, but are you really ready to retire? Here are some helpful calculations that could help you decide whether you can actually take the plunge.
See if you can relate to this … You have contributed to a 401(k), 403(b) or other employer-sponsored account at work, maybe you’re paying extra on the mortgage or have already paid it off, you keep cash on hand for those unexpected expenses or upcoming big-ticket purchases and you often wish there was a way to pay less in taxes.
You have worked for 30 or 40 years and are at or approaching Social Security eligibility and are now looking at when to take Social Security to maximize your benefits.
Sound familiar? Now, here’s what often comes next … You look at the account statements and begin to wonder whether the investments you have are the right ones to own for where you are in life. You begin weighing your options for making withdrawals from your retirement accounts. You aren’t sure exactly how this is done, and you’re nervous about the risk of a stock market pullback and the possibility of running out of money. And then it happens, you begin searching the internet for answers. (That may even be how you ended up here!) After a lot of searching and reading you realize that there are just too many opinions to choose from, and you resort to simply eliminating options that you’re not as familiar with or have heard negative things about. Then you take what’s left and try to put together a coherent strategy while continuing a search to find information that supports what you have contrived.
This is an all-too-common situation. Maybe this is exactly where you are or perhaps it describes something similar, but either way, you wouldn’t be reading this far into the article without some truth to what I am describing.
Regardless of the details, what you do next is critical to your long-term success. The decisions you make will determine the trajectory of your financial future, and it’s imperative to have a good plan to follow.
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How to Know When You Can Retire
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You’ve scrimped and saved, but are you really ready to retire? Here are some helpful calculations that could help you decide whether you can actually take the plunge.
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How to Know When You Can Retire
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You’ve scrimped and saved, but are you really ready to retire? Here are some helpful calculations that could help you decide whether you can actually take the plunge.
See if you can relate to this … You have contributed to a 401(k), 403(b) or other employer-sponsored account at work, maybe you’re paying extra on the mortgage or have already paid it off, you keep cash on hand for those unexpected expenses or upcoming big-ticket purchases and you often wish there was a way to pay less in taxes.
You have worked for 30 or 40 years and are at or approaching Social Security eligibility and are now looking at when to take Social Security to maximize your benefits.
Sound familiar? Now, here’s what often comes next … You look at the account statements and begin to wonder whether the investments you have are the right ones to own for where you are in life. You begin weighing your options for making withdrawals from your retirement accounts. You aren’t sure exactly how this is done, and you’re nervous about the risk of a stock market pullback and the possibility of running out of money. And then it happens, you begin searching the internet for answers. (That may even be how you ended up here!) After a lot of searching and reading you realize that there are just too many opinions to choose from, and you resort to simply eliminating options that you’re not as familiar with or have heard negative things about. Then you take what’s left and try to put together a coherent strategy while continuing a search to find information that supports what you have contrived.
This is an all-too-common situation. Maybe this is exactly where you are or perhaps it describes something similar, but either way, you wouldn’t be reading this far into the article without some truth to what I am describing.
Regardless of the details, what you do next is critical to your long-term success. The decisions you make will determine the trajectory of your financial future, and it’s imperative to have a good plan to follow.
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How to Know When You Can Retire
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You’ve scrimped and saved, but are you really ready to retire? Here are some helpful calculations that could help you decide whether you can actually take the plunge.
See if you can relate to this … You have contributed to a 401(k), 403(b) or other employer-sponsored account at work, maybe you’re paying extra on the mortgage or have already paid it off, you keep cash on hand for those unexpected expenses or upcoming big-ticket purchases and you often wish there was a way to pay less in taxes.
You have worked for 30 or 40 years and are at or approaching Social Security eligibility and are now looking at when to take Social Security to maximize your benefits.
Sound familiar? Now, here’s what often comes next … You look at the account statements and begin to wonder whether the investments you have are the right ones to own for where you are in life. You begin weighing your options for making withdrawals from your retirement accounts. You aren’t sure exactly how this is done, and you’re nervous about the risk of a stock market pullback and the possibility of running out of money. And then it happens, you begin searching the internet for answers. (That may even be how you ended up here!) After a lot of searching and reading you realize that there are just too many opinions to choose from, and you resort to simply eliminating options that you’re not as familiar with or have heard negative things about. Then you take what’s left and try to put together a coherent strategy while continuing a search to find information that supports what you have contrived.
This is an all-too-common situation. Maybe this is exactly where you are or perhaps it describes something similar, but either way, you wouldn’t be reading this far into the article without some truth to what I am describing.
Regardless of the details, what you do next is critical to your long-term success. The decisions you make will determine the trajectory of your financial future, and it’s imperative to have a good plan to follow.
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How to Know When You Can Retire
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You’ve scrimped and saved, but are you really ready to retire? Here are some helpful calculations that could help you decide whether you can actually take the plunge.
See if you can relate to this … You have contributed to a 401(k), 403(b) or other employer-sponsored account at work, maybe you’re paying extra on the mortgage or have already paid it off, you keep cash on hand for those unexpected expenses or upcoming big-ticket purchases and you often wish there was a way to pay less in taxes.
You have worked for 30 or 40 years and are at or approaching Social Security eligibility and are now looking at when to take Social Security to maximize your benefits.
Sound familiar? Now, here’s what often comes next … You look at the account statements and begin to wonder whether the investments you have are the right ones to own for where you are in life. You begin weighing your options for making withdrawals from your retirement accounts. You aren’t sure exactly how this is done, and you’re nervous about the risk of a stock market pullback and the possibility of running out of money. And then it happens, you begin searching the internet for answers. (That may even be how you ended up here!) After a lot of searching and reading you realize that there are just too many opinions to choose from, and you resort to simply eliminating options that you’re not as familiar with or have heard negative things about. Then you take what’s left and try to put together a coherent strategy while continuing a search to find information that supports what you have contrived.
This is an all-too-common situation. Maybe this is exactly where you are or perhaps it describes something similar, but either way, you wouldn’t be reading this far into the article without some truth to what I am describing.
Regardless of the details, what you do next is critical to your long-term success. The decisions you make will determine the trajectory of your financial future, and it’s imperative to have a good plan to follow.
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Important Planning Considerations: Insurance & Long-Term Care
LONG TERM CARE INSURANCE
Your retirement plan isn’t complete until you’ve looked into getting the insurance you need, including a plan for long-term care.
LIFE INSURANCE
Millennials are feeling the need for life insurance due to COVID-19, and the way they’re shopping for it is different than in the past.
How Millennials Are Changing the Life Insurance Game
ESTATE PLANNING
The COVID-19 pandemic isn’t going away soon. This health crisis is dangerous for older Americans. Here is an overview of what you need to cover.
Saving for a rainy day can be a tall order, especially if you have recently experienced a financial setback. Taking even small steps can help you work toward the larger goal of building up your emergency savings.
SAVINGS
Rebuilding Emergency Savings: Take a Realistic Approach
HAPPY RETIREMENT
Finance Fundamentals
Heading into retirement brings a slew of new topics to grapple with, and one of the most maddening may be Medicare. Figuring out when to enroll in Medicare and which parts to enroll in can be daunting even for the savviest retirees. There's Part A, Part B, Part D, Medigap plans, Medicare Advantage plans and so on.
And what is a doughnut hole, anyway? To help you wade into the waters of this complicated federal health insurance program for retirement-age Americans, here are 11 essential things you must know about Medicare.
Medicare Basics: 11 Things You Need to Know
Now that the Fed has started cutting rates, is it a good time to think about getting back into the market?
Student Loan Counseling
Credit/Debt Counseling
Need an Attorney?
Level Term Life Insurance
Term Life Insurance
Disability Insurance
Long-Term Care Insurance
Auto and Home Insurance
Mortgage Discount Program
Synchrony Bank Savings Program
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Student Loan Counseling
Credit/Debt Counseling
Need an Attorney?
Level Term Life Insurance
Term Life Insurance
Disability Insurance
Getting a bill for a medical procedure or an appointment you thought your insurance would cover can throw you for a loop. But if you think the bill was sent to you in error or you believe the amount listed is wrong, you can—and should—fight back. First, though, you need to know common mistakes to look for, as well as what your insurance plan does and does not cover.
Start by reviewing your insurer’s explanation of benefits. Was the service in network—that is, from providers that have typically agreed to reduced reimbursement from your insurance company? Next, call your insurer and ask the insurance representative to explain why the claim was denied (in part or in full), why certain services weren’t covered and what you need to do to fix it.
Denials of claims for in-network procedures are usually the easiest to resolve, says Katalin Goencz, a medical insurance and reimbursement specialist in Stamford, Conn. (Goencz also serves as the president of the nonprofit group Alliance of Claims Assistance Professionals.) If a provider sends incorrect information, it is required to resubmit corrected info directly to the insurance company once the provider has been alerted, she says. For example, an error in how a procedure was coded could lead to a denial, as could an outdated insurance card.
In some cases, you could simply be billed erroneously. For example, the Coronavirus Aid, Relief and Economic Security (CARES) Act mandated that providers offer COVID-19 vaccines and boosters at no charge. Providers are prohibited from charging co-payments or administrative fees. However, you could receive a bill for a COVID-19 vaccination if the provider bills you directly instead of your insurer or due to human error in medical billing systems. If you’re charged for a vaccine, call your provider and dispute the charges. Your insurer may also be willing to help you get the bill waived.
Likewise, the Affordable Care Act requires your insurance to cover all of the costs of annual physical exams and other preventive care. However, if your doctor decides to order extra tests, such as an electro-cardiogram to track heart issues, your insurance company may conclude that the service isn’t a necessary part of your physical exam and send you a bill.
How to Get Your Grown Children to Move Out
Wedding season is in full swing, and along with all the beauty and joy that it can bring, it’s also important to keep in mind that with marriage comes a fair amount of financial decisions and plans to be made. To be sure these are not always the first things we think about, but given my career in finance, I can’t help but bring them front and center.
Whether you are already part of a “we” or are forging a new connection, you’ll need a strong financial foundation for a meaningful and sustainable future. It may not sound romantic at first, but if you’re on the verge of moving your relationship forward in a big way, these three steps can help you deepen one of the most important bonds a couple can share: your finances.
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Now Is the Time to Protect Your
Health Care Decision-Making Rights
5 DIY Home Security Upgrades That Can Lower Your Insurance Premium
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DIY smart home security systems like Ring, SimpliSafe and Wyze offer affordable home security packages. You can choose from packages including security cameras, motion sensors and alarms.
For example, the Ring Alarm Wireless Security System includes a base station, keypad, door/window contact sensor, motion detector and range extender to help you get started. You can add on more devices over time, which can help minimize the initial costs of your security system.
These systems tend to be easy to install yourself, and you can customize them to your security goals. For example, you might decide to add on smart smoke detectors and carbon monoxide alarms. If the alarms are triggered, your monitoring system will contact your local fire department, even if you’re not home at the time of the fire.
Security systems can be smart investments in your home’s safety. According to a study funded by the Alarm Industry Research and Education Foundation, 60% of burglars would look for an alternative target if they saw an alarm system, and most burglars look for an alarm before attempting a burglary.
Additionally, some insurers offer discounts for monitored systems or even unmonitored smart home security systems. So be sure to ask your home insurance provider if there are discounts available.
1. Smart home security systems
Upgrading your home security can give you peace of mind, help minimize property damage, protect your family and even save you money on your home insurance rates.
If you’re ready to boost your home security, you don’t necessarily have to call in a professional. There are many DIY home security upgrades that you can easily make yourself.
When you're done, call up your insurer. Many home insurance companies offer discounts for home security upgrades, though the amount of the discount will vary depending on your provider and the type of device or upgrade. So, make sure to call afterward to find out if any of your DIY projects qualify for a lower home insurance premium.
Protect your home and your wallet with these easy, affordable upgrades that may qualify you for insurance discounts.
NYSUT NOTE: Making the easy and convenient DIY updates above is the first step to protecting your home, but the right insurance provides the real security. Check out NYSUT Member Benefits Trust-endorsed home insurance options for competitive pricing options on home insurance, auto insurance, and bundled options.
Parent PLUS loans allow parents (and sometimes grandparents) to borrow directly for a student’s education, but the catch is that the debt sits squarely on the cosigner’s credit report.
There are nearly 3.8 million Parent PLUS borrowers, with outstanding balances soaring over $110 billion in recent years. If the student misses payments or if you co-signed a private student loan, your own credit score can plummet just as quickly either way.
A recent analysis from VantageScore shows that resuming student loan reporting led to credit drops of up to 129 points for delinquent borrowers, which can translate to serious financial setbacks for anyone depending on good credit for mortgages, refinances or a new loan.
Student Loan Delinquencies Are Hurting Credit Scores — Even for Parents and Grandparents
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A half-point dip may not be enough to offset closing costs. Here's the magic number that makes refinancing pay off.
My Mortgage Rate is 6.5%. Should I Refinance if Rates Fall By Half a Point?
About the Author
Choncé Maddox
Personal finance writer
Choncé is a personal finance freelance writer who enjoys writing about eCommerce, savings, banking, credit cards, and insurance. Having a background in journalism, she decided to dive deep into the world of content writing in 2013 after noticing many publications transitioning to digital formats. She has more than 10 years of experience writing content and graduated from Northern Illinois University.
NYSUT NOTE: If you’re considering refinancing your mortgage, NYSUT Member Benefits Corporation-endorsed Mid-Island Mortgage can help. Mid-Island Mortgage has 60 years of experience offering personalized services for home lending. Let them find the solution that’s right for you.
Divorce is not easy, but you do not have to do it on your own. The divorce industry has stepped up to the plate with numerous legal, financial and emotional support structures to help empower those moving from coupledom to single life with the right legal advice and financial security.
Be sure to reach out to a divorce attorney who is highly recommended in your state as well as a Certified Divorce Financial Analyst™ to ensure that you understand all the legal and financial issues of your divorce.
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 Time Horizon Is Not Freshman Year
Parents of teenagers often ask me if they should open a 529. They wonder if it makes sense given how close the child may be to needing the money for college. While there are a variety of factors to consider, I remind parents the time horizon for needing the money for college is not freshman year, but by senior year. So, for instance, a parent with a 13-year-old may think they have only four years till they’ll need the 529 money, when in reality the time horizon could be eight years, since not all the money is withdrawn in the freshman year. If that is the case, then yes, eight years may still be enough time to invest in a 529. (There may be some financial aid considerations.)
Having said that, I probably wouldn’t invest all the 529 money in equity mutual funds, given the time horizon is only eight years — that is too risky. But perhaps the tuition payment earmarked for the eighth year, or senior year, could be invested in a dividend-paying mutual fund or a balanced mutual fund, since that has the longest time horizon. I suggest consulting with a qualified financial adviser who can help ensure your investment mix is aligned properly with your risk tolerance and time horizon.
2. Gross up the monthly amount to account for taxes
It’s likely that the majority of your retirement savings will be taxed in some shape or form. Roth IRAs and municipal bonds are notable exceptions.
If your monthly expenses are $10,000 and your effective tax rate (how many cents you lose on the dollar to taxes) is 20%, divide $10,000/0.8, to arrive at $12,500 per month. That’s the gross amount you’ll need every month to end up with $10,000 in your bank account to cover your expenses.
NYSUT NOTE: Getting a plan in place to manage your debt isn’t always easy. But with the help of the NYSUT Member Benefits Corporation-endorsed Cambridge Credit Counseling program, NYSUT members have the opportunity to work with a certified counselor on possible debt elimination options. With over 20 years of experience assisting consumers with debt, Cambridge can work with you to determine the most appropriate course of action for your specific debt situation. Get a better understanding of debt consolidation, student loan repayment options and more by visiting the website today.
NYSUT NOTE: Divorce can be complicated, but when you have the right team in place it can help simplify the process. The NYSUT Member Benefits Trust-endorsed Legal Service Plan is available to help provide legal assistance for many of the issues that may be affected by divorce. Provided by the law firm of Feldman, Kramer & Monaco, P.C., NYSUT members can get unlimited access to toll-free legal advice from a national network of lawyers. For more information or to enroll, click here.
If you drive, chances are you’ve been buying cars your entire life. You already know the buying experience inside and out.
“At this stage of life, most of my clients just want everything to be convenient and hassle-free,” says Adam Rex, a financial planner with Cornerstone Financial Services in Virginia Beach. Unfortunately, the vehicle market has some new headaches thanks to supply chain issues, tariffs and changes in vehicle technology.
Whether you’re planning to buy soon or exploring options for the future, here’s what to know about purchasing a car today.
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If buying a car is on your to-do list, and it's been a while since you went shopping for a new one, this guide will help avoid any nasty shocks in the showroom.
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10 Things You Should Know About Buying a Car Today, Even if You've Bought Before
NYSUT NOTE: You don’t have to take on saving for your child’s college career alone. Seek guidance from NYSUT Member Benefits Corporation-endorsed Financial Counseling Program. A team of professional Certified Financial Planners® will help you come up with the best course of action for your savings goals. Apply today.
NYSUT NOTE: Long term insurance has a slew of benefits that prevent you from depleting your savings accounts to pay for in-home help, facility help, and more. NYSUT Member Benefits Trust-endorsed Long Term Care Insurance connects members and their families to long-term planning specialists to find the coverage that’s right for them.
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How the Life Insurance Game Is Changing
Millennial consumers love customization. With so much information readily available, there is quite a bit you can do on your own if you choose to. And when you are ready and have questions or want a more guided experience, there is a financial professional who will be able to help. Whether by phone, by video, online or the good old-fashioned face-to-face meeting, a financial professional is always a great stop on this journey to be sure you have considered your needs and options. There are nuances to the features and benefits of life insurance, and an experienced professional can help you sort it all out. Among millennials who purchased life insurance in the pandemic, more than half used a live adviser, and 30% used both a live adviser and online elements in their purchase, according to Boston Consulting Group.
In addition to helping provide financial security for your loved ones in case you pass away, many life insurance policies now also offer optional riders (sometimes at additional cost) that can help address other concerns, like chronic illness or longevity risk.
Your move, millennials: Choose the method that works best for you. That may be an online-only purchase, using a live adviser, or some combination of the two. If you’re not sure where to turn for help, your employer may provide access to an adviser. It is also likely that friends or family members may have a referral for you. This is one of the most common ways advisers acquire new clients. Finally, many states have registration requirements and often have online directories of licensed financial professionals. Without a referral from someone you trust, it is a good rule of thumb to select two to three people to interview so that you can find the best person for you.
As millennials become more likely to purchase life insurance, insurers have evolved their offerings to create new products and innovations to meet their needs. That’s great news for first-time applicants who may find a much more painless process than expected.
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.
About The Author
Salene Hitchcock-Gear, President of Prudential Individual Life Insurance
President of Prudential Individual Life Insurance, Prudential Financial
Salene Hitchcock-Gear represents Prudential as a director on the Women Presidents’ Organization Advisory Board and also serves on the board of trustees of the American College of Financial Services. In addition, Hitchcock-Gear has a bachelor’s degree from the University of Michigan, a Juris Doctor degree from New York University School of Law, as well as FINRA Series 7 and 24 securities licenses. She is a member of the New York State Bar Association.
Good news: You can have it your way!
NYSUT NOTE: The NYSUT Member Benefits Trust-endorsed WrapPlan® II Universal Life Insurance Plan underwritten by Transamerica Financial Life Insurance Company allows you to purchase life insurance coverage that increases as your term life coverage decreases or terminates. For more information on requirements and how it works, visit the NYSUT Member Benefits website today.
Kiplinger is part of Future plc, an international media group and leading digital publisher
© 2023 Future US LLC
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Heading into retirement brings a slew of new topics to grapple with, and one of the most maddening may be Medicare. Figuring out when to enroll in Medicare and which parts to enroll in can be daunting even for the savviest retirees. There's Part A, Part B, Part D, Medigap plans, Medicare Advantage plans and so on.
And what is a doughnut hole, anyway? To help you wade into the waters of this complicated federal health insurance program for retirement-age Americans, here are 11 essential things you must know about Medicare.
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There’s Medicare Part A, Part B, Part D, Medigap plans, Medicare Advantage plans and so on. We sort out the confusion about signing up for Medicare—and much more.
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Medicare Basics: 11 Things You Need to Know
NYSUT NOTE: As interest rates continue to increase, there is no better time to address outstanding credit card debt. The NYSUT Member Benefits Corporation-endorsed Cam-bridge Credit Counseling program can help members get a better understanding of their debt consolidation and repayment options. NYSUT members are eligible for a free, no-obligation, debt and student loan consultation with one of Cambridge's certified counselors, who will help determine the most appropriate course of action for your spe-cific debt situation. To find out how to speak to a counselor, visit the website for more information.
NYSUT NOTE: As interest rates continue to increase, there is no better time to address outstanding credit card debt. The NYSUT Member Benefits Corporation-endorsed Cam-bridge Credit Counseling program can help members get a better understanding of their debt consolidation and repayment options. NYSUT members are eligible for a free, no-obligation, debt and student loan consultation with one of Cambridge's certified counselors, who will help determine the most appropriate course of action for your spe-cific debt situation. To find out how to speak to a counselor, visit the website for more information.
NYSUT NOTE: The NYSUT Member Benefits Trust-endorsed Level Term Life Insurance Plan — provided by Metropolitan Life Insurance Company — offers level term life insurance coverage for you or your spouse/certified domestic partner. Terms are available for 10-year, 15-year and 20-year periods. For more information on requirements and term details, visit the NYSUT Member Benefits website today.
NYSUT NOTE: As a NYSUT member, you have access to a national network of attorneys that deal with personal legal matters through the NYSUT Member Benefits Trust-endorsed Legal Service Plan. Provided by the law firm of Feldman, Kramer & Monaco, P.C., these experts offer legal assistance with everything from preparing crucial estate planning documents to dealing with traffic violations. For more information or to enroll click here.
IRS Direct File: What You Need to Know for 2025
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The IRS Direct File program will not be offered for the 2026 filing season, leaving potentially millions of taxpayers without this free file option.
The program, which allowed residents in 25 pilot states to file directly with the federal tax agency, was officially discontinued this month. The decision to shutter Direct File was set in motion by the 2025 Trump tax bill, though officially executed after a long-awaited U.S. Treasury Department task force report was released.
Here's more of what you need to know.
The Trump administration has ended this free IRS tax filing program. Find out what's happening and what it means for you.
Retirees claiming Social Security have options. Married couples may have more options than a single person because each person in the marriage can claim benefits at different dates and may also be eligible for spousal benefits.
After age 62, for every year you delay taking Social Security up to age 70, you could receive up to 8% more in future monthly payments, according to Fidelity. However, once you turn 70, the increases stop.
Each spouse can claim benefits. However, the amount they receive is based on their work record. Or, they can choose to claim up to 50% of their spouse's benefit at full retirement age. This strategy, known as the 62/70 split, works this way: the spouse earning the lower wage starts receiving benefits at age 62, while the higher-earning spouse delays receiving benefits until age 70.
With this approach, the higher earner receives a spousal benefit while waiting, which increases both their benefit and the survivor benefits for the surviving spouse. Ultimately, it's a win-win for everyone. However, before choosing this option, find out how much your estimated benefits will be at full retirement age.
How does social security work for married people?
Protect Your Family's Future: Avoid These 12 Common Estate Planning Mistakes
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If you've avoided the most common estate planning mistakes, your family will thank you.
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Kiplinger is part of Future plc, an international media group and leading digital publisher
© 2025 Future US LLC
Kiplinger is part of Future plc, an international media group and leading digital publisher
© 2025 Future US LLC
Estate planning mistakes can derail your plans to protect your family's financial future. Learning the basics of estate planning benefits everyone — it's about empowering the people you trust the most to handle your medical, financial and legal affairs if, or when, you can't.
Learning the basics empowers the people you trust to handle your medical, financial, and legal affairs if you become unable to.
Having a comprehensive estate plan will also spare your heirs the pain and expense of determining how to allocate your money and property while they’re sad and grieving.
Kiplinger is part of Future plc, an international media group and leading digital publisher
© 2025 Future US LLC
Kiplinger is part of Future plc, an international media group and leading digital publisher
© 2025 Future US LLC
Kiplinger is part of Future plc, an international media group and leading digital publisher
© 2025 Future US LLC
Kiplinger is part of Future plc, an international media group and leading digital publisher
© 2025 Future US LLC
Kiplinger is part of Future plc, an international media group and leading digital publisher
© 2025 Future US LLC
Kiplinger is part of Future plc, an international media group and leading digital publisher
© 2025 Future US LLC
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© 2025 Future US LLC
About the Author
Julia Pham, CFP®, AIF®, CDFA®
Wealth Adviser, Halbert Hargrove
Julia Pham joined Halbert Hargrove as a Wealth Adviser in 2015. Her role includes encouraging HH clients to explore and fine-tune their aspirations — and working with them to create a road map to attain the goals that matter to them. Julia has worked in financial services since 2007. Julia earned a Bachelor of Arts degree cum laude in Economics and Sociology, and an MBA, both from the University of California at Irvine.
NYSUT NOTE: Talking to your adult children about their finances can be challenging, but the NYSUT Member Benefits Corporation-endorsed Financial Counseling Program can help. The program features a team of Certified Financial Planners who offer guidance on how to properly plan for retirement and all of your financial planning needs. Your kids can also join in on these important virtual counseling sessions to better understand their own financial planning strategies.
About the Author
Deana Healy, CFP®
Vice President of Financial Planning & Advice, Ameriprise Financial
Deana Healy, CFP®, is Vice President of Financial Planning & Advice for Ameriprise Financial. Healy and her team are responsible for executing the overall financial advice strategy at Ameriprise, including advice operations, policy and sales enablement, which drives the firm’s more than 10,000 financial advisers to help clients meet their goals with confidence. In addition, Healy oversees the firm’s Advanced and Specialty Advice offering with a particular focus on high-net-worth clients and those with complex situations.
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© 2025 Future US LLC
NYSUT NOTE: Whether you’re the primary payee or a co-signer on a student loan, missing a payment can seriously impact your credit score. Ensure your score doesn’t drop with the help of NYSUT Member Benefits Corporation-endorsed Cambridge Student Loan Services, which is designed to help members better understand their student loan re-payment options and get help with debt consolidation.
About the Author
Choncé Maddox®
Personal finance writer
Choncé is a personal finance freelance writer who enjoys writing about eCommerce, savings, banking, credit cards, and insurance. Having a background in journalism, she decided to dive deep into the world of content writing in 2013 after noticing many publications transitioning to digital formats. She has more than 10 years of experience writing content and graduated from Northern Illinois University.
Kiplinger is part of Future plc, an international media group and leading digital publisher
© 2025 Future US LLC
I bought a house when mortgage rates were 6.5%. If rates fall to 6.25% or 6.0%, would refinancing make sense and actually save me money?
Question:
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Kiplinger is part of Future plc, an international media group and leading digital publisher
© 2025 Future US LLC
The average price of a new car just hit over $50,000, according to Kelley Blue Book. “There were steep price increases after the COVID-19 pandemic, and prices remain at an elevated level,” says Chase Gardner, data insights manager at Insurify, an online car insurance quote marketplace.
1. Prepare for sticker shock
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It's hard to save for any long-term goal, including your child's education, when an unexpected expense can wreak havoc on your finances. That's why it's important to establish an emergency savings fund for those unexpected expenses before you start saving for other goals.
While you're at it, check to make sure you are putting these funds in a savings vehicle where you are getting the returns you deserve. The average bank's savings account yield is only 0.40%, well below the latest annualized inflation rate of 2.92%.
Consider looking at cash management accounts, with stronger interest rates, such as Vanguard's Cash Plus Account, which can yield nine times more than a traditional bank savings account.
By saving in a high-yielding savings vehicle, you can demonstrate to your children the importance of where you save and the benefits of long-term compound interest while building a savings buffer for unexpected expenses so they do not interfere with your long-term savings goals.
Put your oxygen mask on first
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© 2025 Future US LLC
Kiplinger is part of Future plc, an international media group and leading digital publisher
© 2025 Future US LLC
NYSUT NOTE: NYSUT Member Benefits Trust-endorsed Legal Service Planning offers members access to attorneys. Get expert legal advice and help with estate planning, including prepping important estate planning documents, to ensure your assets are set. Apply now.
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“One key tip for paying down high-interest debt while saving is to boost your income beyond the interest payments. Use skills or side hustles to generate extra cash, directing it to debt first and then savings. This works because exceeding the interest rate accelerates debt reduction, freeing up funds faster for future goals without sacrificing savings momentum.” — Dr. Clemen Chiang, Spiking
1. Boost your income
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Short-term and long-term disability insurance both provide coverage for disabilities that are not job-related, but they differ in duration and terms.
Short-term disability insurance is typically available only through your employer. It provides benefits for a limited period, usually up to a year, if you are unable to work due to an illness, accident or even pregnancy.
Short-term disability benefits generally begin after an “elimination period,” which is often 30 days.
In contrast, long-term disability benefits kick in after a longer elimination period, usually between 90 and 180 days. It can continue to provide benefits until the age of 65 or you are no longer disabled.
Short-term disability generally covers you during your long-term disability elimination period.
1. Short-term vs long-term disability
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Millions of Americans who thought student loan relief would last long-term are now facing a hard reality. When loan collections resumed in May, missed payments began to hit credit reports again.
While much of the focus has been on recent graduates, parents and grandparents who cosigned private loans or hold Parent PLUS loans are also at serious risk of credit-score damage.
If you’re in that group, it’s important to understand how student loans can affect your credit score, how a past due loan can hurt your credit and what steps you can take to stay ahead and protect your score.
What borrowers and cosigners should know
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Kiplinger is part of Future plc, an international media group and leading digital publisher
© 2024 Future US LLC
NYSUT NOTE: Do you have personal debt or money concerns that you need help managing? NYSUT members are able to enroll in the NYSUT Member Benefits Corporation-endorsed Cambridge Credit Counseling program. This program has been assisting consumers with eliminating debt for more than 20 years, and NYSUT members are eligible to receive a free, no-obligation, debt consultation with one of Cambridge's certified counselors. These counselors can help you better understand your situation, help you set financial goals, determine your budget and more, to help you get out of debt in a fraction of the time. Visit the member website for more information.
Deciding what kind of fence to build around your retirement home is a personal decision. There are benefits and drawbacks to every LTC option, and what’s right for one person may not work for another.
While it’s important to be proactive, buying LTC insurance or life insurance at a young age could get very expensive after years of paying premiums. On the other hand, waiting to purchase a policy could put you at risk of paying high premiums because of any health problems you may have developed in your 50s and 60s.
It’s important to meet with a trusted financial adviser who can help you determine the right time to buy and what type of protection your family needs. No two situations are alike, but an adviser can help you weigh the pros and cons specific to your assets, family history, medical history, tax plan and beneficiary needs. I recommend working with a professional who has the experience and industry knowledge needed to keep you and your loved ones safe from the potential burden of LTC.
Emergency cash on hand is important, too
“While building an emergency fund or savings account is always an important step in being prepared for financial emergencies, it’s equally important to have emergency cash on hand. Consider keeping a small amount of cash locked in a safe at home where it is protected. Another important step is being proactive. Do you have a high amount of debt that is holding you back? Build a strategy to pay it off and commit to putting any extra funds into your savings account. For example, let’s say you commit 10% of your paycheck toward paying down your debt, and as it starts to decrease, you can start to put more money toward saving for an unexpected emergency.”
— Tony Drake, a Building Wealth contributor
“It always pays to be prepared, and daresay even a little paranoid about unexpected changes that life may bring. I would advocate running through some hypothetical scenarios in your head to bring some peace of mind that you can adjust to major unexpected events in life. If you have to deal with a job loss, it’s good to have an inventory of your best professional contacts that you can network with and may be able to provide introductions to new employers. You might want to research and keep track of top employers in your area that would be your first targets should you need to look for new work. Similarly, in addition to having an emergency fund, preparing for unexpected financial issues might mean keeping separate assets earmarked for paying off large bills like a home repair or medical bill. It might not warrant keeping extra cash on hand, but alternatively you might set up a lending facility like a HELOC (home equity line of credit) or credit line at your bank that is available should you need to borrow at a reasonable interest rate vs scrambling with high interest rate loans. In short, going through the thought exercises ahead of time for issues you may encounter and being prepared with solutions beforehand will save a lot of heartburn and money down the road.”
— Shane W. Cummings, a Building Wealth contributor
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The benefits of financial fasting
Financial fasting can be a reset button — not only for your finances, but for your values, sense of purpose and even your relationships. Here are a few ways that limiting your spending can change your financial well-being for the better.
1. Pay down debt faster.
The most obvious benefit of financial fasting is that it frees up cash flow fairly quickly. But that doesn’t mean that you should simply spend all that money once you break your financial fast. Consider using that moment as an opportunity to pay down debt at an accelerated rate — especially high-interest obligations like credit card debt and car loans.
2. Break the cycle of senseless spending.
We spend for different reasons. Some people lavish their grandkids with expensive gifts, while others continually chase the latest fashion trends, no matter the cost. The problem is, many people don’t recognize why they’re purchasing certain things — and that the reasons for buying them may fall apart under scrutiny.
Buying possessions, for instance, tends to provide happiness for only a short period time, but a meaningful experience can be more rewarding over the long term.
Because financial fasting pushes the pause button on spending, it can make you think longer about why you wanted to buy something in the first place.
In time, you’ll become more adept at fulfilling those needs without spending, or realize when those impulses are not needs at all. For example, if you want to spend time with your significant other, a walk along the beach or in a park may be a better, expense-free way to do that, vs going to the movies.
3. Align your purchase decisions with your values.
Financial fasting is also an opportunity to bring your spending in line with your own personal values. Growing up, many Baby Boomers like me just went to work. We put our heads down. Spending wasn’t necessarily connected to purpose or passion but providing for ourselves or others.
This can be a time to take a page from younger generations and think about the impact of your purchase decisions. If you are passionate about social awareness and responsibility, consider the many items you purchase from large companies. Should you redirect those dollars to other businesses that may have a greater impact on your local community?
As you come out of a financial fast, you’ll find yourself at a crossroads, asking: Do I continue spending the way I have in the past, or try to be the change I want to see in the world?
4. Create a space to reconnect in our relationships.
Some instinctually feel that in order to do something, you need to spend something. But when it comes to our relationships, quality time is what matters most. Some types of spending can disconnect you from those important connections, instead of creating space for you to engage with your loved ones in a meaningful way.
For example, some leisure activities — like attending plays, visiting theme parks or going to concerts — don’t actually require people to talk to each other. And costly gifts are hardly a substitute for personal connection. Unfortunately, many of our spending habits, while well-meaning and born out of kindness, fail to deepen our relationships.
Planning free activities, on the other hand, requires you to creatively collaborate with your family members and friends, fostering a sense of spontaneity and adventure. And many of the activities that don’t involve spending require us to remain in the moment, listen to others respectfully and appreciate their presence.
NYSUT NOTE: Planning and managing your finances can be a lengthy, complicated process, which can often require professional help. That’s where the NYSUT Member Benefits Corporation-endorsed Financial Counseling Program comes in. NYSUT members have access to a team of Certified Financial Planners® that can offer unbiased advice for your specific financial situation. And it’s all fee-based, which means no commissions from mutual funds, brokerage firms, insurance companies or any other third party, just unbiased advice from a financial expert. Enroll today by visiting the member website.
Once you’ve incorporated financial fasting into your daily life, you’ll realize how much the world has to offer outside of indiscriminate spending. It can help refocus your financial priorities, reel in addictive spending habits and even inspire you to financially support causes you believe in.
The difficulties associated with financial fasting are not unsubstantial — but the joys it can bring to your life, and those around you, are well worth the effort.
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Kiplinger is part of Future plc, an international media group and leading digital publisher
© 2025 Future US LLC
3. Assess your income sources and expenses.
Creating a budget for a multidecade retirement is not practical. Prices change, unforeseen expenses arise, and life takes unpredictable turns. However, there needs to be a general calculation to determine if you can afford a particular lifestyle.
This computation doesn’t need to involve anything fancy. Start by listing all your income sources such as Social Security, pension and portfolio or rental income. Next, tally your living expenses, like food, rent, taxes and transportation costs.
Make sure to also factor in any other costs associated with living the retirement you envision, including travel or hobbies. Finally, ask yourself two questions:
• Does my income exceed my expenses?
• Can I afford to live this lifestyle for the rest of my life?
If the answer to either of these questions is “no,” then changes must be made. You can consider working longer, even part time, moving to a cheaper locale or adjusting your retirement lifestyle.
As I have repeatedly pointed out, this is just a back-of-the-envelope framework. Here are a few of the major things that could throw it off:
5. Consider Medicare and Medigap deadlines.
A safe withdrawal rate is the percentage that retirees can withdraw from their accounts each year without running out of money before reaching the end of their lives. This is a key aspect in determining how long you can maintain your lifestyle. A popular guideline is the 4% rule, which suggests that an individual can withdraw 4% of their total portfolio value annually to sustain their lifestyle without running out of money.
One important factor when determining your safe withdrawal rate is your legacy goal and how it impacts your retirement goals. Your legacy goal involves estate planning and how much money you’d like to leave to your children or charity. This objective will directly impact how much money you can withdraw each year from your nest egg.
8. Plan to retire TO something, not FROM something.
Being frustrated at work or trying to get away from a difficult boss are not good reasons to retire. Situations at work change daily, and bosses come and go. Making an emotionally charged decision to stop working can be devastating if not thought through fully.
The reason to retire is because one has the burning desire to pursue other interests, goals and lifestyle choices. These new pursuits should be clearly defined and laid out. Not knowing what activities and challenges you’d like to engage in when you retire may lead to boredom and more rapid mental deterioration.
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Liability
Liability coverage, required by law in most states, is the foundation of car insurance policies. It’s designed to protect you financially if you’re found at fault in an accident and cause injury or property damage to others. Liability coverage encompasses two components: bodily injury liability coverage and property damage liability coverage.
Bodily injury (BI) liability covers injuries that you cause to someone else. Generally, it pays for the other person’s medical bills, recovery costs, and lost wages.
Property damage (PD) liability covers the cost of repairing or replacing another person’s property that you damaged. Typically, this covers damage to another driver’s vehicle, but it can also cover damage to fences, lamp posts, telephone poles, buildings, or other structures your car hits.
Medical payments
If you or your passengers are injured in an accident, medical payments (MedPay) coverage helps pay for healthcare costs associated with injuries, such as hospital visits, surgery, X-rays, and more. MedPay coverage is required in some states.
Part C is commonly called Medicare Advantage. Beneficiaries are covered for Parts A and B through private insurers instead of traditional government-administered Medicare. Most Advantage plans include prescription drug coverage. For 2024, the average monthly premium is $18.50.
Medicare Part C
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How Much Can I Contribute to a College 529 Plan in 2023?
529 college savings plans do not have set individual annual contribution limits like 401(k) plans do. Instead, annual, and aggregate, contribution limits for 529 plans vary by state.
It’s also important to keep in mind that contributions to your 529 plan are treated as gifts for federal income tax purposes. In 2023, under the gift tax exclusion rules, you can contribute up to $17,000 tax free per donor. However, gifts over $17,000 must be reported on a federal gift tax return. That doesn’t necessarily mean that you will be subject to tax on your gift though, because the lifetime federal gift tax exemption amount is quite high.
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Property Damage and Loss
As you know, homeowners insurance will cover the expenses (minus deductibles) to replace, repair or even rebuild your home, exterior structures and belongings in the event of a natural or man-made disaster. For example, if a hailstorm destroys your roof, homeowners insurance should cover the costs to replace or repair your roof. Similarly, homeowners insurance will help you rebuild if fire engulfs your house, detached garage or shed.
When you experience this type of catastrophe, you still need a place to stay while your home is being repaired or rebuilt. Homeowners insurance will cover the costs of your alternative living arrangements during that time. Additionally, homeowners insurance is there if your home is burglarized. Your homeowners policy helps to replace any valuables that are stolen.
It’s important to thoroughly examine which events your policy will cover and look for any gaps that might exist within your coverage. This is especially true in our current market. With recent price increases in real estate, it’s possible that the property replacement value on your homeowners policy won’t cover the increase to your property’s current value.
Finally, you must make sure you have enough liability protection to cover medical and/or legal expenses that could arise due to accidents in your home. You don’t want to owe anything out of your own pocket. Therefore, if your policy provides $100,000 to $300,000 in liability coverage, it may be wise to purchase $300,000 to $500,000 of protection. These expenses compound and can quickly get out of control. It’s much better to pay a little more on your insurance premiums than to find yourself footing the bulk of someone’s medical and legal bills because they exceeded your policy’s personal liability coverage.
Additionally, if you’re operating your business within your home, you may need to add a rider to your homeowners policy that will protect you if there’s an accident that happens while someone’s at your home for business purposes.
I know that life is busy. Conducting an annual review of your homeowners insurance policy might not be high on your list of priorities right now, but it should be. Oftentimes, it’s very easy to develop a sense of comfortability in doing things the way we’ve always done them. However, just because you bought a good policy from a decent insurance agent doesn’t mean it’s still the best one for you.
I review my own homeowners policy annually. Specifically, I look at my home's current value compared to the replacement value coverage I have on it. Likewise, I look at the value of my personal belongings compared to the replacement value coverage I have on them. As the value of my home and my belongings increases, I want to make sure my homeowners policy increases to cover it.
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2. Age matters in deciding when to retire
Retirement isn’t solely about savings; age matters, too. For penalty-free withdrawals from traditional retirement accounts, you need to be at least 59 ½. However, the rule of 55 allows those leaving their job at 55 or older to withdraw from their current employer’s plan without penalties.
Given most retirees describe Social Security as a major income source, it's vital to plan this aspect of your retirement thoughtfully. The full retirement age is 67 for those born after 1960. By delaying until 70, you boost your benefit, though you’ll have to lean on other funds in the meantime. Starting claims early at 62 reduces your benefit, but you’ll get more checks over time.
If you’re lucky enough to receive a pension, keep in mind it might also be curtailed if age and service requirements aren't met.
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About the Author
Chad Rixse
Chad Rixse, CRPS®, is the Director of Financial Planning and a Wealth Advisor at Forefront, a privately-owned financial services firm.
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The Federal Reserve cut interest rates again for the second time this year, sparking new conversations about whether now might finally be the right time to buy a home. After years of high borrowing costs, many potential buyers are watching the market closely to see if this is the start of a meaningful shift.
Mortgage rates have continued to trend lower in recent weeks, with the average 30-year fixed rate now sitting near its lowest level in more than a year, according to Freddie Mac. At the start of 2025, that same rate was above 7%. Today, it’s nearly a full percentage point lower, offering some relief for buyers who have been waiting for conditions to improve.
Still, the decision to buy isn’t easy. Home prices remain high, inventory is tight, and inflation continues to weigh on household budgets. For those who already locked in historically low mortgage rates, the idea of trading up for a higher payment can be tough to justify. Yet with rates showing signs of stability and fewer swings week to week, buyers may feel more confident about planning their next move.
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Somewhere along the way, 65 became the unofficial finish line. But that age has more to do with Social Security benchmarks than modern longevity. People are living well into their 80s and 90s, meaning retirement might span 30 or even 40 years.
That kind of timeline changes everything.
Retirement can no longer be treated as a brief reward at the end of a career. It needs to be a sustainable, purpose-driven phase of life. And that takes planning beyond the numbers.
Why the old retirement age doesn't work anymore
Federal withholding tax from Social Security
As mentioned, one way to avoid tax surprises is to have federal income taxes withheld from your Social Security payments.
Getting a handle on the basics of Medicare can help protect your health — and your nest egg — in retirement, so making the right choices during Medicare open enrollment is arguably one of the most important financial decisions you can make.
Open enrollment runs from Oct. 15 to Dec. 7 each year. You can tell by the advertisements that inundate the airwaves and your mailbox. You’re likely even already getting unsolicited calls and emails. All kinds of health insurance brokers and companies want to dazzle you with their offerings.
First, let’s review the basics. As most retirees know, Medicare has several parts. Part A, which is offered at no cost, generally covers hospitalizations. Part B covers outpatient medical care. Part D is prescription drug coverage provided by private insurers.
Medicare Advantage is the umbrella term for plans offered by private insurers regulated by Medicare to replace parts B and D. Medigap plans, also offered by private companies, are supplemental plans that cover copays and coinsurance charges imposed under Medicare Part B. While some people assume that Medicare will cover all their healthcare costs, experts warn there are things Medicare won't cover.
A 65-year-old retiring in 2024 could expect to spend an average of $165,000 in healthcare and medical expenses throughout retirement, according to data from Fidelity Investments. This highlights the importance of reviewing your Medicare plan choices during open enrollment each year to ensure you have the best coverage to meet your needs.
3. Limits on Medigap changes
People who choose to keep traditional Medicare may also enroll in a supplemental Medigap plan from a private insurer to cover costs like copays. Traditional Medicare, when not paired with Medigap, does not have a limit on out-of-pocket expenses in a year.
Medigap policies, which cannot be paired with Medicare Advantage plans, have standardized benefits. Most states offer 10 types of Medigap policies, but premiums vary by insurer. You can compare costs, benefits and availability on Medicare’s website.
If you have a Medicare Advantage plan, you may switch to traditional Medicare, but you may have trouble getting a Medigap policy. Some states offer more protections than others, but, in general, your first time enrolling in Medicare is your best opportunity to get a Medigap policy.
How to Qualify for Social Security Spousal Benefits
Whether you’re currently married or divorced determines how you can qualify for spousal benefits.
Married
You can qualify for spousal benefits if you meet all these requirements:
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Overall, life insurance is a personal affair. Two couples may earn equal salaries, but it’s silly to say that someone with four young children should have the same coverage as empty nesters with no mortgage and a substantial retirement fund. Additionally, you’ll likely experience life events that call for changes in your insurance: marriage, parenthood, homeownership, college expenses and retirement.
Instead of relying on rules of thumb, you’re better off taking a systematic approach to figuring out your life insurance needs. That’s easier than it sounds, as you’ll see from the following process because it "truly is an art as well as a science," says Tim Maurer, a financial planner in Charleston, S.C., and coauthor of The Financial Crossroads. Here's what you need to know.
How much life insurance do you need?
The purpose of life insurance is to financially protect your loved ones after you pass away. For instance, life insurance can guarantee your family can live normally in your absence, paying bills as before. For this reason, some experts and most online calculators sponsored by the insurance industry seek to figure out the chunk of investment capital it would take to replace all of your income for 20 years or longer, held securely in treasuries or municipal bonds and certificates of deposit.
However, this approach can aim high, especially if you assume raises and promotions. "You can find people who are extremely minimalist with insurance recommendations," says Maurer. "But I see an overabundance of people who end up justifying more insurance than I think is reasonable."
Instead, he offers a strategy to calculate how much coverage to buy and to form a plan that’s easy to update. The idea is to assess whether you need extra coverage or different policies only after you project your life insurance needs as the sum of the following four categories.
How to calculate how much life insurance you need
When a payment is 30 days past due, servicers may report the late status. Once it reaches 60 or 90 days, the hit becomes more severe. The New York Fed estimated more than nine million borrowers would see significant drops in the first half of 2025 when reporting resumed.
For older borrowers with established credit histories, a sudden 100+ point drop can disrupt plans like refinancing a mortgage, securing a home equity line or locking in favorable auto loan rates.
You might think, “I’ve managed credit responsibly for decades, surely a blip won’t matter.”
But, credit score shifts can trigger higher interest rates, additional fees or even outright loan denials. For example, a drop from near-800 territory into the mid-600s could increase mortgage refinance rates by a percentage point or more, potentially adding thousands in interest over the life of a loan.
Auto loans, insurance premiums and credit card approvals similarly hinge on credit tiers. Even if you’re financially comfortable, unexpected credit damage complicates reverse mortgages or big-ticket purchases. And since Parent PLUS balances often exceed $30,000 on average, the stakes are high if payments slip.
How delinquencies impact credit scores
The best defense is knowing in real time when your credit changes. Sign up for credit-monitoring services that alert you to score shifts or new negative entries.
Check your credit reports from the three bureaus at least once a year and ideally more often now that student loan reporting has resumed.
Many services also notify you if there’s a new inquiry or if a payment status changes. If you see any odd activity like a suddenly past-due status you don’t recognize, contact the loan servicer immediately to clarify or correct errors.
The importance of monitoring your credit regularly
The deadbolt that’s currently on your door might not do the best job of protecting your home, so consider reinforcing it with a Grade 1 deadbolt.
The American National Standards Institute developed a system to rate deadbolt quality. Grade 1 deadbolts offer the highest quality, most reliable security based on factors like their strength and the quality of materials used.
Upgrading your deadbolt can help prevent a burglar from being able to kick in your door. In addition to investing in a Grade 1 deadbolt, reinforce your door frame with a steel strike plate.
Use long screws that go at least one inch into the door frame stud to maximize the resistance of the strike plate, making your door more difficult to kick in. These affordable upgrades can have a big impact on your home’s security.
2. Deadbolts and reinforced door hardware
Outdoor motion-sensor lights can deter break-ins and improve the visibility around your home. Since the lights only turn on when activated, they can help save you money on your electrical bill while improving your home’s security.
You can install many motion-sensor lights in place of an outdoor flood light, but you’ll need some electrical knowledge since the lights will have to be wired in.
Solar motion-sensor lights, like the Bell + Howell Bionic Spotlight Solar Powered Motion Sensor Flood Light, are much simpler to install and can be easily relocated around your home and yard as needed.
4. Security window film
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.
About the Author
Paige Cerulli
Contributor
Paige Cerulli is a freelance journalist and content writer with more than 15 years of experience. She specializes in personal finance, health, and commerce content. Paige majored in English and music performance at Westfield State University and has received numerous awards for her creative nonfiction. Her work has appeared in The U.S. News & World Report, USA Today, GOBankingRates, Top Ten Reviews, TIME Stamped Shopping and more. In her spare time, Paige enjoys horseback riding, photography and playing the flute. Connect with her on LinkedIn.
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.
About the Author
David Rodeck
Contributing Writer, Kiplinger Retirement Report
David is a financial freelance writer based out of Delaware. He specializes in making investing, insurance and retirement planning understandable. He has been published in Kiplinger, Forbes and U.S. News, and also writes for clients like American Express, LendingTree and Prudential. He is currently Treasurer for the Financial Writers Society.
Before becoming a writer, David was an insurance salesman and registered representative for New York Life. During that time, he passed both the Series 6 and CFP exams. David graduated from McGill University with degrees in Economics and Finance where he was also captain of the varsity tennis team.
NYSUT NOTE: Make sure you’re getting the best deal on your new car with NYSUT Member Benefits Corporation-endorsed Buyer’s Edge. The auto buying service helps you get the most for your money by comparing used and new cars online. Plus, members get exclusive savings from local certified dealers.
About the Author
James Martielli, CFA®, CAIA®
Head of Investment Product, Personal Investor, Vanguard
James Martielli, CFA®, CAIA®, heads Investment Product, Personal Investor, which is responsible for designing and enhancing Vanguard's brokerage and investment product offer, amplifying distribution efforts and shaping the investment methodology that fuels unmatched investment and savings outcomes for our clients. Previously, James led Investment & Trading Services (ITS), which educates individual investors about Vanguard's products and provides trade execution for the securities and products on Vanguard's retail brokerage platform.
When you buy LTC insurance, you decide how much coverage you want. It’s usually a maximum daily or monthly benefit, such as up to $6,000 per month for a nursing home or a home healthcare worker. Some policies will only reimburse you for what you spend on care, while others will send you cash for the value of the benefit once you start needing care, regardless of the actual cost.
You also pick a waiting period, during which you need to cover costs before the coverage begins. A ninety-day period is the most common. For an added charge, your coverage amount can increase over time, so that your coverage keeps up with rising costs.
1. Long-term care insurance pays out a set benefit
1. Codicil: A formally executed document that amends the terms of a will so that a complete rewriting of the will is not necessary. It will either explain, modify or revoke aspects of an established document.
Purpose: Codicils are required to change/update your will after significant life changes such as births, deaths, marriages, divorces or moving out of state.
2. Conservator: An individual or a corporate fiduciary appointed by a court to care for and manage the property of an incapacitated person in the same way that a guardian cares for and manages the property of a minor.
Purpose: A conservator's primary purpose is to protect the financial and/or personal well-being of an individual who is unable to manage their own affairs due to incapacity or legal limitations.
3. The Generation-Skipping Transfer Tax (GSTT): a separate tax that is imposed in addition to the estate tax. It is applied to outright gifts and transfers in trust that exceed the GSTT exemption. These transfers, which can occur during one's lifetime or at death, are made to beneficiaries who are two or more generations younger than the donor, such as grandchildren or great-grandchildren. The tax is currently calculated at a flat rate of 40%, which is equal to the top estate and gift tax rate
Purpose: The GSTT is designed to prevent the avoidance of gift or estate tax at the skipped generational level. Some states also impose a state-level generation-skipping transfer tax.
4. Gross Estate: This estate planning term refers to the total value of an individual's property at the time of their death. It also encompasses certain assets they previously transferred, which are still subject to federal estate tax regulations.
Purpose: This comprehensive valuation is a key component in determining federal estate tax liability.
5. GSTT exemption: The GSTT exemption amount is $13.99 million per individual in 2025. The amount is currently set to revert to a $5 million baseline in 2026, and is projected to be $7 million when indexed for inflation, unless Congress acts prior to this date to extend the increased exemption.
Purpose: The exemption allows you to reduce or potentially eliminate the transfer taxes associated with gifting or passing money to grandchildren or other skip beneficiaries.
6. Heir: A person entitled to a distribution of an asset or property interest under applicable state law if you die intestate due to the absence of a will. “Heir” and “beneficiary” are not interchangeable, although they may refer to the same individual in a particular case. Anyone you chose to leave a bequest is a beneficiary, only those related by blood or law can be your heir.
Purpose: If you die without a valid will, you die intestate, and your state's intestacy laws determine how your assets are distributed, typically to close relatives. Intestate succession laws would then dictate the order in which your assets are distributed to your heirs.
7. Life estate: A life estate grants a beneficiary, also called the life tenant, the legal right to use a property for the duration of their life under state law. This represents the entirety of their interest in the property.
Purpose: Life estates provide a straightforward way to transfer property ownership to the next generation without the complexities of a will or trust. Because following the death of the life beneficiary, the title fully vests the person named in the deed or trust agreement. This person might be referred to as ‘the remainderman.’
8. Operation of law: The way some assets will pass at your death, based on state law or the ownership of the asset, rather than under the terms of your will.
Purpose: Ease and avoidance of probate; no specific steps need to be taken by the parties for the transfer to occur. These accounts or assets have a named beneficiary, such as a life insurance policy, retirement plan or a Transfer on Death (TOD) account.
9. Payable on death (POD) and Transfer on death (TOD) designations: POD and TOD are types of beneficiary designations for a financial account that will automatically pass title to the assets at death to a named individual or revocable trust outside of probate.
Purpose: POD and TOD accounts can be a simple and effective way to ensure the transfer of ownership of an account or policy to your chosen beneficiary.
10. Per Stirpes: This Latin term, meaning "per branch," describes a method of distributing property in estate planning. It follows the family tree, with descendants inheriting the share their deceased ancestor would have received if alive. Under per stirpes, each branch of the named individual's family is entitled to an equal portion of the estate.
How it works:
Estate planning definitions and terms to know
About the Author
Donna LeValley
Retirement Writer
Donna joined Kiplinger as a personal finance writer in 2023. She spent more than a decade as the contributing editor of J.K.Lasser's Your Income Tax Guide and edited state specific legal treatises at ALM Media. She has shared her expertise as a guest on Bloomberg, CNN, Fox, NPR, CNBC and many other media outlets around the nation. She is a graduate of Brooklyn Law School and the University at Buffalo.
“Use a debt repayment strategy like the debt snowball method: Pay minimums on all debts, but throw extra cash at the smallest balance first. Once that balance is paid off, roll that amount into the next debt. Meanwhile, contribute enough to get a 403(b) match and build a small emergency fund. This keeps you motivated, eliminates high-interest debt and ensures you're still growing wealth!” — Bob Chitrathorn, Wealth Planning By Bob Chitrathorn of Simplified Wealth Management
Try the 'debt snowball' method
About the Author
Kiplinger Advisor Collective
Kiplinger Advisor Collective is the premier criteria-based professional organization for personal finance advisors, managers, and executives.
Employer-provided disability insurance can offer good coverage, but you may be wondering if you need a private disability policy.
Two reasons to consider a private policy are the taxability of the benefit and portability of coverage. You should also consider whether your employer-provided coverage would replace enough of your income should you become disabled.
If you pay the premium for your employer-provided disability policy with pre-tax dollars, which is the case at many companies, then any benefit you receive under that policy would be subject to income tax.
But if you pay your premium with after-tax dollars, either for your employer’s coverage or a private policy, your benefit would be tax-free.
You should also consider the portability of coverage. Employer disability policies are generally not transferable if you leave your job.
If you want to be sure that you have disability insurance regardless of where you work — or even if you decide to start your own business — you would need a private policy to be covered.
2. Private disability policy
NYSUT NOTE: Focus on feeling better and let NYSUT Member Benefits Trust-endorsed Disability Insurance take care of the rest. Disability Insurance can be customized for your budget to help you take care of any expenses until you’re able to head back to work.
About the Author
Adam Frank
Head of Wealth Planning and Advice, J.P. Morgan Wealth Management
Adam leads J.P. Morgan Wealth Management's Wealth Planning and Advice team, which is responsible for wealth planning, thought leadership and strategic planning for individual clients. This national team of former practicing lawyers provides experience in estate and tax planning strategies, retirement planning, restricted and control stock and stock option management, business succession planning, pre- and post-transactional planning, concentrated position management and other personal planning strategies. The team provides internal training to the J.P. Morgan Wealth Management sales force on these topics and also creates content for distribution to the public.
Even young children are watching and paying attention to where you invest your time and money. While you don't have to share details of your financial situation, consider involving your children in real-life money management scenarios early on.
Communicating the reasoning behind some of your purchasing decisions or spending habits can be a powerful way to impart financial values to your children
You might consider helping them understand why you chose one product vs another at the store ("It's very similar but less expensive"), or why you aren't buying an item right now ("We're saving up for something special").
By getting children involved, you're setting the tone that it's OK to talk about money and creating the space for them to ask questions.
When appropriate, encourage your children to use their own money to make a purchase. Allowance or birthday money provides a great opportunity to help them think about how to save, spend or give to charity.
Young children through pre-teens
Estate Planning During a Pandemic
Driving experience is all about muscle memory
If you’ve been driving long enough, you will be able to relate to the fact that a great deal of driving is muscle memory. How many times have you gotten to your destination only to realize you don’t even remember the drive there? Where did the time go? Who was actually driving the car — you know, using the turn signal, checking to be certain you (mostly) obey the speed limit, driving defensively, all that good stuff? It just happened on — sorry for the pun — autopilot. The more you drive, the more it tends to occur without your conscious thought. You don’t have to think about how much pressure to apply to the gas pedal, when to put your foot on the brake, how much distance to keep between you and the car in front of you and the like.
That kind of muscle memory developed over a long period of time and a lot of hours behind the wheel. And that experience, my friend, is something that, putting it frankly, your kid ain’t got.
One of the major factors used to establish the cost of auto insurance is the level of experience you have propelling your two to three tons of machine at 70 miles per hour. That lack of experience means the risk of something going wrong is higher for a new driver than it will likely ever be again in the future. The most inexperienced a driver will be is the first day they wave ta-ta to you and drive away. Let that sink in.
Your insurance company knows this all too well, and they have the data to prove that new drivers have more accidents than experienced drivers do, all other things remaining the same. New drivers get more speeding tickets and more stop-sign violations, and that makes total sense. The DMV granting them the right to drive does not also give them decades of driving experience. There are no shortcuts. So here is what you can do.
Credit doesn't provide an opportunity to save
Income is generally defined by its function: providing consumption and saving opportunities.
I’ve always maintained that credit cards are not an alternative source of income.
While having credit available on a credit card does offer a way to provide ourselves with consumption, it does not offer us a saving opportunity. Much the opposite, in fact, most of the time.
Under certain conditions, credit can offer us a way to leverage our money. If we use our credit cards to make purchases, we will have a clean and easy paper trail of what we’ve purchased and when. Credit cards also offer many perks as incentives compared to other payment methods.
How to use credit cards to your advantage
That said, there are only two ways to use credit cards to your advantage:
If you pay your card off in full before the end of the billing cycle each month, you will receive your rewards and incentives. It can be easier to pay one monthly bill than to account for each expense.
Often, credit cards provide promotional offers of no interest or fees on purchases within a specific time if you pay the monthly minimum payments.
Both options are available, but you must understand the specific terms and conditions precisely. Once you exceed these parameters, the interest, fees and penalties are costly because interest is calculated continuously and compounded. Paying the total amount doesn’t eliminate the average daily balance calculations, so it can take several months, with no additional charges, to clear your account.
How to score a low mortgage rate
If you're looking to purchase a home in this market, taking these steps can help you score a low mortgage rate:
1. Increase your down payment
To qualify for the lowest rates on a conventional loan backed by Fannie Mae or Freddie Mac — the nation’s two largest mortgage buyers — you’ll need a 20% down payment, said Melissa Cohn, a regional vice president at William Raveis Mortgage, a national lender headquartered in Shelton, Conn. “The bigger your down payment, the better the rate,” Cohn said.
Need a little help piecing together a bigger down payment? DiBugnara recommended looking into national and local down payment assistance programs. You can research eligibility requirements for thousands of down payment assistance programs at DownPaymentResource.com.
Spousal IRAs: An important tool for non-working spouses
A spousal IRA is another valuable tool for a non-working spouse. Even without their own earned income, the non-working spouse can contribute to an IRA, provided the couple files a joint tax return. Over time, consistent contributions to a spousal IRA can grow into a significant source of retirement income, helping to ensure financial independence.
For example, in 2024, Mary (age 45) and Mike (age 50) file a joint federal income tax return. Mary earns $100,000, while Mike stays home to care for ill parents. Mary can contribute $7,000 to her IRA (or Roth IRA), and Mike can also contribute up to $8,000 to his IRA, thanks to the spousal IRA rules. Since Mike is at least 50 years old, he is allowed the catch-up provision above the traditional IRA contribution limit.
If you file a joint federal income tax return, your contribution eligibility is based on your combined modified adjusted gross income (MAGI), allowing a non-working spouse to contribute to a traditional IRA or Roth IRA even without personal earnings, if the combined MAGI falls within the allowable income thresholds. In 2024, for married couples filing jointly, you can contribute the full $7,000 if your MAGI is below $230,000. If your MAGI is between $230,000 and $240,000, your ability to contribute or deduct is gradually reduced. If either spouse is over 50, they can contribute an additional $1,000 as a catch-up contribution, bringing the total to $8,000.
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.
About the Author
Daniel Bortz
Contributing Writer, Kiplinger Personal Finance
Daniel Bortz is a freelance writer based in Arlington, Va. His work has been published by The New York Times, The Washington Post, Consumer Reports, Newsweek, and Money magazine, among others.
NYSUT NOTE: Keeping a close eye on your finances is even more important when only one spouse is in the workforce. The NYSUT Member Benefits Corporation–endorsed Financial Counseling Program can advise on a wide range of topics from estate planning to basic budgeting. It's only $260 annually for a full-service plan with unbiased, objective insight.
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.
About the Author
MaryJane LeCroy, CFP®
Managing Director, Senior Wealth Advisor, Linscomb Wealth
With over 23 years of experience in the wealth management industry, MaryJane’s areas of expertise include financial planning, investment strategy, portfolio management, retirement planning, tax planning and estate planning. MaryJane serves as a member of the Linscomb Wealth Executive Team and Chairwoman of LW’s Wealth Management Committee. She is also a member of Financial Planning Association of Georgia and Houston. MaryJane resides in the Atlanta metro area with her husband and son. She enjoys traveling and beach time with her family and friends.
Full Retirement Age (FRA)
FRA is the age you can start receiving your full retirement benefit amount. If you were born from 1943 to 1954, your FRA is age 66. The FRA gradually increases if you were born from 1955 to 1960, until it reaches 67. If you were born in 1960 or later, your full retirement benefits are payable to you at age 67. Use our Social Security Full Retirement Age calculator to sort it out.
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.
About the Author
Daniel Bortz
Contributing Writer, Kiplinger Personal Finance
Daniel Bortz is a freelance writer based in Arlington, Va. His work has been published by The New York Times, The Washington Post, Consumer Reports, Newsweek, and Money magazine, among others.
Recently, 529 plans hit a new milestone with over half a trillion dollars being saved in plans across the country. Why are 529 plans so popular?
More families have been taking advantage of 529 plans than ever, with the number of new accounts opened rising each year. And thanks to this surge in popularity, 529s have just hit a new milestone.
Savings in 529 plans across the country have surpassed half a trillion dollars for the first time, according to the College Savings Plans Network (CSPN), a network of the National Association of State Treasurers. Over $508 billion has been invested across 16.8 million open 529 accounts nationally, with the average size of each account increasing from $13,188 in 2009 to $30,295 in 2024.
529 plans are powerful tools that can help you tackle rising education costs. So if you’re looking to save for your child or grandchild’s future college expenses, opening a 529 plan could be the best way to do so, given the plan's favorable tax treatment and the rising cost of a college education.
Mary Morris, Chair of the College Savings Plans Network and CEO of Invest529 says she finds it “encouraging” to see families increasingly recognize “the importance of postsecondary education and that 529 plans exist to help them make that a reality.”
Here’s what you need to know about 529 savings plans and why they’re more popular now than ever.
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.
About the Author
Erin Bendig
Personal Finance Writer
Erin pairs personal experience with research and is passionate about sharing personal finance advice with others. Previously, she was a freelancer focusing on the credit card side of finance, but has branched out since then to cover other aspects of personal finance. Erin is well-versed in traditional media with reporting, interviewing and research, as well as using graphic design and video and audio storytelling to share with her readers.
See if you can relate to this … You have contributed to a 401(k), 403(b) or other employer-sponsored account at work, maybe you’re paying extra on the mortgage or have already paid it off, you keep cash on hand for those unexpected expenses or upcoming big-ticket purchases and you often wish there was a way to pay less in taxes.
You have worked for 30 or 40 years and are at or approaching Social Security eligibility and are now looking at when to take Social Security to maximize your benefits.
Sound familiar? Now, here’s what often comes next … You look at the account statements and begin to wonder whether the investments you have are the right ones to own for where you are in life. You begin weighing your options for making withdrawals from your retirement accounts. You aren’t sure exactly how this is done, and you’re nervous about the risk of a stock market pullback and the possibility of running out of money. And then it happens, you begin searching the internet for answers. (That may even be how you ended up here!) After a lot of searching and reading you realize that there are just too many opinions to choose from, and you resort to simply eliminating options that you’re not as familiar with or have heard negative things about. Then you take what’s left and try to put together a coherent strategy while continuing a search to find information that supports what you have contrived.
This is an all-too-common situation. Maybe this is exactly where you are or perhaps it describes something similar, but either way, you wouldn’t be reading this far into the article without some truth to what I am describing.
Regardless of the details, what you do next is critical to your long-term success. The decisions you make will determine the trajectory of your financial future, and it’s imperative to have a good plan to follow.
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.
About the Author
Erin Bendig
Personal Finance Writer
Erin pairs personal experience with research and is passionate about sharing personal finance advice with others. Previously, she was a freelancer focusing on the credit card side of finance, but has branched out since then to cover other aspects of personal finance. Erin is well-versed in traditional media with reporting, interviewing and research, as well as using graphic design and video and audio storytelling to share with her readers.
Planning to buy homeowners insurance for the first time? Here's what you need to know and how to get started.
Are you buying a home? Congratulations. That's a huge milestone. With it comes the need to protect this new asset for the years ahead. How to protect it? You'll need homeowners insurance.
Unfortunately, home insurance rates are high. Rates have increased 11.5% since 2022 and now cost $2,728 per year, or $227 per month on average, according to MarketWatch. So you'll want to shop around to ensure you get the best price.
But before you can start comparing quotes, you’ll need to decide how much and what type of coverage to get. A home’s insurance value is based on the cost to rebuild the house, not the market value.
You can get an estimate of the home’s rebuilding cost at AccuCoverage.com, which asks many questions about the house's size, building materials and additional details. It then uses the same building-cost database that insurers use. Or you can work with an agent or the insurer to come up with an estimate.
Here's what you need to know about buying homeowners insurance.
What is covered when you buy homeowners insurance?
Homeowners insurance provides coverage for your possessions based on a certain percentage of your home’s insurance value — 75% is typical. So if your home is insured for $200,000, you’ll also likely have up to $150,000 of coverage for your possessions.
It's important to note, homeowners insurance policies usually have lower limits for certain kinds of items — such as $2,000 or $3,000 for all of your jewelry, for example. If you have any particularly valuable possessions — such as jewelry, artwork or special collections — you may want to get extra coverage for those items.
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.
About the Author
Kathryn Pomroy
Contributor
For the past 18+ years, Kathryn has highlighted the humanity in personal finance by shaping stories that identify the opportunities and obstacles in managing a person's finances. All the same, she’ll jump on other equally important topics if needed. Kathryn graduated with a degree in Journalism and lives in Duluth, Minnesota. She joined Kiplinger in 2023 as a contributor.
NYSUT NOTE: You still need financial advice after you retire. In fact, it becomes even more vital. The NYSUT Member Benefits–endorsed Financial Counseling Program can give you the guidance you need to get your financial life in order, no matter which phase of life you're in.
This article was written by and presents the views of our contributing adviser, not the Kiplinger editorial staff. You can check adviser records with the SEC or with FINRA.
About the Author
Kathryn Pomroy
Contributor
For the past 18+ years, Kathryn has highlighted the humanity in personal finance by shaping stories that identify the opportunities and obstacles in managing a person's finances. All the same, she’ll jump on other equally important topics if needed. Kathryn graduated with a degree in Journalism and lives in Duluth, Minnesota. She joined Kiplinger in 2023 as a contributor.
From business succession plans to charitable giving, the impact of this "silver tsunami" will create economic waves that will reverberate for years. Boomers want their success to become a legacy. But turning wealth into lasting prosperity is easier said than done.
Studies have shown that 70% of families will lose inherited wealth by the second generation, and more than 90% of families will have lost their wealth by the third generation, a conundrum known as the "third-generation curse." The odds are stacked against them.
If Boomers want to beat the odds to become a part of the elite 30% — so that not only their children, but their children's children may benefit from a lifetime of accrued wealth — they need to understand that it's more than meticulous planning that will get them there. Building multigenerational wealth requires multigenerational engagement.
And that starts by understanding multigenerational differences.
Odds are stacked against families
NYSUT NOTE: If you clearly remember 1995, it's time to start taking your retirement seriously. Whether you're a millennial, Gen Xer or even a baby boomer in the midst of your retirement, you could stand to get some advice. The NYSUT Member Benefits–endorsed Financial Counseling Program will help you get your financial life in order, no matter where you are on your journey.
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.
About the Author
Frank J. Legan
Financial Adviser, SEIA
Frank Legan is a Cleveland-based author and a Financial Adviser with SEIA. Frank spends his days designing and implementing personalized financial planning strategies for corporate executives, business owners, artists, families and retirees. He focuses on lifetime income planning strategies, investment advice and estate planning services. He also works with businesses to develop strategic and succession planning strategies.
NYSUT NOTE: Life insurance is absolutely vital, from covering daily basics to taking outstanding debts off your family members' plates. Metropolitan Life Insurance Company's Term Life Insurance Plan, endorsed by the NYSUT Member Benefits Trust, offers term life insurance coverage for you or your spouse/certified domestic partner. At premiums negotiated especially for NYSUT members, qualified applicants can get coverage up to $1 million.
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.
About the Author
Kimberly Lankford
Contributing Editor, Kiplinger Personal Finance
As the "Ask Kim" columnist for Kiplinger Personal Finance, Lankford receives hundreds of personal finance questions from readers every month. She is the author of Rescue Your Financial Life (McGraw-Hill, 2003), The Insurance Maze: How You Can Save Money on Insurance -- and Still Get the Coverage You Need (Kaplan, 2006), Kiplinger's Ask Kim for Money Smart Solutions (Kaplan, 2007) and The Kiplinger/BBB Personal Finance Guide for Military Families. She is frequently featured as a financial expert on television and radio, including NBC's Today Show, CNN, CNBC and National Public Radio.
1. Medicare Part A
Part A covers inpatient care at hospitals and skilled nursing facilities as well as hospice and some home health care. If you paid Medicare payroll taxes for at least 40 quarters, the Part A premium is free. For 2025, there is a deductible of $1,676. You also must pay coinsurance for hospital stays longer than 60 days.
2. Inflation could outpace earnings
The core inflation rate sits at 3.26% currently. It means if you're able to lock in a longer-term CD at a rate above this, you're outpacing inflation.
The problem is inflation doesn't show signs of slowing down. In fact, it's increasing, thanks to rising food, energy and goods prices.
There are many factors contributing to increased prices. The bird flu has raised egg prices significantly, while president Donald Trump's tariffs could increase grocery and housing prices. Therefore, if inflation continues to rise, it can diminish or eliminate the returns you have on a longer-term CD.
NYSUT NOTE: NYSUT members can get a variety of insurance policies through the Member Benefits–endorsed Farmers GroupSelect program using the Farmers Insurance Choice platform. Choose from multiple competitively priced policies, and save on stand-alone or bundled auto and home policies.
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.
About the Author
Erin Bendig, Personal Finance Writer
Erin pairs personal experience with research and is passionate about sharing personal finance advice with others. Previously, she was a freelancer focusing on the credit card side of finance, but has branched out since then to cover other aspects of personal finance. Erin is well-versed in traditional media with reporting, interviewing and research, as well as using graphic design and video and audio storytelling to share with her readers.
NYSUT NOTE: If you’ve decided to upgrade your home, make sure your mortgage is up-to-date, too. NYSUT Member Benefits Corporation-endorsed Mid-Island Mortgage lets members save on benefits like no lender or broker fees, no commitment fees, no underwriting fees, and more. Learn more now.
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What is an estate plan?
An estate plan consists of several legal documents that lay out what happens to your assets and liabilities when you die or become incapacitated. At the very least, it will consist of a last will and testament, a living trust, an advance directive and a power of attorney.
While you might feel an estate plan is unnecessary because you lack sufficient assets to pass along to your family, it isn't all about the money. It also entails ensuring your wishes about future medical care are understood. An estate plan can also drastically reduce the potential for family disagreements.
One of the biggest disadvantages to not developing an estate plan while you’re healthy and of sound mind is that you remove the ability to make hard decisions on your own.
In this case, the court might determine how to distribute your assets, or worse, your entire estate can go to the state. That's why it's critically important to make smart estate planning moves now, and why everyone, from millionaires to people just starting out, should have an estate plan.
The Six Estate Planning Steps Every Blended Family Must Take
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Whether your blended family is newly formed or fully fledged, use these six steps to review your estate plans now and lower the risk of conflict in the future.
You’re thinking about buying some life insurance (or, as some affectionately call it, death insurance, since it typically pays on death, not life). Maybe you already have a policy in place and are wondering if it makes sense to keep it.
Here is a list of the top five reasons why you should have life insurance, even if your kids are grown and you’re lucky enough to have paid off your mortgage.
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© 2025 Future US LLC
NYSUT NOTE: There's no one right way to prepare for the unexpected, but the NYSUT Member Benefits Trust endorses several options that might suit your needs. Whether it's term life insurance, level term life insurance, universal life insurance or long-term care insurance, there's something on offer that can help you look after your family.
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.
About the Author
Karl Susman, CPCU, LUTCF, CIC, CSFP, CFS, CPIA, AAI-M, PLCS
President, Susman Insurance Agency; President, Expert Witness Professionals; Radio Talk Show Host, Insurance Hour
Karl Susman is an insurance agency owner, insurance expert witness in state, federal and criminal courts, and radio talk show host. For more than 30 years, Karl has helped consumers understand the complex world of insurance. He provides actionable advice and distills complex insurance concepts into understandable options. He appears regularly in the media, offering commentary and analysis of insurance industry news, and advises lawmakers on legislation, programs and policies.
I'm an Insurance Expert: Yes, You Need Life Insurance Even if the Kids Are Grown and the House Is Paid Off
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Life insurance isn't about you. It's about providing for loved ones and covering expenses after you're gone. Here are five key reasons to have it.
The first step in preparing for the college journey is getting a clear view of how much a program will actually cost, also known as the “net price.” The net price is the total cost of attendance minus scholarships and grants a student may receive.
Start by filling out a Free Application for Federal Student Aid (FAFSA), which will generate a financial profile that includes the Student Aid Index (SAI) — this is the number used by financial aid professionals to determine your eligibility for aid.
However, completing the FAFSA is only one part of the puzzle. Without a financial aid offer letter in hand, it can be difficult to determine other elements of net price, as it may be difficult to discern what financial support is automatically offered based on family income and other eligibility factors.
The college application system can trap families in a costly paradox. You need to apply to learn the true price, but most families can't afford to apply blindly. With application fees soaring, not to mention the time and effort it takes to apply to college, the desire for upfront net price transparency is more than reasonable — it's essential.
The stress of hidden college costs can be overwhelming, but thankfully, solutions exist. Tools like College Raptor's College Match, provide much-needed relief.
In addition to helping identify the right academic fit for college, the tool uses machine learning to offer accurate estimates of attendance costs and potential aid packages.
These tools compile extensive data, giving families a realistic financial preview, eliminating the need to apply blindly and offering clarity before any official forms are submitted.
Other sites, such as the U.S. Department of Education’s Net Price Calculator and The College Board's Net Price Calculator, can also help you determine costs for individual schools.
Net price evaluating tools may also open new horizons into what is financially possible. That dream private college that costs $90,000 and seems out of reach — don’t rule it out. With the right tools, you might discover unexpected financial aid opportunities that bridge the gap.
And the net price evaluating tools should be used at the beginning of the college search process to narrow your application list by providing perspective on both academic and financial fit.
Determining your net price
Common estate planning mistakes to avoid
Creating an estate plan can be complex and emotionally challenging, which might explain why fewer than one in three Americans have a will or any estate planning documents, according to Caring's 2025 Wills and Estate Planning survey.
What's even more concerning is that around a quarter of those surveyed who didn't have a will said they never plan to create one, and more than 40% of respondents said they wouldn't execute a will until they faced a major health crisis.
However, you can never make an estate plan too soon, because you never know when it will be too late. To avoid trouble down the road, steer clear of these 12 common estate planning mistakes.
NYSUT NOTE: Not sure where to start with your estate planning? The NYSUT Member Benefits Trust-endorsed Legal Service Plan not only offers expert legal advice, but also grants members access to a network of attorneys nationwide. Apply now.
The monthly jobs report is a key indicator that reflects the overall strength of the economy. When hiring slows and wages cool, it often signals less inflation pressure, which can help push borrowing costs lower. This softer backdrop has already played a role in the Federal Reserve’s decision to cut rates three times in 2024.
With no official payroll data released during the government shutdown, analysts have turned to private estimates for insight into the labor market. Early indicators suggest hiring may have improved slightly in September after employers added just 22,000 jobs in August, according to Kiplinger. Unofficial projections point to about 50,000 jobs added in September, though October’s data will likely show a net decline as roughly 100,000 federal workers who accepted buyouts earlier this year are removed from the job rolls.
Wage growth, which rose at an annual pace of 3.7% in August, is expected to slow to around 3.5% by year’s end. That moderation often lags broader labor market changes and signals a gradually cooling economy.
Even so, home affordability remains a challenge. Home prices are still elevated, and despite the recent dip in rates, demand has been subdued. That mix raises a familiar question for would-be buyers: Is now the time to lock in a mortgage, or is it better to wait for the market to cool further?
How the job report impacts rates
Both you and your spouse claim Social Security benefits at FRA: By waiting to claim Social Security until full retirement age (FRA), you are guaranteed 100% of your benefits.
Both you and your spouse claim Social Security benefits before FRA: This option works if you need the income immediately, like if you've experienced an unexpected health issue. Or, if you think you may have a shorter life expectancy, you may want to claim your benefits earlier.
The higher-earning spouse waits to claim Social Security benefits: This works if you want to optimize the highest survivor benefits possible, or if your spouse has never held a job that paid Social Security taxes. Consider claiming the spousal benefit if there are large differences in earnings, which can sometimes work out better than claiming your benefits.
Both you and your spouse wait to claim Social Security benefits: The strategy to delay benefits is a good option if you and your spouse want to continue working for a few more years, you expect to live a long life, have similar incomes or you don't need the money now, but want to receive more money throughout your retirement.
How Social Security benefits can be optimized for married couples
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According to the Social Security Administration, you and your spouse must be married for at least one year before qualifying for spousal benefits. If you parent your spouse’s child, the one-year rule does not apply. If you are or were entitled to benefits under Social Security or the Railroad Retirement Act in the month before you got married, you are also entitled to your spouse’s benefits. However, a divorced spouse must have been married for ten years to get the spousal benefits.
What you need to know:
Can you claim both retirement and spousal benefits?
You must be at least 62 years of age to claim spousal benefits, and you and your spouse have to have been married for at least one year, in most cases.
You can’t collect spousal benefits unless your spouse already receives Social Security. If your spouse claims their benefit, you are dually entitled. This means you apply for both retirement and spousal benefits simultaneously, and you’ll get the higher of the two amounts.
At age 62, you can receive spousal benefits equal to 32.5% of your spouse’s full retirement age benefit amount. The amount you receive increases each month until you reach full retirement age. You can collect 50% of your partner’s benefit at that time.
Waiting to claim your Social Security benefits enables the benefit amount to grow. Plus, if your spouse draws spousal benefits on your account, it will not affect what you get from Social Security.
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Remarriage can have an impact on Social Security benefits. But the result will likely depend on your work record, your age, and if you're receiving benefits based on your previous spouse's work record.
Here are a few ways remarriage might affect Social Security benefits:
If you’re receiving spousal benefits based on your ex-spouse’s work record, remarriage can change things:
How does remarriage affect Social Security benefits?
If you remarry, you can no longer collect your ex-spouse's benefits. That said, you may be able to claim your new spouse's Social Security benefits.
If you don't remarry, you can continue to receive benefits based on your ex-spouse's record, but you must be over 62 and meet the other requirements for divorced spouse benefits.
If your new spouse's benefits are higher, you could receive a higher spousal benefit based on your new spouse's earnings history.
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If you are receiving survivor benefits from your deceased spouse, remarriage can also impact benefits:
If you remarry after age 60 (or age 50 if you're disabled), you remarry and continue to receive survivor benefits. If you remarry before age 60, you lose eligibility for those benefits.
If your new spouse's earnings record is higher, you might be able to switch to their Social Security benefits in the future, depending on what works out to be best for you.
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If you are receiving Social Security benefits based on your work record, then remarriage should not affect your benefits. Your benefits are determined by your work history and how much you've paid into the system over the years.
The term deemed filing means that if you apply for one type of benefit, say your retirement benefit or a spousal benefit, when you're eligible for both, you’re automatically considered by the SSA to be applying for both. But here’s the catch. You don’t get to pick and choose one to maximize your payout. You’ll get the higher of the two benefit amounts, not both combined. This rule kicks in to prevent people from working the system, like collecting spousal benefits while letting their retirement benefits grow.
Before the Bipartisan Budget Act of 2015, some spouses received spousal benefits at FRA, while letting their retirement benefits grow by delaying filing. After the new Act went into effect, it was no longer possible to receive one type of benefit while at the same time earning a bonus for delaying the other benefit.
For more information on deemed filing, check out: Filing Rules for Retirement and Spouses' Benefits.
What is deemed filing?
Sometimes it pays to wait until your full retirement age or later to claim Social Security. Other times, in the case of poor health or a short life expectancy, it can pay to claim benefits early, at age 62.
For example, let's say that George and Frances are both 62 years old. Their full retirement age (FRA) is 66 and 8 months. At FRA, their estimated monthly benefit will be $2,000. If they take Social Security early at age 62, their estimated monthly benefit will be $1,500, a 25% reduction. Both spouses expect to live to age 72 due to health issues.
Claiming at 62:
Both George and Frances claim benefits at age 62 and begin receiving $1,500 per month. The annual benefits for each spouse will be $18,000 for the year ($1,500 x 12). The total benefits they will receive over 10 years (age 62 to 72) will be $180,000 (for each spouse) or $360,000 total for both spouses.
Claiming at Full Retirement Age (66 and 8 months)
If George and Frances wait until full retirement age (66 and 8 months) to start claiming benefits, their monthly benefit will be $2,000. However, they will only receive payments for 5 years (from age 66 and 8 months to age 72) since their life expectancy is 72. That means that the benefits for each spouse at FRA will be $2,000 per month or $24,000 for the year. Their total benefits over 5 years (age 66 and 8 months to 72) will be $120,000 for each spouse or $240,000 for both spouses.
What does this mean? By claiming Social Security at age 62, both spouses would receive a total of $180,000 in benefits over the next 10 years. That would result in a combined total of $360,000 for the couple. However, if they waited until their FRA (66 and 8 months), they would receive $240,000 in benefits over 5 years.
Since George and Frances have a life expectancy of only 72, they receive more total lifetime benefits by claiming early at age 62 ($360,000) compared to waiting until FRA ($240,000).
Delay, claim early or claim later?
Before claiming benefits, you must pay Social Security taxes for at least ten years. You can start receiving benefits as early as 62, and the amount you receive is based on your earnings each year. If your spouse has a lower earning record or no record at all, they can collect on your earnings record when they turn 62, and vice versa.
There are several reasons to take Social Security early, at age 62. If you decide to retire at this age, the benefit payment may be a necessary source of income each month. Or, you may be concerned you won’t live long enough to collect your full benefits due to a serious health condition. On the other hand, the earlier you start to collect Social Security, the less you’ll receive each month.
When is the best time to collect benefits?
Although many people don’t start planning for retirement until they reach their 60s, it’s always a good idea to plan when you're young and to start putting money away in a savings account, IRA, or 403(b). That’s because most financial planners recommend replacing about 80% of your pre-retirement income to maintain the same lifestyle after you retire.
Planning ahead for retirement
While across the generational divide finances are a top concern for Americans, how each generation approaches money is shaped by their collective experiences.
Gen X (born from 1965 to 1980) and Millennials (born from 1981 to 1996) have been shaped by the economic trauma of coming of age during the 2008 financial crash.
Gen Z and the upcoming Gen Alpha (those born from 2013-2024), meanwhile, appear to be increasingly skeptical about financial planning, given their experiences shaped by COVID-19 and natural disasters.
It's not easy to get a hypercautious Millennial on the same page as a "why save?" Gen Zer, neither of whom may have the same sort of economic values or plans as their Baby Boomer relative.
But building lasting wealth depends on it.
While wealth planning is a deeply personal decision for families — one in which individual family values and norms can weigh just as much, if not more, than fundamental economic factors — there is growing awareness that lasting wealth requires preparing family members early.
Basics, such as teaching financial literacy, can be introduced early in children's lives, while more specific wealth planning information can be shared as they grow into young adults.
Lasting wealth starts with early preparation
However, truly bridging the generational gap requires bringing younger generations along in the wealth planning process and mindset, a shift in the traditional wealth planning process that wealth managers have been more than happy to accommodate.
Both wealthy individuals and their wealth managers have become increasingly invested in creating a comprehensive wealth management plan. A plan that covers all three bases:
• A financial plan for their entire life
• A break-the-glass plan for life's emergencies
• And a legacy plan for future generations
From an individual's perspective, it's a way to build peace of mind, ensuring that their family members have all the necessary information and access in the event of an emergency.
Seventy percent of individuals who inherit wealth switch wealth advisers after the inheritance — a significant drop-off for managers overseeing and managing these assets.
While some of this drop-off comes from younger generations wanting to "do it their way," a bigger factor is that many wealth firms have failed to build relationships with these future clients.
Historically, the industry hasn't been set up to serve younger generations — and too often, their needs have not been prioritized.
This generational drop-off is a significant factor in why the industry is now evolving to focus on the sort of holistic, personalized services that younger generations are seeking.
More firms are pushing to become certified fiduciaries, changing the decades-old wealth management practice of product-based sales.
While the generations may have different approaches to money and wealth more broadly, it's becoming increasingly apparent that more want a holistic approach to their wealth; 52% of high-net-worth individuals are now looking for holistic services — a stark increase from 29% in just 2018.
It's all good news for families, who can use this newfound focus on this part of the wealth management industry to their advantage, connecting their children and grandchildren with wealth managers early on to help bridge the gap between generations.
A three-part plan is your path to success
However, truly bridging the generational gap requires bringing younger generations along in the wealth planning process and mindset, a shift in the traditional wealth planning process that wealth managers have been more than happy to accommodate.
Both wealthy individuals and their wealth managers have become increasingly invested in creating a comprehensive wealth management plan. A plan that covers all three bases:
• A financial plan for their entire life
• A break-the-glass plan for life's emergencies
• And a legacy plan for future generations
From an individual's perspective, it's a way to build peace of mind, ensuring that their family members have all the necessary information and access in the event of an emergency.
Seventy percent of individuals who inherit wealth switch wealth advisers after the inheritance — a significant drop-off for managers overseeing and managing these assets.
While some of this drop-off comes from younger generations wanting to "do it their way," a bigger factor is that many wealth firms have failed to build relationships with these future clients.
Historically, the industry hasn't been set up to serve younger generations — and too often, their needs have not been prioritized.
This generational drop-off is a significant factor in why the industry is now evolving to focus on the sort of holistic, personalized services that younger generations are seeking.
More firms are pushing to become certified fiduciaries, changing the decades-old wealth management practice of product-based sales.
While the generations may have different approaches to money and wealth more broadly, it's becoming increasingly apparent that more want a holistic approach to their wealth; 52% of high-net-worth individuals are now looking for holistic services — a stark increase from 29% in just 2018.
It's all good news for families, who can use this newfound focus on this part of the wealth management industry to their advantage, connecting their children and grandchildren with wealth managers early on to help bridge the gap between generations.
A three-part plan is your path to success
Here are nine steps you can take to get ready for your wealth transfer:
Summing it all up
Start early and define your family's goals and values
Communicate openly with family members about your plans
Take inventory of assets and organize essential documents
Create a solid estate plan with wills, trusts and powers of attorney
Minimize taxes through strategic gifting and trusts
Choose the right people and advisers to carry out your plan (executors, trustees)
Educate and prepare your heirs
Plan for special assets or circumstances (like a family business or international issues)
Review and update your plan regularly
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Helping young people to see the value of wealth management, with a personalized, tangible plan, benefits not only future generations but their wealth manager as well, who is incentivized to help a Gen Zer understand the value of saving for a car or a house, or create a low-risk investment portfolio for a market-cautious Millennial.
This massive wealth transfer is occurring as the wealth management industry begins to recognize its business potential. Families should lean into that shift — because the industry already is.
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.
About the Author
Brandon Summers
Executive Director of Wealth Planning, First Western Trust
Brandon Summers serves as Executive Director of Wealth Planning at First Western Trust, bringing over two decades of experience helping clients navigate complex financial landscapes. With a background that includes leadership roles at Goldman Sachs and Charles Schwab, Brandon specializes in comprehensive financial planning, investment management and tailored strategies for high-net-worth individuals and families. His approach blends deep industry insight with a commitment to personalized service, ensuring each client's goals are met with precision and care.
NYSUT NOTE: Wealth transfer can get complicated. That's why it's worth getting an expert's assistance. The NYSUT Member Benefits–endorsed Legal Service Plan gives you legal guidance on everything from estate planning to dealing with traffic violations. Help is just a toll-free phone call away.
The old model assumed retirement meant stopping work altogether. That's not what I'm seeing. Many of my clients are choosing a phased retirement — stepping away from high-stress roles but still working in some capacity.
One client, a retired engineer, now cuts grass at the local arboretum. He doesn't need the paycheck; he just enjoys being outdoors and having something to do. His purpose of staying active, engaged and connected is as vital as income.
Others are rethinking where and how they live. I work with a couple who split their time between Cleveland and Cincinnati to be closer to their grandkids.
It started as two weeks in each place, but it has evolved as their lifestyle and health needs have changed. That kind of flexibility is the new norm.
Retirement on your own terms
A long retirement horizon introduces new financial challenges. One of the biggest is the sequence of return risk, the risk of retiring into a down market while withdrawing from your portfolio. If you're pulling out money while your investments are losing value, it becomes much harder to recover.
I use a bucketing strategy with clients, separating short-term income needs from long-term growth investments. This helps insulate early retirement years from market volatility.
Yes, we still use the 4% rule as a guideline, but we also adjust based on inflation, market conditions and client-specific goals. Retirement income planning is no longer a set-it-and-forget-it exercise.
Why 4% isn't a golden rule anymore
I've found that there are three crucial steps that those nearing retirement should take to modernize their plan.
First, you need to redefine retirement for yourself. Ask: What does retirement look like for me? Is it travel? Time with family? Starting a new chapter of work or giving back? Defining your "why" leads to more intentional planning.
Next, this is where the numbers come in. You need to stress-test your portfolio with the help of your adviser. This will show you if you're prepared for a 30-year retirement with market ups and downs.
Run a scenario: How would you respond if the market dropped 15% the day after you retire?
Finally, the ultimate plan must be done purposefully, not just considering numbers and percentages. Financial independence isn't just about having "enough." It's about having a life that reflects your values. Use that as the foundation for decisions — from when to retire to how much to spend.
Three moves that matter in the modern retirement playbook
Too many people reach retirement and find themselves lost, not because they didn't save enough, but because they didn't plan for what comes next.
One of my clients saw this firsthand. His father spent his life building a family business, retired at 62, and passed away just a couple of years later. That experience stuck with him.
Determined to enjoy life on his terms, he bought out his siblings' shares of the family's Florida vacation home and retired early. He's now living his best life, sooner than most would expect, because he recognized that the old script didn't fit.
Retirement today is more than a financial milestone. It's a deeply personal phase of life that deserves planning grounded in values, not just spreadsheets.
So forget the retirement playbook from 30 years ago. Today's plan is to be flexible, purpose-filled and built to evolve with you, so you can truly enjoy where your hard work has taken you.
Retirement is just the beginning
Health care in retirement can cost you as much as $172,500 during your lifetime, according to Fidelity Investments’ latest estimate. That’s a lot of out-of-pocket dollars you have to save for. One way is via a Health Savings Account or HSA.
With an HSA, the money you invest can roll over year after year. There is no use-it–or-lose-it rule. Plus, HSAs are triple tax-free. You get a deduction when you contribute, they grow tax-free, and you don’t pay taxes when you withdraw them for qualifying medical expenses. An HSA is only available with a high deductible plan, but if you are healthy and don’t foresee many out-of-pocket medical expenses, HSAs can be a way to amp up your savings.
There are limitations you need to be aware of. For 2025, the limit is $4,300 for self-only coverage and $8,550 for family coverage. If you are 55 or older, you can contribute an additional $1,000.
3. Take advantage of a Health Savings Account
NYSUT NOTE: It's always best to try to prepare for the unexpected ahead of time. Getting a divorce isn't in anyone's playbook, but you can make sure that you're prepared if it does happen. The NYSUT Member Benefits endorsed Legal Service Plan and Financial Counseling Program can help get your financial life in order so that the unexpected won't take you by surprise.
Regulatory environment
Tax laws and estate regulations shift more often than many realize and changes can have a material impact on your estate plan.
Having an attorney review your documents through a current legal lens ensures your plan remains not just valid, but optimal.
2. Dual income couples with no children
Married couples with no children may need little or no life insurance, especially if both spouses contribute equally to the household income. The death of either spouse would not be financially catastrophic; the other could presumably survive on his or her own income.
Still, it could be a strain. Perhaps the surviving spouse couldn't afford the mortgage or rent payments on a single income, or maybe the couple has big credit card debt. Also, there would be funeral costs. Under these circumstances, each of you should probably buy a modest amount of life insurance to protect the other.
It’s possible there are other reasons to consider buying more coverage. Maybe the survivor has limitations that restrict or reduce their ability to work. Or as a couple, you may have decided to plan for a future family and have engaged in embryo cryopreservation. Paying for future fertility procedures and child rearing are expensive. In this case, you need to plan as if a child is already there and provide for their future.
How does social security work for married people?
Retirees claiming Social Security have options. Married couples may have more options than a single person because each person in the marriage can claim benefits at different dates and may also be eligible for spousal benefits.
After age 62, for every year you delay taking Social Security up to age 70, you could receive up to 8% more in future monthly payments, according to Fidelity. However, once you turn 70, the increases stop.
Each spouse can claim benefits. However, the amount they receive is based on their work record. Or, they can choose to claim up to 50% of their spouse's benefit at full retirement age. This strategy, known as the 62/70 split, works this way: the spouse earning the lower wage starts receiving benefits at age 62, while the higher-earning spouse delays receiving benefits until age 70.
With this approach, the higher earner receives a spousal benefit while waiting, which increases both their benefit and the survivor benefits for the surviving spouse. Ultimately, it's a win-win for everyone. However, before choosing this option, find out how much your estimated benefits will be at full retirement age.
Both you and your spouse claim Social Security benefits at FRA: By waiting to claim Social Security until full retirement age (FRA), you are guaranteed 100% of your benefits.
Both you and your spouse claim Social Security benefits before FRA: This option works if you need the income immediately, like if you've experienced an unexpected health issue. Or, if you think you may have a shorter life expectancy, you may want to claim your benefits earlier.
The higher-earning spouse waits to claim Social Security benefits: This works if you want to optimize the highest survivor benefits possible, or if your spouse has never held a job that paid Social Security taxes. Consider claiming the spousal benefit if there are large differences in earnings, which can sometimes work out better than claiming your benefits.
Both you and your spouse wait to claim Social Security benefits: The strategy to delay benefits is a good option if you and your spouse want to continue working for a few more years, you expect to live a long life, have similar incomes or you don't need the money now, but want to receive more money throughout your retirement.
How does social security work for married people?
Retirees claiming Social Security have options. Married couples may have more options than a single person because each person in the marriage can claim benefits at different dates and may also be eligible for spousal benefits.
After age 62, for every year you delay taking Social Security up to age 70, you could receive up to 8% more in future monthly payments, according to Fidelity. However, once you turn 70, the increases stop.
Each spouse can claim benefits. However, the amount they receive is based on their work record. Or, they can choose to claim up to 50% of their spouse's benefit at full retirement age. This strategy, known as the 62/70 split, works this way: the spouse earning the lower wage starts receiving benefits at age 62, while the higher-earning spouse delays receiving benefits until age 70.
With this approach, the higher earner receives a spousal benefit while waiting, which increases both their benefit and the survivor benefits for the surviving spouse. Ultimately, it's a win-win for everyone. However, before choosing this option, find out how much your estimated benefits will be at full retirement age.
Both you and your spouse claim Social Security benefits at FRA: By waiting to claim Social Security until full retirement age (FRA), you are guaranteed 100% of your benefits.
Both you and your spouse claim Social Security benefits before FRA: This option works if you need the income immediately, like if you've experienced an unexpected health issue. Or, if you think you may have a shorter life expectancy, you may want to claim your benefits earlier.
The higher-earning spouse waits to claim Social Security benefits: This works if you want to optimize the highest survivor benefits possible, or if your spouse has never held a job that paid Social Security taxes. Consider claiming the spousal benefit if there are large differences in earnings, which can sometimes work out better than claiming your benefits.
Both you and your spouse wait to claim Social Security benefits: The strategy to delay benefits is a good option if you and your spouse want to continue working for a few more years, you expect to live a long life, have similar incomes or you don't need the money now, but want to receive more money throughout your retirement.
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Can you claim both retirement and spousal benefits?
According to the Social Security Administration, you and your spouse must be married for at least one year before qualifying for spousal benefits. If you parent your spouse’s child, the one-year rule does not apply. If you are or were entitled to benefits under Social Security or the Railroad Retirement Act in the month before you got married, you are also entitled to your spouse’s benefits. However, a divorced spouse must have been married for ten years to get the spousal benefits.
What you need to know:
You must be at least 62 years of age to claim spousal benefits, and you and your spouse have to have been married for at least one year, in most cases.
You can’t collect spousal benefits unless your spouse already receives Social Security. If your spouse claims their benefit, you are dually entitled. This means you apply for both retirement and spousal benefits simultaneously, and you’ll get the higher of the two amounts.
At age 62, you can receive spousal benefits equal to 32.5% of your spouse’s full retirement age benefit amount. The amount you receive increases each month until you reach full retirement age. You can collect 50% of your partner’s benefit at that time.
Waiting to claim your Social Security benefits enables the benefit amount to grow. Plus, if your spouse draws spousal benefits on your account, it will not affect what you get from Social Security.
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Remarriage can have an impact on Social Security benefits. But the result will likely depend on your work record, your age, and if you're receiving benefits based on your previous spouse's work record.
Here are a few ways remarriage might affect Social Security benefits:
If you’re receiving spousal benefits based on your ex-spouse’s work record, remarriage can change things:
If you remarry, you can no longer collect your ex-spouse's benefits. That said, you may be able to claim your new spouse's Social Security benefits.
If you don't remarry, you can continue to receive benefits based on your ex-spouse's record, but you must be over 62 and meet the other requirements for divorced spouse benefits.
If your new spouse's benefits are higher, you could receive a higher spousal benefit based on your new spouse's earnings history.
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If you are receiving survivor benefits from your deceased spouse, remarriage can also impact benefits:
How does remarriage affect Social Security benefits?
Remarriage can have an impact on Social Security benefits. But the result will likely depend on your work record, your age, and if you're receiving benefits based on your previous spouse's work record.
Here are a few ways remarriage might affect Social Security benefits:
If you’re receiving spousal benefits based on your ex-spouse’s work record, remarriage can change things:
What is deemed filing?
The term deemed filing means that if you apply for one type of benefit, say your retirement benefit or a spousal benefit, when you're eligible for both, you’re automatically considered by the SSA to be applying for both. But here’s the catch. You don’t get to pick and choose one to maximize your payout. You’ll get the higher of the two benefit amounts, not both combined. This rule kicks in to prevent people from working the system, like collecting spousal benefits while letting their retirement benefits grow.
Before the Bipartisan Budget Act of 2015, some spouses received spousal benefits at FRA, while letting their retirement benefits grow by delaying filing. After the new Act went into effect, it was no longer possible to receive one type of benefit while at the same time earning a bonus for delaying the other benefit.
For more information on deemed filing, check out: Filing Rules for Retirement and Spouses' Benefits.
Delay, claim early or claim later?
Sometimes it pays to wait until your full retirement age or later to claim Social Security. Other times, in the case of poor health or a short life expectancy, it can pay to claim benefits early, at age 62.
For example, let's say that George and Frances are both 62 years old. Their full retirement age (FRA) is 66 and 8 months. At FRA, their estimated monthly benefit will be $2,000. If they take Social Security early at age 62, their estimated monthly benefit will be $1,500, a 25% reduction. Both spouses expect to live to age 72 due to health issues.
Claiming at 62:
Both George and Frances claim benefits at age 62 and begin receiving $1,500 per month. The annual benefits for each spouse will be $18,000 for the year ($1,500 x 12). The total benefits they will receive over 10 years (age 62 to 72) will be $180,000 (for each spouse) or $360,000 total for both spouses.
Claiming at Full Retirement Age (66 and 8 months)
If George and Frances wait until full retirement age (66 and 8 months) to start claiming benefits, their monthly benefit will be $2,000. However, they will only receive payments for 5 years (from age 66 and 8 months to age 72) since their life expectancy is 72. That means that the benefits for each spouse at FRA will be $2,000 per month or $24,000 for the year. Their total benefits over 5 years (age 66 and 8 months to 72) will be $120,000 for each spouse or $240,000 for both spouses.
What does this mean? By claiming Social Security at age 62, both spouses would receive a total of $180,000 in benefits over the next 10 years. That would result in a combined total of $360,000 for the couple. However, if they waited until their FRA (66 and 8 months), they would receive $240,000 in benefits over 5 years.
Since George and Frances have a life expectancy of only 72, they receive more total lifetime benefits by claiming early at age 62 ($360,000) compared to waiting until FRA ($240,000).
When is the best time to collect benefits?
Before claiming benefits, you must pay Social Security taxes for at least ten years. You can start receiving benefits as early as 62, and the amount you receive is based on your earnings each year. If your spouse has a lower earning record or no record at all, they can collect on your earnings record when they turn 62, and vice versa.
There are several reasons to take Social Security early, at age 62. If you decide to retire at this age, the benefit payment may be a necessary source of income each month. Or, you may be concerned you won’t live long enough to collect your full benefits due to a serious health condition. On the other hand, the earlier you start to collect Social Security, the less you’ll receive each month.
Odds are stacked against families
From business succession plans to charitable giving, the impact of this "silver tsunami" will create economic waves that will reverberate for years. Boomers want their success to become a legacy. But turning wealth into lasting prosperity is easier said than done.
Studies have shown that 70% of families will lose inherited wealth by the second generation, and more than 90% of families will have lost their wealth by the third generation, a conundrum known as the "third-generation curse." The odds are stacked against them.
If Boomers want to beat the odds to become a part of the elite 30% — so that not only their children, but their children's children may benefit from a lifetime of accrued wealth — they need to understand that it's more than meticulous planning that will get them there. Building multigenerational wealth requires multigenerational engagement.
And that starts by understanding multigenerational differences.
Lasting wealth starts with early preparation
While across the generational divide finances are a top concern for Americans, how each generation approaches money is shaped by their collective experiences.
Gen X (born from 1965 to 1980) and Millennials (born from 1981 to 1996) have been shaped by the economic trauma of coming of age during the 2008 financial crash.
Gen Z and the upcoming Gen Alpha (those born from 2013-2024), meanwhile, appear to be increasingly skeptical about financial planning, given their experiences shaped by COVID-19 and natural disasters.
It's not easy to get a hypercautious Millennial on the same page as a "why save?" Gen Zer, neither of whom may have the same sort of economic values or plans as their Baby Boomer relative.
But building lasting wealth depends on it.
While wealth planning is a deeply personal decision for families — one in which individual family values and norms can weigh just as much, if not more, than fundamental economic factors — there is growing awareness that lasting wealth requires preparing family members early.
Basics, such as teaching financial literacy, can be introduced early in children's lives, while more specific wealth planning information can be shared as they grow into young adults.
A three-part plan is your path to success
However, truly bridging the generational gap requires bringing younger generations along in the wealth planning process and mindset, a shift in the traditional wealth planning process that wealth managers have been more than happy to accommodate.
Both wealthy individuals and their wealth managers have become increasingly invested in creating a comprehensive wealth management plan. A plan that covers all three bases:
• A financial plan for their entire life
• A break-the-glass plan for life's emergencies
• And a legacy plan for future generations
From an individual's perspective, it's a way to build peace of mind, ensuring that their family members have all the necessary information and access in the event of an emergency.
Seventy percent of individuals who inherit wealth switch wealth advisers after the inheritance — a significant drop-off for managers overseeing and managing these assets.
While some of this drop-off comes from younger generations wanting to "do it their way," a bigger factor is that many wealth firms have failed to build relationships with these future clients.
Historically, the industry hasn't been set up to serve younger generations — and too often, their needs have not been prioritized.
This generational drop-off is a significant factor in why the industry is now evolving to focus on the sort of holistic, personalized services that younger generations are seeking.
More firms are pushing to become certified fiduciaries, changing the decades-old wealth management practice of product-based sales.
While the generations may have different approaches to money and wealth more broadly, it's becoming increasingly apparent that more want a holistic approach to their wealth; 52% of high-net-worth individuals are now looking for holistic services — a stark increase from 29% in just 2018.
It's all good news for families, who can use this newfound focus on this part of the wealth management industry to their advantage, connecting their children and grandchildren with wealth managers early on to help bridge the gap between generations.
Here are nine steps you can take to get ready for your wealth transfer:
Start early and define your family's goals and values
Communicate openly with family members about your plans
Take inventory of assets and organize essential documents
Create a solid estate plan with wills, trusts and powers of attorney
Minimize taxes through strategic gifting and trusts
Choose the right people and advisers to carry out your plan (executors, trustees)
Educate and prepare your heirs
Plan for special assets or circumstances (like a family business or international issues)
Review and update your plan regularly
Here are nine steps you can take to get ready for your wealth transfer:
NYSUT NOTE: Life insurance is absolutely vital, from covering daily basics to taking outstanding debts off your family members' plates. Metropolitan Life Insurance Company's Term Life Insurance Plan, endorsed by the NYSUT Member Benefits Trust, offers term life insurance coverage for you or your spouse/certified domestic partner. At premiums negotiated especially for NYSUT members, qualified applicants can get coverage up to $1 million.
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.
About the Author
Erin Bendig
Personal Finance Writer
Erin pairs personal experience with research and is passionate about sharing personal finance advice with others. Previously, she was a freelancer focusing on the credit card side of finance, but has branched out since then to cover other aspects of personal finance. Erin is well-versed in traditional media with reporting, interviewing and research, as well as using graphic design and video and audio storytelling to share with her readers.
Why 4% isn't a golden rule anymore
A long retirement horizon introduces new financial challenges. One of the biggest is the sequence of return risk, the risk of retiring into a down market while withdrawing from your portfolio. If you're pulling out money while your investments are losing value, it becomes much harder to recover.
I use a bucketing strategy with clients, separating short-term income needs from long-term growth investments. This helps insulate early retirement years from market volatility.
Yes, we still use the 4% rule as a guideline, but we also adjust based on inflation, market conditions and client-specific goals. Retirement income planning is no longer a set-it-and-forget-it exercise.
Three moves that matter in the modern retirement playbook
I've found that there are three crucial steps that those nearing retirement should take to modernize their plan.
First, you need to redefine retirement for yourself. Ask: What does retirement look like for me? Is it travel? Time with family? Starting a new chapter of work or giving back? Defining your "why" leads to more intentional planning.
Next, this is where the numbers come in. You need to stress-test your portfolio with the help of your adviser. This will show you if you're prepared for a 30-year retirement with market ups and downs.
Run a scenario: How would you respond if the market dropped 15% the day after you retire?
Finally, the ultimate plan must be done purposefully, not just considering numbers and percentages. Financial independence isn't just about having "enough." It's about having a life that reflects your values. Use that as the foundation for decisions — from when to retire to how much to spend.
1. Procrastinating
You don’t want to be without an estate plan if you become incapacitated because of a health emergency, such as a stroke or heart attack. Yet, 43% of Americans without a will said they plan to wait for a medical diagnosis to create a will, the Caring.com survey found.
This wait-and-see strategy raises two serious problems
First, your loved ones might face lengthy legal proceedings to access your estate if you die without a will.
Second, without an advance directive, a section of an estate plan that dictates your medical preferences if you're incapacitated, your family won't know what kind of care you prefer.
2. Creating an estate plan on your own
Estate-planning documents that are incomplete or contain errors can cause complications when you pass. Consider hiring an estate attorney who understands the legalese to help you craft a comprehensive estate plan.
Generally, estate lawyers charge from $150 to $500 per hour for an estate plan, depending on the complexity of the client’s assets, according to Greiner Law Corp.
However, many estate attorneys offer free initial consultations or charge a flat fee for, say, drawing up a will. Fortunately, there are ways to save money on an estate plan. Read: How to Save Money on Estate Planning to find out how.
You can find an estate attorney in your area using an online directory such as Justia, Legal Match, or the American College of Trust and Estate Counsel (ACTEC).
3. Leaving loved ones uninformed
Sharing your estate plan with your family and heirs can help prevent confusion, conflict and unnecessary stress. Although the conversation can be difficult as you face your own mortality, it's important to sit down with the relevant people in your life and have an open conversation about your intentions while you still can.
What was IRS Direct File?
Direct File was a free way for taxpayers to file directly with the IRS. It was created after the tax agency found that many filers would be interested in such a program, with funding from the Inflation Reduction Act (IRA), signature legislation from the Biden administration.
About the Author
Kate Schubel
Tax Writer
Kate is a CPA with experience in audit and technology. As a Tax Writer at Kiplinger, Kate believes that tax and finance news should meet people where they are today, across cultural, educational, and disciplinary backgrounds.
When you’re about to close on a mortgage refi, you have the option to buy down your rate via discount points.
Points paid during a traditional or cash-out refinance aren’t deductible in full the year you pay them. Some exceptions may allow you to deduct points fully in the year paid, like if you use part of the refinanced proceeds to substantially improve your main home.
However, discount points paid during a mortgage refi are generally deducted over the life of the loan, so you’ll have to plan accordingly.
So, what are mortgage points?
Tax breaks for buying down your rate
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.
About the Author
Alex Diaz, MBA, CFP®
Financial Adviser, Harlow Wealth Management Inc.
Alex Diaz is a Financial Adviser at Harlow Wealth Management Inc., a federally registered investment adviser with the SEC. Registration with the SEC or any state does not imply that the adviser possesses a certain level of skill or training, or their approval or endorsement of any service provided by Harlow. He is a CERTIFIED FINANCIAL PLANNER™ with 14 years of experience in estate administration and financial planning. At Harlow, Diaz helps his clients identify and achieve their retirement goals, leveraging his diverse background in banking and financial services to create personalized, effective financial strategies.
Kiplinger is part of Future plc, an international media group and leading digital publisher
© 2025 Future US LLC
4. Keeping documents locked up
Estate documents kept tucked in a safety deposit box or a safe in your home might be difficult to access. Instead, provide copies of your estate plan to your appointed executor or trustee, a trusted family member and your estate lawyer. Make sure all family members have contact information for each of these people.
When Did IRS Direct File End? The Final 2025 Status
According to the Associated Press, IRS official Cynthia Noe reportedly sent an email earlier this month to state comptrollers that typically participate in the program.
"IRS Direct File will not be available in Filing Season 2026," the email read. "No launch date has been set for the future."
The announcement came after a Treasury task force report recommended terminating the program last month. Among the reasons cited were cost and low participation. The report stated that the program had cost about $138 per return to administer, though the uptake had risen 111% compared to the year prior.
Instead of Direct File, the GOP seeks to further improve the IRS's Free File program, according to the Treasury report. However, Direct File was established to address the limitations of Free File, like income limits and varied tax situations.
Plus, limitations aside, some are concerned that the call to eliminate Direct File is mainly due to its competition with commercial tax preparation software like H&R Block and TurboTax. (Free File uses private tax software companies.)
Regardless, taxpayers who have used Direct File for the last two years should begin searching for other free ways to file taxes for the 2026 filing season.
One of the most powerful moves you can make before December 31 is to max out contributions to tax-advantaged accounts. That includes:
403(b) contributions: For 2025, the limit is $23,500 for those under 50 and $30,500 for those 50 and older.
Traditional IRA contributions: You can contribute up to $7,000 ($8,000 if you’re 50 or older) until the tax filing deadline, but contributing now gives your money more time to grow.
Health Savings Accounts (HSAs): If you’re enrolled in a high-deductible health plan, you can contribute up to $4,300 for individuals or $8,550 for families in 2025.
These contributions can reduce your taxable income, help you grow retirement savings faster and give you a head start on next year’s goals.
6. Max out tax-advantaged accounts
Planning for college? How to borrow smarter under the new rules
For families just beginning the college planning process, these changes make it more important than ever to understand the net price — what you'll actually pay after scholarships and grants — before committing to a school.
Sticker prices can be misleading, and with new borrowing caps on Parent PLUS loans and the elimination of Grad PLUS loans, it's critical to identify programs that are a good fit both academically and financially.
Tools such as Citizens' College Match can help you compare schools by cost, potential aid and overall affordability (the "net price"), giving you a clearer picture of what's realistic before you apply.
If you anticipate needing to borrow beyond Federal Direct Loans, start rate-shopping early. A soft-pull rate quote from private lenders can show you whether you qualify and at what rate, without impacting your credit.
If your credit profile needs work, this gives you time to improve it or line up a qualified co-signer who could help you secure better terms.
5. Missing key documents
An incomplete estate plan can create a heap of problems — and the potential for disputes among heirs when you pass. Make sure your plan includes these essential documents:
Last will and testament. Often simply referred to as a "will," a last will and testament outlines your final wishes and instructions for the distribution of your assets and the management of your affairs after you pass.
Beneficiary designations. Make sure to assign beneficiaries for bank accounts, 403(b) and IRA accounts, pensions and life insurance policies.
Durable power of attorney for medical care. This appoints a person to make medical decisions for you if you should become mentally or physically incapable of making them yourself. It often includes an advanced health care directive, which instructs your family and doctors to use or not to use life support.
Durable financial power of attorney. This assigns an individual to manage your assets if you become incapacitated.
Funeral instructions. Specify whether you’d like a burial or a cremation and the type of funeral service you want.
Proof of identity. Gather your Social Security card, birth certificate, marriage and/or divorce certificate and any prenuptial agreements.
Deeds or loans for large assets. Collect this paperwork for homes, boats and other big assets.
A living trust or a revocable trust. A living trust is not required for estate planning, but it might help your heirs with a smoother transfer of assets after you die.
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6. Overlooking digital assets
Many people forget to account for their digital assets, such as cryptocurrencies, social media accounts, cloud storage and digital files when creating an estate plan. Consider assigning a digital fiduciary for your estate plan who has the right to access your digital assets when you pass.
7. Forgetting about final arrangements
No one eagerly dives in to plan their own funeral or final arrangements. If you're young, you think you'll live forever; if you're older, the inevitable is too close for comfort.
Making final arrangements, setting aside money for a funeral, choosing a burial plot, picking out songs and deciding on a coffin or other vessel makes it easier for those you leave behind.
Besides, funerals can be expensive. Today, the average funeral costs just over $8,300, including a burial service and viewing, depending on where you live. If you add a vault, you might pay close to $10,000. The median cremation cost is $6,280, according to the National Funeral Directors Association.
8. Forgetting about taxes
Estate tax liability can put a dent in any plan. But unless your estate is very large — $13,990,000 in 2025 — you might not have to worry because your estate won't be taxed at the federal level. Keep in mind, unless an extension is put into place, the law might revert back to the former $5 million exemption limit after 2025.
In addition, your state might or might not have a state estate tax, so check this out before you write up your will or trust. More than 30 states have no death taxes and six states have significant death taxes.
9. Not updating your plan
Don't worry about updating your estate plan every month or even every year. However, reviewing and revising your estate plan after major life events — a marriage, divorce, birth of children or grandchildren, or the acquisition of new assets — can prevent unwanted consequences, such as your assets being passed to unintended beneficiaries
Because your assets might change, as well as your personal options, beliefs and relationships, it’s still a good idea to go through your estate plan about every three to five years.
10. Appointing the wrong executor or trustee
No matter how much time and effort you put into planning your estate, your wishes might backfire if the wrong executor is chosen. Choosing someone who might have a conflict of interest can lead to problems when it comes time for them to administer your estate wishes. Select an individual (or individuals) who is unbiased, and get their permission before you assign them as an executor or trustee.
11. Being unaware of how recent legislation has changed estate planning
The "One Big Beautiful Bill," which was signed into law by President Trump this past July, has stabilized estate planning by not only permanently extending but also enhancing key provisions from the 2017 Tax Cuts and Jobs Act (TCJA). Essentially, the Bill raises the federal estate, gift, and generation-skipping transfer (GST) tax exemption to $15 million per individual and to $30 million for married couples starting January 1, 2026, with inflation adjustments thereafter.
Not only does this protect more families from estate taxes, but it also offers long-term stability for transferring wealth across generations. It also reduces the need to gift large portions of your estate before year-end deadlines. In addition, the Bill strengthens tools such as ABLE accounts and 529 plans with permanent higher contribution limits and expanded qualified withdrawals.
12. Underestimating the consequences of not having an estate plan
The consequences of not having an estate plan can lead to needless complications for your loved ones after your passing. Without a clear plan in place, state laws will decide how your assets are distributed — not you. Those decisions may not align with your wishes, which can result in delays in the distribution of your assets and potentially costly legal battles. Your loved ones may find themselves in probate, which can be time-consuming and emotionally draining, especially during an already difficult time.
Also, not having an estate plan can leave your family questioning your wishes concerning your financial and medical decisions. Without a designated power of attorney or healthcare proxy, your loved ones may struggle to make your wishes known before you become unable to do so. This lack of direction can lead to confusion, disagreements, and stress, as family members may not know which actions to take. Ultimately, the absence of an estate plan can create unnecessary hardship for those you care about most, making it vital to have a plan in place early on to ensure your wishes are honored and your family is protected.
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.
About the Author
Daniel Bortz
Contributing Writer, Kiplinger Personal Finance
Daniel Bortz is the Personal Finance Editor at AARP and is based in Arlington, Va. His freelance work has been published by The New York Times, The Washington Post, Consumer Reports, Newsweek, and Money magazine, among others.
With contributions from
Kathryn Pomroy
Contributor
Housing prices remain elevated, though they’ve softened somewhat. The median sales price of houses sold in the U.S. was $410,800 in July, according to Federal Reserve Economic Data. That’s down from last year’s peak, but affordability is still stretched for many buyers.
For would-be buyers, the math is tricky. Mortgage rates are still high enough to limit affordability, yet first-time buyers consistently make up about one-third of all sales, according to NAR, a sign that demand hasn’t disappeared. Buying offers stability and the chance to build equity, but renting remains the cheaper option in most markets.
Renters, however, aren’t getting much relief either. 48% of new apartments built this year were rented within three months, up from 47% the prior quarter, according to Redfin. With landlords regaining leverage, asking rents rose 2.6% year over year to $1,790 in August, the largest increase since late 2022.
In other words, there’s no universal answer on whether to buy now, wait or rent. The decision ultimately comes down to your personal finances and timeline. If you can comfortably qualify and plan to stay put long term, today’s market may still make sense. Otherwise, renting a bit longer could buy you time but be prepared for rising costs there, too.
Should you buy a house now or wait?
Not everyone has the luxury of waiting until the housing market cools to buy a house. Maybe your job has transferred you across the country, or your one-bedroom apartment no longer works with your needs.
Even though renting is always an option, if you need to move and feel financially ready for homeownership, meaning you can qualify and meet the monthly mortgage payments and other expenses, it may be better to buy now versus wait. You can begin building equity while taking advantage of tax deductions from the interest you pay on a mortgage, home-related renovation costs and property taxes.
Buy now if you need to move
If you intend to stay in your home for a long time, buying now rather than waiting might be smart. That’s because, at the current rate of home appreciation, the house you pass on now will likely cost you more in the future.
Beyond the purchase price, you’ll likely also pay thousands of dollars in closing costs when you buy a home. To justify those costs, it’s best to be reasonably confident you won’t be moving anytime soon. What’s more, selling a home very soon after buying can have serious tax implications.
Buy now if you plan to stay put
The best mortgage deals are available to people with the best credit scores. According to the Federal Reserve Bank of New York, the median credit score for mortgage borrowers was 770.
To qualify for a mortgage, you must demonstrate that you are at low risk of forfeiting on your monthly payments. It is also important to have enough in the bank for a down payment and closing costs, which usually range from 2% to 5% of the value of your mortgage and are paid in addition to your down payment.
Buy now if you’re financially stable
As obvious as that sounds, if you can’t afford the monthly payments, let alone the closing costs, a down payment and other homeownership costs, then it might not pay to buy, at least right now.
Wait if you can’t afford to buy
If you need help qualifying for a mortgage at a good rate because of a low credit score, scant employment, a high debt-to-income ratio, or too much outstanding debt, it may be better to wait.
However, keep in mind that many experts predicted home prices would fall in 2023, along with lower interest rates, but neither happened. So now might be a good time to work on your finances so that when prices and rates do drop (and we hope they will), you’ll be ready.
Wait until your credit improves
For buyers struggling to find the right property, patience may pay off. Existing-home sales rose 1.5% in September, according to NAR, while unsold inventory climbed 1.3% to 1.55 million units, equal to a 4.6-month supply. That marks a five-year high, though supply remains below pre-pandemic levels.
The median existing-home price increased 2.1% year over year to $415,200, reflecting steady demand even as more listings reach the market.
NAR Chief Economist Lawrence Yun noted that many homeowners are financially stable, leading to few distressed or forced sales. With more options gradually emerging and prices still edging higher, waiting a bit longer could give buyers more choices without a major risk of missing out.
Wait if you can’t find a home
There's no right or wrong answer to whether now is a good time to buy a home. That decision is personal and depends on a number of factors. Plus, there’s no way to know what the future will bring for the housing market and mortgage rates.
That’s why it's important to weigh your options and make a decision that makes sense for both your finances and your family.
What it all means for buyers now
For last year's 2024 tax filing season, Direct File's initial pilot proved a success across 12 participating states, with over 140,000 taxpayers using the service.
According to the IRS, most reported their experience with the program as “Excellent” or “Above Average.”
In tax season 2025, the Direct File program opened on January 27 (the day the IRS officially began accepting returns), and 30 million taxpayers were expected to be eligible.)
However, participation was on a state-by-state basis. Basically, you could only use Direct File if you lived in a nonparticipating state, the District of Columbia, or a U.S. territory.
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IRS Free File vs. Direct File: What’s the difference?
Although they may have similar names, the IRS Direct File program differed from Free File. Free File partners with private-sector companies to offer free tax filing services, while Direct File was an option to file directly through the IRS.
Unique eligibility requirements also separated the two programs. Free File is generally for taxpayers with lower- to middle-income. For tax year 2025, that’s an adjusted gross income (AGI) of $84,000 or less (for guided tax software).
I'm a Financial Planner and a Parent: Here Are Five Money Habits Every Young Family Should Have
Life with kids is full of surprises — some sweet, others not so much. That late-night trip to urgent care, the school laptop that suddenly breaks or the daycare that raises fees without warning … these are the moments when an emergency fund can help keep you afloat.
Aim to save three to six months of essential expenses in a separate emergency account. Think of it as your family's financial airbag. You hope you never need it, but you'll be grateful it's there.
A high-yield savings account is ideal because it's accessible when life happens, yet tucked away from everyday spending needs.
1. Build a strong emergency fund
NYSUT NOTE: To learn more about building out your emergency fund for life’s unexpected moments, contact NYSUT Member Benefits Corporation-endorsed Synchrony Bank. Synchrony Bank not only offers competitive interest rates on High Yield Savings accounts, but also Certificates of Deposit (CDs) and Money Market accounts.
Budgets are just a map of where your money is going and whether it's taking you in the right direction. Begin by tracking your income and expenses, then categorize them into essentials (such as housing, food, child care and utilities) and non-essentials (like streaming subscriptions, eating out and luxury items).
When you see where your money is going, it's easier to cut back in some areas and redirect those dollars to bigger goals. A budget isn't about deprivation. It's about aligning spending with what truly matters to you and your family.
Apps like YNAB, Quicken Simplifi or Monarch make budgeting more user-friendly and less spreadsheet-intensive, although I'm a spreadsheet enthusiast myself.
2. Create (and stick to) a family budget
Insurance may not be exciting, but it can be your family's safety net. Without it, a single event could possibly derail years of progress. At a minimum, young families should prioritize:
3. Get the right insurance in place
Health insurance to shield against medical costs
Life insurance to provide for loved ones if something happens to you or your partner
Homeowners or renters' insurance to protect your home and belongings
Auto insurance to protect against costly accidents or liability on the road
Umbrella insurance to cover liabilities above and beyond what your home and auto insurance don't cover
Depending on your situation, there are different kinds of life insurance you can choose from. For young families on a budget, term life insurance is generally a more suitable option over whole life insurance. It's simpler, cheaper and gives you the coverage you need without locking you into an expensive product.
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NYSUT NOTE: Protect your family with NYSUT Member Benefits Trust-endorsed Term Life Insurance. A Term Life Insurance plan will help loved ones continue to pay for daily living expenses including your mortgage, gas, food, and any final medical expenses.
College may feel light-years away when you're still paying for diapers, but time is your biggest ally. A 529 college savings plan allows your money to grow tax-free when used for qualified education expenses.
Even small monthly contributions can compound into something meaningful by the time your child heads off to campus.
I encourage grandparents and relatives to make gifts directly to a child's 529 plan during birthdays or holidays. The gift of education lasts longer than a toy your kids will eventually grow out of.
Thanks to the SECURE 2.0 Act, if your 529 account has been open for at least 15 years, up to $35,000 can be rolled over into a Roth IRA. Just one more reason to start early.
4. Start saving for education early
When you're juggling child care and household expenses, it's tempting to postpone retirement savings. But here's the hard truth: You can borrow for college, but you can't borrow for retirement.
If your employer offers a 403(b), contribute at least enough to capture the full company match, as this essentially amounts to free money. From there, aim to save 15% to 20% of your gross income toward retirement.
If a 403(b) isn't available, look into an IRA or Roth IRA for tax-advantaged growth. Your future self and adult future children will thank you.
5. Invest in your retirement
There's no perfect playbook for family finances, but these five strategies create a strong foundation. Start with the basics: An emergency cushion, a thoughtful budget, the right protections, and consistent saving for both education and retirement.
And don't forget the bigger picture. Financial planning isn't only about building security. It's also about giving your family the freedom to enjoy the moments that matter most.
The kids are little only once, so while you're building good money habits, make sure you leave room for fun along the way.
Wrapping it all together
NYSUT NOTE: Whether you’re curious about starting an emergency fund, looking into life insurance or budgeting for your family, NYSUT Member Benefits Corporate-endorsed Financial Counseling Program can help. Apply today to receive customized advice based on your unique needs.
The first category is your final expenses. A funeral and related expenses average $6,280 for cremation or $8,300 for burial, according to the National Funeral Directors Association. But the actual cost can vary widely as details like the type of grave marker or the casket chosen can dramatically influence the final price. Additional expenses like meal catering or travel and accommodations for loved ones attending the funeral from out of state can also bring that cost up further.
Your beneficiaries may be able to get the tax-free proceeds from insurance faster than if they waited for money from your estate. Use $15,000 as a ballpark number. But you can also pre-plan your funeral to get a better estimate of how much coverage you'd need here. Funeral planning can also prevent further grief by taking the burden of those logistical decisions off of your family.
1. Final expenses
Total your mortgage balance, car loans, student loans and any other debts that would be a heavy burden on your survivors. They may choose not to retire the mortgage, especially if the interest rate is low, but the money should be available so that they won’t face the prospect of being forced to sell.
2. Mortgages and other debts
This calculation can be tricky because you need to consider the cost of college at the time your kids enroll. For instance, the average cost of tuition at public 4-year institutions increased 20.8% from 2012 to 2023. For private institutions or out-of-state students, tuition rates are rising even faster.
Maurer recommends looking up current costs for the colleges you’re considering, deciding whether you want the insurance to cover all or a portion of the tab, and adding the amount in today’s dollars to your life insurance calculation.
3. Education expenses
Once you cover funeral expenses, debts and education, your family may not need to replace 100% of your income — and that’s where the hard part of the calculation comes in. Maurer recommends covering 50% of current pretax earnings until retirement.
You can translate this into a target lump-sum benefit by dividing it by 0.05. For example, if you earn $100,000, divide $50,000 by 0.05, which works out to $1 million. That assumes the insurance benefits will earn 5% a year over the long haul, a conservative back-of-the-envelope figure.
4. Income replacement
Add all four categories to estimate how much life insurance is appropriate, then tweak the number to reflect personal circumstances. You might increase it if you don’t have a pension, but you could decrease your coverage if your spouse earns a substantial salary.
If you or a family member has a troublesome medical history, add $100,000 or even $250,000. If you’re the one with the medical condition, you’ll find it tough to buy additional coverage later at a price you can afford.
For most families, this exercise will work out to an amount in the high six figures, possibly even $1 million or more. But don’t be frightened. With term insurance, boosting your death benefit by hundreds of thousands of dollars should cost just a few hundred dollars a year.
Calculating your total coverage needs
A healthy 40-year-old male nonsmoker might be considering a 20-year, $500,000 term policy for $360 per year. But he could buy $850,000 of coverage for $576, or a $1-million policy for $645, says Byron Udell, owner of AccuQuote, which represents dozens of life insurers.
Women pay less — just $311 per year for $500,000 in coverage and $558 for $1 million. It’s not as easy as it used to be to qualify for the absolute lowest rates.
Example:
While the factors above give you a raw number to start with, your actual coverage needs might be higher or lower depending on a few other factors. Here are some other key things to consider when calculating (or reevaluating) your coverage needs.
Other factors to consider when calculating life insurance
How many years will you need life insurance? If you’re in fine physical shape, you can buy a new policy and lock in the price for 20 years.
Some term policies come with the right to convert to a permanent life insurance policy, like whole life insurance. You can keep this type of life insurance for the rest of your life regardless of health. Premiums will be higher than for term life insurance at the beginning, but they usually remain level indefinitely.
The best reason to consider whole life or universal life insurance isn’t the accumulating cash value, although that’s part of the deal. The real issue is whether you’ll need coverage beyond 20 or 30 years — or after age 65 when term gets expensive.
You might want permanent life insurance, for example, if you need to protect kids with special needs who will always rely on you (or your estate) for support, or if you want to leave money to a school, charity or your children and you don’t expect to afford it any other way.
Time
Below are several instances when you should seek additional life insurance coverage.
Major life events
Getting married: Your new spouse might depend on your income even if he or she earns as much or more than you do.
Having a child: It takes a lot of money to raise a child — and it doesn't get any cheaper if you're not around.
Buying your dream home: When you settle into your family's forever home, guard against its loss in case tragedy strikes.
Nearing retirement: This means no more life insurance from work. If you die, your spouse could lose out on pension and some Social Security income.
Term insurance is popular because many people can afford plenty of it, but it can make sense to combine term and permanent insurance with multiple policies or buy a convertible-term policy and make a series of conversions over the years.
One advantage of a convertible-term policy is that insurers don’t require a new medical exam when you make the conversions. That essentially gives you a pass if you gain weight, develop high blood pressure or even survive a bout with cancer.
Northwestern Mutual provided this example for a 27-year-old man who starts by paying $317 for $500,000 of term insurance, and then gradually converts it to whole life $100,000 at a time. If you shift $100,000 to whole-life at age 28, your annual premium would jump to $1,300.
If you shift another $100,000 at age 31, your premium would rise to $2,600. Your premium would gradually increase whenever you shift money to the whole-life policy, topping out at $7,200 at age 40, for the entire $500,000 of whole-life insurance.
As long as the insurer remains strong and solvent, the policy’s cash value will rise every year, as will the death benefit. By age 65, in this example, the benefit is projected to be $990,000 and the cash value $475,000, which can be borrowed, withdrawn or tapped to keep the policy in force without paying additional premiums.
This kind of flexibility was attractive to Nirmal Bivek, a banker in Atlanta, who bought slightly more than $1 million in life insurance coverage when his 3-year-old daughter, Sarina, was born. Bivek has already converted some of the coverage to whole life and expects to convert more of it as his income grows.
He added more insurance when he and his wife, Vijal, were expecting a second child and when they bought a vacation home. "I’m in good health now and term is cheap," says Bivek, "so I’m buying as much as I can now and converting it over time."
Type of life insurance
Kiplinger is part of Future plc, an international media group and leading digital publisher
© 2025 Future US LLC
NYSUT NOTE: Obtaining life insurance is an important step to protect you, your family, and your assets. The NYSUT Member Benefits Trust-endorsed Term Life Insurance Plan offers competitive and high-quality options for your unique needs.
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.
About the Author
Kimberly Lankford
Contributing Editor, Kiplinger Personal Finance
As the "Ask Kim" columnist for Kiplinger's Personal Finance, Lankford receives hundreds of personal finance questions from readers every month. She is the author of Rescue Your Financial Life (McGraw-Hill, 2003), The Insurance Maze: How You Can Save Money on Insurance — and Still Get the Coverage You Need (Kaplan, 2006), Kiplinger's Ask Kim for Money Smart Solutions (Kaplan, 2007) and The Kiplinger/BBB Personal Finance Guide for Military Families. She is frequently featured as a financial expert on television and radio, including NBC's Today Show, CNN, CNBC and National Public Radio.
Starting conversations about money early helps lay the groundwork for bigger, more complex financial topics later. As children progress through their high school years, one of the biggest questions on their minds is whether — and how much — parents plan to contribute to their college costs.
Research revealed nearly 9 in 10 parents (89%) plan to pay for some portion of their children's college education. It's natural that parents want to set their children up for success.
However, it's critical that they don't jeopardize their own financial security to make it happen.
Regardless of how much you plan to contribute, it's important to clearly communicate your decision to children so they can make informed choices about taking on student loans or finding other ways to cover the bill.
This is an exciting age, but it's also an important time to get the right financial discipline and habits in place.
When you feel the timing is appropriate, help your children apply for a credit card to begin building credit and practice responsible money management under your supervision.
It's about teaching them to make their own tradeoff decisions between their goals for today and in the future.
Teenage children through college-age
The need for ongoing money conversations doesn't end when a child has left the home. Research reveals the majority of parents (75%) plan to help their adult children fund goals and milestones such as a wedding, a down payment on a home and vacations.
While well-intentioned, such generosity can put parents' financial futures at risk if it means sacrificing retirement savings or other important long-term goals.
If you do choose to contribute financially, be clear about whether the money is a gift or a loan to avoid confusion or tension down the road. It's about finding the right balance between assisting your grown children and instilling financial independence.
Additionally, a first job post-college is the perfect opportunity to discuss steps children can take to establish a strong financial foundation.
Encourage children to take advantage of every employee benefit available to them, such as applying for health, life and disability insurance and maximizing their 403(b) match to ensure they're not leaving money on the table.
Parents may also want to discuss the risks and opportunities that come with investing, or share their own experiences with market fluctuations. A parent's candidness can help children take advantage of market volatility, rather than fearing it.
Adult children
Parents already have a lot on their plates when it comes to raising a family, and finances can be a source of stress in the best of times, let alone during periods of market volatility.
The good news is you don't have to initiate conversations alone: A financial adviser can help.
According to the Ameriprise study, nearly 9 in 10 parents (88%) working with a financial adviser say the advice was helpful in making financial decisions related to their children. The research reveals parents are seeking guidance on:
• Considerations for leaving an inheritance (34%)
• Educating children about investing (33%)
• How to pass down their financial values to children (30%)
A financial adviser can provide direction and accountability to help you take the important financial steps needed to protect your children's futures — and your own.
The Parents & Finances research was created by Ameriprise Financial and conducted online by Artemis Strategy Group from January 3-31, 2025, among 3,010 American parents with at least one child age newborn to 30. Parents were between ages 25 to 65+ and had on average more than $500,000 in investable assets. For further information and full methodology, including verification of data that may not be published as part of this report, contact Ameriprise or go to ameriprise.com/parents.
Work with a financial adviser
Parent PLUS loans offer consolidation into a Direct Consolidation Loan, unlocking Income-Contingent Repayment (ICR), which can lower monthly payments based on income. But keep in mind that this option may extend repayment length and total interest paid.
Private loans vary by lender but sometimes allow refinancing if your credit is still strong and your income is steady. Although refinancing removes federal protections and forgiveness options.
If you anticipate you or the borrower you cosigned for having a tight cash flow, explore deferment or forbearance, but be aware these may pause payments temporarily while accruing interest and still risk credit impact when re-entering the repayment process.
Always weigh short-term relief against long-term credit health.
Communication and coordination with everyone involved
Open dialogue is key: set up a repayment plan where the student contributes if possible or at least commits to alerting you before a missed payment. You can also automate payments via autopay to avoid oversight.
Use shared calendars or notifications to track due dates. If you co-signed a private loan, consider asking the student to refinance into their own name once they have credit established, relieving you of risk.
The simple act of clear communication can prevent surprises that lead to delinquencies.
Repayment options and credit implications
Steps to take if a payment will be missed
If you suspect a payment may be missed due to budget constraints or miscommunication, contact the servicer immediately. Discuss temporary options like short-term forbearance, but request clarity on how it will be reported to credit bureaus.
If possible, arrange a small one-time payment or extension to avoid passing the 30-day delinquency threshold. Understanding these options early can prevent a small hiccup from ballooning into a major credit event.
For Parent PLUS borrowers, consider consolidation into ICR as noted, or, if applicable, Public Service Loan Forgiveness (PSLF) after consolidation and qualifying employment. If private loans are part of the picture, refinancing should be tackled before credit slips too far.
Some families choose to make a lump-sum payment from savings or gift arrangements to bring accounts current. You can also review your options and brainstorm some next steps with a financial advisor as well for more help and clarity.
Bottom line
If you’ve cosigned a student loan or hold Parent PLUS debt, the return of credit reporting in May 2025 could put your credit at risk. Staying vigilant, communicating clearly and understanding your repayment options can help you protect your credit and avoid surprises.
With mortgage rates stubbornly elevated in recent years, many homeowners are watching the market for the right moment to refinance. But securing a lower rate is only part of the equation. You’ll also want to calculate how much you’d actually save, how long it would take to break even on closing costs, and whether refinancing makes sense for your financial goals.
A recent bank study found that most borrowers with a 30-year mortgage would need about a 0.75% rate drop to see meaningful savings and break even in under three years.
Homeowners with 15-year mortgages, however, could benefit from a smaller decrease — even a 0.50% drop could add up to more than $1,500 in savings over three years. In other words, the type of mortgage you hold plays a big role in whether refinancing is worthwhile.
Why location changes the math
Refinance break-even example (based on a $400,000 home value)
Refinancing lowers your monthly payment by replacing your existing mortgage with one at a lower interest rate. That part is simple. But the catch is that you’ll need to pay closing costs which are often thousands of dollars upfront. These can include lender fees, appraisal costs, title insurance and more.
That’s where the mortgage refinance break-even point comes in. This is the point in time when the money you save on lower monthly payments finally offsets what you paid in closing costs. If you sell your home or move before you hit that break-even point, you may end up losing money even with a lower interest rate.
How refinancing can save — or cost — you money
The takeaway? A quarter-point drop won’t cut it and even a half-point drop barely gets you across the break-even line in a reasonable timeframe.
For most homeowners, refinancing becomes worthwhile once mortgage rates drop at least 0.75 percentage points. At that level, you reach break-even in under three years, which is often the time horizon financial experts recommend.
And if you can capture a full 1-point reduction, the payoff is clear: you’d break even in under two years and see more than $5,000 in net savings within three years. That’s why many experts call the 0.75-point reduction the “sweet spot” for refinancing.
Answer:
The magic 0.75-point threshold
Your state and your loan size can dramatically change how quickly refinancing pays off.
In states with higher home prices, like California, New Jersey, or Washington, D.C., the larger loan amounts mean that even small drops in interest rates add up to significant monthly savings. That shortens the break-even timeline.
In states with lower average home values, such as Michigan, Indiana, or Ohio, the savings are smaller because loan balances are smaller. That makes the break-even point stretch out longer, sometimes beyond three years, unless rates fall by a full percentage point.
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This is why two families with the exact same rate drop could see very different results depending on where they live and the size of their mortgage.
Here are a few scenarios where you might want to consider refinancing your mortgage:
How to know when it’s a smart time to refinance
You can drop your rate by 0.75% or more: This is the most common signal that refinancing makes sense. If you’re moving from 6.5% to 5.75%, your monthly savings could be enough to justify the upfront costs in a relatively short period of time.
You want a shorter loan term: Refinancing doesn’t have to mean starting over on a 30-year loan. Many borrowers refinance into 15- or 20-year loans to pay off their homes faster and save on interest, even if their monthly payment stays roughly the same. This strategy works well if your income has increased or if you’re focused on debt-free living.
You’re dropping private mortgage insurance (PMI): If your home value has risen enough for you to have 20% equity, refinancing may help eliminate PMI which can save you an additional $100–$200/month.
You’re consolidating debt at a lower rate: Some homeowners choose a cash-out refinance to pay off high-interest credit cards or personal loans. This can lower your overall monthly payments and interest costs, but it also resets your mortgage clock, so be careful not to turn short-term debt into long-term debt unless it fits your financial goals.
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Refinancing your mortgage can be a smart financial move, but it’s easy to get caught up in the excitement of a lower interest rate and overlook the bigger picture.
By being aware of and avoiding these common mistakes, you can avoid wasting money on a refinance that doesn’t actually benefit you or help improve your financial situation.
Common mistakes to avoid
Only chasing the rate without considering costs: Refinancing for a 0.25% rate drop sounds good in theory, but it might cost you thousands upfront and take years to break even. Always calculate your total savings, not just your new monthly payment.
Resetting the clock on your loan: Refinancing into a new 30-year term could lower your monthly payment, but it also extends your loan and increases your lifetime interest cost. Ask lenders if you can refinance into a custom term that matches how many years you have left (e.g., a 22-year or 18-year loan).
Ignoring your credit score: Your credit score still plays a major role in the rate you’ll get. If your credit has dropped since your original loan, you might not qualify for the best rates. Review your credit and address any issues before applying to refinance.
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Refinancing isn’t one-size-fits-all. While it’s tempting to jump at a slightly lower rate, you need to weigh the upfront costs, how long you plan to stay in the home and how much you’ll truly save each month.
Before making a move, run the numbers through a refinance calculator and compare offers from multiple lenders. If the math shows you’ll break even in three years or less, refinancing could be a smart way to save thousands over the long run.
If not, it may be better to wait for that magic 0.75-point rate drop. Or, focus on paying down your current loan faster.
Run the numbers before you refinance
Security window film helps strengthen your glass windows, absorbing impacts from a break-in attempt and helping to prevent the window from shattering.
Some window films also darken your windows to prevent burglars from being able to easily see into your home.
Window film is easy to install and can be left in place for years. It may help to slow or deter break-ins, and can also help minimize storm damage.
3. Motion-sensor lights and smart bulbs
5. Video doorbells
Video doorbells are affordable and easy to install, and many can pair with your smart security system.
While some doorbells are designed to be hardwired, there are plenty of battery-powered options, like the Ring Battery Doorbell Plus, that make for an easy DIY installation.
If you’re renting your home, look for a no-drill video doorbell mount that’s easy to install and just as easy to remove when it’s time to move out.
With a video doorbell, you can answer your door and speak with visitors even when you aren’t home. The doorbells also capture and store video footage that you can use as evidence in case you need to file a home insurance claim. These doorbells offer peace of mind and are a great investment in your home’s security.
Additional ways to lower your home insurance premiums
If you're looking to lower your home insurance premiums, start by calling your insurance provider. Ask whether the home security device you’re considering qualifies for a discount, and take the opportunity to explore other potential savings.
You might be eligible for discounts by bundling your home and auto policies, enrolling in paperless billing, or making home improvements like installing a new roof.
Make it a habit to review your home insurance coverage annually to ensure it still fits your needs — and that you're getting all the discounts you qualify for.
If you're considering bigger home improvement projects, that could qualify for bigger discounts. And with interest rates falling, now's a great time to tap your home equity to get those projects funded.
Given the skyrocketing prices, monthly payments have also gone up. You can get a feel for your expected loan payment using a website like Calculator.net.
Consider a budget “test drive,” says Rex. “For a few months, set aside what you expect to pay on the new car and see if it’s doable.” Don’t forget about adding money for insurance, registration and maintenance. At the end of the test, you’ll have extra cash for a down payment.
It’s especially important to plan ahead if you’ve recently retired on a fixed income and have a different household budget than when you were working. The number of people struggling and missing car payments is climbing quickly for consumers of all income levels because of high prices and interest rates. Avoid getting locked into something uncomfortable.
2. Consider going for a 'budget' test drive
As always, when getting a new car, the question is whether to buy or lease. When you buy, payments start higher, and you’re responsible for more repairs and maintenance. But after you pay off the loan, payments stop. Plus, you can later sell the vehicle or trade it in.
Leasing is a long-term rental, so the payments never end. However, you can regularly replace your vehicle with a new model every few years at the end of each lease, and you don’t have to repair damage from normal wear and tear.
Given the tradeoffs, Rex finds leasing to be a more convenient fit for retirees, especially if they plan to continue driving for only a few years. “When it’s done, you just hand the vehicle back to the dealer. There’s no hassle of selling,” says Rex. Just be aware of any mileage caps and restrictions if you drive a lot. For snowbirds who go between New York and Florida every winter, leasing is probably not the right fit.
4. Weigh financing versus paying out of savings
If you’re going to buy, think about whether it could make sense to pay off the entire vehicle at once using your savings.
Paying up front means you don’t have an ongoing loan payment and won’t be charged interest. On the other hand, you no longer have the money to invest. If you make a lump sum withdrawal from a pre-tax traditional Individual Retirement Account or 403(b), the entire amount will be taxable, could push you into a higher bracket and create surcharges on your Medicare premiums.
Borrowers with strong credit scores (650+) today pay between 5% and 7% for a new car loan, while subprime borrowers face double-digit interest rates. “If your investments are earning more than your quoted loan rate, financing could make sense,” says Rex, the financial planner from Virginia Beach.
3. Leasing simplifies things
5. Your loan interest could be deductible
A new provision in the One Big Beautiful Bill Act allows taxpayers to deduct up to $10,000 per year in car-loan interest from 2025 through 2028 on new, U.S.-assembled vehicles. Used car purchases and leases don’t qualify.
You can claim this tax break even if you use the standard deduction, making it more accessible than deductions that require itemizing. If you paid off your home and no longer qualify for the mortgage interest deduction, this new tax break can help make up the difference. The loan interest deduction does phase out for individuals with a modified adjusted gross income over $100,000 and for married joint filers with an MAGI over $200,000.
7. New tech can keep you safe, but also create headaches
When researching and test-driving, think about whether a vehicle would make your life easier and keep you safe on the road. “For most retirees, the best vehicle choice is a small SUV or midsize sedan,” says Gardner from Insurify. “They’re easy to park, have a higher seating position and offer great visibility.”
If you spent your career driving a high-powered sports car or dreamed your whole life about getting one in retirement, ask whether this is the wisest move. They’re expensive to repair and less reliable. “No one wants to worry about a car breaking down on the way to a doctor’s appointment,” says Rex.
The faster speed increases the chances of an accident, especially if your reaction time is not what it used to be. Plus, since sports cars are lower to the ground, they are harder to get in and out of.
6. Consider comfort and convenience
If it’s been years since you bought a car, you might be taken aback at how much the technology has changed. And often, not in a good way: distracting touchscreens instead of physical buttons, facial recognition instead of keys to start the car, and even pop-up video ads in some vehicles.
Not all innovations are a step in the wrong direction. Some have come a long way to reduce accidents, especially for tired and fatigued drivers: automatic emergency braking, blind-spot monitoring, lane-keeping assistance and backup cameras.
Still, even these safety features take getting used to. The typical 15-minute test drive might not be enough to really see if a car is a fit for your style. If you have your eye on a specific model, consider renting it for a weekend before deciding.
8. Understand car insurance costs
Car insurance rates skyrocketed after the COVID-19 pandemic, something you certainly noticed with your current bill. Even though rate hikes have slowed, premiums remain high. Keep this in mind when deciding what to buy.
Newer cars are more expensive to insure than used ones, because they have more costly parts and technology. Sports cars are also more expensive to cover, given the additional risk of a crash. You’ll enjoy an insurance discount when you start retirement, but only to a certain point.
“Drivers in their 60s enjoy the lowest average full-coverage premiums, about $155 per month,” says Gardner. “For drivers in their 70s and beyond, rates creep up as insurers factor in slower reaction times.” You can lower costs by taking a defensive driver’s course or using a pay-by-the-mile insurance policy if you aren’t on the road often.
9. Downsizing simplifies things
If you own multiple cars from when the kids were living at home, ask whether you still need more than two, or even more than one. Giving up one of your cars in retirement can lead to real savings. Each vehicle increases costs for registration, insurance and maintenance even if they aren’t being driven often. Demand for used cars is extremely high, making it a seller’s market. You may be surprised by how much you get for your old vehicles.
10. Tariffs will drive up prices even more
The $50,000 record car prices don’t reflect new tariffs, as dealers haven't fully priced those in yet.
Tariffs are highest on European models, making Japanese and American vehicles comparatively affordable. Still, prices for American models could climb too, since many rely on imported parts or are partially manufactured abroad.
While you shouldn’t rush a purchase, the current landscape creates some urgency. “Tariffs will likely increase prices by another 10% to 25%. If you’re thinking of buying a car within the next couple of years, acting sooner could make sense,” says Gardner.
Note: This item first appeared in Kiplinger Retirement Report, our popular monthly periodical that covers key concerns of affluent older Americans who are retired or preparing for retirement. Subscribe for retirement advice that’s right on the money.
The survey also revealed that only 10% of parents leverage a 529 savings plan for education-related expenses. I'd like to encourage more parents to take advantage of the benefits of 529 plans, if they are able, by sharing how we personally benefited from their investment, tax and flexibility benefits.
From an investment perspective, each state-sponsored 529 plan offers a curated menu of vetted investment options, and most include age-based or Target Enrollment Portfolios that gradually and automatically become more conservative as you approach the date of your child's enrollment year.
It's important to note that a target-date investment is not guaranteed at any time, including on or after the target date.
Many plans offer the ability to set up automatic, recurring contributions and auto-increase your contribution amount on a periodic basis. We took advantage of these features in our children's 529 plans.
From a tax perspective, the savings grow tax-free and can be withdrawn tax-free as long as you use the funds for qualified education expenses. And some states even provide a state income tax deduction for the contributions you make.
While you can choose any state's plan, I'd recommend checking if your state-sponsored plan offers benefits other states might not and know what type of expenses are qualified, so you don't mistakenly incur a tax penalty.
From a flexibility perspective, 529 plans cover more expenses than you may think. Your investment can be used to pay for tuition, room and board, books and other qualified expenses at any accredited school in the U.S. or abroad.
My oldest daughter attended school in the UK, and her 529 account paid for tuition and room and board, while my son's 529 account paid for a portion of his secondary school education before being used for college.
If college isn't in your loved one's future, you can use your 529 savings account for vocational training in skilled trades, professional licensing, credential programs and continuing education.
You can also change the account beneficiary anytime as long as they're a qualified family member, such as a sibling, stepchild, cousin or parent.
And if you still have leftover money, you can roll up to $35,000 into a Roth IRA, provided certain conditions are met.
Of course, this information is not personalized investment or tax advice — please consult a qualified adviser to understand how 529 plans may impact your individual situation.
The benefits of 529 plans for education-related expenses
Every journey — no matter how long — begins with the first step. We are glad we took that first step more than 20 years ago by establishing 529 savings plans and an overarching education savings strategy.
While our nest may be empty, we are grateful to be able to give our birds a better chance to spread their wings and soar.
It begins with the first step
Insurers once offered unlimited benefits for long-term care policies, but today, they usually limit payments to three to five years. You also pick the maximum possible payout from the policy. For example, a policy might pay out $165,000 total for care. If you spend past the policy limits, you’ll be back on your own.
The policy limits fit the needs of most retirees. Men, on average, need 2.2 years of long-term care, while women, on average, need 3.7 years, based on recent data. About 20% of 65-year-olds end up needing care for five years or longer. Ludden ran into this situation with her mother. “After four years, her policy ran out, and she had to use her funds to cover the facility for two months.”
2. Insurers cap your lifetime benefit
Long-term care insurance is not a cheap product. The cost depends heavily on your age and gender. A 55-year-old male in standard health would pay $2,075 per year for a $165,000 LTC policy with a 3% inflation rider, growing to about $400,500 by age 85. A 55-year-old female would pay $3,700 per year for the same policy, according to the American Association for Long Term Care Insurance. Women pay more than men because they typically live longer and are more likely to need extended long-term care.
A 65-year-old male would pay $3,280 per year for the same coverage, while a 65-year-old female would pay $5,290 per year. If you’re married or in a committed relationship, you can qualify for a discount on a joint policy that covers both of you.
Long-term care insurance policies use level premiums, meaning that after you sign up, the insurer cannot increase the cost based on your age and health. Buying younger can lock in a better deal. Insurers can increase rates for all policyholders but only if they can prove to the government that it’s needed to support future payouts, not for extra profits.
4. Premiums are expensive, especially for women
If you have long-term care insurance, you could use the policy to pay for a better facility that doesn't accept Medicaid. If your policy runs out and you do end up going onto Medicaid, some state governments consider whether you bought insurance beforehand, says Genworth’s Ludden.
For example, say you buy $250,000 of LTC insurance coverage and spend down the entire policy, forcing you to pay for care with your personal savings. Depending on the state, the government might let you qualify for Medicaid benefits before you spend the last $250,000 of your other assets.
3. Insurance can enhance government benefits
When LTC insurance first came out, companies didn’t properly understand this market and charged too little for the payouts. As a result, they ended up repricing and raising rates for existing policyholders.
“The new policies sold today have factored in the things that caused issues with older policies. While no one can guarantee you won’t face a substantial rate increase due to a market adjustment, it’s very unlikely,” says Slome.
5. Prices for newer long-term care insurance policies have stabilized
"LTC insurance doesn’t have to be an all-or-nothing proposition," says Slome. If you’re concerned about the cost, he suggests getting a policy for a lower amount with the plan to cover the remaining costs with your savings. For example, if you think long-term care will cost you about $6,000 a month, you could get a policy for $3,000 and pay the remaining $3,000 out of your assets.
There are also short-term care policies that only pay out benefits for one year but cost much less than long-term care insurance. These policies charge both genders the same prices, making them a better deal for women. Medicare provides short-term care in a facility for a stay of up to 100 days, but not beyond that.
6. You can use partial protection
LTC insurance companies do not accept every applicant. You must meet the health underwriting standards and apply while still reasonably healthy. “You can’t wait until you’re in a facility and need help paying bills to apply. By then, it’s way too late,” says Slome. People aged 55 to 69 in reasonably good health are generally the best fit for LTC insurance, says Slome. Eighty is the maximum age to apply at most companies.
Once you qualify for LTC insurance, the coverage is usually guaranteed renewable for your entire life as long as you keep paying the premiums. If you let the policy lapse and reapply, you would need to pass health underwriting again.
7. You must pass health underwriting to buy long-term care insurance
You can buy a life insurance policy that includes long-term care policy coverage. If you need care, the policy pays out some or all of the death benefit while you’re still alive. If you pass away without needing long-term care, your heirs receive the full policy death benefit.
“There’s a payout either way. It’s not a use-it-or-lose-it scenario like stand-alone long-term care insurance,” says Jordan Mangaliman, chief executive of Goldline Insurance and Financial Services in Fullerton, California.
You could qualify for life insurance into your seventies if you’re in good health, says Mangaliman. Life insurance policies usually pay a lower total benefit for care versus similarly priced LTC insurance policies. You must also read the fine print for when your life insurance would pay.
Another option is to buy an annuity. You pay for the annuity upfront, and in exchange, it gives you future income payments that can be guaranteed to last your entire life. Some annuities offer a long-term care benefit. For example, an annuity might double your monthly payment for several years when you need long-term care, says Mangaliman. In exchange, adding this benefit could reduce your starting monthly annuity payments.
8. There are alternative ‘hybrid’ products
Each insurance company has its own rates and health underwriting standards. Before signing up, you should get a few quotes from different companies.
Mangaliman suggests using an insurance broker representing multiple insurance companies to speed up the process. When comparing, consider each insurance company’s A.M. Best rating for financial stability to pay future claims and J.D. Power score for customer satisfaction.
The long-term care insurance market is small, with only six insurers selling stand-alone policies: Mutual of Omaha, Thrivent, National Guardian Life, New York Life, Northwestern and Bankers Life. In terms of quality, insurers tend to offer similar levels of coverage, and the main difference is the price they quote for you.
“It’s not like one company will sell you a Mercedes while another is a Honda. With LTC insurance, they’re all Hondas,” says Slome.
9. It pays to compare insurers before buying
If you have a long-term care insurance policy, you have more flexibility to decide how you receive treatment and where. For example, you could spend the money on a home healthcare worker rather than go into a nursing home under Medicaid.
Slome finds that people with insurance are more willing to pay for better care and get help sooner, whereas those without insurance tend to hold off. “If an earthquake destroys my house, I won’t cheap out on the repairs because I have homeowner’s insurance. People do the same when they have long-term care insurance,” he says.
10. LTC insurance gives you more options for care
This article was written by and presents the views of our contributing adviser, not the Kiplinger editorial staff. You can check adviser records with the SEC or with FINRA.
About the Author
David Rodeck
Contributing Writer, Kiplinger Retirement Report
David is a financial freelance writer based out of Delaware. He specializes in making investing, insurance and retirement planning understandable. He has been published in Kiplinger, Forbes and U.S. News, and also writes for clients like American Express, LendingTree and Prudential. He is currently Treasurer for the Financial Writers Society.
Before becoming a writer, David was an insurance salesman and registered representative for New York Life. During that time, he passed both the Series 6 and CFP exams. David graduated from McGill University with degrees in Economics and Finance where he was also captain of the varsity tennis team.
With contributions from Kathryn Pomroy, Contributor and Erin Bendig, Personal Finance Writer.
If all adult children are living, each receives an equal share
If an adult child has passed away, that adult child's share is divided equally among their children
Purpose: It simplifies planning by eliminating the need to name specific contingent beneficiaries for every possible scenario. And it ensures that each "branch" of the family receives an equal share.
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12. Qualified domestic trust – A ‘QDOT’ is a marital trust created for the benefit of a non-U.S. citizen spouse containing special provisions specified by the Internal Revenue Code to qualify for the marital deduction.
Purpose: Estate planning advantages normally afforded to spouses are not available to non-citizen spouses even if they are permanent legal residents. A surviving non-citizen spouse is not entitled to an unlimited gift tax deduction or an unlimited marital deduction.
13. Remainderman: A remainderman, in property law, is someone who is entitled to inherit property in the future. This inheritance occurs after the termination of a preceding estate, most commonly a life estate. The remainderman is a third party who is not the creator or initial holder of the estate.
Purpose: Naming a remainderman ensures a clear and planned transfer of property when the life tenant passes away. This process can often bypass probate, thereby reducing associated costs and complexities.
14. Residue or residuary estate: The property remaining in an estate after payment of the estate’s debts, taxes, and expenses, and after all specific gifts of property and money have been distributed according to the will.
Purpose: The primary goal is to ensure all estate assets are identified and distributed as the deceased person wished. If a residuary clause is absent, any leftover assets will be distributed based on intestacy laws, potentially contradicting the intentions of the deceased.
15. Spendthrift provision: A clause in a trust that prevents beneficiaries from giving away their interest in the trust to others, a voluntary transfer, and also protects their interest from being claimed by their creditors through an involuntary transfer. This is often included to safeguard the trust assets from claims of the beneficiary’s creditors.
Purpose: Spendthrift clauses are frequently incorporated when a beneficiary is prone to financial mismanagement, has issues with substance abuse, or faces other challenges that could jeopardize trust funds.
Estate planning is the final piece of a sound financial plan. You can not only ensure your assets are distributed according to your wishes but organize them in a way to reduce friction and costs after you pass. Trusts are one instrument you can use to transfer assets to your intended beneficiary, reduce your tax burden and preserve more of your wealth.
Knowing the meaning of various legal terms and their purpose can help you better understand your estate planning needs and options. The next step is to create or update your estate plan.
Knowing is half the battle
“One powerful strategy is to reduce your interest rates. Refinancing a mortgage from 7% to 5% or transferring credit card debt to a lower-rate card saves money instantly and accelerates how fast you attack the principal. It’s not just about paying — it's about paying smart. Lower rates create a margin to invest and build for your future while still knocking out debt.” — Justin Donald, Lifestyle Investor
Lower your interest rates
“Implement the 50/30/20 rule: Allocate 50% of your income to needs, 30% to wants and 20% to debt repayment and savings. If possible, direct financial windfalls (for example, bonuses and tax refunds) toward high-interest debt while maintaining steady retirement contributions. This balances debt reduction with future financial security, preventing lost investment growth.” — Greg Welborn, First Financial Consulting
Follow the 50/30/20 rule
“Use a balance transfer credit card to avoid paying interest for up to 21 months. This way, your entire monthly payment goes toward reducing your actual balance, and nothing is wasted on interest fees, so you pay debt down faster. Compare balance transfer cards to find the option with the longest no-interest term that meets your needs and credit rating.” — Andrea Woroch, Woroch Media Inc. / Andrea Woroch
Ensure you're paying down your actual balance
“Use the debt avalanche method by listing your debts from the highest to lowest interest rate and then attacking the most expensive one with every extra dollar you can spare while making minimum payments on the rest. At the same time, automate putting a small, consistent amount into a savings or investment account. This way, you’re not just reacting to financial pressure but also taking proactive steps toward the future.” — Zain Jaffer, Zain Ventures
Leverage the 'avalanche' method and automation
A key advantage with a private policy is that you can tailor your benefits to your needs. One common feature is including coverage if you are disabled and unable to perform the regular duties of your “own occupation,” or the job you held when you bought the policy. Different insurers have different names for this benefit.
In many long-term disability policies, you may not be deemed to be disabled if you are able to do any work at all.
But if you are insured through a private policy for your “own occupation,” you can receive benefits even if you are able to work in an alternative occupation than the one you held when you purchased the policy.
Disability insurance is often overlooked, but it can be an important component of wealth planning and peace of mind.
You should take into account your personal situation and consider speaking with a financial adviser or your insurance agent to figure out which policies make sense for you.
It’s important to factor in how taxes may impact your benefit to determine whether you need to adjust your employer’s coverage or supplement it with private coverage.
3. 'Own occupation' coverage
A recent analysis modeled what refinancing would look like on a $400,000 mortgage. The results show that a half-point dip (from 6.5% to 6.0%) doesn’t always provide the quick savings many expect.
The half-point drop dilemma
An estate plan consists of several legal documents that lay out what happens to your assets and liabilities when you die or become incapacitated. At the very least, it will consist of a last will and testament, a living trust, an advance directive and a power of attorney.
While you might feel an estate plan is unnecessary because you lack sufficient assets to pass along to your family, it isn't all about the money. It also entails ensuring your wishes about future medical care are understood. An estate plan can also drastically reduce the potential for family disagreements.
One of the biggest disadvantages to not developing an estate plan while you’re healthy and of sound mind is that you remove the ability to make hard decisions on your own.
In this case, the court might determine how to distribute your assets, or worse, your entire estate can go to the state. That's why it's critically important to make smart estate planning moves now, and why everyone, from millionaires to people just starting out, should have an estate plan.
What is an estate plan?
Estate-planning documents that are incomplete or contain errors can cause complications when you pass. Consider hiring an estate attorney who understands the legalese to help you craft a comprehensive estate plan.
Generally, estate lawyers charge from $150 to $500 per hour for an estate plan, depending on the complexity of the client’s assets, according to Greiner Law Corp.
However, many estate attorneys offer free initial consultations or charge a flat fee for, say, drawing up a will. Fortunately, there are ways to save money on an estate plan. Read: How to Save Money on Estate Planning to find out how.
You can find an estate attorney in your area using an online directory such as Justia, Legal Match, or the American College of Trust and Estate Counsel (ACTEC).
2. Creating an estate plan on your own
Estate documents kept tucked in a safety deposit box or a safe in your home might be difficult to access. Instead, provide copies of your estate plan to your appointed executor or trustee, a trusted family member and your estate lawyer. Make sure all family members have contact information for each of these people.
4. Keeping documents locked up
An incomplete estate plan can create a heap of problems — and the potential for disputes among heirs when you pass. Make sure your plan includes these essential documents:
Last will and testament. Often simply referred to as a "will," a last will and testament outlines your final wishes and instructions for the distribution of your assets and the management of your affairs after you pass.
Beneficiary designations. Make sure to assign beneficiaries for bank accounts, 403(b) and IRA accounts, pensions and life insurance policies.
Durable power of attorney for medical care. This appoints a person to make medical decisions for you if you should become mentally or physically incapable of making them yourself. It often includes an advanced health care directive, which instructs your family and doctors to use or not to use life support.
Durable financial power of attorney. This assigns an individual to manage your assets if you become incapacitated.
Funeral instructions. Specify whether you’d like a burial or a cremation and the type of funeral service you want.
Proof of identity. Gather your Social Security card, birth certificate, marriage and/or divorce certificate and any prenuptial agreements.
Deeds or loans for large assets. Collect this paperwork for homes, boats and other big assets.
A living trust or a revocable trust. A living trust is not required for estate planning, but it might help your heirs with a smoother transfer of assets after you die.
An incomplete estate plan can create a heap of problems — and the potential for disputes among heirs when you pass. Make sure your plan includes these essential documents:
5. Missing key documents
Many people forget to account for their digital assets, such as cryptocurrencies, social media accounts, cloud storage and digital files when creating an estate plan. Consider assigning a digital fiduciary for your estate plan who has the right to access your digital assets when you pass.
6. Overlooking digital assets
No one eagerly dives in to plan their own funeral or final arrangements. If you're young, you think you'll live forever; if you're older, the inevitable is too close for comfort.
Making final arrangements, setting aside money for a funeral, choosing a burial plot, picking out songs and deciding on a coffin or other vessel makes it easier for those you leave behind.
Besides, funerals can be expensive. Today, the average funeral costs just over $8,300, including a burial service and viewing, depending on where you live. If you add a vault, you might pay close to $10,000. The median cremation cost is $6,280, according to the National Funeral Directors Association.
7. Forgetting about final arrangements
Estate tax liability can put a dent in any plan. But unless your estate is very large — $13,990,000 in 2025 — you might not have to worry because your estate won't be taxed at the federal level. Keep in mind, unless an extension is put into place, the law might revert back to the former $5 million exemption limit after 2025.
In addition, your state might or might not have a state estate tax, so check this out before you write up your will or trust. More than 30 states have no death taxes and six states have significant death taxes.
8. Forgetting about taxes
Don't worry about updating your estate plan every month or even every year. However, reviewing and revising your estate plan after major life events — a marriage, divorce, birth of children or grandchildren, or the acquisition of new assets — can prevent unwanted consequences, such as your assets being passed to unintended beneficiaries
Because your assets might change, as well as your personal options, beliefs and relationships, it’s still a good idea to go through your estate plan about every three to five years.
9. Not updating your plan
No matter how much time and effort you put into planning your estate, your wishes might backfire if the wrong executor is chosen. Choosing someone who might have a conflict of interest can lead to problems when it comes time for them to administer your estate wishes. Select an individual (or individuals) who is unbiased, and get their permission before you assign them as an executor or trustee.
10. Appointing the wrong executor or trustee
The "One Big Beautiful Bill," which was signed into law by President Trump this past July, has stabilized estate planning by not only permanently extending but also enhancing key provisions from the 2017 Tax Cuts and Jobs Act (TCJA). Essentially, the Bill raises the federal estate, gift, and generation-skipping transfer (GST) tax exemption to $15 million per individual and to $30 million for married couples starting January 1, 2026, with inflation adjustments thereafter.
Not only does this protect more families from estate taxes, but it also offers long-term stability for transferring wealth across generations. It also reduces the need to gift large portions of your estate before year-end deadlines. In addition, the Bill strengthens tools such as ABLE accounts and 529 plans with permanent higher contribution limits and expanded qualified withdrawals.
11. Being unaware of how recent legislation has changed estate planning
How the job report impacts rates
The monthly jobs report is a key indicator that reflects the overall strength of the economy. When hiring slows and wages cool, it often signals less inflation pressure, which can help push borrowing costs lower. This softer backdrop has already played a role in the Federal Reserve’s decision to cut rates three times in 2024.
With no official payroll data released during the government shutdown, analysts have turned to private estimates for insight into the labor market. Early indicators suggest hiring may have improved slightly in September after employers added just 22,000 jobs in August, according to Kiplinger. Unofficial projections point to about 50,000 jobs added in September, though October’s data will likely show a net decline as roughly 100,000 federal workers who accepted buyouts earlier this year are removed from the job rolls.
Wage growth, which rose at an annual pace of 3.7% in August, is expected to slow to around 3.5% by year’s end. That moderation often lags broader labor market changes and signals a gradually cooling economy.
Even so, home affordability remains a challenge. Home prices are still elevated, and despite the recent dip in rates, demand has been subdued. That mix raises a familiar question for would-be buyers: Is now the time to lock in a mortgage, or is it better to wait for the market to cool further?
Should you buy a house now or wait?
Housing prices remain elevated, though they’ve softened somewhat. The median sales price of houses sold in the U.S. was $410,800 in July, according to Federal Reserve Economic Data. That’s down from last year’s peak, but affordability is still stretched for many buyers.
For would-be buyers, the math is tricky. Mortgage rates are still high enough to limit affordability, yet first-time buyers consistently make up about one-third of all sales, according to NAR, a sign that demand hasn’t disappeared. Buying offers stability and the chance to build equity, but renting remains the cheaper option in most markets.
Renters, however, aren’t getting much relief either. 48% of new apartments built this year were rented within three months, up from 47% the prior quarter, according to Redfin. With landlords regaining leverage, asking rents rose 2.6% year over year to $1,790 in August, the largest increase since late 2022.
In other words, there’s no universal answer on whether to buy now, wait or rent. The decision ultimately comes down to your personal finances and timeline. If you can comfortably qualify and plan to stay put long term, today’s market may still make sense. Otherwise, renting a bit longer could buy you time but be prepared for rising costs there, too.
Buy now if you need to move
Not everyone has the luxury of waiting until the housing market cools to buy a house. Maybe your job has transferred you across the country, or your one-bedroom apartment no longer works with your needs.
Even though renting is always an option, if you need to move and feel financially ready for homeownership, meaning you can qualify and meet the monthly mortgage payments and other expenses, it may be better to buy now versus wait. You can begin building equity while taking advantage of tax deductions from the interest you pay on a mortgage, home-related renovation costs and property taxes.
Buy now if you plan to stay put
If you intend to stay in your home for a long time, buying now rather than waiting might be smart. That’s because, at the current rate of home appreciation, the house you pass on now will likely cost you more in the future.
Beyond the purchase price, you’ll likely also pay thousands of dollars in closing costs when you buy a home. To justify those costs, it’s best to be reasonably confident you won’t be moving anytime soon. What’s more, selling a home very soon after buying can have serious tax implications.
Buy now if you’re financially stable
The best mortgage deals are available to people with the best credit scores. According to the Federal Reserve Bank of New York, the median credit score for mortgage borrowers was 770.
To qualify for a mortgage, you must demonstrate that you are at low risk of forfeiting on your monthly payments. It is also important to have enough in the bank for a down payment and closing costs, which usually range from 2% to 5% of the value of your mortgage and are paid in addition to your down payment.
Wait if you can’t afford to buy
As obvious as that sounds, if you can’t afford the monthly payments, let alone the closing costs, a down payment and other homeownership costs, then it might not pay to buy, at least right now.
Wait if you can’t find a home
For buyers struggling to find the right property, patience may pay off. Existing-home sales rose 1.5% in September, according to NAR, while unsold inventory climbed 1.3% to 1.55 million units, equal to a 4.6-month supply. That marks a five-year high, though supply remains below pre-pandemic levels.
The median existing-home price increased 2.1% year over year to $415,200, reflecting steady demand even as more listings reach the market.
NAR Chief Economist Lawrence Yun noted that many homeowners are financially stable, leading to few distressed or forced sales. With more options gradually emerging and prices still edging higher, waiting a bit longer could give buyers more choices without a major risk of missing out.
Direct File was a free way for taxpayers to file directly with the IRS. It was created after the tax agency found that many filers would be interested in such a program, with funding from the Inflation Reduction Act (IRA), signature legislation from the Biden administration.
For last year's 2024 tax filing season, Direct File's initial pilot proved a success across 12 participating states, with over 140,000 taxpayers using the service.
According to the IRS, most reported their experience with the program as “Excellent” or “Above Average.”
In tax season 2025, the Direct File program opened on January 27 (the day the IRS officially began accepting returns), and 30 million taxpayers were expected to be eligible.)
However, participation was on a state-by-state basis. Basically, you could only use Direct File if you lived in a nonparticipating state, the District of Columbia, or a U.S. territory.
What was IRS Direct File?
Direct File was a free way for taxpayers to file directly with the IRS. It was created after the tax agency found that many filers would be interested in such a program, with funding from the Inflation Reduction Act (IRA), signature legislation from the Biden administration.
IRS Free File vs. Direct File: What’s the difference?
Although they may have similar names, the IRS Direct File program differed from Free File. Free File partners with private-sector companies to offer free tax filing services, while Direct File was an option to file directly through the IRS.
Unique eligibility requirements also separated the two programs. Free File is generally for taxpayers with lower- to middle-income. For tax year 2025, that’s an adjusted gross income (AGI) of $84,000 or less (for guided tax software).
When children are young, it can be hard to meet immediate costs, let alone save for the future, but these five habits can help build lasting financial security.
Raising a family is one of life's most rewarding journeys, but it's also one of the most expensive.
As of 2023, raising a child from birth to the age of 18 could cost an average of $331,933, according to Northwestern Mutual.
Between child care, housing costs and saving for college tuition, it's easy to feel like you're constantly playing catch-up. As a financial planner and a parent, I know firsthand how overwhelming it can be to juggle it all.
The good news is you don't need to make millions or have a crystal ball to create stability. A few smart financial habits can help make a world of difference. This article contains five important financial tips that every young family should know.
Kiplinger's Adviser Intel, formerly known as Building Wealth, is a curated network of trusted financial professionals who share expert insights on wealth building and preservation. Contributors, including fiduciary financial planners, wealth managers, CEOs and attorneys, provide actionable advice about retirement planning, estate planning, tax strategies and more. Experts are invited to contribute and do not pay to be included, so you can trust their advice is honest and valuable.
NYSUT NOTE: Not sure where to start with your estate planning? The NYSUT Member Benefits Trust-endorsed Legal Service Plan not only offers expert legal advice, but also grants members access to a network of attorneys nationwide. Apply now.
When children are young, it can be hard to meet immediate costs, let alone save for the future, but these five habits can help build lasting financial security.
Raising a family is one of life's most rewarding journeys, but it's also one of the most expensive.
As of 2023, raising a child from birth to the age of 18 could cost an average of $331,933, according to Northwestern Mutual.
Between child care, housing costs and saving for college tuition, it's easy to feel like you're constantly playing catch-up. As a financial planner and a parent, I know firsthand how overwhelming it can be to juggle it all.
The good news is you don't need to make millions or have a crystal ball to create stability. A few smart financial habits can help make a world of difference. This article contains five important financial tips that every young family should know.
Kiplinger's Adviser Intel, formerly known as Building Wealth, is a curated network of trusted financial professionals who share expert insights on wealth building and preservation. Contributors, including fiduciary financial planners, wealth managers, CEOs and attorneys, provide actionable advice about retirement planning, estate planning, tax strategies and more. Experts are invited to contribute and do not pay to be included, so you can trust their advice is honest and valuable.
Insurance may not be exciting, but it can be your family's safety net. Without it, a single event could possibly derail years of progress. At a minimum, young families should prioritize:
Insurance may not be exciting, but it can be your family's safety net. Without it, a single event could possibly derail years of progress. At a minimum, young families should prioritize:
NYSUT NOTE: To learn more about building out your emergency fund for life’s unexpected moments, contact NYSUT Member Benefits Corporation-endorsed Synchrony Bank. Synchrony Bank not only offers competitive interest rates on High Yield Savings accounts, but also Certificates of Deposit (CDs) and Money Market accounts.
2. Create (and stick to) a family budget
Insurance may not be exciting, but it can be your family's safety net. Without it, a single event could possibly derail years of progress. At a minimum, young families should prioritize:
2. Create (and stick to) a family budget
Budgets are just a map of where your money is going and whether it's taking you in the right direction. Begin by tracking your income and expenses, then categorize them into essentials (such as housing, food, child care and utilities) and non-essentials (like streaming subscriptions, eating out and luxury items).
When you see where your money is going, it's easier to cut back in some areas and redirect those dollars to bigger goals. A budget isn't about deprivation. It's about aligning spending with what truly matters to you and your family.
Apps like YNAB, Quicken Simplifi or Monarch make budgeting more user-friendly and less spreadsheet-intensive, although I'm a spreadsheet enthusiast myself.
5. Invest in your retirement
When you're juggling child care and household expenses, it's tempting to postpone retirement savings. But here's the hard truth: You can borrow for college, but you can't borrow for retirement.
If your employer offers a 403(b), contribute at least enough to capture the full company match, as this essentially amounts to free money. From there, aim to save 15% to 20% of your gross income toward retirement.
If a 403(b) isn't available, look into an IRA or Roth IRA for tax-advantaged growth. Your future self and adult future children will thank you.
NYSUT NOTE: Protect your family with NYSUT Member Benefits Trust-endorsed Term Life Insurance. A Term Life Insurance plan will help loved ones continue to pay for daily living expenses including your mortgage, gas, food, and any final medical expenses.
How much life insurance do you need?
Overall, life insurance is a personal affair. Two couples may earn equal salaries, but it’s silly to say that someone with four young children should have the same coverage as empty nesters with no mortgage and a substantial retirement fund. Additionally, you’ll likely experience life events that call for changes in your insurance: marriage, parenthood, homeownership, college expenses and retirement.
Instead of relying on rules of thumb, you’re better off taking a systematic approach to figuring out your life insurance needs. That’s easier than it sounds, as you’ll see from the following process because it "truly is an art as well as a science," says Tim Maurer, a financial planner in Charleston, S.C., and coauthor of The Financial Crossroads. Here's what you need to know.
1. Final expenses
The first category is your final expenses. A funeral and related expenses average $6,280 for cremation or $8,300 for burial, according to the National Funeral Directors Association. But the actual cost can vary widely as details like the type of grave marker or the casket chosen can dramatically influence the final price. Additional expenses like meal catering or travel and accommodations for loved ones attending the funeral from out of state can also bring that cost up further.
Your beneficiaries may be able to get the tax-free proceeds from insurance faster than if they waited for money from your estate. Use $15,000 as a ballpark number. But you can also pre-plan your funeral to get a better estimate of how much coverage you'd need here. Funeral planning can also prevent further grief by taking the burden of those logistical decisions off of your family.
2. Mortgages and other debts
Total your mortgage balance, car loans, student loans and any other debts that would be a heavy burden on your survivors. They may choose not to retire the mortgage, especially if the interest rate is low, but the money should be available so that they won’t face the prospect of being forced to sell.
3. Education expenses
This calculation can be tricky because you need to consider the cost of college at the time your kids enroll. For instance, the average cost of tuition at public 4-year institutions increased 20.8% from 2012 to 2023. For private institutions or out-of-state students, tuition rates are rising even faster.
Maurer recommends looking up current costs for the colleges you’re considering, deciding whether you want the insurance to cover all or a portion of the tab, and adding the amount in today’s dollars to your life insurance calculation.
4. Income replacement
Once you cover funeral expenses, debts and education, your family may not need to replace 100% of your income — and that’s where the hard part of the calculation comes in. Maurer recommends covering 50% of current pretax earnings until retirement.
You can translate this into a target lump-sum benefit by dividing it by 0.05. For example, if you earn $100,000, divide $50,000 by 0.05, which works out to $1 million. That assumes the insurance benefits will earn 5% a year over the long haul, a conservative back-of-the-envelope figure.
Calculating your total coverage needs
Add all four categories to estimate how much life insurance is appropriate, then tweak the number to reflect personal circumstances. You might increase it if you don’t have a pension, but you could decrease your coverage if your spouse earns a substantial salary.
If you or a family member has a troublesome medical history, add $100,000 or even $250,000. If you’re the one with the medical condition, you’ll find it tough to buy additional coverage later at a price you can afford.
For most families, this exercise will work out to an amount in the high six figures, possibly even $1 million or more. But don’t be frightened. With term insurance, boosting your death benefit by hundreds of thousands of dollars should cost just a few hundred dollars a year.
Example:
A healthy 40-year-old male nonsmoker might be considering a 20-year, $500,000 term policy for $360 per year. But he could buy $850,000 of coverage for $576, or a $1-million policy for $645, says Byron Udell, owner of AccuQuote, which represents dozens of life insurers.
Women pay less — just $311 per year for $500,000 in coverage and $558 for $1 million. It’s not as easy as it used to be to qualify for the absolute lowest rates.
Example:
A healthy 40-year-old male nonsmoker might be considering a 20-year, $500,000 term policy for $360 per year. But he could buy $850,000 of coverage for $576, or a $1-million policy for $645, says Byron Udell, owner of AccuQuote, which represents dozens of life insurers.
Women pay less — just $311 per year for $500,000 in coverage and $558 for $1 million. It’s not as easy as it used to be to qualify for the absolute lowest rates.
Time
How many years will you need life insurance? If you’re in fine physical shape, you can buy a new policy and lock in the price for 20 years.
Some term policies come with the right to convert to a permanent life insurance policy, like whole life insurance. You can keep this type of life insurance for the rest of your life regardless of health. Premiums will be higher than for term life insurance at the beginning, but they usually remain level indefinitely.
The best reason to consider whole life or universal life insurance isn’t the accumulating cash value, although that’s part of the deal. The real issue is whether you’ll need coverage beyond 20 or 30 years — or after age 65 when term gets expensive.
You might want permanent life insurance, for example, if you need to protect kids with special needs who will always rely on you (or your estate) for support, or if you want to leave money to a school, charity or your children and you don’t expect to afford it any other way.
Below are several instances when you should seek additional life insurance coverage.
Below are several instances when you should seek additional life insurance coverage.
Major life events
Below are several instances when you should seek additional life insurance coverage.
Adult children
The need for ongoing money conversations doesn't end when a child has left the home. Research reveals the majority of parents (75%) plan to help their adult children fund goals and milestones such as a wedding, a down payment on a home and vacations.
While well-intentioned, such generosity can put parents' financial futures at risk if it means sacrificing retirement savings or other important long-term goals.
If you do choose to contribute financially, be clear about whether the money is a gift or a loan to avoid confusion or tension down the road. It's about finding the right balance between assisting your grown children and instilling financial independence.
Additionally, a first job post-college is the perfect opportunity to discuss steps children can take to establish a strong financial foundation.
Encourage children to take advantage of every employee benefit available to them, such as applying for health, life and disability insurance and maximizing their 403(b) match to ensure they're not leaving money on the table.
Parents may also want to discuss the risks and opportunities that come with investing, or share their own experiences with market fluctuations. A parent's candidness can help children take advantage of market volatility, rather than fearing it.
Parents already have a lot on their plates when it comes to raising a family, and finances can be a source of stress in the best of times, let alone during periods of market volatility.
The good news is you don't have to initiate conversations alone: A financial adviser can help.
According to the Ameriprise study, nearly 9 in 10 parents (88%) working with a financial adviser say the advice was helpful in making financial decisions related to their children. The research reveals parents are seeking guidance on:
Parents already have a lot on their plates when it comes to raising a family, and finances can be a source of stress in the best of times, let alone during periods of market volatility.
The good news is you don't have to initiate conversations alone: A financial adviser can help.
According to the Ameriprise study, nearly 9 in 10 parents (88%) working with a financial adviser say the advice was helpful in making financial decisions related to their children. The research reveals parents are seeking guidance on:
Parents already have a lot on their plates when it comes to raising a family, and finances can be a source of stress in the best of times, let alone during periods of market volatility.
The good news is you don't have to initiate conversations alone: A financial adviser can help.
According to the Ameriprise study, nearly 9 in 10 parents (88%) working with a financial adviser say the advice was helpful in making financial decisions related to their children. The research reveals parents are seeking guidance on:
NYSUT NOTE: Whether you’re curious about starting an emergency fund, looking into life insurance or budgeting for your family, NYSUT Member Benefits Corporate-endorsed Financial Counseling Program can help. Apply today to receive customized advice based on your unique needs.
What borrowers and cosigners should know
Parent PLUS loans allow parents (and sometimes grandparents) to borrow directly for a student’s education, but the catch is that the debt sits squarely on the cosigner’s credit report.
There are nearly 3.8 million Parent PLUS borrowers, with outstanding balances soaring over $110 billion in recent years. If the student misses payments or if you co-signed a private student loan, your own credit score can plummet just as quickly either way.
A recent analysis from VantageScore shows that resuming student loan reporting led to credit drops of up to 129 points for delinquent borrowers, which can translate to serious financial setbacks for anyone depending on good credit for mortgages, refinances or a new loan.
How delinquencies impact credit scores
When a payment is 30 days past due, servicers may report the late status. Once it reaches 60 or 90 days, the hit becomes more severe. The New York Fed estimated more than nine million borrowers would see significant drops in the first half of 2025 when reporting resumed.
For older borrowers with established credit histories, a sudden 100+ point drop can disrupt plans like refinancing a mortgage, securing a home equity line or locking in favorable auto loan rates.
You might think, “I’ve managed credit responsibly for decades, surely a blip won’t matter.”
But, credit score shifts can trigger higher interest rates, additional fees or even outright loan denials. For example, a drop from near-800 territory into the mid-600s could increase mortgage refinance rates by a percentage point or more, potentially adding thousands in interest over the life of a loan.
Auto loans, insurance premiums and credit card approvals similarly hinge on credit tiers. Even if you’re financially comfortable, unexpected credit damage complicates reverse mortgages or big-ticket purchases. And since Parent PLUS balances often exceed $30,000 on average, the stakes are high if payments slip.
The importance of monitoring your credit regularly
The best defense is knowing in real time when your credit changes. Sign up for credit-monitoring services that alert you to score shifts or new negative entries.
Check your credit reports from the three bureaus at least once a year and ideally more often now that student loan reporting has resumed.
Many services also notify you if there’s a new inquiry or if a payment status changes. If you see any odd activity like a suddenly past-due status you don’t recognize, contact the loan servicer immediately to clarify or correct errors.
Repayment options and credit implications
Parent PLUS loans offer consolidation into a Direct Consolidation Loan, unlocking Income-Contingent Repayment (ICR), which can lower monthly payments based on income. But keep in mind that this option may extend repayment length and total interest paid.
Private loans vary by lender but sometimes allow refinancing if your credit is still strong and your income is steady. Although refinancing removes federal protections and forgiveness options.
If you anticipate you or the borrower you cosigned for having a tight cash flow, explore deferment or forbearance, but be aware these may pause payments temporarily while accruing interest and still risk credit impact when re-entering the repayment process.
Always weigh short-term relief against long-term credit health.
Communication and coordination with everyone involved
Open dialogue is key: set up a repayment plan where the student contributes if possible or at least commits to alerting you before a missed payment. You can also automate payments via autopay to avoid oversight.
Use shared calendars or notifications to track due dates. If you co-signed a private loan, consider asking the student to refinance into their own name once they have credit established, relieving you of risk.
The simple act of clear communication can prevent surprises that lead to delinquencies.
Steps to take if a payment will be missed
If you suspect a payment may be missed due to budget constraints or miscommunication, contact the servicer immediately. Discuss temporary options like short-term forbearance, but request clarity on how it will be reported to credit bureaus.
If possible, arrange a small one-time payment or extension to avoid passing the 30-day delinquency threshold. Understanding these options early can prevent a small hiccup from ballooning into a major credit event.
For Parent PLUS borrowers, consider consolidation into ICR as noted, or, if applicable, Public Service Loan Forgiveness (PSLF) after consolidation and qualifying employment. If private loans are part of the picture, refinancing should be tackled before credit slips too far.
Some families choose to make a lump-sum payment from savings or gift arrangements to bring accounts current. You can also review your options and brainstorm some next steps with a financial advisor as well for more help and clarity.
Question:
I bought a house when mortgage rates were 6.5%. If rates fall to 6.25% or 6.0%, would refinancing make sense and actually save me money?
The half-point drop dilemma
A recent analysis modeled what refinancing would look like on a $400,000 mortgage. The results show that a half-point dip (from 6.5% to 6.0%) doesn’t always provide the quick savings many expect.
The magic 0.75-point threshold
For most homeowners, refinancing becomes worthwhile once mortgage rates drop at least 0.75 percentage points. At that level, you reach break-even in under three years, which is often the time horizon financial experts recommend.
And if you can capture a full 1-point reduction, the payoff is clear: you’d break even in under two years and see more than $5,000 in net savings within three years. That’s why many experts call the 0.75-point reduction the “sweet spot” for refinancing.
Your state and your loan size can dramatically change how quickly refinancing pays off.
Your state and your loan size can dramatically change how quickly refinancing pays off.
Your state and your loan size can dramatically change how quickly refinancing pays off.
In states with higher home prices, like California, New Jersey, or Washington, D.C., the larger loan amounts mean that even small drops in interest rates add up to significant monthly savings. That shortens the break-even timeline.
In states with lower average home values, such as Michigan, Indiana, or Ohio, the savings are smaller because loan balances are smaller. That makes the break-even point stretch out longer, sometimes beyond three years, unless rates fall by a full percentage point.
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You can drop your rate by 0.75% or more: This is the most common signal that refinancing makes sense. If you’re moving from 6.5% to 5.75%, your monthly savings could be enough to justify the upfront costs in a relatively short period of time.
You want a shorter loan term: Refinancing doesn’t have to mean starting over on a 30-year loan. Many borrowers refinance into 15- or 20-year loans to pay off their homes faster and save on interest, even if their monthly payment stays roughly the same. This strategy works well if your income has increased or if you’re focused on debt-free living.
You’re dropping private mortgage insurance (PMI): If your home value has risen enough for you to have 20% equity, refinancing may help eliminate PMI which can save you an additional $100–$200/month.
You’re consolidating debt at a lower rate: Some homeowners choose a cash-out refinance to pay off high-interest credit cards or personal loans. This can lower your overall monthly payments and interest costs, but it also resets your mortgage clock, so be careful not to turn short-term debt into long-term debt unless it fits your financial goals.
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Common mistakes to avoid
Refinancing your mortgage can be a smart financial move, but it’s easy to get caught up in the excitement of a lower interest rate and overlook the bigger picture.
By being aware of and avoiding these common mistakes, you can avoid wasting money on a refinance that doesn’t actually benefit you or help improve your financial situation.
3. Motion-sensor lights and smart bulbs
Outdoor motion-sensor lights can deter break-ins and improve the visibility around your home. Since the lights only turn on when activated, they can help save you money on your electrical bill while improving your home’s security.
You can install many motion-sensor lights in place of an outdoor flood light, but you’ll need some electrical knowledge since the lights will have to be wired in.
Solar motion-sensor lights, like the Bell + Howell Bionic Spotlight Solar Powered Motion Sensor Flood Light, are much simpler to install and can be easily relocated around your home and yard as needed.
4. Security window film
Security window film helps strengthen your glass windows, absorbing impacts from a break-in attempt and helping to prevent the window from shattering.
Some window films also darken your windows to prevent burglars from being able to easily see into your home.
Window film is easy to install and can be left in place for years. It may help to slow or deter break-ins, and can also help minimize storm damage.
5. Video doorbells
Video doorbells are affordable and easy to install, and many can pair with your smart security system.
While some doorbells are designed to be hardwired, there are plenty of battery-powered options, like the Ring Battery Doorbell Plus, that make for an easy DIY installation.
If you’re renting your home, look for a no-drill video doorbell mount that’s easy to install and just as easy to remove when it’s time to move out.
With a video doorbell, you can answer your door and speak with visitors even when you aren’t home. The doorbells also capture and store video footage that you can use as evidence in case you need to file a home insurance claim. These doorbells offer peace of mind and are a great investment in your home’s security.
The average price of a new car just hit over $50,000, according to Kelley Blue Book. “There were steep price increases after the COVID-19 pandemic, and prices remain at an elevated level,” says Chase Gardner, data insights manager at Insurify, an online car insurance quote marketplace.
1. Prepare for sticker shock
Given the skyrocketing prices, monthly payments have also gone up. You can get a feel for your expected loan payment using a website like Calculator.net.
Consider a budget “test drive,” says Rex. “For a few months, set aside what you expect to pay on the new car and see if it’s doable.” Don’t forget about adding money for insurance, registration and maintenance. At the end of the test, you’ll have extra cash for a down payment.
It’s especially important to plan ahead if you’ve recently retired on a fixed income and have a different household budget than when you were working. The number of people struggling and missing car payments is climbing quickly for consumers of all income levels because of high prices and interest rates. Avoid getting locked into something uncomfortable.
2. Consider going for a 'budget' test drive
As always, when getting a new car, the question is whether to buy or lease. When you buy, payments start higher, and you’re responsible for more repairs and maintenance. But after you pay off the loan, payments stop. Plus, you can later sell the vehicle or trade it in.
Leasing is a long-term rental, so the payments never end. However, you can regularly replace your vehicle with a new model every few years at the end of each lease, and you don’t have to repair damage from normal wear and tear.
Given the tradeoffs, Rex finds leasing to be a more convenient fit for retirees, especially if they plan to continue driving for only a few years. “When it’s done, you just hand the vehicle back to the dealer. There’s no hassle of selling,” says Rex. Just be aware of any mileage caps and restrictions if you drive a lot. For snowbirds who go between New York and Florida every winter, leasing is probably not the right fit.
3. Leasing simplifies things
If you’re going to buy, think about whether it could make sense to pay off the entire vehicle at once using your savings.
Paying up front means you don’t have an ongoing loan payment and won’t be charged interest. On the other hand, you no longer have the money to invest. If you make a lump sum withdrawal from a pre-tax traditional Individual Retirement Account or 403(b), the entire amount will be taxable, could push you into a higher bracket and create surcharges on your Medicare premiums.
Borrowers with strong credit scores (650+) today pay between 5% and 7% for a new car loan, while subprime borrowers face double-digit interest rates. “If your investments are earning more than your quoted loan rate, financing could make sense,” says Rex, the financial planner from Virginia Beach.
4. Weigh financing versus paying out of savings
A new provision in the One Big Beautiful Bill Act allows taxpayers to deduct up to $10,000 per year in car-loan interest from 2025 through 2028 on new, U.S.-assembled vehicles. Used car purchases and leases don’t qualify.
You can claim this tax break even if you use the standard deduction, making it more accessible than deductions that require itemizing. If you paid off your home and no longer qualify for the mortgage interest deduction, this new tax break can help make up the difference. The loan interest deduction does phase out for individuals with a modified adjusted gross income over $100,000 and for married joint filers with an MAGI over $200,000.
5. Your loan interest could be deductible
When researching and test-driving, think about whether a vehicle would make your life easier and keep you safe on the road. “For most retirees, the best vehicle choice is a small SUV or midsize sedan,” says Gardner from Insurify. “They’re easy to park, have a higher seating position and offer great visibility.”
If you spent your career driving a high-powered sports car or dreamed your whole life about getting one in retirement, ask whether this is the wisest move. They’re expensive to repair and less reliable. “No one wants to worry about a car breaking down on the way to a doctor’s appointment,” says Rex.
The faster speed increases the chances of an accident, especially if your reaction time is not what it used to be. Plus, since sports cars are lower to the ground, they are harder to get in and out of.
6. Consider comfort and convenience
If it’s been years since you bought a car, you might be taken aback at how much the technology has changed. And often, not in a good way: distracting touchscreens instead of physical buttons, facial recognition instead of keys to start the car, and even pop-up video ads in some vehicles.
Not all innovations are a step in the wrong direction. Some have come a long way to reduce accidents, especially for tired and fatigued drivers: automatic emergency braking, blind-spot monitoring, lane-keeping assistance and backup cameras.
Still, even these safety features take getting used to. The typical 15-minute test drive might not be enough to really see if a car is a fit for your style. If you have your eye on a specific model, consider renting it for a weekend before deciding.
7. New tech can keep you safe, but also create headaches
Car insurance rates skyrocketed after the COVID-19 pandemic, something you certainly noticed with your current bill. Even though rate hikes have slowed, premiums remain high. Keep this in mind when deciding what to buy.
Newer cars are more expensive to insure than used ones, because they have more costly parts and technology. Sports cars are also more expensive to cover, given the additional risk of a crash. You’ll enjoy an insurance discount when you start retirement, but only to a certain point.
“Drivers in their 60s enjoy the lowest average full-coverage premiums, about $155 per month,” says Gardner. “For drivers in their 70s and beyond, rates creep up as insurers factor in slower reaction times.” You can lower costs by taking a defensive driver’s course or using a pay-by-the-mile insurance policy if you aren’t on the road often.
8. Understand car insurance costs
If you own multiple cars from when the kids were living at home, ask whether you still need more than two, or even more than one. Giving up one of your cars in retirement can lead to real savings. Each vehicle increases costs for registration, insurance and maintenance even if they aren’t being driven often. Demand for used cars is extremely high, making it a seller’s market. You may be surprised by how much you get for your old vehicles.
9. Downsizing simplifies things
Put your oxygen mask on first
It's hard to save for any long-term goal, including your child's education, when an unexpected expense can wreak havoc on your finances. That's why it's important to establish an emergency savings fund for those unexpected expenses before you start saving for other goals.
While you're at it, check to make sure you are putting these funds in a savings vehicle where you are getting the returns you deserve. The average bank's savings account yield is only 0.40%, well below the latest annualized inflation rate of 2.92%.
Consider looking at cash management accounts, with stronger interest rates, such as Vanguard's Cash Plus Account, which can yield nine times more than a traditional bank savings account.
By saving in a high-yielding savings vehicle, you can demonstrate to your children the importance of where you save and the benefits of long-term compound interest while building a savings buffer for unexpected expenses so they do not interfere with your long-term savings goals.
1. Long-term care insurance pays out a set benefit
When you buy LTC insurance, you decide how much coverage you want. It’s usually a maximum daily or monthly benefit, such as up to $6,000 per month for a nursing home or a home healthcare worker. Some policies will only reimburse you for what you spend on care, while others will send you cash for the value of the benefit once you start needing care, regardless of the actual cost.
You also pick a waiting period, during which you need to cover costs before the coverage begins. A ninety-day period is the most common. For an added charge, your coverage amount can increase over time, so that your coverage keeps up with rising costs.
2. Insurers cap your lifetime benefit
Insurers once offered unlimited benefits for long-term care policies, but today, they usually limit payments to three to five years. You also pick the maximum possible payout from the policy. For example, a policy might pay out $165,000 total for care. If you spend past the policy limits, you’ll be back on your own.
The policy limits fit the needs of most retirees. Men, on average, need 2.2 years of long-term care, while women, on average, need 3.7 years, based on recent data. About 20% of 65-year-olds end up needing care for five years or longer. Ludden ran into this situation with her mother. “After four years, her policy ran out, and she had to use her funds to cover the facility for two months.”
3. Insurance can enhance government benefits
If you have long-term care insurance, you could use the policy to pay for a better facility that doesn't accept Medicaid. If your policy runs out and you do end up going onto Medicaid, some state governments consider whether you bought insurance beforehand, says Genworth’s Ludden.
For example, say you buy $250,000 of LTC insurance coverage and spend down the entire policy, forcing you to pay for care with your personal savings. Depending on the state, the government might let you qualify for Medicaid benefits before you spend the last $250,000 of your other assets.
4. Premiums are expensive, especially for women
Long-term care insurance is not a cheap product. The cost depends heavily on your age and gender. A 55-year-old male in standard health would pay $2,075 per year for a $165,000 LTC policy with a 3% inflation rider, growing to about $400,500 by age 85. A 55-year-old female would pay $3,700 per year for the same policy, according to the American Association for Long Term Care Insurance. Women pay more than men because they typically live longer and are more likely to need extended long-term care.
A 65-year-old male would pay $3,280 per year for the same coverage, while a 65-year-old female would pay $5,290 per year. If you’re married or in a committed relationship, you can qualify for a discount on a joint policy that covers both of you.
Long-term care insurance policies use level premiums, meaning that after you sign up, the insurer cannot increase the cost based on your age and health. Buying younger can lock in a better deal. Insurers can increase rates for all policyholders but only if they can prove to the government that it’s needed to support future payouts, not for extra profits.
5. Prices for newer long-term care insurance policies have stabilized
When LTC insurance first came out, companies didn’t properly understand this market and charged too little for the payouts. As a result, they ended up repricing and raising rates for existing policyholders.
“The new policies sold today have factored in the things that caused issues with older policies. While no one can guarantee you won’t face a substantial rate increase due to a market adjustment, it’s very unlikely,” says Slome.
6. You can use partial protection
"LTC insurance doesn’t have to be an all-or-nothing proposition," says Slome. If you’re concerned about the cost, he suggests getting a policy for a lower amount with the plan to cover the remaining costs with your savings. For example, if you think long-term care will cost you about $6,000 a month, you could get a policy for $3,000 and pay the remaining $3,000 out of your assets.
There are also short-term care policies that only pay out benefits for one year but cost much less than long-term care insurance. These policies charge both genders the same prices, making them a better deal for women. Medicare provides short-term care in a facility for a stay of up to 100 days, but not beyond that.
7. You must pass health underwriting to buy long-term care insurance
LTC insurance companies do not accept every applicant. You must meet the health underwriting standards and apply while still reasonably healthy. “You can’t wait until you’re in a facility and need help paying bills to apply. By then, it’s way too late,” says Slome. People aged 55 to 69 in reasonably good health are generally the best fit for LTC insurance, says Slome. Eighty is the maximum age to apply at most companies.
Once you qualify for LTC insurance, the coverage is usually guaranteed renewable for your entire life as long as you keep paying the premiums. If you let the policy lapse and reapply, you would need to pass health underwriting again.
8. There are alternative ‘hybrid’ products
You can buy a life insurance policy that includes long-term care policy coverage. If you need care, the policy pays out some or all of the death benefit while you’re still alive. If you pass away without needing long-term care, your heirs receive the full policy death benefit.
“There’s a payout either way. It’s not a use-it-or-lose-it scenario like stand-alone long-term care insurance,” says Jordan Mangaliman, chief executive of Goldline Insurance and Financial Services in Fullerton, California.
You could qualify for life insurance into your seventies if you’re in good health, says Mangaliman. Life insurance policies usually pay a lower total benefit for care versus similarly priced LTC insurance policies. You must also read the fine print for when your life insurance would pay.
Another option is to buy an annuity. You pay for the annuity upfront, and in exchange, it gives you future income payments that can be guaranteed to last your entire life. Some annuities offer a long-term care benefit. For example, an annuity might double your monthly payment for several years when you need long-term care, says Mangaliman. In exchange, adding this benefit could reduce your starting monthly annuity payments.
9. It pays to compare insurers before buying
Each insurance company has its own rates and health underwriting standards. Before signing up, you should get a few quotes from different companies.
Mangaliman suggests using an insurance broker representing multiple insurance companies to speed up the process. When comparing, consider each insurance company’s A.M. Best rating for financial stability to pay future claims and J.D. Power score for customer satisfaction.
The long-term care insurance market is small, with only six insurers selling stand-alone policies: Mutual of Omaha, Thrivent, National Guardian Life, New York Life, Northwestern and Bankers Life. In terms of quality, insurers tend to offer similar levels of coverage, and the main difference is the price they quote for you.
“It’s not like one company will sell you a Mercedes while another is a Honda. With LTC insurance, they’re all Hondas,” says Slome.
1. Codicil: A formally executed document that amends the terms of a will so that a complete rewriting of the will is not necessary. It will either explain, modify or revoke aspects of an established document.
Purpose: Codicils are required to change/update your will after significant life changes such as births, deaths, marriages, divorces or moving out of state.
2. Conservator: An individual or a corporate fiduciary appointed by a court to care for and manage the property of an incapacitated person in the same way that a guardian cares for and manages the property of a minor.
Purpose: A conservator's primary purpose is to protect the financial and/or personal well-being of an individual who is unable to manage their own affairs due to incapacity or legal limitations.
3. The Generation-Skipping Transfer Tax (GSTT): a separate tax that is imposed in addition to the estate tax. It is applied to outright gifts and transfers in trust that exceed the GSTT exemption. These transfers, which can occur during one's lifetime or at death, are made to beneficiaries who are two or more generations younger than the donor, such as grandchildren or great-grandchildren. The tax is currently calculated at a flat rate of 40%, which is equal to the top estate and gift tax rate
Purpose: The GSTT is designed to prevent the avoidance of gift or estate tax at the skipped generational level. Some states also impose a state-level generation-skipping transfer tax.
4. Gross Estate: This estate planning term refers to the total value of an individual's property at the time of their death. It also encompasses certain assets they previously transferred, which are still subject to federal estate tax regulations.
Purpose: This comprehensive valuation is a key component in determining federal estate tax liability.
5. GSTT exemption: The GSTT exemption amount is $13.99 million per individual in 2025. The amount is currently set to revert to a $5 million baseline in 2026, and is projected to be $7 million when indexed for inflation, unless Congress acts prior to this date to extend the increased exemption.
Purpose: The exemption allows you to reduce or potentially eliminate the transfer taxes associated with gifting or passing money to grandchildren or other skip beneficiaries.
6. Heir: A person entitled to a distribution of an asset or property interest under applicable state law if you die intestate due to the absence of a will. “Heir” and “beneficiary” are not interchangeable, although they may refer to the same individual in a particular case. Anyone you chose to leave a bequest is a beneficiary, only those related by blood or law can be your heir.
Purpose: If you die without a valid will, you die intestate, and your state's intestacy laws determine how your assets are distributed, typically to close relatives. Intestate succession laws would then dictate the order in which your assets are distributed to your heirs.
7. Life estate: A life estate grants a beneficiary, also called the life tenant, the legal right to use a property for the duration of their life under state law. This represents the entirety of their interest in the property.
Purpose: Life estates provide a straightforward way to transfer property ownership to the next generation without the complexities of a will or trust. Because following the death of the life beneficiary, the title fully vests the person named in the deed or trust agreement. This person might be referred to as ‘the remainderman.’
8. Operation of law: The way some assets will pass at your death, based on state law or the ownership of the asset, rather than under the terms of your will.
Purpose: Ease and avoidance of probate; no specific steps need to be taken by the parties for the transfer to occur. These accounts or assets have a named beneficiary, such as a life insurance policy, retirement plan or a Transfer on Death (TOD) account.
9. Payable on death (POD) and Transfer on death (TOD) designations: POD and TOD are types of beneficiary designations for a financial account that will automatically pass title to the assets at death to a named individual or revocable trust outside of probate.
Purpose: POD and TOD accounts can be a simple and effective way to ensure the transfer of ownership of an account or policy to your chosen beneficiary.
10. Per Stirpes: This Latin term, meaning "per branch," describes a method of distributing property in estate planning. It follows the family tree, with descendants inheriting the share their deceased ancestor would have received if alive. Under per stirpes, each branch of the named individual's family is entitled to an equal portion of the estate.
How it works:
If all adult children are living, each receives an equal share
If an adult child has passed away, that adult child's share is divided equally among their children
Purpose: It simplifies planning by eliminating the need to name specific contingent beneficiaries for every possible scenario. And it ensures that each "branch" of the family receives an equal share.
1. Codicil: A formally executed document that amends the terms of a will so that a complete rewriting of the will is not necessary. It will either explain, modify or revoke aspects of an established document.
Purpose: Codicils are required to change/update your will after significant life changes such as births, deaths, marriages, divorces or moving out of state.
2. Conservator: An individual or a corporate fiduciary appointed by a court to care for and manage the property of an incapacitated person in the same way that a guardian cares for and manages the property of a minor.
Purpose: A conservator's primary purpose is to protect the financial and/or personal well-being of an individual who is unable to manage their own affairs due to incapacity or legal limitations.
3. The Generation-Skipping Transfer Tax (GSTT): a separate tax that is imposed in addition to the estate tax. It is applied to outright gifts and transfers in trust that exceed the GSTT exemption. These transfers, which can occur during one's lifetime or at death, are made to beneficiaries who are two or more generations younger than the donor, such as grandchildren or great-grandchildren. The tax is currently calculated at a flat rate of 40%, which is equal to the top estate and gift tax rate
Purpose: The GSTT is designed to prevent the avoidance of gift or estate tax at the skipped generational level. Some states also impose a state-level generation-skipping transfer tax.
4. Gross Estate: This estate planning term refers to the total value of an individual's property at the time of their death. It also encompasses certain assets they previously transferred, which are still subject to federal estate tax regulations.
Purpose: This comprehensive valuation is a key component in determining federal estate tax liability.
5. GSTT exemption: The GSTT exemption amount is $13.99 million per individual in 2025. The amount is currently set to revert to a $5 million baseline in 2026, and is projected to be $7 million when indexed for inflation, unless Congress acts prior to this date to extend the increased exemption.
Purpose: The exemption allows you to reduce or potentially eliminate the transfer taxes associated with gifting or passing money to grandchildren or other skip beneficiaries.
6. Heir: A person entitled to a distribution of an asset or property interest under applicable state law if you die intestate due to the absence of a will. “Heir” and “beneficiary” are not interchangeable, although they may refer to the same individual in a particular case. Anyone you chose to leave a bequest is a beneficiary, only those related by blood or law can be your heir.
Purpose: If you die without a valid will, you die intestate, and your state's intestacy laws determine how your assets are distributed, typically to close relatives. Intestate succession laws would then dictate the order in which your assets are distributed to your heirs.
7. Life estate: A life estate grants a beneficiary, also called the life tenant, the legal right to use a property for the duration of their life under state law. This represents the entirety of their interest in the property.
Purpose: Life estates provide a straightforward way to transfer property ownership to the next generation without the complexities of a will or trust. Because following the death of the life beneficiary, the title fully vests the person named in the deed or trust agreement. This person might be referred to as ‘the remainderman.’
8. Operation of law: The way some assets will pass at your death, based on state law or the ownership of the asset, rather than under the terms of your will.
Purpose: Ease and avoidance of probate; no specific steps need to be taken by the parties for the transfer to occur. These accounts or assets have a named beneficiary, such as a life insurance policy, retirement plan or a Transfer on Death (TOD) account.
9. Payable on death (POD) and Transfer on death (TOD) designations: POD and TOD are types of beneficiary designations for a financial account that will automatically pass title to the assets at death to a named individual or revocable trust outside of probate.
Purpose: POD and TOD accounts can be a simple and effective way to ensure the transfer of ownership of an account or policy to your chosen beneficiary.
10. Per Stirpes: This Latin term, meaning "per branch," describes a method of distributing property in estate planning. It follows the family tree, with descendants inheriting the share their deceased ancestor would have received if alive. Under per stirpes, each branch of the named individual's family is entitled to an equal portion of the estate.
How it works:
Estate planning definitions and terms to know
1. Codicil: A formally executed document that amends the terms of a will so that a complete rewriting of the will is not necessary. It will either explain, modify or revoke aspects of an established document.
Purpose: Codicils are required to change/update your will after significant life changes such as births, deaths, marriages, divorces or moving out of state.
2. Conservator: An individual or a corporate fiduciary appointed by a court to care for and manage the property of an incapacitated person in the same way that a guardian cares for and manages the property of a minor.
Purpose: A conservator's primary purpose is to protect the financial and/or personal well-being of an individual who is unable to manage their own affairs due to incapacity or legal limitations.
3. The Generation-Skipping Transfer Tax (GSTT): a separate tax that is imposed in addition to the estate tax. It is applied to outright gifts and transfers in trust that exceed the GSTT exemption. These transfers, which can occur during one's lifetime or at death, are made to beneficiaries who are two or more generations younger than the donor, such as grandchildren or great-grandchildren. The tax is currently calculated at a flat rate of 40%, which is equal to the top estate and gift tax rate
Purpose: The GSTT is designed to prevent the avoidance of gift or estate tax at the skipped generational level. Some states also impose a state-level generation-skipping transfer tax.
4. Gross Estate: This estate planning term refers to the total value of an individual's property at the time of their death. It also encompasses certain assets they previously transferred, which are still subject to federal estate tax regulations.
Purpose: This comprehensive valuation is a key component in determining federal estate tax liability.
5. GSTT exemption: The GSTT exemption amount is $13.99 million per individual in 2025. The amount is currently set to revert to a $5 million baseline in 2026, and is projected to be $7 million when indexed for inflation, unless Congress acts prior to this date to extend the increased exemption.
Purpose: The exemption allows you to reduce or potentially eliminate the transfer taxes associated with gifting or passing money to grandchildren or other skip beneficiaries.
6. Heir: A person entitled to a distribution of an asset or property interest under applicable state law if you die intestate due to the absence of a will. “Heir” and “beneficiary” are not interchangeable, although they may refer to the same individual in a particular case. Anyone you chose to leave a bequest is a beneficiary, only those related by blood or law can be your heir.
Purpose: If you die without a valid will, you die intestate, and your state's intestacy laws determine how your assets are distributed, typically to close relatives. Intestate succession laws would then dictate the order in which your assets are distributed to your heirs.
7. Life estate: A life estate grants a beneficiary, also called the life tenant, the legal right to use a property for the duration of their life under state law. This represents the entirety of their interest in the property.
Purpose: Life estates provide a straightforward way to transfer property ownership to the next generation without the complexities of a will or trust. Because following the death of the life beneficiary, the title fully vests the person named in the deed or trust agreement. This person might be referred to as ‘the remainderman.’
8. Operation of law: The way some assets will pass at your death, based on state law or the ownership of the asset, rather than under the terms of your will.
Purpose: Ease and avoidance of probate; no specific steps need to be taken by the parties for the transfer to occur. These accounts or assets have a named beneficiary, such as a life insurance policy, retirement plan or a Transfer on Death (TOD) account.
9. Payable on death (POD) and Transfer on death (TOD) designations: POD and TOD are types of beneficiary designations for a financial account that will automatically pass title to the assets at death to a named individual or revocable trust outside of probate.
Purpose: POD and TOD accounts can be a simple and effective way to ensure the transfer of ownership of an account or policy to your chosen beneficiary.
10. Per Stirpes: This Latin term, meaning "per branch," describes a method of distributing property in estate planning. It follows the family tree, with descendants inheriting the share their deceased ancestor would have received if alive. Under per stirpes, each branch of the named individual's family is entitled to an equal portion of the estate.
How it works:
1. Boost your income
“One key tip for paying down high-interest debt while saving is to boost your income beyond the interest payments. Use skills or side hustles to generate extra cash, directing it to debt first and then savings. This works because exceeding the interest rate accelerates debt reduction, freeing up funds faster for future goals without sacrificing savings momentum.” — Dr. Clemen Chiang, Spiking
Try the 'debt snowball' method
“Use a debt repayment strategy like the debt snowball method: Pay minimums on all debts, but throw extra cash at the smallest balance first. Once that balance is paid off, roll that amount into the next debt. Meanwhile, contribute enough to get a 403(b) match and build a small emergency fund. This keeps you motivated, eliminates high-interest debt and ensures you're still growing wealth!” — Bob Chitrathorn, Wealth Planning By Bob Chitrathorn of Simplified Wealth Management
Lower your interest rates
“One powerful strategy is to reduce your interest rates. Refinancing a mortgage from 7% to 5% or transferring credit card debt to a lower-rate card saves money instantly and accelerates how fast you attack the principal. It’s not just about paying — it's about paying smart. Lower rates create a margin to invest and build for your future while still knocking out debt.” — Justin Donald, Lifestyle Investor
Follow the 50/30/20 rule
“Implement the 50/30/20 rule: Allocate 50% of your income to needs, 30% to wants and 20% to debt repayment and savings. If possible, direct financial windfalls (for example, bonuses and tax refunds) toward high-interest debt while maintaining steady retirement contributions. This balances debt reduction with future financial security, preventing lost investment growth.” — Greg Welborn, First Financial Consulting
Ensure you're paying down your actual balance
“Use a balance transfer credit card to avoid paying interest for up to 21 months. This way, your entire monthly payment goes toward reducing your actual balance, and nothing is wasted on interest fees, so you pay debt down faster. Compare balance transfer cards to find the option with the longest no-interest term that meets your needs and credit rating.” — Andrea Woroch, Woroch Media Inc. / Andrea Woroch
2. Private disability policy
Employer-provided disability insurance can offer good coverage, but you may be wondering if you need a private disability policy.
Two reasons to consider a private policy are the taxability of the benefit and portability of coverage. You should also consider whether your employer-provided coverage would replace enough of your income should you become disabled.
If you pay the premium for your employer-provided disability policy with pre-tax dollars, which is the case at many companies, then any benefit you receive under that policy would be subject to income tax.
But if you pay your premium with after-tax dollars, either for your employer’s coverage or a private policy, your benefit would be tax-free.
You should also consider the portability of coverage. Employer disability policies are generally not transferable if you leave your job.
If you want to be sure that you have disability insurance regardless of where you work — or even if you decide to start your own business — you would need a private policy to be covered.
NYSUT NOTE: You don’t need to live with credit card debt. Take your finances into your own hands with the help of the counseling program from the NYSUT Member Benefits Corporation-endorsed Cambridge Credit. With nationally-certified counselors, Cambridge Credit can help members find the most efficient way to become debt free.