That's not a misprint. Way back when, savings accounts yielded way more money—they don't today, but that's just one of the many ways banking has changed over the past few decades.

What's commonplace today might become obsolete before we know it. So think twice before you laugh at a parent or grandparent who isn't great at using their banking app … because one day, banking apps could be supplanted by a different technology, too.

So, how different is banking today from what it was in the past? Let's dive in!

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The Current State of Banking

The vast majority of Americans use banks. According to the Federal Reserve, as of 2022, only 6% of adults were "unbanked"—meaning they nor their partner had a savings, checking, or money market account.

But what "being banked" is today is far different than what it meant yesterday. Banking technology has greatly advanced, and many banking customs have changed. More financial transactions are digital and automated than ever before. Many tasks that used to require a 15-minute drive and a half-hour in line at the bank can largely be accomplished from your phone.

And especially for older adults, stepping into a bank is a far different experience than it used to be. A whole new world? No. But certainly a wealth of different offerings and procedures.

How Banking + Banks Have Changed

Banking was vastly different even a few decades ago. Some of the changes over that time have been great, others are a bit more unfortunate, but almost all of them will invoke some amount of nostalgia.

1. High Standard Savings Account Interest Rates

While you've probably seen plenty of ads for high-yield savings accounts with rates in the 4%-5% range, the national average interest rate for a standard savings account sits at less than half a percent.

That's a world away from where they were back in the 1980s, when high standard savings account interest rates were the norm—at one point, standard savings rates actually touched 8%. You can thank both all-time highs in the federal funds rate, as well as lack of regulation that allowed banks to offer those high savings rates, even when they were financially unsustainable.

Rates have plunged since then—even today's seemingly high Fed funds rate is a fraction of what it was in the '80s. And standard savings rates have dropped along with it. Rates fell to about 4%-5% in the '90s to 1%-2% in the aughts, and then to historic lows during the Great Financial Crisis.

Again, you can find high rates in a high-yield savings account. But you still won't find 8% in those, and traditional savings might never see those rates again.

Related: Dynasty Trusts: A Beginner's Guide to Passing Down Wealth

2. Passbooks

Passbooks, also called bankbooks, were about the size of a passport. These paper books were used to record banking transactions on a deposit account. The bank worker would hand-write the date, transaction amount, and new balance, before initialing it.

Eventually, small dot matrix or inkjet printers could update passbooks at an ATM or passbook printer either in a branch, by post, or self-serve style.

While some banks still offer passbooks, they're exceedingly uncommon and typically only upon request. Now, paperless alternatives prevail. 

Related: 50+ Best Money-Making Apps That Pay You Real Money

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3. Physical Branches

The past few years have seen the advent of online-only banks. They're not incredibly popular—as of late 2023, only 6% of American adults with bank accounts said their main bank is online—but Gen Zers are almost twice as likely to use an online-only bank as the general population, so that number could rise over time.

Let's be clear: Most banks still have physical branches, and likely will for the foreseeable future. But banks are narrowing their physical presences somewhat—within the past couple of weeks (as of this writing), Wells Fargo, Bank of America, PNC, Citizens, and Santander had all announced they would be closing various numbers of branches.

So if you have a child or grandchild with banking issues, you might not always be able to tell them to go see a bank teller in person!

While the lack of in-person customer service is a clear disadvantage, online-only banks do have upsides. Because they don't have nearly as much overhead as brick-and-mortar locations, online banks can pass those savings on to customers. For example, a SoFi Checking & Savings Account, which charges no monthly account fees and has no minimum balance requirements³, earns far more than the national average percentage yield (APY)² and more than the average high-yield account.

Related: How Gen X Can Upgrade Their Retirement Savings

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4. Loans Without a Credit Score

If you're in a younger generation, you've at least known about the existence of credit scores and loans your whole life. But one is much older than the other.

The FICO score, America's first credit score, wasn't introduced until 1989. Oh, people certainly received loans before then—but instead of a credit score, a person's creditworthiness was determined by factors such as income, referrals, and sometimes even home visits.

The loan system pre-credit scores was slow and at times even discriminatory. Credit scores, while hardly perfect themselves, have made evaluating a person's credit quicker and reduced bias.

Related: 9 Monthly Dividend Stocks for Frequent, Regular Income

5. Banks Advertising on Matchbooks

Have you ever walked out of the bank, then cringed as you discovered you had accidentally taken one of their branded pens with you? It's OK—it's not exactly encouraged, but security's not going to tackle you over it.

But once upon a time, banks were happy to give you one piece of branded swag: matchbooks.

And it wasn't just banks. Restaurants, bars, hotels, and other establishments advertised on free matchbooks as well. But as people became more aware of the health risks and government's cracked down, smoking became less prevalent—as did this form of advertising.

Even today, though, some collectors have vintage bank matchbooks as mementos.

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6. Smoking in Banks

Imagine walking into a bank and instantly getting a whiff of cigarette smoke from a smoking worker or customer. Today? No. But long ago, that was the norm.

That's because banks not only gave out matchbooks—they allowed people to smoke inside as well.

To be clear: It's not like banks in particular were lax about smoking. It's just that it was acceptable to smoke just about anywhere. Given that there's no federal smoking ban for workplaces in the U.S., it's possible that somewhere, somehow, there's a bank branch or two that still allows it. But they're a dying breed, if not already dead.

Related: 12 Annoying Banking + Credit Card Fees [Can You Avoid Them?]

7. The Popularity of Traveler's Checks

Don't worry: The traveler's check is still alive and well. But it is far less common than it once was.

If you're new to the term: A traveler's check is obtained from a financial institution (your bank) and used for international travel. Once abroad, travelers can use these checks to directly pay for goods and services, where accepted, or exchange them for local currency.

A benefit to these checks is the unique serial numbers that insure the checks against theft or loss. Similar to how a person would cancel a stolen credit card, a lost or stolen traveler's check can be canceled. Then, people can get a replacement at participating banks or travel agencies.

Traveler's checks have gone out of style because the alternatives have become more attractive. Now, many credit and debit cards don't charge any foreign transaction fees and are far more convenient—and they can protect against fraudulent charges.

Related: Best Schwab Retirement Funds for a 401(k) Plan

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8. Peer-to-Peer Wire Transfers

Wire transfers electronically move funds from one bank account to another. This system started in the 1980s, providing people with a way to easily send funds anywhere in the world without having to mail a check. These are still widely in use, though nowadays, they're predominantly business-to-consumer or consumer-to-business transfers.

But let's say you, a consumer, needed to lend money to an out-of-state friend (also a consumer). Years ago, you might have considered a peer-to-peer wire transfer. It could take a couple days to complete, you'd be charged a sizable fee, but you could do it.

Nowadays, there are numerous peer-to-peer money transfer apps that are either free or minimal-cost and instant. Heck, even the phrase "I'll wire you some money" is now often replaced with "I'll Venmo you," "I'll PayPal you," or "I'll CashApp you."

Related: Best Fidelity Retirement Funds for a 401(k) Plan

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9. Only Withdrawing Cash During Bank Hours

Pretend you're out late at night and see a taco stand, which sounds like the perfect snack. Your mouth is watering as you read the menu while you wait in line. Then, you see a sign that states "Cash Only." You check your wallet hoping there is some cash in there you forgot about. There isn't.

Today, you would solve your dilemma by going to a nearby ATM. Prior to the late 1960s, though, that wasn't an option anywhere in the United States—you had to go into the bank, during bank hours. But along came the ATM, which began to flourish throughout the '70s and through today, when you can find an ATM virtually anywhere.

And that's good news for late-night taco stand lovers.

Related: 7 Best Schwab ETFs to Buy [Build Your Core for Cheap]

10. Customer Service

The customer service you receive in a bank can depend on the bank, individual worker, or even just a teller's mood at that moment. This makes it challenging to quantifiably say whether bank customer service has improved or gotten worse over the years.

But if we're including anecdotal evidence, bank customer service was probably superior in the past.

For example, when my mother was studying abroad in India in the early 1980s, she shipped a hand-knotted rug to her small U.S. hometown bank. Her bank accepted delivery of the rug and arranged for the overseas payment in Indian rupees to be made from her savings account with her prior authorization.

The bank charged no fees, insisted on unrolling the rug to ensure nothing got damaged in shipping, and shared in her enthusiasm as the entire staff gathered around.

Obviously, none of this would happen with an online-only bank. In fact, it's even hard to imagine that scenario at a large bank today.

Those who want more of a family banking feel might choose to bank with a credit union instead of a traditional bank. Credit unions are not–for-profit, member-owned, and often have a high level of community involvement. When I bought out my car lease and went into a credit union to finalize the paperwork, I was expecting business as usual. Instead, I was pleasantly surprised at the hearty congratulations for owning my car and the small talk that followed as everything was wrapped up.

Whether you love the current level of customer service or hate it, there's no denying it's different. According to the Consumer Financial Protection Bureau, it's estimated around 37% of Americans interacted with a bank's chatbot in 2022. That certainly wasn't an option even a few years ago.

Related: 9 Best Fidelity ETFs for 2026 [Invest Tactically]

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What Does The Future of Banking Look Like?

Inevitably, banking technology will continue to advance. As people play with artificial intelligence, it may take on some human jobs. We might continue to see the number of brick-and-mortar banks dwindle.

As advanced as credit cards currently seem, it's possible people will later keep them as relics of the past. Some people believe cryptocurrency is the future and money as we know it will change. It's impossible to predict the directions banking will take. But the real question is, will these changes that occur make banking better or worse?

Related: Should I Use AI for Financial Advice?

Related: How Does the 4% Rule Work? [And Why Did It Change?] 

One of the most popular retirement withdrawal strategies of the past few decades has been the unfussy “4% rule.” It’s one of the most straightforward rules you’ll come across in finance, even as its creator has made a few tweaks to it over the years.

How does the 4% rule work, how has it changed, and can it help guide your retirement? Check out our primer on the 4% rule.

Related: The 7 Best Dividend ETFs [Get Income + Diversify]

We love exchange-traded funds (ETFs) because they can provide one-click access to hundreds, even thousands of stocks, while charging often minuscule fees.

One way to put that low-cost diversification to work? Collecting dividends. But trying to choose from literally hundreds of income-producing funds could take up a lot more time than you have. So let us help you narrow the field—check out our list of seven top dividend ETFs.

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If you're skeptical of big banks, seeking a more profitable place for your savings, or looking for features not offered by traditional banks, you're in the right place. There are numerous alternatives to conventional banking that provide secure options for your funds.

In this article, we'll explore the best places to keep your money outside of big banks. I'll detail the advantages and disadvantages of each option, highlighting that many of these alternatives not only ensure safety but also offer attractive benefits.

Whether you're considering moving all your funds away from a big bank or simply diversifying where you store your money for strategic reasons, this guide is for you.

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Why Wouldn't You Want to Store Your Money in a Bank?

Some people choose not to keep their money in a traditional bank for a plethora of reasons.

To start, a different financial institution, such as an online-only bank, may offer more financial flexibility and better tools. Often, credit unions and other bank alternatives provide better rates on loans to finance big purchases, such as auto loans and mortgages. And many people also choose not to put all of their money in checking and savings accounts because other types of financial products and accounts can be more fruitful ways to grow their savings.

1. Treasury Bills

Just as many consumers and businesses do, the U.S. government borrows money to make ends meet. It does so through the U.S. Treasury, which issues three primary kinds of debt:

-- Treasury bonds (T-bonds): Mature in 20 to 30 years

-- Treasury notes (T-notes): Mature in two to 10 years

-- Treasury bills (T-bills): Mature in 4 to 52 weeks

Treasury bills—which can have maturities of four, eight, 13, 17, 26, and 52 weeks—are sold in increments of $100 (which is also the minimum purchase amount), up to a maximum of $10 million. You can typically purchase these through the U.S. government’s Treasury Direct website or through a bank or broker.

When you buy a T-bill, you lend money to the U.S. government for a specified period of time. The price for a T-bill will vary, but typically will be below the bond’s face value, or “par value.” (For instance, a $1,000 T-bill might cost $975 to purchase.) When the T-bill matures, you receive the full par value of the bond—so the return on your investment is the difference between the discounted price you paid at auction and the par value of the T-bill.

Treasuries are one of the most secure investments in the world due to their virtually guaranteed repayment—the federal government hasn’t defaulted on a debt payment since moving away from the gold standard in 1971.

When you receive the repayment of your T-bills’ face value, the income generated is exempt from state and local taxes, which can make them a good choice for investors looking for reliable, tax-advantaged income.

2. Credit Unions

Credit unions are member-owned, not-for-profit financial institutions. They are often highly involved in a local community and are known to provide excellent customer service.

These financial institutions are just as safe as banks. Credit unions have their own equivalent to the Federal Deposit Insurance Corporation (FDIC), which is the National Credit Union Administration (NCUA). The NCUA insures the money in each credit union member's account up to $250,000.

Credit unions offer all the functions you’d expect from a bank, such as direct deposit, mobile pay, loans, and much more. But because credit unions don't have shareholders to pay, they can offer their members better terms on loans and more competitive rates on savings accounts.

Related: 10 Ways Banks Have Changed That Only Seniors Remember

3. Online Banks

Online banks allow users to conduct all of their banking functions through an internet connection.

Just like traditional brick-and-mortar banks, most internet-based banks offer Federal Deposit Insurance Corporation-insured accounts, so your money is safe, as is your personal information.

Related: 15 Best Long-Term Stocks to Buy and Hold Forever

An online savings account is simple to open, as these banks typically either don't require a minimum balance to get started, or a very low one. And because they don’t have to spend money on physical buildings and associated costs, they can pass some of those savings on to their depositors—in the form of higher rates on savings and other interest-bearing vehicles. Fees are often lower, too.

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4. Cash Management Accounts

A cash management account is similar to an online bank account. However, instead of a bank, the providers are typically broker-dealers or advisory firms that partner with banks to hold your cash. These products usually combine features from investment, checking, and savings accounts, all within one account. If you want fewer accounts to manage, a cash management account may be an excellent fit for you.

Often, cash management accounts have minimal or no fees and offer above-average interest rates. The banks they partner with to hold your cash and earn interest are generally FDIC-insured, meaning your savings are secure, but you should read the fine print associated with the account to make sure you understand any limits or exceptions that apply.

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5. Investment Accounts

Investment accounts can grow your money much faster than traditional savings accounts, high-yield savings accounts, or basically any other type of non-investment account. But they also come with far higher risk than those options. Money you put into stocks, bonds or other securities should generally be money you’re prepared to invest for the long term to give you the best chance of growing your funds.

Related: The 9 Best Dividend Stocks for Beginners

While some investment accounts allow you to invest in alternative assets like cryptocurrencies and options, the safer markets to put your money to work in are the traditional stock and bond markets. Consider the investments below:

Stock market

- Individual stocks

- Stock mutual funds

- Stock exchange-traded funds (ETFs)

Related: 7 Best Vanguard Dividend Funds [Low-Cost Income]

Bond market

- Individual bonds

- Bond mutual funds

- Bond ETFs

Related: The 10 Best Dividend ETFs [Get Income + Diversify]

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6. Money Market Accounts

A money market account is an interest-bearing product, similar to a savings account, that may also allow limited debit card transactions or check-writing privileges, with a monthly cap on such transfers.

Related: Best Vanguard Retirement Funds for a 401(k) Plan

The interest rates on money market accounts are often higher than those of a standard savings account. Deposits are insured for money market accounts up to $250,000 per depositor, making this a secure place to keep your cash.

As money market accounts typically offer high interest rates and permit a predetermined number of transactions each month, some people keep their emergency fund in these accounts. The money earns a competitive interest rate but is still readily accessible if needed. Just note that money market accounts sometimes have minimum balance requirements, and they sometimes have lower yields than high-yield savings accounts.

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7. Money Market Mutual Funds

A money market mutual fund is a fixed-income fund that invests in debt securities. These funds are known for being low-risk and holding securities with very short maturities.

There are three categories of money funds: government, prime, and municipal. The funds are an excellent place to store money as they are secure, stable, and liquid.

While it may not match the returns of other fixed-income funds, a money market mutual fund is generally much safer. They are excellent places to keep your emergency fund or hold cash while you're waiting for other investment opportunities to become available.

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8. Certificates of Deposit

A certificate of deposit (CD) is a savings vehicle that earns interest on a lump sum for a predetermined period of time.

CDs’ main selling point is their high interest rates. They offer a higher annual percentage yield (APY) than traditional savings accounts and usually beat out high-yield savings accounts, too. Also, a CD’s interest rate is locked in until it matures—the yield on a high-yield savings account can move over time.

The downside to the CD is that the money is illiquid for the duration of its term. Terms usually last from a few months to a few years, though some are longer. If you withdraw money before the term is over, an early withdrawal penalty is charged.

9. Treasury Notes

As mentioned before, Treasury notes are considered between short- and medium-term in nature, taking more time to mature (two to 10 years) than T-bills. Like with T-bills, T-notes are backed by the full faith and credit of the U.S. government, making them very low-risk investments. They’re sold at terms of two, three, five, seven, and 10 years.

Related: Is It a Good Time to Buy Treasury Bonds?

Treasury notes pay a fixed interest rate every six months until the note matures. Federal taxes on interest earned are due each year, though the income is exempt from state and local taxes.

With T-notes and other bonds, you can either hold on until it matures, at which point your full principal will be repaid. But you can also sell the bond—which you’ll hopefully do for a gain, but you might have to sell at a loss. Either way, if you want to know how bonds move higher and lower, take a breath and brace yourself—it’s a mouthful:

Bonds’ performance is directly tied to market interest rates. Specifically, bonds have an “inverse relationship” with interest rates—when market interest rates rise, bond prices fall, and when rates fall, bond prices rise. Thus, all bonds have some level of “interest-rate risk,” and T-notes have more of it than T-bills. Why? If market interest rates rise, new bonds with higher rates will make comparable older bonds with lower rates look less enticing to investors. As a result, the market will price those older bonds lower. This effect is amplified on longer-dated bonds because they have more interest payments remaining.

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Put differently: If a bond you hold matures in four weeks, you probably won’t sell it early just because a new short-term bond with higher rates is available. But if your bond matures in, say, five years, you might sell your current bond to buy a bond with higher income potential.

The flip side of this risk? T-notes usually offer higher rates than T-bills. They’re also similarly liquid—yes, they take longer to mature, but you can usually buy and sell them with ease.

Related: 11 Best CD Alternatives to Capture Interest With Low Risk

10. Short-Term Corporate Bonds

Just like the U.S. government issues bonds to help fund its operations, corporations frequently issue bonds to fund research, development, expansion, you name it.

Related: The 9 Best Dividend Stocks for Beginners

Generally speaking, corporate bonds have lower credit quality than U.S. Treasury bonds. Credit quality is generally determined by how likely an entity is to pay back its debts—and the credit-ratings agencies believe that just about any U.S. corporation has at least a little (if not a lot) more risk of going under than the U.S. government. Probably a fair bet.

That lower quality does mean more risk—but it also usually means better compensation in the form of higher yields.

Related: Best Schwab Retirement Funds for a 401(k) Plan

Also, “lower quality than Treasuries” doesn’t always mean “low quality.” Many corporate bonds are considered investment-grade, which means the bond rating companies generally deem them likely to be repaid. If you’re willing to accept more risk, you can invest in junk bonds, which are less likely to be repaid but also offer even sweeter yields as a result.

Like with U.S. Treasury bonds, short-term corporate bonds are fairly liquid—they don’t take long to expire, and if you need cash before that, you can typically sell without trouble. And like with T-notes and T-bills, many investors buy these through ETFs and mutual funds rather than individually.

And if You Really Want the Money in Your Possession: Cash

Cash is king, or so the saying goes. Many small businesses only accept cash payments, and some large businesses have a minimum amount you must spend to pay with a card. And during times of crisis, such as a natural disaster, credit card readers can go dark—cash always works.

But cash won’t grow in value. And if you lose it, it’s gone—bank and other accounts offer much more protected. So while it’s wise to have a little cash around, it’s a good idea to have most of your money saved or invested.

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Where Is the Safest Place to Keep Your Money?

The safest place to keep your money is in debt issued by the federal government, such as savings bonds or T-bills. However, you can't keep all of your money in savings bonds and similar assets, as they aren't completely liquid.

Bank accounts are a wonderful place to keep money, since up to $250,000 per depositor, per institution, is FDIC-insured. Certificates of deposit are another safe, FDIC-insured option, though they are not liquid unless you pay an early-termination fee.

Also on the list of safe places to store your funds are money market accounts at banks with FDIC coverage and credit unions with NCUA coverage.

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Is It Safe to Keep Your Money at a Bank?

Yes, it's safe to save money at a bank. However, many people seek alternatives for various reasons. Many bank alternatives offer a higher annual percentage yield, letting you grow your money faster. Depending on the savings vehicle, there can be many other perks, as well.

So while it's safe to keep some of your money in a bank, it can be strategic to have some of your funds in other places, as well.

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Are There Risks to Keeping My Money Somewhere Other Than a Bank?

Banks are not the only financial institutions that keep your money secure. Government debt, such as T-bills or savings bonds, are backed by the federal government and are therefore extremely safe.

To determine whether your money is safe in another non-bank financial institution, check whether your money is insured through the FDIC or NCUA. If your money is insured, it's safe.

Related: Are Credit Cards Safer Than Debit Cards?

Cash, prepaid cards, and similar physical funds could be stolen, but that's preventable with proper precautions. For an online bank or similar account, make sure security measures are in place to protect your personal information, such as your name and Social Security number.

What are the risks to keeping money with a non-bank financial institution?

Some non-bank financial institutions have no physical locations. If something goes wrong, it can be more challenging to get a hold of an employee to fix the problem. You’ll need to call or go online for help.

Make sure any financial institution you work with has security measures in place to protect both your money and your personal information. It's also important to only work with financial institutions where your money is covered by one of the government-sponsored insurers, like the FDIC.

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Related: The 12 Best Vanguard ETFs for a Low-Cost Portfolio

Vanguard's exchange-traded funds (ETFs) are among the most popular funds out there thanks to their low fees. But there's more appeal to their ETF lineup than low costs alone.

Vanguard ETFs are big, liquid, and tend to track well-constructed indexes, meaning you're not just paying low expenses ... you're actually getting some value out of your fees. And these Vanguard ETFs represent the best of the best.

Related: 10 Best Monthly Dividend Stocks for Frequent, Regular Income

The vast majority of American dividend stocks pay regular, reliable payouts—and they do so at a more frequent clip (quarterly) than dividend stocks in most other countries (typically every six months or year).

Still, if you’ve ever thought to yourself, “it’d sure be nice to collect these dividends more often,” you don’t have to look far. While they’re not terribly common, American exchanges boast dozens of monthly dividend stocks.

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Of course, anytime I'm tasked to write about the market's best silver ETFs, my brain immediately thinks about the same Jerry Seinfeld joke:

"The Olympics is really my favorite sporting event. Although, I think I have a problem with that silver medal. Because when you think about it, you win the gold, you feel good. You win the bronze, you think, "Well, at least I got something." But when you win that silver, it's like, "Congratulations, you almost won. Of all the losers, you came in first of that group. You're the No. 1 loser. No one lost ahead of you!"

Silver is cursed with being linked to second place, and that rings true in the financial markets, too. Silver doesn't fetch as high a price as gold. A decade-plus of experience in financial website data tells me that readers aren't as interested in it. There are far more gold ETFs than there are silver ETFs, and for good reason—they attract far more in investor assets. Heck, just look at how I started this story; gold always leads!

That said, silver does stand apart from gold in a few important ways—indeed, it's a differentiated enough commodity that some investors prefer it to its lemony cousin. So today, we're going to talk about some of the most effective ways to invest in the argent metal through a brokerage or retirement account.

Read on, and I'll discuss some of the best silver ETFs you can buy.

Editor's Note: Tabular data presented in this article is up-to-date as of May 7, 2026.

Disclaimer: This article does not constitute individualized investment advice. These securities appear for your consideration and not as personalized investment recommendations. Act at your own discretion.

Why Do People Invest in Silver?

Precious metals are not all built the same. 

Consider gold. It provides investors with a pair of extremely valuable benefits: low correlation to stocks, and reliable defense during market downturns. That said, it's largely a decorative metal with few practical uses outside of jewelry and investment.

Silver is quite different. "More than half of all silver's demand comes from heavy industry and high technology, including smartphones, tablets, automobile electrical systems, solar-panel cells and many other products and applications," Morgan Stanley writes in a primer. So while silver also isn't terribly correlated with stocks, it can be far more sensitive to economic changes than gold. Sure, that means silver might not enjoy the same defensive properties as gold, but on the other hand, you can trade it to express optimism about the economy.

It's also far more volatile—"the volatility in silver prices can be two to three times greater than that of gold on a given day," Morgan Stanley says—which can provide more opportunity to swing and day traders.

Why Should I Buy Silver ETFs Instead of Gold?

Like with virtually any commodity, the best argument for holding via funds instead of the physical item is ease.

If you want to buy physical silver, you have to have that silver transported to you, safely store it, insure it … and should you want to sell it, you'll have to find a buyer and arrange for transportation to the seller. 

If that sounds like a hassle, that's because it is!

Conversely, you could just open up your investment account and buy a few shares of a silver ETF, which depending on the one you pick would give you either direct or indirect exposure to the metal—with the same simplicity and speed as buying some stock.

I know what I would pick.

Related: The 16 Best ETFs to Buy Right Now

The Best Silver ETFs to Buy Now

If you're convinced that ETFs are an ideal way to buy silver, the next thing to do is pick one.

The world of silver-related ETFs isn't a big one—again, it's even smaller than the world of gold ETFs, which itself is mighty tight. Still, like you can find beauty within a haiku's rigid rules, you can find a cornucopia of strategies within the limited universe of silver-related funds.

Let's look at several of the market's best silver ETFs and discuss what makes each of them worthy of your consideration.

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1. Abrdn Physical Silver Shares ETF

• Style: Physical silver
• Assets under management: $5.3 billion
• Expense ratio: 0.30%, or $3.00 per year on every $1,000 invested

The Abrdn Physical Silver Shares ETF (SIVR) is the cheapest way to own physical silver in a brokerage or retirement account.

Physical metals funds are extremely straightforward: You buy shares. Shares represent metal stored somewhere. Metal price goes up, shares go up. Metal price goes down, shares go down. Simple, right?

Let's take this silver ETF, for instance. SIVR shares are backed by physical silver—literal silver bullion bars that are held in a secured vault in London. Indeed, SIVR parent Aberdeen Investments boasts that "Bureau Veritas Commodities UK Ltd, a leading physical commodity auditor, inspects the vault twice per year (including once at random)."

Related: 10 Best Fidelity ETFs You Can Buy [Invest Tactically]

You get this exposure for 30 basis points (a basis point is one one-hundredth of a percentage point), which is cheaper than the only other physical silver ETF: the iShares Silver Trust (SLV).

Getting there first is a big deal in the fund world, as is having a more recognizable brand name. SLV boasts both: ETF behemoth iShares launched the fund in 2006, three years earlier than SIVR. Those are both significant reasons why SLV boasts $32 billion more in assets than Aberdeen's silver ETF. The iShares fund's far higher volume is also a big draw for traders.

But for buy-and-hold investors, you literally can't do better than SIVR, which charges 20 basis points less in annual fees than SLV. And that makes it one of the best silver ETFs you can buy.

Related: Direct Indexing: A (Tax-)Smarter Way to Index Your Investments

2. Global X Silver Miners ETF

• Style: Silver miners
• Assets under management: $5.4 billion
• Expense ratio: 0.65%, or $6.50 per year on every $1,000 invested

Another way to invest in silver is by purchasing the shares of silver mining companies. While it's less direct than buying physical silver, owning miners can act like an amplified bet on the metal.

The business model here is simple. Traditional silver mining companies will extract silver ore from the earth, then convert it into doré bars, which are then sent off for further refining. The goal? Sell that silver for a higher price than what it cost to extract it.

Let's say a silver miner spends $50 to produce an ounce of silver, then sells it for $60 per ounce. That's ideal. But if they're forced to sell that silver for $40 ounce … well, they've got problems. But it's pretty easy to see how changes in the price of silver would directly impact miners' bottom lines, and as a result, their stock prices. 

Related: The 12 Best Vanguard ETFs to Buy [Build a Low-Cost Portfolio]

Also, understand that silver miners may trade in a more volatile fashion than silver itself. When silver rises, miners may rise by a greater degree; when it declines, miners may drop even faster. That makes sense, as publicly traded silver miners are companies, and companies have elements of risk and reward that silver itself doesn't possess on its own.

You can make this "leveraged" bet on silver while reducing your risk somewhat by owning silver miners in bulk via funds like the Global X Silver Miners ETF (SIL).

SIL owns 40 silver mining companies—some of which operate exactly how I outlined above, but some of which have somewhat different business models. For instance, Pan American Silver (PAAS, 13% of assets) is a traditional miner that extracts silver throughout the Americans, though it also has gold mining operations, as well as a few royalty interests in metals projects. SIL's largest holding, Wheaton Precious Metals (WPM, 22%), is actually a metals "streamer" that buys other companies' precious metals production—many of its contracts are to purchase "byproduct" silver and gold extracted from copper and lead-zinc mines.

As you can tell from the "weights" of WPM and PAAS, this is a lopsided fund with huge concentrations in some companies and small weights in others. But we're still getting more diversification across the silver mining space than if we bought a few companies individually.

Also, unlike owning a lump of silver, silver miner funds like SIL may pay a dividend. Global X Silver Miners ETF currently pays us a decent 1.1% that's on par with the broader market.

Related: 10 Monthly Dividend Stocks for Frequent, Regular Income

3. Amplify Silver Junior Miners ETF

• Style: Silver junior miners
• Assets under management: $4.0 billion
• Expense ratio: 0.69%, or $6.90 per year on every $1,000 invested

"Senior" miners are the aforementioned larger companies that extract silver. But junior miners are focused on an earlier part of the silver-mining process. Specifically, they search for and prove silver deposits, which they usually will sell to more established miners (though some will run operations themselves).

This is yet another step removed from physical silver itself, and it's also a riskier business that usually involves smaller companies. Thus, junior miners' stocks tend to move even more drastically than senior miners.

Related: 7 Best Value Stocks for 2026 [Smart Picks to Buy]

The Amplify Silver Junior Miners ETF (SILJ) is arguably the best way to invest in these companies. Just understand that it's far from being a pure play on the theme.

Amplify's silver ETF tracks the Nasdaq Junior Silver Miners Index, and thus it "tracks the performance of companies engaged in the silver mining industry that derive the majority of their revenues from silver mining, global silver production, or exploration and development activities related to new silver production."

Yes, SILJ's 64-company portfolio has an average market cap that's about half of the aforementioned SIL. Yes, you own true juniors like Aftermath Silver and Osisko Metals. But you're still getting plenty of exposure to regular ol' silver producers such as Coeur Mining (CDE) and Hecla Mining (HL), too.

Regardless, if you want to own silver juniors, SILJ is the best silver ETF you can buy.

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4. Sprott Silver Miners & Physical Silver ETF

• Style: Physical silver and miners
• Assets under management: $845.31 million
• Expense ratio: 0.65%, or $6.50 per year on every $1,000 invested

If you were to ask me (and you didn't), I'd view owning physical silver and miners as an either/or proposition—you either prefer the straightforward exposure that the physical metal provides, or the potentially amplified exposure that miners provide.

If you disagree with me, the Sprott Silver Miners & Physical Silver ETF (SLVR) is likely right up your alley.

SLVR is the only ETF that provides exposure to both the metal and the miners. The fund tracks the Nasdaq Sprott Silver Miners Index, which tracks the performance of silver producers, developers, and explorers, as well as physical silver.

Related: 5 Best Energy ETFs for the Rise of Oil, Natural Gas + More

Roughly 80% of assets are invested in equities—65% in silver producers, and 15% in "other equities" (like mixed miners). That's a group of about 65 companies including the likes of First Majestic Silver (AG), Silvercorp Metals (SVM), and Endeavour Silver (EXK).

The remaining 20% or so is invested in physical silver, but in a roundabout way: SLVR owns shares of the Sprott Physical Silver Trust (PSLV), which itself is a closed-end fund (CEF) that owns silver bars.

This is a very young fund that launched in January 2025, so it only has a bit more than a year of life under its belt. But when silver prices went parabolic that same year, SLVR was one of the best silver ETFs by performance. So far, so good, at least.

Related: How to Get Free Stocks for Signing Up: 9 Apps w/Free Shares

5. ProShares Ultra Silver

• Style: Leveraged silver
• Assets under management: $1.9 billion
• Expense ratio: 0.95%, or $9.50 per year on every $1,000 invested

I'll say it up front: The final silver ETF on this list—ProShares Ultra Silver (AGQ)—is a trading tool. 

This is not for buy-and-holders. If you're inexperienced, if you have little investing education, if you have little stomach for risk, and/or if you only check your account every couple of months, AGQ is absolutely, 100% not for you. For you, my story is over, and I kindly ask you to browse to another of my stories instead.

For those who remain, here's what you need to know.

ProShares Ultra Silver ETF is designed to provide 2x the daily performance (before fees and expenses) of its benchmark, the Bloomberg Silver Subindex. This means if the index climbs by 1% on Monday, this ETF will gain 2% on Monday (minus expenses, of course). But because this only occurs on a daily basis, that doesn't mean if the index increases by 10% in a year, that this ETF will gain 20% over the same time period. That's simply due to how returns compound over time, which is easiest to demonstrate with a table.

Some of the disconnect is also because of fees, which the underlying index doesn't have to account for.

Also important to note: AGQ doesn't hold physical silver. In fact, it's not even directly tied to it. Rather than giving you 2x exposure to spot silver prices, AGQ's tracking index is tethered to silver futures, which can behave a little differently.

But as I said above, silver can be a much more jumpy metal than gold, which spells opportunity to certain traders. AGQ, while riskier than any of the aforementioned funds, is nonetheless one of the best silver ETFs to take advantage of that volatility.

Related: 14 Best Investing Research & Stock Analysis Websites

Related: 15 Best Long-Term Stocks to Buy and Hold Forever

As even novice investors probably know, funds—whether they're mutual funds or exchange-traded funds (ETFs)—are the simplest and easiest ways to invest in the stock market. But the best long-term stocks also offer many investors a way to stay "invested" intellectually—by following companies they believe in. They also provide investors with the potential for outperformance.

So if you're looking for a starting point for your own portfolio, look no further. Check out our list of the best long-term stocks for buy-and-hold investors.

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But with rising prices and declining quality, it's getting harder to justify some of our favorite splurges. Maybe it's time to rethink what brings us joy and find new ways to treat ourselves without breaking the bank.

So, what expenses just aren't worth it? We look at a few products and services whose costs increasingly outweigh the enjoyment they provide.

9 Expenses People Have Had Enough Of

Whether it's cutting down on the frequency of a recreational activity or switching to a more affordable product or service, consumers are starting to make some changes.

Consider whether or not the following items still deserve a spot in your own budget.

1. Concert Tickets

Live music used to be a fun, affordable activity that would give you a full night's worth of entertainment even if you only knew a few of the artist's songs. But concert ticket prices have soared to the point where, while super-fans will still pay hefty prices to see their idols, many people have given up on regularly attending concerts.

Some of the blame belongs to the promoters, artists, and venues. But the more rage-inducing issues are the flabbergasting fees from ticket companies, as well as resellers who never had any intention of attending a show. 

Ticketmaster and other ticket sellers are some of the biggest offenders of drip pricing. According to the Break Up Ticketmaster Coalition, led by the American Economic Liberties Project, Consumer Federation of America, and other groups, ticket ordering fees added an average of 32% per purchase.

Resellers have arguably been even worse for concertgoers. According to the Wall Street Journal, between 2019 and 2023, the average resale price for concert tickets on SeatGeek rose from $125 to $252. Typically, reselling websites don't limit how much a seller can charge, so for big names like Taylor Swift or Beyonce, resellers can price tickets at thousands of dollars—or even break the five-digit mark.

2. Amazon Prime

When Amazon Prime first came out, it felt like a steal. You received fast, free shipping at a time when that was extremely unusual—and you got ad-free shows and movies to boot. And you received all of that for an original annual fee of $79.

But now, Amazon Prime costs much more—$139 annually—while simultaneously offering less.

Members frequently complain about increased Prime shipping times, receiving counterfeit items, and poor customer service. In the meantime, free shipping—particularly once you eclipse a set dollar amount—has become much more commonplace at other retailers than when Amazon first introduced it. In fact, you can sometimes even buy an item directly from the manufacturer without having to pay shipping. (And hey, that way, you know it's the real deal.)

The most recent knock on Amazon Prime is that its Amazon Prime Video service now includes ads. Want an ad-free experience? You'll have to pony up an extra $2.99 per month.

If you aren't ready to completely cut Amazon Prime, you can consider splitting your membership with another family member through Amazon Household. An Amazon Household can have up to two adults (ages 18 and up), up to four teens, and up to four children. Adults still use their own individual accounts, and they can't see one another's orders or content. (Note: Users in the same Household must live in the same country, but they don't need to share the same address.)

Related: Stop Shrinkflation! 14 Products Affected + Tips to Save Money

3. Fast Food

Remember when fast food "value menus" actually used to feel value-priced?

That feels like an eternity ago.

I've never been much of a McDonald's person, but agreed to stop there on a drive last month and I was shocked it cost me nearly $8 to get an egg and cheese biscuit and iced coffee. 

Of course, McDonald's isn't the only fast food joint to raise prices. Many consumers aren't starting to find they just can't justify the high prices anymore. According to a 2023 survey by Drive Research, a national market research company, 84% of respondents believe fast food is more costly than it was five years ago, and 45% say it's "significantly more expensive." 

When budgets are tight and prices rise, customers react accordingly. According to data from consulting firm Revenue Management Solutions, about a fourth of low-income consumers (making less than $50,000 a year) reported they were eating less fast food, Reuters reports. Around half said they now make fewer visits to fast-casual and sit-down, full-service restaurants. 

Related: 12 Senior Discounts That Will Save You Money

4. Airbnb

I've stayed in a lot of Airbnbs, but in the past couple of years, I've noticed that hotels increasingly look like a better deal.

Which?, a U.K.-based consumer rights and product testing not-for-profit, conducted a 2023 study comparing one-bedroom stays in hotels versus one-bedroom Airbnbs across 50 popular travel destinations, such as New York, Paris, and Hong Kong. The results showed that hotel rooms were cheaper than Airbnbs in 38 of the 50 locations. Plus, Airbnb doesn't have any loyalty programs, so you won't earn reward points like you might with your go-to hotels.

To be fair, there are some situations where Airbnbs can be cheaper. Hosts sometimes give hefty discounts for longer stays, so if you're a digital nomad looking to stay in one place for several months, you might be able to snag a great Airbnb deal. Plus, some people cut down on food costs by cooking in Airbnb kitchens, rather than dining out.

But Airbnb no longer offers the massive value proposition it once did.

Cost isn't the only reason people have soured on Airbnb. Some hosts expect guests to do a substantial amount of cleaning, hosts face few repercussions for last-minute cancellations, and if something goes wrong, there isn't always someone nearby to help. Plus, some people have moral qualms about Airbnb hosts snatching up valuable real estate in areas where housing is in high demand.

Related: 10 Frugal Habits That Make Retiree's Lives Better

5. Having Several Streaming Services

The vast majority of Americans pay for streaming services, and almost half pay for three subscriptions at once. But rising prices are quickly making them reconsider their glut of "+" programming. 

According to a Forbes Home survey, 44% of subscribers faced a cost increase from at least one of their services over the past year. And a similar percentage (45%) have canceled subscriptions because of higher costs. The decision of which streaming services to put on the chopping block varies by family, but Forbes found that, if prices increased, consumers would be most likely to ditch Disney+, Hulu, and ESPN+.

If TV is your favorite form of entertainment, and you use all those services, keeping up multiple subscriptions still might make sense. But many users don't use all those services. Forbes also found that nearly half of respondents (48%) said they maintained subscriptions they barely use. And streaming services are becoming too expensive to keep wasting money like that. 

Related: Consumers Should Avoid These 10 Products at Walmart

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6. Cable

As people start weighing the increased costs of so many streaming services, some Americans are considering making the jump back to cable.

But is it actually a deal?

CNET compared the monthly prices of streaming services and major cable companies in six sample U.S. cities, including the following:

-- Atlanta, Georgia (AT&T/DirecTV)

-- Grantville, Kansas (Cox)

-- Houston, Texas (Xfinity)

-- Kalamazoo, Michigan (Spectrum)

-- San Francisco, California (Xfinity)

-- Staten Island, New York (Fios)

The prices for basic TV and internet ranged from $125 to $159. The lowest cost for premium TV and internet was $192 and the highest was $270. Unfortunately, that doesn't include taxes and fees, which vary depending on the location, service type, and equipment. Taxes and fees tend to add between $30 to $50 to the monthly cost. The overall results found that even once you back out the internet component of those prices, cable TV tends to be more expensive than streaming services, even if you're subscribed to several, and even if you get live TV as part of your streaming package. That said, sports fans, who must subscribe to a number of services to replicate what they can get from cable, might save money by going back to cable.

Cord-cutting households (those that have ditched their cable TV for alternatives) rose from 30.8 million in 2020 to 47.6 million in 2023, according to Broadband Search. By 2027, the number of cord-cutting households is expected to climb to 60.3 million. That's tens of millions of Americans who are saying that, for one reason or another, cable TV's juice simply isn't worth the squeeze anymore.

Related: Frugal vs. Cheap: What's the Difference?

7. Professional Hair Dyeing

The cost of getting your hair dyed at a salon can vary substantially by location. The cost of living in my city is about 4% higher than the national average, so I consider it a middle-of-the-road cost-of-living location. Were I to get my hair dyed at the salon where I get haircuts, all-over color would cost between $110 to $150. Full-head foil/highlighting with toner would cost $210 to $230. That's before the customary tip, which is commonly 20%. As it's generally recommended to dye your hair every one to two months … well, you can see how these expenses can add up.

Low-income earners simply can't justify those costs.

 Rather than salons, some people are choosing to dye their own hair at home. Others are embracing their natural colors. A 2021 survey conducted by OnePoll, on behalf of Garnier, found that around 80% of women dyed their own hair for the first time during quarantine. Over two-thirds of women said they planned to continue to color their hair at home and about a third responded that they intended to exclusively dye their own hair. Anecdotally, I have more than one older family member who stopped dyeing their hair during the pandemic and never started again.

Indeed, social media has even spawned a term around this phenomenon: "recession brunette." It refers to how more people are going back to their natural brunette hair color because the cost of maintaining dyed blonde hair has become too expensive.

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8. Movie Theaters

With the exception of box-office smashes like Barbie and Oppenheimer, it feels like fewer and fewer movies merit the rising costs of going to the theater.

The national average price of a ticket is up 17% since the start of the pandemic, to nearly $11 nationwide. Add in a couple of medium buckets of popcorn, a couple of small soft drinks, and a box of candy, and you're looking at close to $80 for a family of four before taxes. And those numbers are much worse in places like New York and California, where average ticket costs are 40% to 50% higher than the national mean.

People are returning to movie theaters—the U.S. box office gross has improved in each of the past three years since bottoming during COVID. But 2023's $8.9 billion take was still 22% lower than 2019's $11.4 billion—and remember, that's with much higher ticket prices, which means the actual number of tickets sold has rebounded by even less.

Some of those people might never come back. According to a 2022 Morning Consult poll, about half of respondents believe it's too expensive to watch movies in theaters, and more than half (55%) prefer watching movies at home. And why not? In addition to saving money, you likely have more comfortable seating, whatever food and drink you want, and you don't have to worry about missing anything if you need to take a bathroom break.

Related: The Pink Tax: Why It's So Expensive Being a Woman

9. Skin Care and Makeup

In a recent ConsumerWise survey conducted by McKinsey & Company, a consultancy, consumers declared a decreased interest in skin care and makeup purchases during the 2024 holiday season as compared to the third quarter of 2024.

Though, to be clear, skin care and makeup sales aren't dropping, but consumers are declaring down-switches to lower cost products for their needs. The net effect? More skin care and makeup sales but at lower price points. Consumers are able to meet their needs with more volume but for less hurt on their pocketbooks.

In fact, annual sales data from Statista forecasts continued sales growth in these industries, increasing from $181 billion in 2023 to a little over $210 billion by 2028. But, when taken from that view, the compound annual growth rate of 3% is little more than the current rate of inflation. That means prices might turn downward for the higher expected volume of products to arrive at those projected revenue figures.

Related: 15 Best Long-Term Stocks to Buy and Hold Forever

As even novice investors probably know, funds—whether they're mutual funds or exchange-traded funds (ETFs)—are the simplest and easiest ways to invest in the stock market. But the best long-term stocks also offer many investors a way to stay "invested" intellectually—by following companies they believe in. They also provide investors with the potential for outperformance.

So if you're looking for a starting point for your own portfolio, look no further. Check out our list of the best long-term stocks for buy-and-hold investors.

Related: 7 Best Vanguard Dividend Funds [Low-Cost Income]

What's better than a smart, sound dividend income strategy? How about a smart, sound dividend income strategy with very little money coming out of your pocket?

If that sounds good to you, you need look no farther than low-cost pioneer Vanguard, which offers up a number of payout-oriented products. Find out what you need to know in our list of seven top-notch Vanguard dividend funds.

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Did you just wince a little? Do you hate the words "pre-owned" and "secondhand," too? I get it. Buying items that already have one owner has a stigma for a reason. You don't always know what you're getting, but you do know that at least a little of that item's usable life has been ... well, used.

Still, there are several advantages to buying secondhand. To start, you can save a substantial amount of money. It's also better for the environment and you can sometimes find high-quality, vintage items that are hard to come by in stores these days. 

I'm not suggesting you buy everything used. Some things should be bought new. But if you're looking to save money (and the environment!), there are certain types of objects you should purchase secondhand every time. Today, I'm going to go over some top items you should always buy used.

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Don't Buy These Items New

There are times to be frugal, but there are also times where spending up pays off. This list very much focuses on the former.

When you're shopping for the items on this list, always be thrifty. Buying new almost guarantees you'll be wasting additional money that could be put to better use.

1. Textbooks

If you think regular books are costly, go check out the price tag on a college textbook or two. Hard-copy textbooks sport an average price between $100 to $150 each. Multiply that by the number of classes you'll take throughout a college career, and the result is no small sum.

No wonder, then, that 90% of professors agree that textbooks and course materials cost too much money for students, according to data published by the Education Data Initiative.

In some cases, digital course materials might be available. But that's not always an option, and even when it is, it's sometimes every bit as expensive. Plus, some students learn better by highlighting and underlining key points in a physical book. 

No, the way for college students to go thrifty, if the option exists, is to buy secondhand. While you can occasionally buy used college textbooks directly from other students, you're more likely to find what you need at a university bookstore. Better still, those same bookstores will often buy your old textbooks back when you're done, allowing you to recoup a bit more money.

"But don't I need the newest version?" Usually, the answer is no. While publishers commonly release new textbook editions every year, most of them have minimal changes or additions. However, when in doubt, ask your professor which version you must have.

2. Baby Clothes + Shoes

Those onesies calling your baby's name at the store might look adorable, but there is a high chance they'll get little to no use. 

Some babies never fit into infant sizes and grow straight into larger sizes. No matter what size they come out, babies grow as fast as weeds. While there is a lot of variation, babies often go up a clothing size roughly every 10 weeks. 

Also, they don't walk right away, so babies don't need shoes … but they can be gosh darn cute. If you want your baby to wear them, keep in mind that in the first year alone, their feet grow an average of five sizes. 

It's not worth buying new items that will be used so briefly, so you can do well to buy baby clothes and shoes pre-owned. And remember: Children are messy, too. Your baby might be one blowout diaper or throw-up session away from destroying their outfit. But the financial impact won't be so bad if that outfit is secondhand.

Related: Frugal vs. Cheap: What's the Difference?

3. Wedding Accessories

Want to see a magic trick? Take an object, add the word "wedding" to it, and watch how it magically doubles or triples in price. 

A wedding is (usually) a once-in-a-lifetime event. As such, people are often willing to splurge on weddings more than any other event. Retailers take advantage of this, frequently charging more for an item designed for wedding usage than it could otherwise fetch.

For this reason, you should try to buy some or all of your wedding accessories, such as jewelry, hair pieces, and fake flowers, used. 

Chances are those items were only used one time and could still be in excellent condition. Yet often, you can get these items for a fraction of the original cost. 

According to The Knot's 2023 Real Weddings study, the average combined wedding ceremony and reception cost in 2023 was $35,000. Engaged couples can help bring that number down a bit by purchasing secondhand.

Related: 9 Best Fidelity Index Funds to Buy

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4. Holiday Decor

Do you love decorating your home for every season and holiday? You're probably not alone.

A Rocket Homes survey found that the average American spends about $269 on holiday decorations every year, while those who are married with children spend an average of $390.

If your number frequently comes in much higher, you don't necessarily need to cut down on how much you buy. Instead, consider purchasing some of your holiday decor used. 

You can get your decor far cheaper by purchasing secondhand at thrift stores, garage sales, and online marketplaces. Plus, buying pre-owned decorations is more sustainable. Many decorations are made mainly of plastic or metal and hold up well over time.

Better still: You can take your savings and spend the excess on special presents or holiday activities with your family.

Do you want to get serious about saving and planning for retirement? Sign up for Retire With Riley, Young and the Invested's free retirement planning newsletter.

5. Workout Equipment

People often set overly ambitious fitness goals, and many of those goals are laid out around New Year's Eve. Indeed, a 2023 Forbes Health/One Poll survey found that the most popular New Year's resolution for 2024 was fitness. 

Fitness goals are good. Unfortunately, when people set the bar too high, they quickly lose motivation. That's unfortunate no matter the situation, but it's financially painful if they quit after buying a bunch of expensive workout equipment and/or exercise accessories.

But their pain can be your gain. People who no longer need that workout equipment are often willing to sell it—sometimes at very reasonable prices.

Dumbbells and other weights don't have expiration dates, and they're pretty darn hard to break, so you may as well get them secondhand. And while you should be more cautious with any powered equipment, gear like treadmills and stair climbers are typically built to last.

Just make sure that, no matter what you buy, you test it out before going through the trouble of taking it home.

Related: Should I Pay Off My Mortgage Before I Retire?

6. Adult Clothing

While you might not be able to build a complete wardrobe from used clothing, there are a lot of benefits to buying at least some of your adult clothing secondhand.

The most popular reason people buy pre-owned clothing is to save money. Thrift stores offer pretty great deals, but garage sales and online marketplaces can save you even more.

But that isn't the only benefit of secondhand clothing.

Some people like the challenge of finding interesting vintage pieces. People who care about animals' rights will sometimes only buy leather or fur items secondhand so they don't increase demand for these types of items. Plus, it's more sustainable than fast fashion.

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7. Furniture

While "fast furniture" (cheaply made items that usually last one to five years) is common in one's 20s, there's a stigma against it once you get older. A 2022 survey by Avocado Green Mattress, conducted by OnePoll, found that more than half of respondents believe it's only acceptable to own fast furniture in your 20s. And a little under half admit to having judged adults with low-quality furniture. 

The problem? Quality furniture is expensive. So if you want sturdy pieces, but you don't have enough money to pay for them, you have two choices:

1. Stick with fast furniture

2. Buy high-quality secondhand furniture

People don't just sell furniture when they think it's on its last legs. People also sell well-kept used furniture because they are moving somewhere smaller or their sense of style has changed. Those without a truck are sometimes willing to give excellent deals to people who will remove these large items from their homes. Just avoid used mattresses unless you know the previous owner, as you don't want to risk getting bed bugs.

Interestingly, secondhand furniture purchases aren't just for those short on cash. A YouGov poll found that a higher percentage of high-income earners (40%) are more likely to consider purchasing secondhand furniture than middle-income earners (38%) or low-income earners (35%). 

Related: 10 Items You Should Always Buy New

8. Pet Items

People love to spoil their pets. According to data from the U.S. Bureau of Labor Statistics Consumer Expenditure Surveys, consumers spent more than $100 billion on pet-related costs in 2021. That's more than they spent on alcoholic beverages ($73.8 billion) and women's clothing ($87.9 billion).

I'm absolutely in favor of treating pets well and buying them plenty of toys. I'm just saying, where it makes sense, buy secondhand toys. (Just think about how excited dogs get about free sticks. They don't care about how much their toys cost.)

When a pet passes away, the owner is left with a lot of items they don't need. While some owners throw these items away, others sell them at a low cost or even give them away for free. And sometimes, owners will sell treats or toys their current, very alive pets are simply uninterested in. Either way, those are sound opportunities for thrifty pet owners. 

So, get your pet some pre-owned items, and spend the savings on a dog park membership or cat spa day.

Related: The 13 Best Mutual Funds You Can Buy

9. Designer Items

Have you dreamed of owning a Coach purse or Louboutin heels but can't justify the cost? Treat yourself to a gently used designer item for a fraction of the cost. 

Future Market Insights predicts, for instance, that the secondhand bag market will grow from $6.3 billion to $11.5 billion between 2023 and 2033. And Business Research Insights states that the global secondhand luxury goods market will jump from $26.2 billion in 2021 to $78.3 billion by 2031.

If a Rolex watch is still ticking or a Prada bag is still fit to hold items, you can save an insane amount of money buying these items used. Even if they are a bit worn out, people won't know it was because someone else used those items.

And if you feel any shame, remember: Even celebrities often don't buy designer items at full price. Red carpet clothes, jewelry, and shoes are typically borrowed. 

So rather than spend as much money as you do for three months of rent on a handbag, go ahead and get a pre-owned one.

Related: 9 Financial Mistakes That Can Quickly Drain Your Retirement Savings

10. New Hobby Accessories

Hobbies are an important part of life. Spending time on a hobby can reduce stress, lower your blood pressure, and improve relationships. 

However, it can be challenging to know which activities you'll actually enjoy until you've tried them out for a while. Thus, it's common to start a new hobby, only to realize within weeks or a couple months that it's not a good fit.

If you stop a hobby that is free or affordable, great! But the problem arises when you realize you hate a hobby only after you've purchased expensive hobby accessories.

LendingTree data shows that around 60% of people in the United States started a new hobby during the pandemic. Unfortunately, it caused over half of those people to take on credit card debt. Now imagine how many of those people felt once they realized those hobbies just weren't up their alley.

If you're trying out a new hobby that requires accessories—especially those that require expensive gear—buy used items. Why spend thousands of dollars on a new set of golf clubs only to realize a week later that you can't stand playing?

And once you determine a hobby has stuck, you can always upgrade your accessories.

When you're trying out a new hobby, especially an expensive one, buy used items. You don't want to spend thousands of dollars on a brand-new golf club set just to realize a week later that you hate golfing. Once you know a hobby has stuck, you can always upgrade your accessories.

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Related: 10 Frugal Habits That Make Retirees' Lives Better

Frugality is often looked at as a means of saving aggressively toward your retirement. But that doesn’t mean you should stop being frugal once you get there.

I’m not suggesting you forgo all luxuries once you’ve finally reached your hard-earned retirement. But one of the most important challenges you’ll face in retirement is achieving the lifestyle you want without burning through your nest egg too early, so why shouldn’t you keep up your focus on maximizing your dollar’s value? After all: Frugality should be a habit, and these frugal habits make retirees' lives better.

Related: The 10 Best-Rated Dividend Aristocrats Right Now

Dividend growth puts more cash in our pockets and signals that the company we're invested in is confident in its ability to keep churning out profits. And there's no more heralded group of dividend growers than the Dividend Aristocrats, which are companies that have paid higher cash distributions each year for at least a quarter-century.

But even Aristocrats aren't created equally. Check out which dividend growers Wall Street loves the best right now in our list of the top-rated Dividend Aristocrats.

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Walking into a dollar store, then, can be a cool smack of fresh air. The prices are so low! And for some items, a dollar store really might be a great alternative to your normal shopping stops.

But for some items, dollar stores' meager prices may be ripoffs in disguise.

Today, I want to discuss some of the items you should always skip buying at dollar stores. As we remove your rose-colored dollar-store glasses, you should have a better idea of when you're actually getting a deal, and when a dollar store is actually taking you to the cleaners.

Your Dollar Store "Don't Buy" List

Some of the items on this list are dogged by low ratings and negative reviews complaining of poor quality. As you're likely aware, the cheapest products are often (though admittedly not always) inferior to their slightly pricier counterparts. 

Perhaps more surprisingly, other products made this list because their prices aren't as competitive as one might assume—you can find better deals elsewhere.

Whatever the reason, don't let yourself be tempted to buy the following items at the dollar store.

1. Charging Cables

Dollar stores generally aren't your best option for technology, and charging cables are a prime example. 

Dollar Tree's website shows two charging cable options. One option is the E-Circuit Rainbow Fabric USB-C Charging Cables, which currently garner just a little more than two out of five stars. The sample isn't large, but of six reviews, half give the cables a one-star rating. One reviewer describes it as the "worst charger ever." 

The other option is the Novelty Type C Charging Cables. Again, a small sample set of just four reviews, but two of those reviews give the cables a one-star rating. One reviewer said the cords were of poor quality and wouldn't charge their Samsung phone. The other review said "within a week this charger melted in my iPhone 16." 

Don't risk ruining expensive phones by buying cheap charging cables from a dollar store.

Related: Walmart vs. Target: 10 Big-Box Price Comparisons

2. Earbuds

Another type of tech you may want to skip at the dollar store is earbuds. Dollar General has many earbud options, but the vast majority have poor ratings and reviews. 

For example, the Billboard Titanium Earbud with Mic has a meager 2.2-star average among nine ratings. Several reviewers complained that only one side of the buds delivered audio. "I will never buy this garbage again," one reviewer claims. "Everything sucks about it."

Another option is the True Wireless Earbuds with Charging Case. While it only has four ratings, they unanimously gave these earbuds a single, lonely star. One review states that the earbuds died after one song and didn't charge past 60%. Another said the left side didn't charge and the other side died in about an hour. And yet another consumer claimed they didn't even get to use them because one of the buds broke when taking them out of the charging case. 

It bears repeating: If at all possible, don't buy your technology from dollar stores.

Related: 10 Technologies That Are Somehow Still Thriving

3. Carbon Zinc Batteries

Batteries at dollar stores may seem like a steal, but there might be a catch.

For example, at a Dollar General near me, there are currently six-packs of Generate AAA Heavy Duty batteries for only $1.50! But there is a reason the six-pack of Duracell AAA batteries at the same store is triple the price: Duracell's batteries are alkaline, while the Generate Heavy Duty batteries are likely carbon-zinc batteries, which have less stored energy and are more likely to leak. 

The product details hint at this, saying the batteries are "ideal for use in low-drain devices." 

While the lower price tag might be tempting, you're likely better off with higher-quality batteries that will last longer and have lower leak risk.

Related: Frugal vs. Cheap: What's the Difference?

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4. Windshield Washer Fluid

On the Dollar Tree website, the only windshield wiper fluid shown is Driver's Choice Summer Blend Windshield Washer Fluid. 

Why do they strategically put "Summer Blend" in the title? According to the product details, "These 1-gal jugs of blue fluid are ideal for warmer weather, as they are designed for temperatures over 32 degrees Fahrenheit." 

If you live in a climate that never dips into freezing temperatures, this might work fine for you. But if you live somewhere that gets below freezing in winter, like me, you'll want to steer clear of this wiper fluid. When it gets cold, the fluid may freeze. Then, it wouldn't be able to clear the glass properly, making it unsafe to drive. You're better off buying a slightly more expensive windshield wiper fluid that is winter-grade and not going to freeze.

This doesn't mean every windshield washer fluid sold in a dollar store will be a clunker, but it is a warning to read the labels and know what you're buying.

Related: 7 Car Maintenance Tasks That Save You Money

5. Toilet Paper

Dollar stores sometimes sell both generic and name-brand toilet paper at their stores. Unfortunately, in many situations, neither is a great deal.

For example, the Dollar General closest to me has True Living toilet paper. It's priced competitively, but it's only single-ply bath tissue—so while you're paying less, you're likely going to end up using more during each trip to the bathroom.

"This is the worst toilet paper ever - 1 ply," one reviewer writes. "Come on guys this is a ripoff and an insult! This stuff is too thin and falls apart the second a drop of dampness hits it. I'll find something else!!! I give it a zero!"

Of course, the same Dollar General also offers Charmin Ultra Soft toilet paper, which is much better-reviewed. But once you crunch the numbers, it's actually slightly more expensive than Walmart's prices. Dollar General offers a 12-count pack of "Mega" rolls, which have 224 sheets each, for $15.50. Thus, you're getting 2,688 sheets (12 x 224 = 2,688) for $15.50, or 0.58¢ (58/100ths of a penny) per sheet. Meanwhile, Walmart currently offers 12 "Mega XXL" rolls, which have 440 sheets per roll, for $26.48. That comes out to 0.50¢ per sheet, which is less.

And if you can afford it (and have the space to store it), Walmart also has a 24-pack of "Mega XL" rolls, which have 336 sheets per roll, for $39.72. This comes out to an even cheaper (albeit slightly) 0.49¢ per sheet. 

All of the above might seem like minuscule differences, but people go through a lot of sheets, so the price differences can add up over time.

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6. Soda

Quality issues aren't so much an issue with soda at dollar stores. After all, they typically sell the exact same popular brands as other retail chains.

Instead, you need to be wary about price.

Larger chains usually secure better prices from brands by purchasing their products in bulk. Dollar stores often don't sell as much soda. As a result, they must buy at a higher price … and charge customers a higher price in return.

Let's look at Coca-Cola prices at Dollar General and Walmart. Currently, Dollar General sells a 2-liter bottle of Coca-Cola Classic for $3.25. The same bottle at Walmart? $2.74. DG sells a six-pack of 16.9-ounce bottles of Coke for $6. Walmart sells it for $5.28.

Buying yourself a bottle of soda from the dollar store on a hot day likely won't make or break your finances, but if you're a regular soda drinker, you're best off stocking up somewhere else.

Related: Walmart Lovers: Don't Make These Shopping Mistakes

7. Allergy Medicine

Dollar stores frequently sell allergy medicines, but they do so in smaller quantities that result in a higher price per pill.

For example: The biggest bottle of Zyrtec that Dollar General sells contains just 40 tablets. At $21 currently, you pay about 53¢ per tablet. Compare that with Costco, which sells two bottles together (a 70-count and a 50-count, for a total of 120 tablets) for $40.99—or 34¢ per tablet.

Going generic with your allergy medicines can deliver virtually identical results at even better cost savings. Costco wins out there, too. Dollar General, under its house brand DG Health, sells a 90-tablet bottle for $17, or 19¢ per tablet. Meanwhile, Costco's Kirkland Signature-branded Aller-Tec comes in a 365-bottle (to last you the entire year!) for only $14.49. That's a wildly cheap 4¢ per tablet.

Do your wallet a favor and don't buy your allergy tablets at a dollar store. (Also, do your nose a favor and also check out Aller-Flo Allergy Spray, which is among the highest-rated Kirkland Signature products.)

Related: Avoid Buying These Products at Costco

8. Gift Cards

When you buy a gift card from a store, you typically pay the same price as the value of the card. So, let's say you go to Dollar General to buy a $20 Domino's Pizza gift card. You'll probably pay $20. Makes sense. And it's standard at most stores—not just dollar stores.

But a handful of places sell gift cards for less than their face value.

Costco currently offers four $25 Domino's E-gift cards ($100 value) for just $74.99. And that's not its only gift card deal. This is just a small sampling of some of Costco's current gift card promotions:

--Two $50 Dave & Buster's eGift Cards ($100 value) for $79.99

--Four $25 Nintendo eShop eGift Cards ($100 value) for $89.99

--Two $50 Spafinder eGift Cards ($100 value) for $79.99

--One $50 Cinemark Theatres eGift Card ($50 value) for $39.99

--One $50 Regal Cinemas eGift Card ($50 value) for $39.99

Yes, it requires a Costco membership, and Costco might not always be selling the gift cards you want. But if you're a member, it's always worth checking before grabbing one at a dollar store.

Related: Stagflation: When Inflation Clashes With an Economic Slowdown

9. School Supplies

If your child waits to tell you about a school project until the night before it's due, dashing to the nearest dollar store might be your only option. But before every new school year, when you make a dedicated shopping trip to stock up on school supplies, consider looking elsewhere.

Let's start by comparing prices for colored pencils. Right now, a 24-count box of Crayola colored pencils is $4 at Dollar General. The same box is only $3.27 at Walmart. 

Plus, if you're being honest, that 24-pack may not be enough. Some will snap. Others will get lost in the couch cushions. Favorite shades will quickly dwindle down to a tiny nub. But you can't get a bigger size at Dollar General; Walmart, on the other hand, sells larger boxes with 50, 64, even 150 colored pencils per box.

How about construction paper? Now, let's take a look at construction paper. Currently, Dollar General sells a Crayola Construction Paper Pad, with 96 sheets of 9-inch-by-12-inch paper, for $3.50. You can get the same size and amount at Walmart for $2.86.

Again, you might want larger quantities. And again, Dollar General doesn't have that option. But Walmart sells packs with 120 sheets or 240 sheets—and if you really want to stock up, 12-packs of 96 sheets each.

Related: Feeling Thrifty? How to Save Money at Thrift Stores

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10. Canned Beans

In the fall and winter, I love making chili with three types of beans. But I don't buy my canned beans from Dollar General, which charges more than other popular chains. 

Example: Dollar General sells 16-ounce cans of Bush's Pinto Beans for $1.50; it charges the same price for a 15-ounce can. But those same cans cost just $1.39 at Target, and $1.28 at Walmart.

Like several of the items on this list, a difference of a few cents might not seem like a big deal—but if you regularly include beans in your meals, it can add up.

Related: 10 Frugal Habits That Make Retirees' Lives Better

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Blue-collar jobs are usually characterized as lines of employment that primarily involve manual labor. The term itself gets its name from the "blue collar" of denim shirts—a common uniform for industrial and other manual jobs.

What people tend to misunderstand, however, is just how skilled many of these professions are. Yes, some blue-collar jobs don't demand much education or specialized abilities, but many others require highly skilled and experienced workers.

Similarly, blue-collar jobs are frequently stereotyped as offering much lower pay than their white-collar counterparts. While true at times, blue-collar jobs can, in fact, pay quite well.

Today, I'm going to discuss some of today's highest-paying blue-collar jobs. I'll cover how much they pay, where the work is popular, and what requirements you might need to break into each profession.

Blue-Collar Jobs That Pay Well

The wages for these jobs all come from the U.S. Bureau of Labor Statistics' May 2023 National Occupational Employment and Wage Estimates—the most recent information available.

The numbers shown here are the mean (aka average) wage for each occupation. Every blue-collar job listed in this article has an annual mean wage that's above the annual mean wage for all occupations—$65,470 as of the BLS's May 2023 data.

I've also included the BLS's estimates for the number of people employed within each occupation.

11. Structural Iron and Steel Workers

-- 2023 mean annual wage: $68,220

-- 2023 employment: 63,780

Not a job for the slight of buff, structural iron and steel workers have to lift, place, and unite steel beams, columns, and other structural members. Some workers also erect metal storage tanks or assemble metal buildings. (Note: This category of employment is separate from reinforcing iron and rebar workers.)

While it can be a dangerous job, these workers still tend to report only average stress levels. And in exchange for this work, the mean annual wage is $68,220, per BLS data—a few thousand dollars per year more than the mean salary for all occupations. The states with the highest concentration of these jobs are South Dakota, Nebraska, Arizona, Louisiana, and Indiana.

You don't need a college degree to enter this field; jobs here typically require just a high school diploma. But you'll typically need some previous work-related experience or skills. An apprenticeship (of between three to four years) tends to be the best way to get started. Keep in mind that you might need to join a union to qualify for an apprenticeship.

10. Makeup Artists, Theatrical and Performance

-- 2023 mean annual wage: $68,590

-- 2023 employment: 4,130

Makeup artists might not sound like blue-collar work to some, especially when compared to backbreaking jobs like iron and steel workers. But it's very much manual labor—a true behind-the-scenes occupation that helps make viewing entertainment so … well, entertaining.

The makeup artists in this category aren't prepping blushing brides or doing other salon work, however. These are specifically theatrical and performance makeup artists, which apply makeup to performers, such as those in television and motion pictures. This involves a wide variety of work, from making the local news anchor a little more attractive to turning actors into zombies, aliens, and other sci-fi creatures.

Unsurprisingly, these workers are paid well; according to BLS data, the mean annual wage for these professionals is $68,590. However, an interesting note about that data—the year prior, the average wage was nearly $94,000! Why the difference? The 2023 Hollywood strikes resulted in massive temporary shifts in that year's data; the year before, California not only employed the biggest number of makeup artists, but it also had one of the highest mean wages for the profession.

The strikes affected other data points too. For instance, by concentration, Texas, New York, Florida, Utah, and Illinois are the top states by concentration of makeup artists as of 2023, but under normal circumstances, California would rank pretty high on (or at the top of) that list.

Typically, this type of work requires no associate's degree, vocational school training, or related on-the-job experience. However, you are expected to already have some of the necessary skills and receive additional on-the-job training.

Related: 7 Best Vanguard Dividend Funds [Low-Cost Income]

9. Lighting Technicians

-- 2023 mean annual wage: $73,250

-- 2023 employment: 9,520

Looking for a high-paying job typically categorized as blue collar? This may be a, ahem, lightbulb moment for you.

As you might guess, lighting technicians set up, dismantle, and maintain light fixtures and lighting control devices. Perhaps less obvious, they also deal with the associated lighting electrical and rigging equipment used for creative endeavors, such as photo shoots, television, film, video, and live performances. Some workers focus on operating light fixtures or attaching lighting accessories.

The annual mean wage for this profession, based on BLS data, is $73,250.

It's far easier to find lighting technician roles in some parts of the country than others. The states with the highest employment levels for this job are California, Nevada, New Jersey, Tennessee, and Kansas.

There are a few ways to break into this industry. Workers have a leg up on the competition if they hold a bachelor's degree in theatrical production arts or a degree in electrical engineering. However, a college degree isn't necessary (there are no formal educational requirements), and people can get entry-level roles that offer on-the-job training.

Related: Top 15 Cities With the Highest Minimum Wages

8. Commercial Divers

-- 2023 mean annual wage: $75,570

-- 2023 employment: 2,790

If you're envisioning the Olympics, this isn't that.

Commercial divers go underwater and use air or scuba equipment to install, inspect, fix, or take out equipment and structures. To do these tasks, they sometimes need to use a wide range of equipment, such as torches or welding equipment.

Some workers conduct experiments, others take underwater photographs, and some rig explosives. Not included within this employment category are fishing and hunting workers, police and sheriff's patrol officers, or athletes and sports competitors (trust me, Michael Phelps' wages are much higher).

Data published by the BLS shows the mean annual wage for this job to be $75,570. You're most likely to find work as a commercial diver in Louisiana, Alaska, Hawaii, and Washington (few surprises there), but also Kentucky—a little more surprising given that it doesn't border an ocean, gulf, or Great Lake.

Usually, this job requires training in a vocational school, relevant experience, or an associate's degree. Prior skills, experience, or knowledge is required. And once you enter this occupation, you can expect a year or two of on-the-job training.

Related: States With the Highest Minimum Wages [How States Stack Up]

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7. Water Transportation Workers

-- 2023 mean annual wage: $79,030

-- 2023 employment: 76,040

Water transportation workers maintain and operate water vessels that transport people and cargo, and they must ensure the safety of both. Captains, mates, pilots, sailors, ship engineers, marine oilers, and motorboat operators all fall under this category of employment.

If you love being out on the water, this job could be a great fit for you. But be warned—these workers typically work for long periods … and the chances of seeing a mermaid are very low.

The annual mean wage for water transportation workers was $79,030 in 2023, per BLS data. The bureau did not list state-level data for this occupation in May 2023.

Entry-level sailors and marine oilers typically don't have to meet educational requirements. However, some other types of workers usually must do U.S. Coast Guard-approved training programs.

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6. Signal and Track Switch Repairers

-- 2023 mean annual wage: $81,810

-- 2023 employment: 9,200

Specifically, signal and track switch repairers install, inspect, test, maintain, or make any necessary repairs to electric gate crossings, track switches, signals, signal equipment, section lines, or intercommunications systems.

It's not a huge field, but it's an important one. While the U.S. doesn't use passenger trains as much as several other first-world countries, freight trains are popular. Per the Association of American Railroads, America's freight rail network operates more than 140,000 miles of privately owned track and handles a third of all U.S. exports.

According to BLS data, the mean annual wage for this type of work is $81,810. New York is an overwhelming source of these jobs, at more than a third of the total number employed as of 2023, and it also has the highest concentration of this occupation. Other high concentrations can be found in Kansas, Illinois, Indiana, and Wisconsin.

Most of these jobs necessitate training in vocational schools, on-the-job experience, or an associate's degree. A recognized apprenticeship program can be useful, too.

Related: Best Vanguard Retirement Funds for a 401(k) Plan

5. Electrical Power-Line Installers and Repairers

-- 2023 mean annual wage: $85,900

-- 2023 employment: 120,170

As could be surmised from the title, electrical power-line installers and repairers install or fix cables or wires that electrical power or distribution systems use. Other duties can include erecting poles or transmission towers. After these lines are installed, it's the job of birds to hang out on those powerlines. (Note: This employment category doesn't include electrical and electronics repairers, powerhouse, substation, and relay.)

It's one of the highest-paying blue-collar jobs you can find; based on BLS data, the mean annual wage for this profession is $85,900. While the greatest number of jobs can be found in Texas (13,710), the highest concentrations of these jobs will be found in South Dakota, Mississippi, Wyoming, Alabama, and Kentucky.

The typical entry-level education requirement for these roles is a high school diploma or equivalent. While there is usually no prior related work experience necessary, workers can expect long-term on-the-job training.

Related: The 7 Best Closed-End Funds (CEFs)

4. Petroleum Pump System Operators, Refinery Operations, and Gaugers

-- 2023 mean annual wage: $88,120

-- 2023 employment: 33,360

Petroleum pump system operators, refinery operators, and gaugers control petroleum refining or processing units. Some workers have specialties, such as controlling manifold and pumping systems. A manifold is a system of headers and branched pipes used to distribute or gather fluids. Others specialize in gauging or testing oil or regulating oil flow into pipelines.

Per BLS data, the mean annual wage for this type of employment is $88,120. People interested in this type of employment should look for jobs in Wyoming, Louisiana, Oklahoma, Alaska, and Texas, which have the highest concentration of people employed in this field.

Typically, these jobs require a high school diploma as well as some previous work-related knowledge, skills, or experience. Workers can expect job training to last anywhere from a few months to a year.

Unfortunately, while this job does provide an excellent salary compared to many other blue-collar workers, it's also one of several lucrative jobs that are going away.

Related: Best Fidelity Retirement Funds for a 401(k) Plan

3. Farmers, Ranchers, and Other Agricultural Managers

-- 2023 mean annual wage: $90,160

-- 2023 employment: 6,150

There is no lack of tasks that need to be done on a farm or ranch. Farmers, ranchers, and other agricultural managers may work at farms, ranches, greenhouses, nurseries (the plant kind—not the child kind!), aquaculture operations, timber tracts, or other agricultural places. Some of these workers hire and supervise farm workers, while others contract out the work. These workers are categorized separately from first-line supervisors of farming, fishing, and forestry.

This fluctuates between blue- and white-collar work depending on the exact role. For instance, a worker might either engage in or supervise planting, cultivating, or harvesting plants, though some might focus on marketing and financial activity instead.

This field pays a well-above-average mean annual wage of $90,160, according to BLS data. The states with the highest concentrations of farmers, ranchers, and other agricultural managers include Idaho, Nebraska, Iowa, Hawaii, and California.

Entry-level education requirements are typically limited to a high school degree or equivalent. However, many employers expect at least five years of work experience in a related occupation. Many people gain experience from growing up on a family farm.

Related: 10 High-Paying Jobs for Creative People

2. Electrical and Electronics Repairers, Powerhouse, Substation, and Relay

-- 2023 mean annual wage: $92,840

-- 2023 employment: 24,790

As the title suggests, electrical and electronics repairers, powerhouse, substation, relay workers largely handle electrical equipment in generating stations, substations, and in-service relays. This is a common example people use when they encourage others to go into well-paying trades.

The mean annual wage for this category of employment, based on BLS data, is $92,840—second highest on this list, and one of the few blue-collar jobs that earns more than $90,000 annually on average. The biggest concentrations of this job are found all across the country, from New York and Alaska to West Virginia and Michigan.

The minimum educational requirement for this work is usually a high school diploma; however, specialized training is needed for some roles. Employers are more likely to choose candidates who have some formal education in electronics from a community college or technical school. Workers typically get training on specific types of equipment and work with professionals before doing independent work.

Related: Today's 10 Fastest Dying Careers

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1. Elevator and Escalator Installers and Repairers

-- 2023 mean annual wage: $100,060

-- 2023 employment: 23,990

You've probably ridden an elevator at some point—and it's possible that once or twice, you've tried to call an elevator only to find it's out of order and that you must take the stairs.

That's when elevator and escalator installers and repairers come to the rescue. These workers set up and maintain not just passenger elevators and escalators, but also hydraulic freight elevators or dumbwaiters.

This profession has the highest mean annual wage on our list, cracking six digits at $100,060, per BLS data. Where there are a lot of elevators, you need a lot of workers to install and repair them, so it should be of no surprise that New York is home to both the largest number of jobs in this field (4,530) and the highest concentration. Maryland, Hawaii, Washington, and Florida also have high concentrations of this work.

The minimum educational level is usually a high school diploma or equivalent. The vast majority of these workers learn the necessary skills through an apprenticeship of about four years, though those who can prove relevant experience may be able to get a shorter apprenticeship. You need to be licensed in most states.

Related: Federal Tax Brackets and Rates

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It’s difficult to resist the charm of high-yield dividend stocks. Their ability to generate outsized amounts of cash makes them the stuff of dreams for those living on a fixed income—as well as for any investors who simply want a little performance ballast during periods of rough stock-price returns.

But we prefer quantity and quality. For instance, our favorite high-yield dividend stocks deliver much sweeter yields than the average stock, show more signs of fundamental quality than most, and have the confidence of Wall Street's analyst community.

Related: 15 Best Long-Term Stocks to Buy and Hold Forever

As even novice investors probably know, funds—whether they're mutual funds or exchange-traded funds (ETFs)—are the simplest and easiest ways to invest in the stock market. But the best long-term stocks also offer many investors a way to stay "invested" intellectually—by following companies they believe in. They also provide investors with the potential for outperformance.

So if you're looking for a starting point for your own portfolio, look no further. Check out our list of the best long-term stocks for buy-and-hold investors.

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But it makes sense! Most people sink 40 or more hours per week into their jobs—a massive dance card that suddenly opens up in retirement. And while some of that time might be spent sitting around, much of it probably won't.

Seniors do have to operate on a fixed income, however. Sure, there will be the occasional travel and events with friends, but they won't exactly be touring the Riviera every month, either. Thus, most seniors would benefit from an activity or two that doesn't tug on their wallets.

Whether you're on a fixed income or just naturally frugal, free hobbies are preferable to expensive ones. So with that in mind, I've come up with a list of free things for seniors to do. 

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Free Activities for Seniors

Some of the activities in this list are free specifically for older adults, while some of them are free for all people—seniors included. I've also explored in-person and online options so there's something for everyone, regardless of social outgoingness and mobility. The same considerations go for the type of activity; some are physical, others will work out your mind, and a few provide benefits for both.

Just one note: Many hobbies and activities, while free to participate in, might require some amount of gear at the onset. I've intentionally excluded many of those activities, and instead am focusing on things to do that require little to no gear—maybe a pair of shoes or a cheap set of binoculars, but nothing more.

Now, let's discover your next favorite free hobby!

1. Hiking + Walking

Hiking provides ample benefits—it's great exercise, you can see parts of the country you never could before, and being out and about in nature can be calming.

Some of the best sights you can see can be found in America's national parks. And better yet? You can visit national parks for free during certain days of the year. In 2024, these days include:

-- Martin Luther King Jr. Day (Jan. 15)

-- The First Day of National Park Week (April 20)

-- Juneteenth National Independence Day (June 19)

-- Anniversary of the Great American Outdoors Act (Aug. 4)

-- National Public Lands Day (Sept. 28)

-- Veterans Day (Nov. 11)

Some national parks are free every day! And for those that aren't, you can also benefit from a great senior discount on the America the Beautiful Pass.

If you don't live near a national park and aren't sure where to hike local trails, the AllTrails app holds a database of map trails and has crowdsourced reviews, many of which include images.

As someone from the Midwest, I understand that outdoor hiking might not be an option for you every season. That's OK—indoor walking can be great too! Malls are a popular location for indoor walks because they are public places, there are long stretches to walk, and they often have plenty of benches for when you need a rest.

2. Continuing Education

You might have stopped working, but that doesn't mean you have to stop learning.

In 2023, associate professors Rachel Wu and Jessica A. Church wrote in Scientific American to describe their study of adults between ages 58 and 86. The adults took three weekly classes, each lasting two hours, to learn new skills. Their finding?

"Over the course of the intervention, people significantly improved their cognitive scores for memory and attention. In a follow-up study, we discovered that the participants had not only maintained their gains but had improved further: their cognitive abilities after one year were similar to those of adults 50 years younger. In other words, giving these seniors a supportive and structured three-course routine—much like an undergraduate student's schedule—seemed to eventually improve their memory and attention to levels similar to that of a college student."

Most states have at least one tuition-free state university program for seniors. (The exceptions—Arizona, Idaho, Indiana, and South Dakota—still have deeply discounted tuition programs for senior citizens.)

Depending on the state, the minimum age for free tuition ranges from 55 to 65.

Related: 10 Best Fidelity Funds to Buy

3. Auditing Classes

Alternatively, you could learn without doing homework and taking tests.

If you'd just prefer to listen to captivating lectures and learn at your own pace, you don't need to work toward a degree—you can audit college classes. When you audit a class, you can attend lectures and even participate in discussions. But you don't need to complete coursework or take exams. You're not receiving official credit, but you're not being graded, either.

Many states have universities that allow seniors to audit college classes for free. For instance, a Wisconsin state legislature mandate allows Wisconsin residents who are at least 60 years old to attend lectures for free within University of Wisconsin System schools.

This is a great option if you want to obtain more knowledge and expand your horizons without added pressure. (And hey! Younger college students might benefit from occasionally hearing from different generations about world events prior to when they were born.)

Related: Best Schwab Retirement Funds for a 401(k) Plan

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4. Podcasts

Podcasts are somewhat reminiscent of how radio stations used to be—but instead of having to tune into a specific station at a specific time, you just download what you want to hear when you want to listen to it.

These audio-only productions might be monologues, involve interviews, or just feel like you're overhearing friends talking. They can be fiction or nonfiction. Some are run by celebrities or a full production team, but it's also possible your next-door neighbor has one.

There's a podcast on just about any topic that might interest you. Marketing, animals, politics, television, beauty—you name it. Too broad for you? Podcasts can get very niche. There is an eight-part series called Containers that just talks about shipping containers. Crime Pays But Botany Doesn't is about "plants as viewed through the lens of evolution and ecology with a side of deranged ranting, crass humor, occasional profanity, & the perpetual search for the filthiest taqueria bathroom."

Anyone can listen to free podcasts on Spotify, SoundCloud, YouTube, the Podcasts app, and more.

And if you feel ambitious (and own a microphone), rather than just listening to a podcast, you could even start your own!

Related: 7 Best Wealth + Net Worth Tracker Apps [View All Your Assets]

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5. Reading

Reading is an enjoyable hobby at any age, but it can be particularly beneficial for older adults. A collaborative effort between researchers at the Beckman Institute and staff from Illinois' Champaign Public Library found that reading can improve memory skills in older adults.

Now, if you want to buy books, that won't be cheap. But getting a public library card is free.

Public library membership allows you to go there and read, or check out a few books there and bring them home. Struggle with small print? Library visitors can ask for assistance finding large-print books, which have bigger font sizes to accommodate those with less-than-perfect vision. Want some socialization? You can join a book club to discuss literature.

Also, libraries have far more than just books—you can also borrow audiobooks, movies, CDs, video games. You can utilize free internet access. And a handful of libraries have an even wider array of options, loaning out everything from tools to cooking supplies.

Related: The 7 Best Closed-End Funds (CEFs) That Yield Up to 11%

6. Games

Another thing you can get from some libraries? Games—including board games, card games, and even video games. So whether you prefer a game of solitaire or playing around on Minecraft, you might be able to borrow what you need for free.

Online games on your phone or computer are an excellent option as well. Every morning my (senior) mother and I text each other our Wordle scores, which we each do while drinking our morning coffee in our respective homes. The NYT Games app is a fabulous free app—while you can't do the crossword for free, you can play Wordle, Sudoku, Connections, and other games for free.

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7. Library Events

Public libraries frequently host a wide range of events. While some are geared toward children, others are for all ages, and some are specifically designed for older adults.

A quick look at my city's public library event calendar shows upcoming events including Adult Beginning Sewing, First Friday Films, Saturday Art, Munch Mobile Lunch Van (which offers a free lunch), and a Sculpey workshop (clay sculpting) … and all are completely free.

Check out your local library's website to see whether any interesting events are coming up soon!

Related: 11 Ways to Avoid Taxes on Social Security Benefits

8. Free Fitness Classes

Long ago, if you wanted to take a fitness class, you either had to sign up for paid in-person classes or buy videos advertised on TV.

But nowadays, on the internet, you can find more free fitness classes—via online videos—than any one person could ever complete.

YouTube is a wonderful place to start your search. I've personally enjoyed videos from PopSugar Fitness and Blogilates. A few other highly popular YouTube fitness channels are Yoga With Adriene, Chloe Ting, and The Fitness Marshall.

Related: Health Care Costs in Retirement: Here's How Much to Expect

Also worth noting is the SilverSneakers fitness program, which includes live online fitness classes and, in select locations nationwide, in-person classes. SilverSneakers is designed specifically for adults aged 65+ and is included for free in many Medicare Advantage plans. (Note: Medicare Advantage plans are private health insurance plans the federal government pays for—not state-sponsored health insurance.) You can find locations through SilverSneakers' local tool; I tried it out with my midsized-city ZIP code, and were I old enough to be eligible, I could go to seven fitness locations within about 4 miles.

It also never hurts to reach out to a community pool or gym and ask if they have a free access pass for seniors.

Related: 10 Monthly Dividend Stocks for Frequent, Regular Income

9. Bird Watching

Bird watching is a fun and affordable way to spend your time at any age, but it seems particularly popular among old adults.

People enjoy seeing birds' colorful features, hearing their melodic chirps, and figuring out their species. It's surprisingly good for you, too. A recent study published in Scientific Reports found "significant positive associations between seeing or hearing birds and mental wellbeing" both in people with and without a diagnosis of depression.

Bird watching can be done at home, parks—really most outdoor locations. If your city has indoor botanical gardens, that can be a good place to spot them as well. To identify birds, consider renting a book from the library or searching identifying bird characteristics online. Binoculars can be helpful but aren't necessary.

Related: Best Fidelity Retirement Funds for an IRA

10. Public Concerts + Events

Big cities don't have a monopoly on free public performances and other events. Even villages with a few thousand people often host free concerts, outdoor movies, and more—you just need to be informed that these events exist.

One way to find out about performances and other events is to take a peek at a local newspaper. Facebook Events is an excellent option if you already have an account. City websites might also provide calendars of events.

Schools often host concerts and other performances, too, you can also check the websites of your local school district to view any upcoming public events.

In many cases, you're doing the event a favor—organizers want as many visitors as possible, but might struggle to spread the word.

Related: 11 Best Vanguard Funds to Buy

11. Volunteering

Senior citizens can benefit substantially from volunteer work. When you join advocacy groups, it can give you a sense of purpose. Volunteering can also help you meet new people and, depending on the type of volunteer work, get some exercise.

Plus, it can often give you free admission to attractions and events you otherwise would have had to spend money to attend. If locally owned amusement parks have a special event, you might run a station for kids before enjoying a few rides yourself. Or you might volunteer at an annual film festival, which often lets you watch some of the films for free.

Related: 12 AARP Discounts + Benefits You Don't Want to Miss

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12. Senior Center Activities

Senior centers fall under the umbrella of community centers. A local community center is a place where community members of all ages can gather for free and cheap activities. Senior centers cater more specifically to older members of the community.

But unlike, say, a country club membership, senior centers typically don't require dues or registration (aside from signing up for certain events). Activities will vary by location. A glance at the website of a senior center in my city shows upcoming events such as bridge games, a veteran's social, bingo, and more. A center near you might host free poker nights, have painting events, or offer another activity that interests you.

Related: 7 Best High-Quality, High-Yield Dividend Stocks to Buy

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Related: 10 Best Monthly Dividend Stocks for Frequent, Regular Income

The vast majority of American dividend stocks pay regular, reliable payouts—and they do so at a more frequent clip (quarterly) than dividend stocks in most other countries (typically every six months or year).

Still, if you’ve ever thought to yourself, “it’d sure be nice to collect these dividends more often,” you don’t have to look far. While they’re not terribly common, American exchanges boast dozens of monthly dividend stocks.

Related: The 7 Best Dividend ETFs [Get Income + Diversify]

We love exchange-traded funds (ETFs) because they can provide one-click access to hundreds, even thousands of stocks, while charging often minuscule fees.

One way to put that low-cost diversification to work? Collecting dividends. But trying to choose from literally hundreds of income-producing funds could take up a lot more time than you have. So let us help you narrow the field—check out our list of seven top dividend ETFs.

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Financial minimalism runs along a similar vein. You limit your spending and try to reduce the number of tasks on your financial checklist, which in turn can reduce your stress and increase your worth.

Sound appealing? Today, I'll explain some of the best ways to achieve financial minimalism. These methods, over time, should not only benefit your wallet—they should help you spend less time thinking about money and more time just enjoying life.

Tips for Becoming More Financially Minimalistic

Managing your finances can be stressful, even if you have more than enough money to get by.

In a 2024 survey conducted by Discover Personal Loans, 80% of respondents said they feel "some level of anxiety" about their financial situation and 34% said they feel "moderate or severe anxiety" about it.

Even with a strict budget, you might find yourself losing money every month, or perhaps just not having as much left over as you expected. You might spend longer on bills than you expect. You might constantly worry about your net worth but never seem to know what it actually is.

Let's go over some of the ways you can adopt a more minimalistic mindset toward your finances, which may simplify your tasks and even tamp down your economic anxiety.

1. Automate Your Finances

Whether you sometimes forget to pay bills (and rack up late fees) or you simply get flustered by manually paying bills, you can improve your life by automating your finances as much as possible. Among the easiest steps you can take:

-- Putting bills on autopay

-- Setting up recurring bank transfers to send money regularly from your checking account to your savings account.

-- Setting up paycheck deductions to a retirement account

Automating your finances offers multiple benefits. For one, your payments will always be on time. It also ensures that you aren’t just saving whatever money is left over after your discretionary spending—it makes paying bills and setting aside money the main priorities. And in a few cases, companies will actually take a few dollars off your bill for setting up autopay.

But even though you’re clearing out most of the manual work, you’ll still need to regularly examine bank and credit card statements to ensure you’re not falling victim to errors or fraud.

2. Consolidate Your Financial Accounts

Do you have eight different brokerage accounts you opened for the sign-up bonuses? Or maybe you have a workplace retirement account from your last six jobs. It’s easy to accumulate a lot of financial accounts. Unfortunately, having your money spread out everywhere can make it challenging to keep track of your net worth and trajectory.

Simplify your finances by holding your money in fewer places. Consider doing a 401(k) rollover to consolidate your retirement accounts. Stick to your favorite taxable brokerage account instead of having several apps holding the same fractional shares of stocks. If you still have an old checking account in your hometown that doesn’t have a branch where you currently live, feel free to close it out and just have an account with a bank nearby or an online-only bank.

Related: 14 Items to Buy in Bulk + 7 You Never Should

3. Use the 30-Day Rule to Buy Less

The 30-day rule helps you avoid making impulse purchases you may regret later. 

The rule is simple: If you're about to make an unplanned purchase, pause, then wait 30 days. If you still want it, get it.

Let's say you see a dress you love online and you're tempted to buy it. If you wait 30 days and still want it, the rule allows you to make that purchase. However, many times, a little bit of time will make an item less appealing than it was initially—possibly because you're in less of a "retail therapy" mood, or possibly because you realize the item simply isn't worth it.

Overall, though, the 30-day rule not only helps you be more minimalistic by helping you purchase fewer things—but it also ensures that you really do want the things you end up buying.

Related: How to Protect Your Wealth: 10 Proven Strategies

4. Think of Your Purchases in Terms of Time Worked

The cash in your wallet isn't Monopoly money. You worked hard for those funds.

Most people forget that connection as soon as their paycheck hits their accounts. But remembering that connection—by thinking of purchases in terms of time worked—can help curb your spending. 

You see a sweater on sale for $100. Clothing is functional and you like the way this particular piece of clothing works. But let's say you earn $20 per hour—does that sweater feel like five hours' worth of work to you? It might! But when you reframe all purchases this way, you might end up making fewer discretionary expenditures.

Related: What Is the 90/90 Minimalism Rule?

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5. Focus on Quality, Not Just Price

Financial minimalism isn't about always buying the cheapest items to save money. Some items are worth splurging on—in fact, sometimes, the most frugal step you can take is buying something that costs a little bit more but will last several more years than the cheaper version (if not forever).

For instance, cheap, nonstick pots and pans must be replaced every few years, while stainless steel and cast-iron cookware is more expensive but can last decades.

Example: You're choosing between an inexpensive nonstick pan and a more expensive stainless steel pan. The first pan costs $50 and will last five years. The second pan costs $100 and will last 20 years. Over the course of 20 years, you'll spend $200 replacing your first pan every five years—but just $100 on the steel pan, which won't need to be replaced at any point during that time. In this situation, buying the inexpensive pan is merely cheap, while purchasing the pricier pan is actually frugal.

Buying items that last also cuts down on another expensive practice: Buying new versions of items anticipating that they're going to go bad (even if they won't anytime soon).

And as a bonus, buying more durable items less frequently is more sustainable and better for the environment.

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6. Do Your Research

Carpenters and seamstresses often repeat the adage to "measure twice and cut once." The purpose is to make sure you have accurate measurements before cutting … because if you cut something too short, you can't undo that action.

Apply this idea to your shopping.

When you need to make a large purchase, do your research. Take my advice from and factor in not just price but quality to ensure you'll actually getting long-term value out of the purchase.

I can't promise you'll only need to buy everything once—some things are designed to last a lifetime, but some technologies become obsolete. Still, a little analysis can save you a lot in the long term if you keep yourself from needing to buy the same thing over and over again.

Related: 10 Best Fidelity Funds to Buy

7. Track Your Spending

"Where did all of my money go?"

If you ever find yourself asking this at the end of the month … well, I can promise you your money isn't just evaporating into thin air. It's being spent on something somewhere.

And you need to track it.

While tracking your expenses will complicate your life a bit more at first, it helps set a benchmark for budgeting. Keep track of when and how much money is going in, as well as when and how much money is going out—and where that money is going. After a few months of careful tracking, you might discover that you're spending more in certain categories than you ever realized. And these insights may help you eliminate any unnecessary expenses.

For instance, you might notice you go out to dinner more often than you thought, or that you constantly buy single-use water bottles (and could save money by purchasing a water filter and reusable bottle). 

Sometimes you might identify more costly issues. For instance, a gradually growing energy bill (without a change in your energy usage or generation prices) can be a warning sign that you have a faulty HVAC system that must be repaired or replaced.

Related: Want to Become More Minimalistic? Start by Tossing Out These Items

8. Hire a Financial Advisor

If time is money, consider how much of your money you might be throwing away by shouldering all of the burden of long-term financial planning and making investment decisions.

A professional financial advisor won't work for free, of course. But the benefits frequently outweigh the costs.

A financial advisor can ensure your portfolio has an optimal mix of risk and reward, prevent you from making costly mistakes during a market panic, help you avoid the temptation of too-good-to-be-true opportunities … and that's just on the investment side. Financial advisors can also draw up a savings plan that actually works for you, and even save you money each year by minimizing your obligations to the tax man.

Not to mention: All of the above should help you spend far less time sorting your money.

Related: Do I Need a Financial Advisor? 7 Questions to Ask Yourself

9. Take Care of Your Items (And Self!)

Want to buy fewer things? Take care of what you have! 

Stay on top of your vehicle's regular oil changes and tire rotations. Put a case on your smartphone. Use a mattress protector. Keep your electronics clean. Stash your glasses in a case.

In general: The more expensive the item, the more routine maintenance and care you should be putting into it to extend its maximum useful life.

And for that matter? Take care of yourself, too. Dental floss is much cheaper than a root canal. Sunscreen is more affordable than skin cancer treatment. Keeping yourself healthy (as much as is in your control) is much more affordable than fixing issues—and, of course, will have massive quality-of-life benefits, too.

Related: 10 'Frugal' Habits That Aren't Actually Saving You Money

10. Trade Skills + Share Items

Sure, Tiffany probably won't trade you a diamond bracelet for a year's worth of plumbing services. But if you're a particularly skilled tradesman or hobbyist, the occasional barter might be worth pursuing.

Does your elderly neighbor struggle to snow blow his driveway? Offer to do it for him in exchange for borrowing that snowblower for yourself. Love baking? Offer up some baked goods to a friend in exchange for some of their chickens' eggs.

Just be careful with the social aspect of this tip. You don't want to make your relationships feel too transactional—do some favors without asking every time what's in it for you. People like to do favors for people who have helped them out in the past, but looking for compensation every time will drain you of any goodwill.

Related: 10 Fun Jobs That Pay Well

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11. Ignore the Kardashians

"I saw Cady Heron wearing army pants and flip flops, so I bought army pants and flip flops." —Mean Girls

Don't let yourself feel financially victimized by celebrities or your acquaintances' social media personas. 

Adults might roll their eyes at their teenagers insisting they need to wear American Eagle clothing and Converse shoes because that's what their peers are buying. But the need to have what others do doesn't always go away with age. An adult might buy the designer purse a favorite celebrity was touting or the same fancy lawnmower a neighbor has. 

Don't let peer pressure, or a fear of missing out, compel you to buy something you don't need (and possibly don't even want).

Related: Frugal vs. Cheap: What's the Difference?

Related: 15 Best Long-Term Stocks to Buy and Hold Forever

As even novice investors probably know, funds—whether they're mutual funds or exchange-traded funds (ETFs)—are the simplest and easiest ways to invest in the stock market. But the best long-term stocks also offer many investors a way to stay "invested" intellectually—by following companies they believe in. They also provide investors with the potential for outperformance.

So if you're looking for a starting point for your own portfolio, look no further. Check out our list of the best long-term stocks for buy-and-hold investors.

Related: How Does the 4% Rule Work? [And Why Did It Change?] 

One of the most popular retirement withdrawal strategies of the past few decades has been the unfussy “4% rule.” It’s one of the most straightforward rules you’ll come across in finance, even as its creator has made a few tweaks to it over the years.

How does the 4% rule work, how has it changed, and can it help guide your retirement? Check out our primer on the 4% rule.

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But that doesn't mean you should stop being frugal once you get there.

Calm down, calm down—I'm not suggesting you forgo all luxuries once you've finally reached your hard-earned retirement. But one of the most important challenges you'll face in retirement is achieving the lifestyle you want without burning through your nest egg too early, so why shouldn't you keep up your focus on maximizing your dollar's value? After all: Frugality should be a habit, and habits aren't meant to be difficult.

Today, I'm going to talk to you about several frugal habits that, if you haven't adopted them already, you can put to work ahead of or in retirement. Importantly, these habits won't just help you save some tangible amount of money—they'll ensure that when you spend your hard-earned cash, you're getting the most in return for it.

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How to Live More Frugally in Retirement

Don't let anyone convince you that frugal is a dirty word. It's not. Frugal is not the same as cheap. 

While being frugal sometimes does involve buying things at a cheaper price, the mindset is less about finding the lowest absolute cost, but instead the best overall value.

In the following sections, I'll elaborate on several frugal habits you might want to adopt in retirement.

1. Maintain Your Health

Benjamin Franklin once advised that "an ounce of prevention is worth a pound of cure." From a health perspective, that starts with routinely visiting a doctor (like a primary care physician) and a dentist.

Americans commonly find themselves unable to afford medical and dental care. According to the Commonwealth Fund 2023 International Health Policy Survey, 46% of U.S. adults with lower or average incomes said they had a "cost-related access problem" in the past 12 months. Put differently, they skipped or delayed needed health care because of the cost.

The thing is, the worse a medical condition gets, the more it typically costs to treat. So one of the best ways to mitigate costs over the long run is to pony up for routine check-ups and screenings.

Fortunately, older adults often have access to a variety of free screenings, allowing them to catch many potential health issues early. Retirees with Medicare Part B are entitled to roughly two dozen free preventative services, for instance, though eligibility for these is also based on risk factors, age, and Medicare-determined time frames.

Whether you have Medicare or use other health insurance, ask about any free screenings you can have done. The habit of monitoring your health is more affordable than fixing deep-seated problems later.

Related: 10 Items You Should Always Buy Used

2. Use Rewards Credit Cards

Older adults are much more likely to pay with cash than younger people. According to 2024 Findings from the Diary of Consumer Payment Choice, consumers age 55 and older used cash for 22% of payments in 2023, while people under age 55 only used cash for 12% of all payments.

Cash has its benefits. It can help you curb unnecessary spending and you can sometimes get a discount for using cash at small businesses looking to avoid expensive card processing fees.

But rewards credit cards have a number of advantages. From a frugality perspective: Rewards cards typically offer points or cash-back rewards, allowing you to stretch your dollar a little further. Plus, rewards cards also boast the perks inherent in many credit cards, such as fraud protection and additional warranty coverage.

Related: Does Your Credit Score Matter in Retirement?

3. Embrace Apps

Oh, I'm sick of downloading an app for every store, too. Believe me, I get it.

Nonetheless, real is real: Older adults are paying more than many of their younger counterparts for the same products if they haven't downloaded apps for grocery stores, fast food, and entertainment.

A couple of examples?

Target's app sometimes presents Target Circle deals, such as "Buy a $40 health-and-beauty purchase, earn a $10 Target gift card." So if you were going to stock up on vitamins and similar products anyways, you might as well get $10 off your next visit.

Is McDonald's your favorite fast-food treat? Patrons using the McDonald's app can save a significant amount. The app offers limited-time deals such as free French fries (any size) with the purchase of any size soft drink, or a $1 10-piece box of McNuggets. (Deals can vary by region.)

So even if you don't love the idea of downloading yet another store app, it could still save you money in the long run.

Related: Food Costing a Fortune? Here's 12 Tips for How to Save Money on Groceries

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4. Downsize Your Home

If you're going to move during retirement anyways, you could reap a financial windfall by downsizing your home.

To start: Selling your current home and moving into one that costs less could leave you with a significant lump sum of money. Better still? If that's your primary residence, you could be exempt from capital gains taxes on either the first $250,000 if you're a single tax filer, or $500,000 if you're married and file jointly.

Also, a smaller home often means lower utility bills and property taxes. You might have less cleaning and landscaping to be done, which means you could spend less on hiring people to do these tasks—or even take these tasks on yourself!

Another fringe benefit: Less space might help you curb your shopping habits. A physics concept attributed to Aristotle loosely translates to "nature abhors a vacuum." Put differently: All spaces get filled. When you have a large home, you might feel the need to have pictures on every wall, books on every shelf, and plants on every table. A smaller home might encourage you to be more minimalistic. 

To be clear: Not all retirees can downsize—you might be starting from a small home in the first place, you might plan on family living with you, or there might be other concerns that require a same-sized house in retirement as before it.

Related: Should I Pay Off My Mortgage Before I Retire?

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5. Take Advantage of Senior Discounts

Have you been celebrating your 39th birthday for the past three decades? Cut it out! It might have been flattering to be carded in your 30s because you looked too young, but now that you're older, I recommend embracing your age and taking advantage of as many senior discounts as possible.

You might be surprised how many discounted or even free things for seniors exist. Between more affordable meals, travel, and retail prices, you could be saving money on a weekly basis in retirement. Also, you can enhance your savings by becoming an AARP member so you get AARP discounts as well.

Lastly, don't be shy about asking for a senior discount. Some businesses will actually offer senior discounts but not post them up front. 

Say it with me: "Do you offer a senior discount?"

Related: 12 Free Things for Seniors to Do

6. Take Advantage of Tax Breaks

I wish taxes went away when we all stopped working. They don't—but fortunately, there are several tax breaks for seniors to help ease your burden. 

For example: If you're at least 65 years old, your age automatically qualifies you for an additional standard deduction that can be added onto your regular standard deduction, and at least until 2028, a new Senior Deduction.

For the 2025 tax year, the extra amount of the additional standard deduction is $2,000 if you are single or file as head of household. The extra standard deduction is $1,600 per qualifying individual if you are married and filing jointly or separately. Plus, the additional standard deduction is doubled if you've reached the age requirement and are blind. 

Also as a result of the passage of 2025's budget reconciliation bill, taxpayers age 65 and older can take a new Senior Deduction. The deduction is for up to $6,000 ($12,000 for married couples filing jointly), depending on your income. It can be taken regardless of whether you itemize, and it can be taken in addition to the additional standard deduction. For now, the Senior Deduction is available for the 2025 through 2028 tax years. (Learn more about the Senior Deduction.)

Every year when you do your taxes, make sure you're benefiting from any tax breaks you're owed. Alternatively, you might have a tax professional spot opportunities for you. 

Related: How to Plan for Health Care Expenses in Retirement

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7. Shop Secondhand

If you find yourself frequently muttering "they don't make things like they used to," you might want to check out some of your local thrift stores. By shopping at secondhand stores, you might be able to find vintage clothing that fits your taste, as well as other high-quality items that are made more cheaply today.

And, of course, you can save money at thrift stores. Not only can you enjoy the normal discounts, but if you're no longer working, you might be better situated to shop on days where certain prices get reduced further, or when new stock hits the floor.

Also, per my suggestion above: Ask about senior and veteran discounts, because those could save you even more money.

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8. Prioritize Energy Efficiency

Utility bills are no joke. In a 2023 Hop Energy survey, 48% of respondents said they are stressed about the cost of utility bills, and 1 in 5 struggle to pay these bills on time.

And the financial pressure of utility bills doesn't quit when you're older. In fact, in some instances, you might face higher utility bills. After all, as you age, you might need more heat and light, or use more water as you take longer baths or showers.

If you don't already have good energy-efficiency habits in place, now's the time to start. A few simple starter tips:

-- Draw your blinds during the day to provide more natural light and heat into the house.

-- Turn off lights when you're not using them.

-- Get energy-efficient light bulbs (dimming optional).

-- Install a low-flow showerhead.

-- Install a smart thermostat.

-- Ensure your home has proper insulation.

-- Ensure your home doesn't have leaky pipes.

Related: 10 'Frugal' Habits That Aren't Actually Saving You Money

9. Automate Paying Your Bills

Do you log into all of your bill accounts each month to transfer money or even write out physical checks? Well, consider automating your bill pay, instead.

Not only is manually tackling your bills an unnecessarily time-consuming process, but it can also be the more expensive route. 

To start, if you forget about a bill, you might be subject to paying a late fee. If it's a credit card bill, you might start paying some heavy interest.

But even if you're diligent with your calendar reminders, you still might want to consider autopay for your bills. Why? Because some companies actually give you a slight discount for opting into automatic payments. For example, some major mobile phone companies, such as Verizon and AT&T, take a bit off of the bills for customers who opt in to autopay. This is also typical for federal and private student loans. 

Who knows? You may enjoy the simplicity of automatic bill payments so much that you start automating your savings as well. 

Related: How Long Will My Savings Last in Retirement? 4 Withdrawal Strategies

10. Talk to a Financial Advisor

The financial world can be difficult to navigate. Even if you've handled your own finances thus far in life, you could benefit from routinely talking to a financial advisor about any number of retirement financial issues—from basic spending, saving, and budgeting advice to real estate planning, investment adjustments, and tax mitigation.

It's recommended that you check in with your financial advisor at least once a year, though you might want to do so sooner if you've just been through a major life event (like a divorce or death in the family), or if you're planning on making a large purchase (a car, a home, and so on).

Too-frequent meetings might not be very productive. But you should make it a habit to occasionally check in and ensure your finances are on track.

Related: How Much Does Financial Advice Cost?

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Related: How Long Will My Savings Last in Retirement?

When a person finally decides to retire, they don’t quit their job one day, then liquidate their entire nest egg and stash it into a bank account the next day. (Or at least, they probably shouldn’t.) They withdraw money over time, which allows them to cover their expenses while the remaining nest egg continues to grow in price and/or generate income.

That’s where these retirement withdrawal strategies come in.

Related: When Should You Take Social Security?

Social Security is a pillar of many older Americans’ retirement income. Typically, around 90% of people age 65 and older are collecting Social Security benefits at any given time.

But while most of us will end up on Social Security, when we choose to start collecting benefits will differ from person to person. Our guide to Social Security timing may help you decide.

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But that doesn't mean it's universally revered.

Yes, for many people, Walmart is the holy grail for affordable food and household items. It can be a one-stop-shop for almost everything a family needs—and much of what they find will be cheaper at Walmart than anywhere else.

But other people avoid Walmart at all costs. And part of that is related to the price—the reason some of those items don't cost very much is because they aren't worth very much. Occasionally, Walmart items can be inferior to those sold elsewhere, whether in terms of taste for food items or the sturdiness of other products.

Reality, in this situation, sits somewhere in the middle. Personally speaking, many Walmart items I have purchased over time have been just as good as the competition, so the lower price has provided more bang for my buck. But some items weren't good values—they were just cheap.

Today, I'm going to dive into some of the things you should never buy at Walmart. Some of them are being singled out for their low quality, others are deeply unpopular among Walmart shoppers, and a few can even be found at better prices elsewhere.

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Never Buy These Products From Walmart

Have a Walmart trip planned soon? Well, I don't mean to throw you off your routine, but you should consider leaving the below items off your shopping list.

The reasons why vary: Many are very low-quality. Some are actually more expensive than the competition. And a few of these are deceptively priced.

1. Peanut Butter

Peanut butter is a beloved food for all ages. You'll never catch me without a jar on hand. But while it might seem like all peanut butter would be virtually the same—and that Walmart's brand would be the cheapest, nothing more—that's not necessarily true.

The critiques of taste aren't all that scathing. Great Value peanut butter currently garners a respectable 3.3 out of 5.0 score, though that's far below the 4.6 score of gold standard Jif peanut butter. And while the reviews are generally respectable, many recent opinions for the store's brand complain of a burnt taste.

So, it's not the best tasting, but it's OK. At least it's the cheapest, right?

Actually, Target's store-brand peanut butter is slightly cheaper. Currently, Great Value's product costs $1.94 for a 16-ounce jar, while the same amount of Good & Gather peanut butter only costs $1.79. Target's peanut butter has higher ratings, too, earning a 4.6 score on Target's app.

Personally, peanut butter is one product I'll always splurge on for the name brand. But if you're just as happy with a generic, Target's peanut butter is more affordable and better-liked.

Related: Avoid Buying These 10 Products at Costco

2. Produce

Salad enthusiasts: Look elsewhere. In general, Walmart doesn't have a reputation for high-quality produce.

Out of 2,253 reviews on Walmart.com, the Marketside shredded iceberg lettuce has an average rating of only 1.9 stars. Customers complain about the lettuce being brown and rotting.

Were you hoping to add some fresh mini cucumbers to your salad? Out of 2,180 reviews, the current average rating is only 1.6 stars. The cucumbers are said to be wilted, gross, slimy, and rotten. The 19 most recent reviews all give it just one star.

Bell peppers have an average rating of 1.8 stars across 1,500 ratings, and tomatoes have a 2.1-star average out of roughly 4,000 ratings.

I think you get the idea.

Related: 10 Products You'll Regret Buying at Sam's Club

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3. Seafood

Walmart likely isn't very popular among pescatarians. The reviews for Walmart seafood products are typically very low. Just consider this sampling of ratings and opinions for three Great Value seafood offerings on Walmart.com:

Great Value Tilapia Skinless & Boneless Fillets had a 2.5 average rating—the best of the three. The most recent review states, "Says 4 per serving size but gives you 3 in the packages." While there are a few positive thoughts, the majority of taste-related comments are negative, including phrases such as "rancid smell and funny taste," "horrible and rotten," and "if there were a 'no star' rating, this nasty fish would deserve it."

The Pacific Cod Skinless Fillets and Pink Salmon Skin-on Fillets both garnered 2-star average ratings. A few of the negative comments in the cod reviews included, "did not resemble fish," "doesn't even resemble cod in texture or flavor," and "mushy and I suspect is like raw cat food." The salmon reviews were also largely negative, though one recent review sums up the broader sentiment best: "Very mushy almost white. Zero texture. I wonder if it's even real fish much less salmon. Disgusting. I will feed it to the stray cats. (even they may not eat it)."

Another unrelated factor might give at least a few seafood shoppers pause: Kukorinis v. Walmart Inc.

This lawsuit, filed in October 2022, claimed that Walmart "deceptively, systemically and artificially increases the weight of the product at checkout, resulting in the customer paying an inflated price" on meat, poultry, and seafood, as well as certain citrus fruit for years. Walmart settled the suit, and agreed to pay $45 million to customers who had bought these products between Oct. 19, 2018, and Jan. 19, 2024, though it denied the allegations and admitted no fault.

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4. Beef

As I mentioned above, beef is another one of the sold-by-weight products that were included in the Kukorinis suit. And like with Walmart's seafood products, the ground beef tends to have poor ratings and reviews. Clicking through a few different variations of fat-to-lean ratios, the chain's beef ratings range from 2 to 2.5 stars. Walmart also tends to lack options for customers who prefer organic meat.

Price and taste aside, Walmart's ground beef has also been the subject of multiple recalls.

The most recent incident was in 2022, when over 28,000 pounds of ground beef was recalled from select Walmart, Kroger, Albertson, and WinCo Foods for possible E. coli contamination. The meat was sold under store-brand labels. Only two years prior, Walmart had a ground beef recall for the same reason. And in 2019, Walmart recalled more than 6,400 pounds of Great Value frozen meat, which likely included the brand's frozen beef patties.

To be clear: Recalls themselves are not necessarily the retailer's fault, and no major retailer has ever gone without having an item recalled. But that information is a bit more concerning when coupled with a report on how Walmart handles product recalls.

A 2020 report released by the U.S. PIRG (Public Interest Research Group) Education Fund graded 26 of the largest U.S. supermarkets "on efforts to warn customers about food recalls through clear policies, direct notification, and in-store posters." Walmart received an F. To be fair, 22 of the stores received failing grades, so Walmart has plenty of company at the bottom. Still, anyone highly concerned with food safety might want to opt for one of the supermarket chains with a passing grade, which include Target, Kroger, Harris Teeter, and Smith's.

Related: 10 Frugal Habits That Make Retirees' Lives Better

5. Phone Plans

Right now you might be thinking, "Huh? I didn't even know Walmart offered phone plans." Well, they do—and a lot of people use them. Its Straight Talk Wireless currently boasts more than 25 million subscribers. Their family plans are priced competitively, they work with a wide range of phones, and they're advertised as simple to activate.

So what's the catch?

If user reviews are any indication, Straight Talk Wireless is simply not good. Consumer Affairs has collected roughly 2,300 ratings for the wireless service, and an incredible 95% of those give it one lonely star—good for an aggregate rating of 1.1 stars out of a possible five.

Complaints run the gamut, from microphones not working to slow shipping times to no data/service to randomly deactivated accounts. But the most popular complaint is that once something goes wrong, the customer service is beyond atrocious. People have spent hours on the phone to solve simple issues, been connected to support reps who spoke poor English, and have repeatedly been hung up on by representatives.

Related: How to Get Free Stocks for Signing Up: 7 Apps w/Free Shares

6. Gift Cards

Gift cards are simple gifts that feel a bit more personal than cash. And given that most places sell gift cards at face value, Walmart might seem as good a place as any to grab one for a loved one's birthday or celebratory event.

Not so. Some retailers actually give you a deal on gift cards.

Costco frequently sells gift cards at less than face value, which could save you a chunk of money. Just a small sample of the currently discounted on Costco's website include:

-- Four $25 Domino's E-gift cards for $79.99

-- Two $50 Spafinder E-gift cards for $79.99

-- One $50 Cinemark Theatres E-gift card for $39.99

-- Five $20 Peet's Coffee E-gift cards for $79.99

-- Four $25 Papa John's E-gift cards for $79.99

If you want to buy discounted gift cards and don't have a membership or know anyone who will let you use theirs, you can still buy them online without a membership, but you'll absorb a 5% surcharge. Even with the surcharge, though, the cards are still much lower than face value.

Also, Target doesn't offer year-round gift card discounts like Costco, but it occasionally offers special gift card deals during its annual Circle Week. For instance, on April 9, 2024, the brand offered a deal where customers could buy a $50 gift card to Panera Bread, Regal Cinemas, or AMC Theaters and also receive a free $10 Target gift card.

For any non-urgent gift card needs, you can often stock up during the holiday season. Call or check the websites of your favorite local stores around Black Friday; you might find that some of them offer special gift card deals.

Related: 7 High-Quality, High-Yield Dividend Stocks

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7. Expensive Purchases From Third-Party Sellers

Items you purchase on Walmart.com aren't always Walmart's products. Just like Amazon, Walmart.com hosts third-party sellers, via its Walmart Marketplace.

Often, these sellers handle just about everything (from inventory to delivery) on their own; they're simply using the well-known brand's website to reach its large audience. In exchange for access to its customers, Walmart gets a commission.

Why does that matter? Well, sometimes those items are low quality or even fake. If you want to return an item, Walmart Marketplace rules can differ from Walmart's normal return policy. Walmart does set minimum standards for what a seller can have as a return policy, but these minimums don't give you much time. For example, the minimum return window for major appliances is only two days.

Some Marketplace purchases can't be returned to a Walmart store either, such as odd-sized or luxury items. Certain types of objects can't be returned at all. For instance, Walmart states that they and Marketplace sellers won't replace, provide refunds, or accept returns for trading cards, firearms and ammunition, pepper spray, gas-powered recreation vehicles, SIM cards, and much more. 

Another noteworthy drawback: Marketplace sellers are allowed to charge restocking fees of up to 20%. 

While it might not be a big deal to buy small items from third-party sellers on Walmart.com, I don't recommend buying any costly items from them.

Related: How to Save Money on Groceries: 12 Commonsense Tips

8. Diapers

As anyone with a newborn quickly discovers, babies go through a lot of diapers. According to the American Academy of Pediatrics, an infant can use around 3,000 disposable diapers in the first year alone. For such high quantities, you want an item to be as affordable as possible. Plus, exhausted new parents need to save all the time and energy they can.

For these reasons, parents might be better off choosing Amazon for their diaper needs. Let's compare the cost and convenience. 

-- Walmart currently sells a 140-count box of newborn Pampers Swaddlers Diapers for $53.05. This is a one-time purchase. Based on my location, I could have it delivered to me in four days.

-- Comparatively, that same box only costs $44.99 on Amazon, and I could have it delivered to me today. Moreover, parents who sign up for Subscribe & Save could save an additional 5% for repeat deliveries, and if you sign up to receive five or more products in one auto-delivery to one address, you could save 10%. Consumers can choose their own delivery frequency from as often as every two weeks to as infrequent as once every six months.

Those savings really add up when you consider just how many diapers you'll need before a child is potty trained. Even before Subscribe & Save savings, you're looking at about $170 less per year through Amazon.

It's also much easier to keep getting diapers automatically delivered rather than make emergency trips to the store when you realize you're almost out.

Related: 20 Expenses to Cut From Your Budget in 2025

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9. Wood Furniture

Furniture is a pricy purchase, so it makes sense people want the most affordable options. However, while Walmart's furniture is sometimes one of the cheaper choices, that's often because it won't last long and the customer service isn't always the greatest.

Consumer Reports surveyed its members about walk-in furniture stores and received 28,665 ratings. Walmart, along with Ashley Furniture Store, were amongst the lowest-rated stores.

Walmart's wood furniture, in particular, appears to have a reputation for being more likely to break or deteriorate and need to be replaced quickly. The chain sells a lot of furniture made of particle board, which isn't very resistant to chipping, scratching, or other surface defects. It also wears down easily and has little water resistance.

Young and the Invested considers furniture to be among bigger-ticket items it makes sense to splurge on. While cheaply made furniture might be more affordable now, you could very well end up paying more over time by frequently replacing these pieces.

Related: The 7 Best T. Rowe Price Funds to Buy and Hold

10. Organic Milk

Although Walmart tends to offer cheaper prices for products, organic milk isn't one of them.

For example, Walmart and Target both sell half gallons of Horizon Organic Milk DHA Omega-3. At Walmart, it costs $5.32, while Target charges just $4.99.

Perhaps even more surprising is the negligible difference between generic options. Walmart's Great Value Organic Whole Vitamin D milk currently costs $6.98 for a gallon. Whole Foods' 365 brand, which is generally known to be more expensive than other generic brands, only charges a cent more per gallon. While the Great Value milk's 3.0 average isn't too bad, the 365 by Whole Foods milk boasts a 4.7 score.

Whether price or taste is the bigger priority for you, you're better off getting your organic milk from somewhere besides Walmart.

Related: 9 Best Fidelity Index Funds to Buy

11. Bread

While the ratings for Great Value breads aren't as shockingly low as some of the other items on this list, they still aren't good. Out of five stars, the Great Value bread ratings are currently as follows:

-- White bread: 2.7

-- Honey wheat bread: 2.9

-- Whole wheat: 3.1

-- Wheat bread: 2.8

You can skip Great Value hamburger buns at your next cookout; they rate a tepid 2.6.

Now, some of the bread complaints are that the loaves are smushed or they never received it, which might be the fault of a delivery person, rather than Walmart. However, other complaints say the bread is hard and stale. So unless you're making homemade croutons, you might want to opt for another bread brand with a better reputation for freshness.

What better options are available? The Rhodes Bake-N-Serv white bread dough currently has a 4.2-star rating. Even better, the Brownberry Country Style White bread sold at Walmart boasts a 4.7-star rating. Perhaps surprisingly, Walmart also has great options for people in need of gluten-free bread. The Canyon Bakehouse Gluten Free Hawaiian Sweet bread has an impressive 4.8-star rating and reviewers compliment it for its sweet taste and soft texture.

Related: 10 Best Dividend Stocks to Buy [Steady Eddies]

12. Frozen Pizza

Whether frozen pizza is one of your household staples or you just like to keep a few on hand as a backup plan, it can be tempting to grab Walmart's Great Value frozen pizzas.

Based on the ratings, though, there's a reason they're not called Great Taste pizzas. The first five Great Value pizzas that come up on Walmart.com have the following ratings (out of five stars)

-- Deep Dish 2 Pepperoni Pizzas: 3.1 stars

-- Cheese Stuffed Crust Three Meat Pizza: 2.8 stars

-- Rising Crust Pepperoni Pizza: 1.9 stars

-- Rising Crust Three Meat Pizza: 2.2 stars

-- Microwavable Cheese Pizza: 2.7 stars

Again, like with Walmart's bread, these pizza scores aren't horrible—they're just not very good. But you'd be better off with higher-rated pizza brands, which Walmart sells at typically cheaper prices than other retailers.

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This guide will explore some of the most lucrative career paths for introverts, outlining their demands, rewards, and the steps to break into them. We'll demonstrate that with the right skills and credentials, introverts can achieve professional success on their own terms–fulfilling, high-earning careers with minimal forced social drain.

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High-Pay, Low-Contact Jobs

OK. Let's get real for a second. It's extremely unlikely you'll ever find a job where you'll work 100% alone all of the time.

That said, there are many roles that require far fewer face-to-face interactions than your average position. And those are the jobs that we'll home in on today.

Every one of these jobs pays a mean annual wage of $100,000 annually, according to the U.S. Bureau of Labor Statistics Occupational Outlook Handbook. These jobs are listed in reverse order of mean annual wage (from lowest to highest).

13. Industrial Engineers

-- 2023 mean annual wage: $103,150

-- 2023 employment: 332,870

Industrial engineers make processes more efficient. To do so, they need a broad understanding of workers' tasks, logistics, and other production elements. They gain this information through observations, data collection, staff surveys, and other means.

Many of an industrial engineer's tasks are done alone. For example, they may work independently in offices reviewing data and analyzing reports.

Typically, you'll need a bachelor's degree in industrial engineering or another engineering field to become an industrial engineer. Some colleges and universities have internship opportunities to give prospective industrial engineers relevant work experience. Licensure requirements vary by state.

12. Mining and Geological Engineers, Including Mining Safety Engineers

-- 2023 mean annual wage: $105,460

-- 2023 employment: 7,040

Mining and geological engineers design mines for removing minerals in environmentally sound and efficient ways. Mining safety engineers, as the name implies, are mainly focused on workers' safety. They inspect the mine's walls and roofs and check the equipment.

Often, these engineers work in remote areas, such as sand-and-gravel quarries or mineral mines. Those new to the field typically work under the supervision of more senior engineers, but as they gain more experience, they're allowed greater independence.

Usually, to enter this field you need a bachelor's degree in engineering. While programs in geological or mining engineering are ideal, they aren't common college offerings. Therefore, a degree in geoscience or civil or environmental engineering is often sufficient. Workers don't need a license to enter the field, but those who want more independence might want to obtain a Professional Engineering (PE) license.

Related: 10 High-Paying Jobs That Are Dying (Or Evolving)

11. Computer Programmers

-- 2023 mean annual wage: $107,750

-- 2023 employment: 120,370

After software developers and engineers are done with the designing phase, computer programmers write and test code and scripts for computer software and applications. If a product isn't functioning properly, they make the necessary modifications. Computer programmers use a variety of computer languages, though they sometimes specialize in just a few.

Typically, these professions work in offices or at home. They frequently work independently. While computer programmers sometimes work in teams, collaboration can often be done over text apps and workflow programs, rather than face-to-face interactions.

Computer programmers commonly have a bachelor's degree in computer and information technology or a related field. This isn't a hard-and-fast rule, though. Some employers will hire based more on experience in the programming languages they need. A candidate who gained experience through an internship may have an advantage.

Related: Pensions Aren't Dead Yet: 15 Jobs With Pensions

10. Software Quality Assurance Analysts and Testers

-- 2023 mean annual wage: $108,460

-- 2023 employment: 203,040

Software quality assurance analysts and testers check out software before it reaches consumers in an effort to find any defects and their causes. These workers document any issues they discover and report them to software or web developers. Sometimes, they also participate in software design reviews.

Much of software quality assurance analysts' and testers' work is done independently. They do have interactions with developers, programmers, and possibly customers, but this is often through written reports.

Usually, to get one of these positions, you need a bachelor's degree in computer science, information technology, computer programming, or a related field. However, some people instead qualify through boot camps or online courses. To gain relevant experience, some first work in IT positions or as programmers.

Related: 7 Best Fidelity Retirement Funds [Low-Cost + Long-Term]

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9. Statisticians

-- 2023 mean annual wage: $109,190

-- 2023 employment: 29,950

Statisticians collect, analyze, interpret, and summarize numerical data to solve problems. Some specialize in fields such as biostatistics, business statistics, or economic statistics. This employment category includes mathematical and survey statisticians, but excludes survey researchers.

Typically, this job is done in offices, and the majority of this work is done solitarily. (Though if you're a bit more extroverted, you might occasionally attend conferences and seminars.)

People interested in a career as a statistician start by earning a bachelor's degree in statistics. Those interested in a specialization might also want to take courses related to that field (e.g., someone interested in biostatistics might want to take biology courses). Within the private industry, some employers prefer candidates to have a master's degree.

Related: 7 Best Banks for Real Estate Investors + Landlords

8. Special Effects Artists and Animators

-- 2023 mean annual wage: $109,630

-- 2023 employment: 29,940

Special effects artists and animators make special effects or animations for media such as movies, commercials, and computer games. Says the BLS: "Special effects artists and animators often work in a specific medium. Some focus on creating animated movies or video games. Others create visual effects for movies and television shows." Some of these workers mainly use computer software, while others prefer to draw or paint by hand before translating their work into computer programs, and still others work in physical mediums where their work is never digitized.

Many people in this line of work do so in offices or from home, usually on a computer or at a drawing table. Usually, there is a regular schedule, but nights or weekends may need to be worked if deadlines are quickly approaching. And this work can be largely independent, though every job is different—some positions require a high level of collaboration, others don't.

These creatives usually need a bachelor's degree in animation, computer graphics, fine arts, or a related field. Some schools offer specialized degrees in topics such as game design or interactive media. Additionally, candidates should have a strong portfolio, which can be developed while earning a degree.

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7. Mathematicians

-- 2023 mean annual wage: $119,770

-- 2023 employment: 2,220

Mathematicians research mathematics and use mathematical techniques to solve problems in business, the sciences, engineering, and other fields. They may create surveys or experiments, develop mathematical models to analyze data, and communicate their analyses to others.

It's standard for mathematicians to work in offices and use computers frequently. The majority of work is done alone, which allows for deep focus.

Anyone interested in a career as a mathematician will need to take a lot of math classes. Federal government jobs usually ask for a bachelor's degree in math or at least a substantial amount of math coursework. Private industry mathematicians typically need a master's or doctoral degree.

Related: Federal Tax Brackets and Rates

6. Economists

-- 2023 mean annual wage: $132,650

-- 2023 employment: 16,420

The government, consulting firms, and other organizations hire economists to research a variety of economic issues, often related to the labor force, education, or international trade. These professionals collect and analyze data, interpret forecast trends, present research, and advise their employers on issues related to fiscal policy or other economic topics.

Economists typically work under the glow of office fluorescents. However, depending on the position, some may be asked to attend conferences or travel for other reasons. And while most work is performed independently, occasionally, these economists might need to collaborate with statisticians, data scientists, or other specialists.

Higher education is necessary for anyone who wants to be an economist. At minimum, you need a bachelor's degree. Research, business, or international organizations often require a master's degree or Ph.D. and relevant work experience.

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5. Computer Network Architects

-- 2023 mean annual wage: $133,930

-- 2023 employment: 174,100

Computer network architects, also referred to as network engineers, design and implement an organization's data communication networks. Some of the common duties include deploying planned networks, documenting processes, upgrading hardware, and researching new technologies.

This job is typically done in an office setting, though computer network architects sometimes work in server rooms so they can access the hardware. And while this role occasionally requires a little teamwork, much of these professionals' work can be done solo.

Often, employers want a computer network architect to have a bachelor's degree in computer and information technology, engineering, or a similar field. However, this isn't a requirement for every company. Regardless of formal education, several years of working with information technology systems is expected. Some people start their careers as network and computer system administrators or in a related role.

4. Database Architects

-- 2023 mean annual wage: $137,030

-- 2023 employment: 59,920

Database architects develop and build databases for systems and applications. To do this, they need to know an organization's technical requirements, create models, and code new data architecture that integrates with existing infrastructure. Some of their tasks overlap with those of database administrators.

These workers frequently work independently, though some companies might have them collaborate with technicians, hardware engineers, and others. Database architects often work in offices, though some are able to work remotely. 

The path to becoming a database administrator usually starts with a bachelor's degree in computer and information technology or a related field. Some companies prefer applicants who have a master's degree. 

Related: 10 High-Paying Jobs You Can Get With 'Vanity Degrees'

3. Software Developers

-- 2023 mean annual wage: $138,110

-- 2023 employment: 1,656,880

As you could likely guess, software developers develop computer and network software. But that isn't all they do. They also analyze user needs, update software, and enhance current software capabilities. Some developers maintain databases within an application area.

Depending on the organization, software developers either work alone or in very small groups. For smaller companies, independent work is more common, whereas larger businesses tend to have teams tackling complex tasks.

Typically, software developers have a bachelor's degree in computer and information technology or a related field, but some employers prioritize hiring people with a master's degree. It's an advantage to complete a software development internship. 

Related: 50+ Best Money-Making Apps That Pay You Real Money

2. Physicists

-- 2023 mean annual wage: $158,270

-- 2023 employment: 18,350

Physicists research the fundamental properties that govern time, space, energy, and matter. Some conduct experiments and study theory to increase the world's knowledge about physics. Others use what they know about the topic to develop new technologies or solve problems.

It's very common for physicists to work at universities. Those that do typically split up their time between teaching, researching, and writing scientific articles. Some physicists work as part of a team in laboratories. Others work independently solving problems, which is the best fit for introverts.

Physicists start by earning a bachelor's degree in physics. Some choose to also get a master's degree in the subject. Those who want to be a professor or work in the most prestigious research positions obtain a Ph.D. As a general rule, the more research a person has conducted, the better.

Related: 15 Best Investing Research & Stock Analysis Websites

1. Computer and Information Systems Managers

-- 2023 mean annual wage: $180,720

-- 2023 employment: 592,600

Technologically savvy computer and information systems managers, aka information technology (IT) managers, plan and coordinate a company's computer-related activities. A few of their duties often include directing the installation of computer software and hardware, staying up to date on new technology, managing the work of other IT professionals, and negotiating with vendors.

Usually, these employees work in offices near computer rooms. A lot of their work is done independently, making this a good role for introverts. 

These are most commonly full-time positions that have an expectation to work additional hours if an issue arises or an important deadline is quickly approaching.

To become a computer and information systems manager, you typically need a bachelor's degree in computer and information technology or a similar field. Some organizations also require a graduate degree. Additionally, most jobs ask for several years of relevant experience. It's common to begin as a lower-level manager before advancing to a more advanced position.

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Related: 15 Best Long-Term Stocks to Buy and Hold Forever

As even novice investors probably know, funds—whether they're mutual funds or exchange-traded funds (ETFs)—are the simplest and easiest ways to invest in the stock market. But the best long-term stocks also offer many investors a way to stay "invested" intellectually—by following companies they believe in. They also provide investors with the potential for outperformance.

So if you're looking for a starting point for your own portfolio, look no further. Check out our list of the best long-term stocks for buy-and-hold investors.

Related: 9 Best Fidelity ETFs You Can Buy [Invest Tactically]

Investors often look to exchange-traded funds (ETFs) for cheap, passive exposure to basic broader market indexes like the S&P 500.

But Fidelity's ETF suite really shines because in addition to some of those plain-vanilla offerings, Fidelity also provides more tactical ways of tapping into specific corners of Wall Street. See what we mean by checking out our list of the best Fidelity ETFs.

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The conventional approach to locking in this kind of diversification is to buy a few index funds—funds that track the performance of a select group of stocks (such as the S&P 500 Index or the Dow Jones Industrial Average), bonds (such as the Bloomberg U.S. Aggregate Bond Index), or other assets. With just a couple clicks of your mouse, you can own thousands of securities, often at a razor-thin expenses.

But certain investors may benefit from another route to diversification: direct indexing.

Let's say you have a concentrated stock position that you want to liquidate tax-free then diversify into an index-like investment. Or let's say you're anticipating a large capital gain in the future (perhaps from the sale of a business or some other large asset) and want to bank capital losses now to offset those future gains. In these and other advantageous but complex situations, you might benefit from a more tailored solution than plain-vanilla index funds.

Today, I'm going to provide a primer on direct indexing, including what it is, how it works, its pros and cons, and which investors can really take financial advantage of this increasingly popular financial tool.

How Does Direct Indexing Work?

An "index," in the investment world, is little more than a group of securities, such as stocks or bonds, bound together by a set of rules. For instance, to be added to the S&P 500, a company needs to trade on the New York Stock Exchange or Nasdaq, have a market capitalization of at least $18 billion, trade at least 250,000 shares monthly in each of the six months leading up to the date in which the stock is evaluated, and meet other criteria.

If you want to invest in an index like the S&P 500, your easiest and most cost-effective path is to buy an index fund, which attempts to own all (or in some cases, a "representative sample") of the stocks in an index, in roughly the same proportions as they exist in the index.

With direct indexing, however, you actually invest in all the individual securities that make up the chosen index, in the same weights as the index. 

But you don't have to stay perfectly faithful to the index—over time, direct index investors or their financial advisors make adjustments as they see fit. 

Let's say you want to increase your exposure to a certain stock you expect to grow substantially in value, or you want to completely exclude certain stocks that you're confident will fall. You can adjust your portfolio to be "overweight" or "underweight" certain holdings, relative to how the index holds them (referred to as a "tilt"). This is a level of customization you won't find if you simply purchase an index-tracking mutual fund or exchange-traded fund (ETF).

Also worth noting is that these assets are held in a separately managed account (SMA). This is frequently a taxable account, because direct indexing also allows you to put a powerful tax strategy to work. (More on this in a minute.)

What Are the Advantages of Direct Indexing?

Direct indexing has a number of benefits, but they can largely be slotted into one of two categories: taxes and customization.

Direct-Indexing Advantage #1: Taxes

As you might already know, when you sell an investment for a profit (aka capital gain), you generally trigger capital gains taxes. Conversely, if you sell an investment for less than what you paid for it, you generate a capital loss, which can be used to offset capital gains (or even ordinary income, if you have no capital gains to offset). This can be used strategically—it's referred to as "tax-loss harvesting"—to minimize your tax bill every year.

What you might not know is that investment funds, when they buy and sell securities as part of the day-in day-out of operating the fund, can generate capital gains. And if they do, they have a legal obligation to disperse any capital gains to shareholders in that same year—which can trigger taxes for you. Conversely, when a fund experiences net losses, they can't really distribute those losses, so whatever losses don't offset gains are carried forward until they can be used.

With direct indexing, however, you'll get similar exposure to an investment fund and the ability to use tax-loss harvesting. And you can put this ability to good use in a number of ways, such as …

-- Unwinding a concentrated position over time

-- Banking a bunch of capital losses to offset a large future capital gain from, say, selling a business

-- Perpetually harvesting capital losses to offset the tax liability from your current income and other investments (most useful for high-income earners in the top tax brackets)

Direct indexing also provides flexibility in donating individual stocks to charities, potentially netting you additional tax savings.

Related: 10 Monthly Dividend Stocks for Frequent, Regular Income

Direct-Indexing Advantage #2: Customization

If you buy a fund, whether it's actively managed or tracks an index, you're all in on whatever that fund holds, for better or for worse. 

If you own the S&P 500, you're going to own all 500 companies—and, from there, the only way to customize your portfolio is to buy shares of individual S&P 500 components to gain more exposure than the index provides. But if you don't want to own certain components held in the index fund … well, that's not possible.

Unless you direct index.

Related: How to Invest for Retirement [Investments + Strategies]

With direct indexing, you can get faithful exposure to the index, just as its creators intended. Or, you can tweak your exposure, whether that's overweighting and underweighting certain index components, or even excluding them outright.

For instance, you might use direct indexing to own most of a popular fund, but to avoid holding:

-- Specific sectors (Example: You don't want to own anything in the energy sector.)

-- Specific industries (Example: You don't want to hold any alcohol, tobacco, or firearms firms.)

-- Specific stocks (Example: You don't want to hold Apple (AAPL). I had to pick a stock out of a hat. I am not actually making a call on Apple.)

Yes, that final bullet point can be useful in the event that you don't support how a company is run. 

But it's also exceedingly useful for people who already have sizable exposure to a single stock. For instance, Alphabet (GOOGL) or Amazon (AMZN) engineers might already own a bunch of shares through an ongoing compensation package and/or through a workplace plan. Or you might have just amassed a large holding in a company you really believe in. Either way, you might not want the additional exposure to a single stock that you would get through an index fund, and direct indexing specifically allows you to avoid that.

Related: How to Choose a Financial Advisor

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What Are the Disadvantages of Direct Indexing?

Direct indexing, like any investing strategy, has its drawbacks. They're not necessarily disqualifying, depending on your situation, but you should always go into any investment method with your eyes wide open. The following are four worth knowing.

Disadvantage #1: It can be time-consuming.

If you try to direct index the S&P 500 on your own, you're going to spend a lot of time and mental bandwidth trying to regularly determine how much of each stock you'll need to replicate the index, then executing all of the trades it takes to keep you current. However, you can take this disadvantage out of the equation by having a financial advisor who is well-versed in software that helps automate direct indexing.

Related: How Much Money Do You Need to Work With a Financial Advisor?

Direct-Indexing Disadvantage #2: You can experience tracking error.

Believe it or not, many professional-run index funds don't always perfectly replicate the index. In fact, some funds will tell you this up front—they'll own a representative sample of index components, but not every single component. This causes tracking error, where the fund doesn't perform quite exactly as the index should. This is an even more prevalent issue in direct indexing, especially when you're intentionally tweaking portfolios to amplify or depress certain components.

Related: The 10 Best Index Funds You Can Buy for 2026

Direct-Indexing Disadvantage #3: You must have a certain level of assets.

To replicate an index, you need to buy its component stocks, and you'll struggle to do that with a modest level of funds. Many advisors and firms that provide direct indexing services require at least $100,000 in assets, if not more.

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Direct-Indexing Disadvantage #4: Tax-loss harvesting can be complicated.

Tax-loss harvesting, like with all things taxes, has rules. You can only use specific types of losses to offset specific types of gains. You also have to comply with the "wash-sale rule." (If you sell a security for a loss, and you buy the same security, or a "substantially identical" security, within 30 days before or after the sale, you can't apply that loss to your savings.) Though again, having a financial advisor can erase this headache for you.

Related: 5 Costly 401(k) Rollover Mistakes You Must Avoid

Is Direct Indexing Right for Me?

Broadly speaking, direct indexing is best suited for high-net-worth individuals who want to offset their capital gains and/or ordinary income through tax-loss harvesting, or who want to take existing indexes and tailor them for their preferences. However, the benefits of direct indexing are less pronounced for lower-net-worth investors, as well as investors who aren't as concerned about their tax obligations.

But if you're looking for your own personal use case, direct indexing can specifically be most appropriate for people …

-- With concentrated positions who would have significant capital-gains liabilities if they were to liquidate those positions.

-- Who anticipate a large capital gain at some point in the future from the sale of a large asset, such as a business, and want to bank capital losses today to lower that capital gains bill tomorrow.

-- Who often lock in high capital gains each year and want to perpetually harvest losses to offset those gains and capture tax alpha.

-- Who want the diversification provided by an index fund, but with tilts specific to their preferences (e.g., wanting exposure to the S&P 500, but wanting more tech exposure and less energy exposure vs. what an S&P 500 index fund would provide).

-- Who own several concentrated positions in individual stocks and want to avoid additional exposure to those positions through an index fund (e.g., owning a lot of Microsoft (MSFT) individually, wanting to buy an S&P 500 index fund, but not wanting the extra MSFT exposure they'd get through an S&P 500 index fund).

Even if direct indexing looks like an attractive option, you should also seriously consider the responsibilities and time commitment necessary to DIYing this strategy. Unless you have both a lot of expertise and time on your hands, you might want to go the route more traveled and have a financial advisor set up a direct indexing program for you.

If you want to learn more or get a better idea of whether direct indexing should have a place in your portfolio, you can schedule a call with Riley Adams, CPA, a licensed fiduciary financial advisor with investment advisory services offered through NewEdge Advisors.

Related: Don't Make These 7 Mistakes When Choosing a Financial Advisor

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Investment advisory services offered through NewEdge Advisors, a registered investment advisor.

Related: The 10 Best-Rated Dividend Aristocrats Right Now

Dividend growth puts more cash in our pockets and signals that the company we're invested in is confident in its ability to keep churning out profits. And there's no more heralded group of dividend growers than the Dividend Aristocrats, which are companies that have paid higher cash distributions each year for at least a quarter-century.

But even Aristocrats aren't created equally. Check out which dividend growers Wall Street loves the best right now in our list of the top-rated Dividend Aristocrats.

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Target spans nearly 2,000 stores across all 50 states and the District of Columbia. Nearly three-fourths of Americans live within 10 miles of a Target.

These stores sell virtually everything—clothes, home decor, toys, electronics, groceries, pharmaceuticals, and more. Indeed, Target is No. 6 in the National Retail Federation's Top 100 Retailers List, which ranks the largest companies based on the previous year's worldwide retail sales. It sits behind only a handful of juggernauts, such as Walmart and Amazon.

But while you can buy virtually anything at Target, it doesn't mean you should.

Today, I'm going to walk you through several products you shouldn't buy at Target. For some items, this is a great store—but if you take a closer look, you'll see there are several product categories where you can either save more or get better-quality items elsewhere.

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Don't Buy These Target Products

The primary reason to avoid buying some products at Target is price. While Target is a great place to score deals, it's not always the cheapest option. That's no surprise—partly by design—Target aims to provide a higher-quality shopping experience than other big-box stores (like Walmart).

Still, some Target products are overpriced. Others aren't as high quality as consumers expect. If you always want the best deals, you simply can't do 100% of your shopping at Target. You should buy the following products elsewhere.

1. Greeting Cards

Target's greeting cards are, in a word, overpriced.

Many people buy presents at Target, and while they do, they'll grab the accompanying celebratory cards. But they're paying for that convenience and would be better off purchasing more affordable greeting cards elsewhere.

Most birthday, anniversary, and other greeting cards at Target cost $4.99 and up. While cards sold at Target are often high-quality, that's a mighty high price for a paper product that will likely be discarded quickly.

Comparatively, Walmart still offers some cards for as little as 98¢, while select Dollar Tree stores have cute cards priced at two for a dollar. Even grocery store greeting cards often beat out Target's card prices.

So rather than wait until a birthday or significant event arises, stock up on celebratory cards elsewhere so you aren't tempted to buy them last-second from Target.

2. Disposable Party Supplies

Are you throwing a party? Consider buying your disposable party supplies (paper plates, plastic utensils, balloons, etc.) somewhere other than Target. Because you won't be reusing these items, it typically makes sense to buy them at the cheapest price possible—and Target rarely has the best deals.

For example: Currently, a nearby Target sells a 20-count pack of 8.5-inch paper plates for $3.00. You can buy a higher number of larger plates for a lower cost at Dollar Tree—they currently sell a 24-count pack of 9-inch pink paper plates for only $1.25. Note: Prices will vary by location.

Could there be a quality difference in the plates? Possibly. But they'll be quickly discarded after a single use, so durability is unlikely to be an issue. (An exception? If you're having a barbecue or any other event where you expect people to pile on the food, plate durability might come into play.)

Related: The Pink Tax: Why It's So Expensive to Be a Woman

3. Trail Mix

While you can buy Chex Mix and similar snack mixes at Target, if you want a true trail mix, you typically need to buy a mix from Favorite Day—a Target brand that debuted in 2021. That might not sound so bad, given that store-brand items are typically affordable choices, but Target's Favorite Day trail mix is still a bit costly. 

Confusingly, the number of ounces in bags and plastic containers varies by flavor. For instance, the Monster Trail Mix that comes in a 36-ounce plastic container costs $8.79 (~24¢ per ounce). Meanwhile, the Peanut Butter Monster Trail Mix costs the same amount, but you only get 34 ounces (~26¢ per ounce). The Tropical Trail Mix is the same price, too, but comes in at just 29 ounces (~30¢ per ounce).

Walmart's Great Value Trail Mix also comes in different sizes depending on the ingredients, but similarly sized bags are usually cheaper. The 40-ounce bag of Great Value Mountain Trail Mix currently costs $8.96 (~22¢ per ounce) and the 26-ounce Indulgent Trail Mix costs $5.98 (~23¢ per ounce). Part of the reason Walmart may be able to offer lower prices in this department is that the larger portions still come in bags, whereas Target uses plastic containers.

By the way: The higher prices don't necessarily reflect higher quality. While some flavors boast strong ratings, others are very low. For example, the average across Favorite Day Caramel Cashew Trail Mix's 50 ratings is 1.5 out of 5 stars. (Interestingly, in the past few days, this mix has been hammered with reviews begging Target to revert to an older version.)

Related: Consumers Should Avoid These 10 Products at Walmart

4. Diapers

As anyone with a newborn quickly discovers, babies go through a lot of diapers. According to the American Academy of Pediatrics, an infant can use around 3,000 disposable diapers in the first year alone. For such high quantities, you want an item to be as affordable as possible. Plus, exhausted new parents need to save all the time and energy they can.

When faced with that volume of purchasing, Target simply isn't the most affordable option. And in fact, it's not even the most convenient.

Let's say you're a fan of Pampers diapers. A 140-count box of newborn Pampers Swaddlers costs $44.99 at the Target closest to me. That comes out to around 32¢ per diaper. You could grab a box each Target run, which is pretty easy for frequent shoppers, but you may unexpectedly run out and need to make a special trip.

You can do much better with Amazon's diaper subscription service.

Target and Amazon don't sell diapers in the same quantities, so I'm choosing a similar box count for this comparison. A 198-count box of the same newborn Pampers Swaddlers costs $55.94 on Amazon, which is about 28¢ per diaper. 

But it gets better. If you sign up for Subscribe & Save, you automatically get an additional 5% off. And anyone who receives five or more products in a single auto-delivery to one address can unlock 15% savings. Parents can choose a frequency that makes sense for them, from every other week to every six months. In short: The subscription service saves you money and is more convenient than buying diapers every store visit. 

I'm usually not a big fan of Amazon, but temporarily having an account while you have a newborn at home might be too good of a deal to pass up.

Related: 10 Items You Should Always Buy Used

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5. Some Up & Up Infant Formulas

While many of the infant formula options at Target have high ratings, there are two with low ratings that you should avoid. 

One is the Up & Up Advantage Premium Infant Formula With Iron Powder, which garners just 2.5 stars out of 5. Recent reviews state that the price is too high and the container is too small. Some claim that Target discontinued the formula then brought it back, but with a significant price increase for less product. 

The other Target formula to avoid is the Up & Up Sensitivity Premium Infant Formula With Iron Powder. This one has a dismal 2.2-star rating. Many of the recent comments have the same complaint as the other formula—the price grew but the amount was reduced. Additionally, people dislike the texture.

Either choose other infant formulas at Target, or buy your formula from another store altogether.

Related: Stop Shrinkflation! 14 Products Affected + Tips to Save Money

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6. Gift Cards

Gift cards have become a go-to gift for many—they're useful, and they feel a bit more personal than cash.

Given that most retailers sell gift cards at face value, Target might seem as good a place as any to grab one for a loved one's birthday or celebratory event.

Costco frequently sells gift cards at less than face value, which could save you a chunk of money. Just a small sample of the currently discounted on Costco's website include:

-- One $500 Southwest Airlines E-gift card for $449.99

-- Four $25 Domino's E-gift cards for $79.99

-- One $100 Nutrisystem E-gift card for $79.99

-- One $50 Cinemark E-gift card for $39.99

-- Four $25 Chuck E. Cheese E-gift cards for $74.99

If you want to buy discounted gift cards and don't have a membership or know anyone who will let you use theirs, you can still buy them online without a membership, but you'll absorb a 5% surcharge. Even with the surcharge, though, the cards are still much lower than face value.

To be fair, Target occasionally offers specific gift cards during its annual Circle Week. For instance, in April 2024, the brand allowed customers to buy a $50 gift card to Panera Bread, Regal Cinemas, or AMC Theaters and also receive a free $10 Target gift card. But past that, there are not advantages to buying your gift cards at Target.

Another tip? For any non-urgent gift card needs, stock up during the holiday season. Call or check the websites of your favorite local stores around Black Friday; occasionally, they'll offer special gift card deals.

Related: Should I Pay Off My Mortgage Before I Retire?

7. Bulk Items

Another area where Costco outshines Target is bulk purchases. 

To start, there are simply fewer items you can buy in bulk at Target. So if you have a large family and want to buy in large quantities, Target won't be the most convenient option for you (unless you don't have a Costco, Sam's Club, or other warehouse club nearby). And the products available in bulk frequently change. For instance, my nearest Target recently reduced the quantities it offers for Charmin toilet paper; the one I used to buy is now only available in six-count packages. (If I switched to Charmin Ultra Gentle MEGA XL, I could get a 24-roll package, but that's as large as it gets.) You can get larger quantities of generic brands, but they don't hold up.

Meanwhile, 30-roll packs of Charmin are a Costco mainstay.

My nearest Target recently reduced what quantities it offers for Charmin toilet paper. The one I used to buy is now only available in 6-count packages! If I switch to Charmin Ultra Gentle MEGA XL, I could get a 24-roll package, but that's as large as it gets. There are larger quantities for generic brands, but those don't hold up. Meanwhile, Costco lets you buy 30-roll packs of Charmin.

Canned foods, which are an excellent item to buy in bulk, are only available as single cans at Target. Want several cans of black beans? You have to put them in your cart one at a time. Meanwhile, you can put a full eight-pack in your cart at Costco, and for cheaper. 

When you really want to stock up on items, head to a warehouse club.

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8. Dollar Spot Impulse Buys

Whether your store calls it Dollar Spot, Bullseye, or Bullseye's Playground, Targets have an area—usually near the entrance—with a mini-aisle or two carrying ever-changing items that only cost a few dollars. Given how affordable these items are, they're extremely tempting to buy, whether you have any real use for them or not.

As a general rule, anyone trying to save more money should avoid impulse buys. 

Consider this: According to a survey commissioned by Slickdeals, while unplanned purchases declined from 2022 to 2023, the average respondent still made six impulse buys per month for an average of $151. That means people spent more than $1,800 per year on spur-of-the-moment purchases.

Unless you have a specific need in mind—like goodie-bag items for a party—avoid Target's Dollar Spot. It's a budget-killer.

9. Name-Brand Garbage Bags

You can save money by not regularly buying your name-brand garbage bags from Target, too.

For instance, a box of 45-count 13-gallon Glad ForceFlex MaxStrength tall kitchen drawstring cherry blossom trash bags costs $12.89 at my nearest Target. That comes out to about 29¢ per bag. A 40-count box of the exact same bags costs $10.98 at Walmart, which is around 27.5¢ per bag.

Prefer Hefty garbage bags? At Target, a 50-count box of 13-gallon Hefty Ultra Strong tall kitchen drawstring trash bags costs $11.59. That's about 23¢ per bag. At Walmart, a 40-count box of the same product costs $8.54, which is approximately 21.4¢ per bag. 

For those who are fine using generics, Target's Up & Up bags and Walmart's Great Value bags both cost around 20¢ per bag.

Related: Walmart, Sam's Club, or Costco: Which Grocery Chain Is Best for Seniors?

10. Anything Without the Target Circle App

While you want to avoid some Target items, there are still several purchases you may enjoy. The more you shop there, the more sense it makes to join Target Circle.

Target Circle is Target's free loyalty program, which is accessed through the Target Circle App. Users gain access to:

-- A 5% discount on most purchases (exceptions include things like prescriptions and gift cards)

-- Special coupons, which are automatically applied upon purchase

-- Target Circle Bonuses, which either provide additional savings or earn Target Circle Rewards

-- Target Circle Rewards, which can be applied on purchases to reduce the price

-- Additional discounts on partner brands' items, as well as free trials and reward points at other vendors.

The app itself will show you all the items that are currently on sale, as well as bonuses you'll get that regular shoppers won't. For example, as I'm writing this, Target Circle is offering me $5 off if I spend $30 on homecare products. Another available deal is $5 off if I spend $40 on one in-store or online purchase.

Speaking of online purchases, I frequently use the app to create orders to pick up inside the store or have put directly in my car's trunk in the parking lot. 

I love this free service for several other reasons. I get free two-day shipping, as well as an extra 30 days to return items. Plus, the app ensures I don't forget anything on my shopping list, and it makes it easier to price-compare items.

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Related: The 7 Best Dividend ETFs [Get Income + Diversify]

We love exchange-traded funds (ETFs) because they can provide one-click access to hundreds, even thousands of stocks, while charging often minuscule fees.

One way to put that low-cost diversification to work? Collecting dividends. But trying to choose from literally hundreds of income-producing funds could take up a lot more time than you have. So let us help you narrow the field—check out our list of seven top dividend ETFs.

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When you're thinking about buying, say, a $5 box of cookies or a $10 T-shirt, you're not making a difficult decision. If you buy it and you like it, great. If you buy it and you don't, oh well—you're out a few bucks. If you don't buy it, who cares?

That's not the case with many big-ticket items.

For most people, a purchase measured in hundreds or thousands of dollars is no small transaction. What you're buying will usually have some sort of significance—a critical service, or an essential good that's meant to last. And typically, the more expensive it is, the more difficult it is to get out from underneath that purchase.

This makes it all the more important to make sure that you make the right decision at the onset. It also means, in many cases, you'll want to spend more than the bare minimum on a big-ticket buy to ensure you're getting a certain baseline of quality.

Today, I'm going to talk about a variety of big-ticket purchases that are worth splurging on. Most of these goods and services start at a high price tag, but spending a little more on them now will ensure much higher quality, more utility, and/or a longer product life, ultimately saving you time, frustration, and even money on frequently replacing a cheaper version. A few of these are things you might consider going without—but you shouldn't, because you'll ultimately end up paying even more in other ways.

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Big-Ticket Items Worth Buying

Perhaps the most important concept to keep in mind as you read through this list is that sometimes spending more money up front is a way to prevent spending even more money down the road. So while it feels like a splurge now, going big on a big-ticket item might just be a savvy financial decision in disguise.

This wisdom has limits—ultimately, your decision to spend boils down to your personal financial situation. If you need one of the below items and have a fixed amount of budget to dedicate to it, you have to do what you can with what you've got. Or if you simply can't afford the item altogether, nothing we say here will change how much money you have in the bank.

But if you're in a financial position to spend (or spend more), you'll thank yourself later for making the most of these purchases.

1. Dental Care

Delaying needed dental treatments isn't only uncomfortable—it can be more expensive as well. A 2023 study by the National Library of Medicine found that the top reason people delay dental care is the cost. But putting off dental care can be more expensive than fixing an issue right away.

Let's say you have a cavity. Depending on the severity of the cavity, where you live, and the material used, filling costs vary. You should be able to get the work done for a couple hundred dollars … unless you want a ceramic or porcelain filling, which would cost around $1,100.

Now, pretend you ignore cavity pain until it's nearly unbearable and discover you need a root canal. That procedure may cost anywhere between $600 and $1,600 without dental insurance.

In general, you're unlikely to regret spending money on dental care. Poor oral hygiene might mean you need dentures at a young age which is expensive (a complete set of mid-priced ones usually cost between $1,000 to $3,000), not to mention extremely inconvenient.

Also, if your workplace offers dental insurance, get it—and use it. While much cheaper than health insurance, it's still a significant purchase at several hundred dollars per year. But it can save you well more than that should you need anything more than checkups in a given year.

2. Health Insurance

Americans should never risk being without health insurance.

I get it. It sucks to pay premiums every month just so you can still pay for services until you reach your deductible … and sometimes still pay a portion after that. I've had years when the only time I went to a doctor was an annual wellness visit, and that certainly didn't feel worth a year's worth of premiums.

But you might be perfectly healthy and get in an accident that requires extensive medical care. Unfortunately, even "minor" procedures can carry big-ticket prices. And obviously, cancer and other diseases that require extensive treatment can be financially back-breaking—according to AARP, the average costs for cancer treatment are around $150,000.

So while paying health insurance premiums feels like you're just throwing money into a pit, insurance could very quickly flip the script and be a financial lifesaver, saving you several thousand dollars should you ever have a medical emergency. (Also, when you have insurance, you typically take advantage of it by getting more preventative exams, which can catch costly health issues earlier.)

Consider splurging on better-quality health care plans, too. While high-deductible health plans can be a good deal for younger, extremely healthy people, traditional PPO plans might make more sense for people who need more health care and want to avoid extremely variable costs up to the high deductible. At the very least, consider all aspects of a plan—not just premiums, but deductibles, coinsurance, and maximum out-of-pocket costs—before selecting a plan. Good health insurance could save not just your life, but your bank account.

Young and the Invested (YATI) Tip: Anyone with a qualifying high-deductible health insurance plan should consider opening a health savings account (HSA). An HSA is said to have a "triple tax advantage" because you can make tax-free contributions, aren't taxed on growth, and you get tax-free withdrawals for qualifying health expenses.

Related: Best Vanguard Funds to Hold in an HSA

3. Desk Chairs

Kyle Woodley, Young and the Invested's editor-in-chief here, to interject my own personal experience with this particular subject.

If you have a desk job, you're spending at least eight hours of each and every day sitting in the same seat. If you do additional freelance work, that's even more time with your butt in one place.

I cannot stress this enough: Put the time and money into a decent office chair.

I spent roughly three years in and out of various physical therapists to work on my persistent chronic neck and back pain. While most of them were only vaguely concerned with my office setup, one particularly astute therapist finally dug in hard on my chair, what type of mouse I used, where I positioned my monitor, and more.

The therapist said one of the most impactful upgrades anyone could make was in their office chair. Even spending, say, just a few hundred dollars on a feature-packed chair with proper lumbar support often turned patients back into strangers. I did just that (and made a few other specific adjustments to my chair given my spinal curvature), and I've winnowed my PT sessions down to a once-a-month "tune-up."

Really put the work into finding an appropriate office chair. Some chairs actually indicate how much time per day they're meant to be used for—so if you're constantly parked at your desk but your chair is only rated for two to three hours a day, you might be saving $200 now, but you'll pay thousands of dollars later in PT or chiropractic bills. Not to mention, inexpensive chairs tend to wear out faster anyways, meaning you'll have to literally buy more of them over time.

Related: 50+ Best Money-Making Apps That Pay You Real Money

4. Mattresses

Even if you don't spend much time in an office chair, virtually all adults need seven to nine hours of sleep per night—which means they're spending seven to nine hours on a mattress every day.

That's a lot of time in bed. Buying a high-quality mattress is essential. And a lot of time in bed using a low-quality mattress can weigh on the quality of your sleep, which will in turn weigh on your mood and productivity. A poor mattress can also contribute to poor cardiovascular and metabolic health and even cause you pain.

Also, mattresses don't all last the same amount of time. The widely cited average lifespan of a mattress is seven to 10 years. But cheaper mattresses must be replaced more frequently (upping your actual cost over time) and provide an even worse sleep experience until you do.

And if you can avoid it, don't buy a used mattress to save money. While you might be saving on a higher-quality mattress, you're buying a mattress with reduced usable life—plus you're possibly inheriting other problems, such as body impressions or even bed bugs.

Related: 10 Items You Should Never Buy at Aldi

5. Other Furniture

Some used furniture is an absolute steal—antique chests, drawers, cabinets, and other primarily wood-and-metal furniture tend to be built well and, if properly cared for, still look good to boot.

However, when it comes to other "soft" furniture (think sofas and lounge chairs), you're better off buying new, as well as emphasizing quality over price.

Bargain furniture, for one, isn't necessarily a bargain—it quickly wears out, so if you have to buy two $500 sofas over the amount of time a $1,000 sofa would last, you really aren't saving anything. Also, cheaper soft furniture tends to fade quickly, rip easily, and be uncomfortable even during its usable life, so you're getting a worse experience overall.

Just like with mattresses, I'd be hesitant to take on a secondhand couch or lounge chair because I know it'd have fewer years of good life left, and I'd be risking bed bugs and other unwanted problems.

And if you're worried about keeping nice furniture nice because you have kids and/or pets, consider covering soft-furniture surfaces with blankets or other covers, or invest in a decent steam cleaner.

Related: 10 Highest-Rated Kirkland Signature Products You Don't Want to Miss

6. Computers

If you're a contractor or anyone else who's responsible for procuring their own work computer, or if you're a college-bound student, it makes sense to spring for a newer model with a bit more horsepower than the bargain-basement models.

Most colleges require students to use a computer. So the question isn't so much whether you should get one, but how much computer you need. (As a for-instance, take a look at this Rutgers page that outlines the technical specifications for recommended computers—both PCs and Macs.) A good rule of thumb: Try to buy a new laptop or desktop with at least equal if not better specs than what the school recommends.

You want to buy something a little more powerful than the minimum because 1.) better performance simply makes it easier to do your studies and 2.) your studies might eventually require you to use programs that run better on faster computers. And you want to avoid secondhand computers, even those with the technical specs you require, because while cheaper, they could suffer from other mechanical problems or wear and tear you're simply not aware of yet.

Similar guidance goes for workers whose computers are core to what they do. Why saddle yourself with a machine that coughs and wheezes when you have more than three browser tabs open at once? Or why buy a laptop that already has insufficient storage and struggles to hold a charge? Slow and/or faltering computers drag your efficiency lower and also cause frustration on the job.

Related: Financial Caregiving: How to Manage a Loved One's Finances

Do you want to get serious about saving and planning for retirement? Sign up for Retire With Riley, Young and the Invested's free retirement planning newsletter.

7. Cars

When it comes to big-ticket items, cars are about as big as they get. Depending on where you live, you might not need a car. But, if you do need one, it's certainly worth spending more than the bare minimum.

Most people don't have a lot of flexibility when it comes to their car budget because the cost is so high in the first place. But if you have the benefit of time to save up more before you purchase a car, you can stave off and even prevent some problems over time.

When you buy a car, you ideally should try to buy new (so, no mileage) or lightly pre-owned (with low mileage).

New and even lightly pre-owned cars have very few maintenance and repair costs up front, and they typically enjoy some level of warranty coverage—so even if something does break, you might not be financially liable for the fix. Conversely, heavily used cars tend to need much more maintenance and are more prone to requiring repairs as old parts age out. And those costs aren't cheap—depending on your luck, what you save in monthly payments, you could easily lose out to having to make major repairs in a given year.

Plus, whenever your car breaks, you're losing time. You're losing a means of getting to your job. And if it breaks down in an opportune place—the middle of an intersection or on a busy highway—it's even presenting a safety hazard to you and everyone around you.

So if you have the option to wait to save up for a lightly used or new car, rather than buy an old clunker, do it. (But note: You don't have to buy luxury cars to get reliability—check out J.D. Power, Consumer Reports, and other respected car-information outlets to determine what regular brands last the longest.) 

Related: The 7 Best Dividend ETFs [Get Income + Diversify]

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8. Car Tires

If you need a fresh set of car tires, don't cheap out, and don't delay.

To start, having run-down tires is a safety issue; they don't grip the road as well, and they're more susceptible to punctures. They can also slowly eat at your wallet—older tires are more likely to suffer from low pressure, which negatively impacts fuel efficiency.

So if you buy used car tires, you're just inviting those problems sooner.

If you're budgeting, you'll need anywhere between $120-$200 per tire for a mid-range new tire (depending on the size tire your vehicle requires). If you're simply replacing a relatively new blown-out tire, you might be able to get away with buying one tire at a time. Otherwise, if you're just replacing worn tires, you'll typically want to buy all four at once—particularly if you drive an all-wheel-drive vehicle.

Related: 10 Discounted Memberships + Subscriptions for Seniors

9. Dishwasher

A dishwasher is a big-ticket purchase where people often consider the upfront cost but forget about the cost over time.

Especially if you hate washing dishes manually, it pays to pay up for a nicer dishwasher. For one, some pricier dishwashers offer much better energy- and water-efficiency, helping you save twofold on your utility bills. Also, pricier dishwashers also tend to hold more dishes, clean more deeply, and run more quietly.

Even some seemingly frivolous bells and whistles are quite useful. Some high-end models, for instance, even have sensors that detect how dirty your dishes are and adjust temperatures and cycle times accordingly.

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10. Houses

Most of us have seen at least one episode of a show where people buy and "flip" homes, either for a profit or to transform an old home into something incredible for its new owners.

The transformation in these shows, while impressive, take a substantial amount of time … and money.

If you're buying a new home, you don't need to pony up for a brand-new mansion, but unless you're both extremely handy and flush with time, don't save money buying a "fixer-upper." In fact, the less handy you are, the newer the house you should buy—yes, you might have to figure out how to do a few DIY tasks eventually, but a new/newer home, with new/newer amenities, will buy you more time to learn. Also worth noting is some issues are so large, you might need alternate housing until they're fixed—meaning you'll not only have to make mortgage payments, but you'll have to pay rent elsewhere.

Also, if you're not considering buying a new home, even long-term, you might want to reconsider. While expensive overall, owning a home is sometimes actually cheaper than renting. When you own, you have more power, too—there's no landlord raising rent every year, telling you how you can or can't decorate the interior, or charging you extra just to own a pet.

Home ownership can also be good for your credit, it offers tax advantages to offset costs, and it can make you feel more personally secure. And remember: A house is a tangible asset—one that can appreciate over time. A 2021 Realtor.com survey shows a whopping 94% of respondents expected to sell their home for more than they paid for it.

Related: 7 Best Fidelity ETFs for 2025 [Invest Tactically]

11. Home Renovations

Even simple renovations can be costly—Rocket Mortgage, for instance, says the average American family spends $22,000 on a single home renovation project. (Though obviously, costs will vary widely from one project to the next.)

In general, it's a good rule of thumb to not contract out home renovations solely on cost—while cheaper materials and labor might bring the cost to a more attractive level, you risk a lower-quality result that doesn't stand the test of time. DIY home renovations might be more affordable, but if you're not skilled, your changes could look sloppy or even be unsafe. So be realistic about what you can do and what you should farm out to a professional.

You might also consider splashing cash on "strategic" renovations—that is, investing money in your home now can add value to it when it comes time to sell. According to Better Homes & Gardens, some of the home renovations that add the most value include:

-- Additions that increase your square footage

-- Kitchen remodels

-- Bathroom renovations

-- Updating your heating, ventilation, and air conditioning (HVAC)

-- Outdoor updates, such as patios

-- Accessibility features

-- Updating light fixtures

Related: How to Open a Rent Escrow Account for Renters [And Why]

12. Post-Secondary Education

A post-secondary education is one of the costliest big-ticket items you'll ever buy—at this point, it'll likely be second only to your home. But it can be well worth it.

Whether your child goes to college or a trade school, any sort of post-secondary education can make it easier to get a high-paying job.

Whether your child goes to college or a trade school, it can make it easier to get a high-paying job. According to the Bureau of Labor Statistics, the median annual salary for someone with a high school degree is $44,356—that jumps to $74,464 for those with a bachelor's degree, $86,372 for those with a master's, and $108,316 for those with a doctoral degree.

Apprenticeship USA, meanwhile, says people who have completed an apprenticeship earn a starting salary of $80,000, on average. (While not apples to apples—BLS data is median, while Apprenticeship USA is using mean—that's still several tens of thousands of dollars higher, according to numerous other data sources we checked that provide mean earnings estimates for high school diploma holders.)

YATI Tip: You can save for your child's future education in a tax-advantaged account, such as a 529 savings plan, Coverdell education savings account (ESA), or Roth IRA.

Related: Federal Tax Brackets and Rates

13. Fitness Equipment

Your health is important, and doing sufficient physical activity is a crucial part of maintaining health. However, while some people can easily maintain a rigorous physical training regimen without spending a dime, others need fitness equipment to make exercising more convenient and even accessible.

For instance, sure, anyone can just go outside and run. However, if your winters are frigid or your summers are dangerously hot, that's going to keep you indoors—alternatively, you can use a treadmill or stationary bike all year long. Sure, many gyms are cheap. But if you have to drive 30 minutes each way to get to one, maybe you just don't have the time to lift weights in one—alternatively, you can easily squeeze in some reps in between tasks at home.

In some cases, simply spending the money on fitness equipment is its own motivation. After all, you don't want to waste the hard-earned money you spent. And as countless studies show, exercise provides a vast array of physical and mental health benefits that far outweigh the outlay for a Stairmaster or rowing machine.

Related: What Is the 50/30/20 Budget Rule [And Is it Impractical]?

14. Vacuums

A vacuum is a staple of home cleanliness. But the prices and quality of vacuums can vary substantially.

I remember the tiny, pink vacuum I got for my college dorm. It was cheap, but it ultimately felt (and cleaned) more like a child's toy than an adult's home maintenance machine. Yes, you can get vacuums for as cheap as $50 … but cheap vacuums notoriously lack durability, dying without any identifiable cost. They also have little suction, which means you're not really cleaning anything—you're just pushing a stick across your carpet.

A good vacuum is going to be a bigger-ticket item in the hundreds of dollars. But they'll last years longer than a bargain-basement vacuum will, they'll clean effectively, and they'll usually come with (or at least support) tools that let you clean in hard-to-reach places.

Nowadays, I try to use vacuums that have much more power and durability. Cheap vacuums have a way of dying without any identifiable cause. Then, you have to purchase another one.

Related: The 7 Best Fidelity Index Funds for Beginners

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15. Travel

When you splurge on travel, you won't save more money in the long run, or get a more durable product, or enjoy any of the other benefits that typically come with spending more on big-ticket items.

The benefits of spending more on travel are far less tangible but no less important.

A survey by the American Society of Travel Advisors showed that 78% of survey takers believed "Now, more than ever, a vacation would do wonders for my mental health." Another 64% agreed that "Traveling is the best quality time I can spend with my family." No wonder, then, that nearly half of respondents rank vacationing as their No. 1 discretionary spend.

Speaking for myself, I've been to 14 countries—and that's allowed me to unwind, stay warm when it was icy back home, and, most importantly, learn about numerous other cultures.

How you get more enjoyment out of your trip depends on what you value. Spending more on a flight could get you fewer stops and a shorter flight time (and thus more time at your destination) or just more legroom and a more relaxed time spent getting from A to B. Or you might spend more on a hotel to ensure you're staying in a more relaxing room in a quieter property. (Whenever I used to stay in hostels, I wouldn't get a good night's sleep.) And spending more on experiences—museums, shows, what have you—can turn into even more memories.

Related: How Are Social Security Benefits Taxed?

Do you want to get serious about saving and planning for retirement? Sign up for Retire With Riley, Young and the Invested's free retirement planning newsletter.

16. Luggage

You're at the airport's baggage claim, and you see your luggage turn the corner … only to see it has split open and released some of your clothes. Or you're at home zipping your luggage shut before a big trip, but it refuses to budge—and you have a wide-open piece of luggage that's no good to anyone.

When you buy cheap luggage, you're increasing the risk that your luggage will become unusable at a critical moment in your travel timeline.

So don't buy cheap luggage.

Good, solid luggage from established brands such as Samsonite or Hartmann will run you a few hundred dollars per bag. But these bags can last for literal decades—and from time to time, you can get them at stores like Marshalls or TJ Maxx at a discount.

Related: The 7 Best Vanguard Index Funds for Beginners

17. Time-Saving Services

Kyle Woodley, Young and the Invested editor-in-chief, sounding off again. While it might seem silly to pay someone else for a task you could do yourself, professionals can usually do that task better and faster.

Consider one of the most popular time-saving services: cleaning.

My wife and I have both deep-cleaned our house ourselves, and also hired out the job. Typically, it takes the two of us a combined 10 to 12 hours. It took a two-person professional team (that also had the benefit of professional-grade equipment) a combined six hours to do the job—and, admittedly, do it better.

The job cost about $400 (without tip). If you have a traditional 9-to-5, salaried job, and that's it, then you're basically paying for the convenience of not having to do it yourself—and that alone can certainly be worth it! However, there's additional financial incentive if you work an hourly job (especially where overtime hours are common), or if you have at least one side hustle (guilty). That's because time literally is money; those hours spent working instead of cleaning can help partially or completely offset the money you're paying to have work such as cleaning or mowing done.

Related: 8 Best Rent Collection Apps & Software for Landlords

18. Kitchen Ranges

If it's time to replace your old kitchen range, don't scrimp.

The kitchen range (which includes an oven and a stove top) is effectively the nerve center of your kitchen. With the exception of occasionally using an outdoor grill, microwave, or crock pot, it's where most of your cooking is done—and if you have the right kitchen implements, a range can do most of what those other appliances can do, too.

Will paying up for at least a mid-level kitchen range turn you into a Michelin chef? No. But it will cook your food faster and more evenly. Having additional burners makes it easier to cook complex dishes and meals. Double-oven ranges allow you to bake multiple dishes at different temperatures. A kitchen range with a griddle gives you additional cooktop versatility (and a big cooking surface).

Even if you don't cook often, an impressive kitchen range can literally increase your home's value for when you're ready to sell.

Related: 13 Dividend Kings for Royally Resilient Income

19. Water Heaters

When you buy a home, you always need to be mindful of the ticking time bomb that is your water heater. According to Architectural Digest, "the national average for tank water heater installation is between $906 and $1,583 for the unit and labor, and tankless water heaters cost around $1,833 to $3,910 to purchase and install."

Larger units cost more—but if you install a tank that's too small for your family, you risk running out of hot water before everyone bathes. Electric water heaters typically have lower purchase prices but higher operating costs. Gas water heaters have lower operating costs … but they also tend to have shorter lifespans. Tankless water heaters are more expensive but can last between 20 and 30 years.

So there are a lot of considerations when it comes to water heaters. But no matter what kind you get, you don't want to cheap out. "Value-priced" water heaters often use less durable materials such as plastic valves and glass (or even no) interior tank lining. So while it might be less costly up front, a cheap water heater could still cost more by deteriorating more quickly and forcing you to buy a new one sooner.

Related: 8 Best Online Rent Payment Systems [Rent Collection Services]

20. Cookware

Cookware like pots and pans aren't necessarily luxury items, but they can be priced that way.

While a single pot or pan wouldn't necessarily be considered a big-ticket item, a full set will easily set you back hundreds of dollars—even if you "go cheap." A relatively inexpensive set of nonstick pots and pans can run $300—and those will still need to be replaced every five years, or even more frequently depending on the brand.

Stainless steel cookware, while more expensive, can last decades (if not your whole life). Cast iron cookware can—and often is—passed down through generations.

There's a reason expensive cookware is a popular item on wedding registries and holiday season wish lists.

Related: 7 Best Banks for Real Estate Investors + Landlords

21. Washing Machine

Washing machines are big-ticket items, but doing laundry at home versus at a laundromat can be worth it. While each load of laundry is generally cheaper when done at home, it's a small difference, so it can take a long time before the investment pays for itself.

However, that isn't the only factor at play. Unless you live within walking distance from a laundromat and don't mind lugging around a big basket, or a nearby service offers pickup and drop off, you need to pay for transportation. Plus, if you use a laundromat washing machine, you're stuck paying for the dryer. Doing laundry at home gives you the option to dry clothes for free on a clothing line, should you wish.

While a washing machine presents a big upfront cost, saving literally hours every week, and coming out ahead financially over time, makes this a big-ticket item worth prioritizing.

Related: 9 Monthly Dividend Stocks for Frequent, Regular Income

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How to Plan for a Big Purchase

I'm not suggesting you grab a credit card and head to the nearest store to immediately buy some of these big-ticket items. If you're going to splurge on services and high-quality goods, you'll do so over time as your financial situation allows.

But until then, keep these strategies in mind:

Incorporate big-ticket items into your budget: A popular piece of advice (at least back in the day) was "when you buy a car, start saving for your next car." Maybe you're not that proactive, but if you know you're going to need a new car, dishwasher, hot-water heater, etc., it's wise to start regularly saving toward that so you have the money by the time (or before) you need it. That way, you're not in a mad scramble to find a few hundred or thousand bucks when the need arises.

Put money in a different account: It's challenging to "earmark" money from your checking account and not spend it elsewhere. And if you do that, that money is probably earning little to no interest. Set aside money you're saving toward a big-ticket purchase into an interest-bearing account, such as a high-yield savings account or money market account.

Comparison shop: When I say comparison shop, I don't just mean on Amazon. Big-ticket purchases shouldn't be bought on a whim. Take real time to research the product or service that makes the most sense for your family and gives you the most value for what you're spending. That could mean checking numerous sites, reading numerous reviews, even going out in person to various stores or dealers to see the product in person. (And keep track of prices over time—it's a great way to determine whether you're getting a good deal.)

Related: How to Get Free Money Now [15 Ways to Earn Money]

What NOT to Splurge On

If you have a high income, can easily afford luxury goods, and don't really care how much you spend on anything … for one, congratulations, and two, you don't need to read on.

But if you're being smart about your spending, it's not just about knowing where to pay more—it's about knowing where to pay less. With that in mind, consider skipping paying too much for the following purchases:

Refrigerators: While getting the absolute cheapest fridge may not be the best option, premium refrigerators are often advised against. Big-ticket fridges typically come with a wide range of technological features, such as Wi-Fi connectivity or voice controls. But the more features added, the more potential for something to go wrong. Often, simpler is better.

Anything "trendy": Go ahead and buy a nice suit or a classic little black dress. But be more wary of a designer outfit or accessory that might soon go out of style. One of the current fashion trends is "mob wife," but by the time you read this, it might not be! Also, clothes aren't the only items that go through trend cycles. Anyone remember Snapchat Spectacles? 3D televisions? Before you buy the latest technology, you might want to wait for it to go mainstream—if it doesn't, you could be saddled with a high-cost piece of hardware with little developer support and no app ecosystem.

New hobbies: Some hobbies are very expensive. If you can afford one of these hobbies and it enriches your life, by all means, spend a lot of money on it! But if you're just trying a hobby out, start out cheap. For instance: You don't want to purchase high-quality camping gear and discover that, after one night on the cold, hard ground, it isn't for you. Expensive camping gear rapidly goes down in value. Instead, when you're first getting into a new hobby, try to borrow items or buy affordable tools. Only once it's clear that you've discovered a true passion should you upgrade.

Related: 7 Best Wealth + Net Worth Tracker Apps [View All Your Assets]

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But once you get into your 50s and 60s, you have a few more milestone birthdays (55, 60, and 65) that deliver fresh perks: senior discounts. 

Senior discounts exist across a variety of businesses, but it's hard to think of a more regularly useful source of price relief than discounts on food. And that's what I'll focus on today.

Read on as I outline a number of food-related senior discounts across two types of business: restaurants and grocery stores. For the most part, these are either national or "super-regional" chains, meaning you likely patronize at least a few of these businesses.

Restaurants With Senior Discounts

You've probably heard "have you signed up for our rewards program?" five times this week alone. Nowadays, the most ubiquitous method of saving is to join a rewards program and download yet another app.

At the same time, simply showing an ID card to receive a senior discount is a lot less common than it used to be.

Less common … but not extinct.

Some restaurants still offer senior discounts. Today, I'll show you a few of those—most of which use a blanket discount across the menu, though one has a special prix fixe menu for seniors.

1. Chili's

If you're a fan of Chili's Grill & Bar's American and Tex-Mex cuisine, you're not alone—the popular casual dining chain has more than 1,600 locations, including roughly 450 outside of the U.S.!

You'll also be happy to hear that there are ways to lower your Chili's bill.

In addition to kids eating free (with the purchase of an adult entrée) and free meals for veterans and active-duty members on Veteran's Day, Chili's offers a 10% senior discount to people age 55 and older.

You'll want to double-check that the discount is available at your preferred location, as terms may vary. If your location does offer the discount, all you need to do to receive it is mention your age to the server. That Mango Chile Chicken won't just be delicious—it'll be a little cheaper, too.

Related: 12 AARP Discounts + Benefits You Don't Want to Miss

2. El Pollo Loco

Are you crazy about El Pollo Loco? You may be in "cluck."

El Pollo Loco actually spans three separate entities: a Mexican group, a Philippines group, and a publicly traded U.S. operation that spans 495 restaurants (mostly in the Southwest).

If you're at least 60 years old, you qualify for a 10% senior discount (with a maximum savings of $1) at participating U.S. locations. It's by no means a substantial discount, but savings are savings.

It's also worth noting that El Pollo Loco also offers a 15% (max savings: $1.50) for military personnel, federal law enforcement agents, police officers, firefighters, and EMTs.

Related: Consumers Should Avoid These 10 Products at Walmart

3. Dairy Queen

Dairy Queen, or just "DQ" if you're pressed for time, offers a 10% senior discount to anyone who is 55 years of age or older.

But you'll want to do your homework before ordering your Blizzard.

Dairy Queen boasts more than 7,000 locations across the U.S., Canada, and 19 other countries. So chances are, there's a location near you. However, the majority of U.S. locations are independently owned and operated franchises, which means those locations don't necessarily have to offer the discount. In other words, you'll want to call ahead or ask at the store to see if they'll honor the discount.

Related: 12 Free Things for Seniors

4. Golden Corral

If you have a large appetite, or you just love having a wide selection, you probably gravitate toward buffets. And because Ponderosa's reach has dwindled to just about 20 locations, your best bet is likely Golden Corral.

Golden Corral has roughly 400 locations across 43 states and Puerto Rico, and virtually all of them offer a senior "early bird" special on the buffet to seniors age 60 and older.

That said, you'll still want to call ahead, as early bird times vary by location.

Related: 10 Products You'll Regret Buying at Sam's Club

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5. Denny's

Grand Slam-slinging Denny's has more than 1,560 restaurants, most of which are in the U.S., though it has roughly 140 international locations. For the uninitiated, this diner-style chain serves traditional American food and is best known for its strong breakfast offerings and 24/7 operations.

That means no matter what time it is, seniors can save.

Adults can use an AARP membership to get 15% off of their checks. To get the AARP discount, you simply show your membership card with your check. If you're getting a to-go order, you can give your membership number over the phone. Your 15% off is unlimited though—the maximum discount is $10.

Related: 12 Free Things for Seniors to Do

6. Perry's Steakhouse

Perry's Steakhouse & Grill is an upscale steakhouse and grill with humble roots. The Perry family opened a buncher shop in 1979, and a few years later, they added a few dining tables to the store. In 1993, Chris Perry founded Perry's Steakhouse & Grille, which today has 22 locations in eight states.

Perry's isn't expansive as the other restaurants on this list, but it does offer a stellar value-priced menu for seniors age 65 and older. It's a $39 prix fixe three-course menu with six choices per course, beginning with soup or salad, a main course, and dessert.

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7. Papa Johns

Pizza is a crowd pleaser, no matter your age! And if you're an AARP member, you can get "Better Ingredients, Better Pizza" for a little less at Papa John's.

Papa John's pumps out some 350 million pizzas every year at its 6,000-plus locations, so there's almost certainly a location somewhere near you. And if you're an AARP member, you can get 25% off any regular-menu-price order.

Just don't plan on just flashing your membership card at a register. You'll need to redeem your discount online, then either pick it up or have it delivered.

Related: 10 Examples of the High Cost of Being Poor

Grocery Stores With Senior Discounts

Preparing a home-cooked meal is typically more cost-efficient than going out to eat, but rising grocery prices make cooking at home feel just as expensive.

Thankfully, a few grocers help seniors save money on groceries. Let's check out some major grocery chains that currently offer senior discounts.

Related: When Should You Take Social Security?

8. Fred Meyer

At a time when it was common to visit different stores for produce, meat, and other items, Fred Meyer opened with the idea of being a one-stop shop. This Kroger subsidiary spans more than 130 grocery stores spread across Alaska, Idaho, Oregon, and Washington. 

True to its one-stop-shop mission, in addition to groceries, customers can also get household goods or visit the pharmacy for vaccinations or prescriptions.

Fred Meyer's senior discount, which is available to adults age 55 and older, is available on the first Tuesday of every month. The 10% discount applies to select items, including:

--Private-brand groceries and nutrition

--Apparel, shoes, and accessories

--"Home" items, such as

---Toys

---Sporting goods

---Auto

---Garden

--Most electronics (excludes game consoles by Nintendo, PlayStation, and Xbox)

Related: Are You Retirement-Ready? 10 Questions to Ask Yourself

9. Hy-Vee

Hy-Vee, which has more than 280 locations spread across the Midwest, promises it customers "a helpful smile in every aisle."

Smiles are great, but seniors are probably more interested in getting a discount.

Most Hy-Vee locations do offer a discount to older adults, but it's extremely variable—the minimum age of eligibility, timing of discount availability, and discount amounts all vary by location.

In researching for this story, I've seen age minimums as low as 55 and as high as 65. The discount usually is available one or two days per week, but the days aren't the same. And while a 5% discount is the most common, some stores reduce prices by a little more or a little less.

In other words: Check with your nearest Hy-Vee for details.

Related: 10 Best Trader Joe's Shopping Tips

10. Piggly Wiggly

Do you love to "shop the pig"? Piggly Wiggly, which was founded in 1916 in Memphis, Tennessee, touts itself as being America's first self-serve grocery store. Today, it boasts more than 500 stores across 18 states, predominantly in smaller cities and towns in the South and Midwest.

If you live in a small town with few grocery options, it can be really difficult to get good prices. Fortunately, some Piggly Wiggly locations help by offering a senior discount.

Stores are independently owned, so availability varies wildly. Some stores don't have the discount—and those that do offer different amounts (5% is typical), timing (usually once a week, but the day varies), and minimum age (60 is the most common I've found).

Related: Feeling Thrifty? How to Save Money at Thrift Stores

Related: 15 Best Long-Term Stocks to Buy and Hold Forever

As even novice investors probably know, funds—whether they're mutual funds or exchange-traded funds (ETFs)—are the simplest and easiest ways to invest in the stock market. But the best long-term stocks also offer many investors a way to stay "invested" intellectually—by following companies they believe in. They also provide investors with the potential for outperformance.

So if you're looking for a starting point for your own portfolio, look no further. Check out our list of the best long-term stocks for buy-and-hold investors.

Related: 10 Best Monthly Dividend Stocks for Frequent, Regular Income

The vast majority of American dividend stocks pay regular, reliable payouts—and they do so at a more frequent clip (quarterly) than dividend stocks in most other countries (typically every six months or year).

Still, if you’ve ever thought to yourself, “it’d sure be nice to collect these dividends more often,” you don’t have to look far. While they’re not terribly common, American exchanges boast dozens of monthly dividend stocks.

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Pet ownership is ubiquitous in America, with some two-thirds of households boasting at least one dog, cat, rabbit, hamster, bird … well, you get the picture. While Millennials make up the largest share of pet owners, Gen X and Baby Boomers still account for significant slices of the pie. In other words, adults of virtually all ages see the benefits of pet ownership.

Still, people entering retirement usually face a serious decision about owning a pet. Longtime pet owners might need to consider whether they can still care for their pets, or whether they should give them a new home. Those who have never had a pet sometimes see retirement—and all of that newfound time—as the perfect opportunity to get a new cat or dog because they can give them the attention they deserve.

Today, I'd like to help you make your decision by providing some of the most poignant pros and cons of pet ownership for retirement-age adults. Older adults often enjoy incredible health and mental benefits when they own a pet. But the decision to become a pet owner shouldn't be made lightly—there are several reasons why retirement is a less-than-ideal time to take on an additional responsibility.

Pet Ownership in Retirement: The Pros

Pet ownership can benefit you mentally, emotionally, even physically. These advantages have made themselves evident time and time again through scientific studies, survey results, and personal anecdotes. And some of these advantages are even more important for older adults.

Let's start by going over some of the most noteworthy reasons why retirees should consider getting (or keeping) a pet.

1. Pets Reduce Loneliness

Loneliness is a scourge—one that particularly weighs on people as they get older.

The 2023 University of Michigan National Poll on Healthy Aging surveyed American adults ages 50 to 80 about loneliness. Around one-third of respondents (34%) admitted to feeling isolated from others, and 37% reported feeling a lack of companionship. 

Retirement can contribute to loneliness. Some retirees go from being surrounded by people five days a week to seeing people much less frequently. 

Fortunately, studies show that pet ownership is associated with lower levels of social isolation. Not only can pets themselves provide companionship, but especially social pets can help you meet other people. For example, dog owners frequently strike up conversations on walks and hikes while their pets interact.

2. Pets Reduce Stress

Pets can be an excellent stress reliever, too. 

In a 2022 American Heart Association Pets Survey, 95% of respondents said they rely on their pets for stress relief. The most common reasons given for how pets help eliminate stress are through cuddles, making owners laugh, and reducing overall loneliness.

Simply petting a dog can lower cortisol (a stress hormone) while increasing oxytocin (literally known as the "love hormone" and helps humans bond to one another). Studies suggest service dogs can even decrease symptom severity for people with post-traumatic stress disorder (PTSD).

Related: Do I Need a Financial Advisor? 7 Questions to Ask Yourself

3. Pets Can Slow Mental Decline

Your pet might be clever … but it also might be keeping you every bit as clever.

The American Academy of Neurology conducted a study of older adults with normal cognitive skills and an average age of 65. Just more than half of participants (53%) were pet owners; around one-third (32%) owned a pet for five years or more. The adults took multiple cognitive tests over the years, and they were given a composite cognitive score. 

Over the course of six years, the cognitive scores decreased at a lower rate for people with pets, and it decreased the slowest for long-term pet owners. 

The takeaway: Pets can keep you mentally sharp.

Related: 15 Alarming Gen X Retirement Statistics

4. Pets Help You Stay in a Routine

If you own a cat or dog, you might not even bother owning an alarm clock. Pets will make sure you're awake (too early), let you know if it's past time for one of their meals, and let you know when it's time to get to bed so they can sleep on your chest.

In short: Pets can help you keep a general routine, and that's actually good news for your health.

Northwestern Medicine writes that routines can help you eat healthier, stay active, and sleep better. And researchers at the University of Pittsburgh discovered that older adults (age 65+) who have more volatile schedules have "depressed mood levels," "greater guilt levels," and "greater suicidality levels" than people who develop routines and are active each day.

Related: 5 Best Schwab Retirement Funds [High Quality, Low Costs]

5. Some Pets Keep You Physically Active

Fewer than 15% of Americans ages 65 and older get the recommended amounts of aerobic and muscle-strengthening exercise suggested by the second edition of the Physical Activity Guidelines for Americans, according to the U.S. Department of Health and Human Services.

Sure, a pet turtle won't necessarily jump-start your exercise routine. But a hyperactive dog? Yeah, that kind of pet will keep you on your feet.

In a survey conducted by OnePoll, on behalf of dog food company Orijen Amazon Grains, some 70% of respondents said they've become physically healthier since getting a dog. A similar number (68%) said they "hated" exercising before they got a dog. 

Research seems to back up these surveys. The study "Examining the Contribution of Dog Walking to Total Daily Physical Activity Among Dogs and Their Owners" used accelerometers to monitor dog owner-dog pairs. The results showed that dog walking accounted for more than half of the owners' daily moderate-to-vigorous physical activity. 

And a 2023 meta-analysis of 49 qualifying studies, published in Frontiers in Public Health, found that pets have a "moderately significant positive effect on the physical activity" of pet owners, compared to people without pets. (Said otherwise, pet owners tend to be physically active more frequently than non-owners.)

If you're looking to get more physical activity into your daily routine, an active animal could be the motivation you need.

Related: Should Retirees Move? 10 Considerations

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Pet Ownership in Retirement: The Cons

Pet ownership can be wonderful, but it isn't without its share of challenges. Pets require energy, space, and financial resources. And while they can provide health benefits for some people, others might find furry friends to be detrimental to their health.

Here are some reasons why caring for pets could actually be a poor decision for some retirees.

1. Pets Can be Expensive

Pet expenses can vary substantially depending on the animal you have, whether they have minor or major health issues, and how much you want to spoil them. Still, it can be useful to get a general sense of costs before diving in.

Let's consider two of the most popular pets.

A MetLife survey found that in 2023, owners of cats and dogs spent an average of $4,800 on their pet. Some of the highest costs were veterinary visits (averaging $1,242), treats (averaging $645), food (averaging $633), clothes (averaging $598), and toys (averaging $585). 

While not all of these items are necessities (no, your dog doesn't need another tutu), the costs can still add up—particularly if your pet has, or is likely to develop, any health issues. 

If you're already on a very tight budget, a pet could add more financial strain.

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2. Pets Can Make It More Difficult to Go on Vacations

Many people look forward to retirement because it unshackles them from the constraints of a full-time job, which gives them more time to travel.

The Transamerica Institute is a nonprofit that researches "retirement security and the intersections of health and financial well-being." According to the institute's 2023 retirement survey, traveling is the most commonly cited retirement dream by both workers aged 50-plus (65%) and retirees (60%).  

Unfortunately, pets can complicate your retirement travel plans.

In a Forbes Advisor survey of 10,000 American dog owners, 37% of respondents said that finding a pet sitter when traveling was the most annoying part of having a dog. Of course, many people just bring their dogs with them—82% reported that they sometimes travel by car with their dogs, and 33% said they sometimes bring them by plane.

Bringing a pet on your travels can be challenging and stressful. Paying for boarding or a pet sitter can be pricey. So while it can be done, having pets makes it more difficult to travel often.

Related: Best Vanguard Retirement Funds for a 401(k) Plan

3. Space Limitations

While many older adults have enough room for a pet, some people downsize during retirement—and doing so might leave them with insufficient space.

According to the Transamerica Center for Retirement Studies' 2023 report Life in Retirement: Pre-Retiree Expectations and Retiree Realities, over one-third (37%) of retirees move to a new home during retirement. Among movers, nearly one-third (27%) cite their reason as downsizing to a smaller home.

How much space a pet needs varies, but even small animals need a minimum amount of room to roam. For example, Purina recommends having at least 20 square feet (which can be across various rooms) for a cat to wander. 

Some elderly adults might move to senior or assisted living facilities, which can be on the small side, too. Some may permit pets, but the resident is typically required to provide full care, and there might be restrictions on weight and breed.

No matter your situation, you don't anticipate having much room during retirement, a pet may feel cramped.

Related: 9 Financial Mistakes That Can Quickly Drain Your Retirement Savings

4. Physical Limitations

Although pets can help older adults stay active, elderly people still often have physical limitations, which can make it challenging to care for pets. Stray toys, slippery floors from bathroom accidents, and small pets themselves can be tripping hazards.

The Centers for Disease Control and Prevention (CDC) reported that in 2021, "emergency departments recorded nearly 3 million visits for older adult falls." And emergency falls among seniors ages 65 and older resulted in more than 38,000 deaths that year.

Even if pet owners don't trip, it can be difficult for people with mobility issues to carry heavy bags of food, frequently vacuum up pet hair, and execute all the other physical activities associated with pets. 

Many of these concerns can be mitigated by strategically choosing which type of pet to get. Still, elderly adults with severe mobility challenges might want to reconsider whether pet ownership is worth the risk.

Related: How Much Should I Save Each Month?

5. Allergies 

Allergies can change over throughout a person's life. Unfortunately, for some, allergies worsen with age, and some people even develop new allergies in adulthood.

So, an adult might currently have very mild pet allergies that are easily kept at bay through hair and dander removal. However, if their immune system weakens as they age, their allergies might intensify and their symptoms might worsen.

While there are always ways to reduce allergy symptoms, those methods might not provide enough relief. The American Lung Association says the best way to manage a pet allergy is to reduce exposure, and for some retirees, that might mean making the difficult decision not to have pets anymore.

Related: Best Schwab Funds to Hold in an HSA

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Related: The 10 Best Dividend ETFs [Get Income + Diversify]

We love exchange-traded funds (ETFs) because they can provide one-click access to hundreds, even thousands of stocks, while charging often minuscule fees.

One way to put that low-cost diversification to work? Collecting dividends. But trying to choose from literally hundreds of income-producing funds could take up a lot more time than you have. So let us help you narrow the field—check out our list of ten top dividend ETFs.

Of course, these tales are also so appealing because they're so rare in real life.

Among the many reasons why it's so difficult to improve your socio-economic status from the bottom is that being poor is actually very expensive. It's not just the difficulty of trying to live with far less money—it's that in many cases, people in low-income communities pay more for the same items and services as their wealthier counterparts.

What is the "Poor Tax?"

This struggle is aptly nicknamed the "poor tax." Like the "pink tax," it's not technically a tax—but it's a financial reality that very much acts like a tax.

If you want to learn more, read on, and I'll show you several examples of how the "poor tax" makes being poor more expensive than you might realize. We'll also list a few of the most essential things people can do to try to break the cycle of poverty.

The Hidden Costs of Being Poor

Common responses to "why is so-and-so always broke?" is that the person is a poor budgeter or that they overspend on non-essentials.

Does this happen? Absolutely. But some people simply don't make enough money to make ends meet—and often, they're shouldering the burden of additional costs many people don't realize exist.

Here, we'll try to open some eyes to ways poor people end up paying more.

1. Groceries

You can cut a lot of things out of your budget to make ends meet, but food isn't one of them.

"Food insecurity"—not having enough access to food, or food of sufficient quality, to meet one's basic needs—is a massive problem in America. According to the U.S. Department of Agriculture, 44.2 million people lived in food-insecure homes in 2022. And low-income families struggle with food insecurity for a number of reasons.

For one, they can't afford to buy items in bulk, which is more cost-efficient because you're not paying as much for packaging. For instance, a warehouse store might sell a 100-ounce can of beans for $6 (6¢ per ounce), while a grocery store might sell a 14.5-ounce can of beans for $1.50 (~10¢ per ounce). But poor families typically can't afford a warehouse membership in the first place, and $6 might be more than they can afford to spend on that particular item in a given week anyways.

Having a smaller food budget also means you can't always take advantage of sales. If you're price-constrained to the point where you don't buy something until you absolutely need it, that means you can't buy something just because it's suddenly more affordable. (Conversely, people with more flexible budgets tend to stock up on items during sales.)

There is also the issue of "food deserts," where there is insufficient access to grocery stores or at least stores with healthy, affordable food. Food deserts are more common in low-income neighborhoods. Moreover, if you don't live near many stores—particularly if you don't have your own transportation—you often have to settle for whatever prices your nearest store charges. The alternative? Pay much more in transportation costs (fare or gas) to go to a farther store, which could possibly negate any food savings.

Related: Food Costing a Fortune? Here's 12 Tips for How to Save Money on Groceries

2. Health Care

The U.S. has one of the world's highest costs of health care, and one of the largest chunks of those costs is health insurance. As a result, many people are tempted to skip buying it altogether, especially if they simply can't afford it without cutting into more immediate needs (rent, food, utilities).

Now, even insured Americans can get hit with medical debt, but it impacts the uninsured far worse. According to the Commonwealth Fund 2023 Health Care Affordability Survey:

-- 32% of all respondents said they had medical or dental debt they were paying over time.

-- However, uninsured people were the most likely to report having medical or dental debt, at 41%.

-- Even among those with employer-sponsored insurance, the greatest cohort reporting medical or dental debt were those in the lowest economic bracket (income of less than 200% of the federal poverty level), at 44%.

Zooming out, more than half of that low-income bracket (56%) reported generally struggling with health care costs.

People without health insurance are less likely to have preventative and primary care visits, and those who postpone care are more likely to need hospitalization for chronic conditions. So not only can being uninsured be costlier over the long term—it can be deadlier, too.

Related: 12 Best Apps That Give You Money for Signing Up [Free Money]

3. Preventative Dental Care

In the same vein, people who can't afford preventative dental care can also risk much bigger bills (or bigger problems that go unaddressed) down the road.

An example of the cost of not having dental insurance: Last year, a friend of mine who doesn't have dental insurance had her wisdom teeth pulled out. It cost her about $3,100 (the cheapest price she could find after calling several offices). If she had dental insurance, it likely would have covered around 50% to 80% of the cost.

Wisdom teeth are beyond your control, but preventative dental care isn't. Whether or not you have dental insurance, getting regular cleanings, X-rays, and fillings (if necessary) is important to your health and can prevent the need for costlier procedures.

Pretend you have a cavity that's bothering you and you don't have dental insurance. Depending on the location where you get it done and the material used, prices vary, but the price is often between $200 to $600.

Let's say you ignore the pain because you can't afford a filling. Eventually, the pain worsens and when you finally see a dentist, you find out you need a root canal. The average cost of a root canal, without insurance help, is $600 to $1,600—potentially much more than it would have cost to get the filling right away.

Related: What Should I Do After a Layoff?

4. Laundry

Another aspect of life in which low-income people pay more is doing laundry.

Anyone who has gone from using the laundromat to their own in-home appliances knows how much easier their lives became as a result. But they might not have realized they probably came out financially ahead, too.

This involves a little math, but …

-- The average cost of doing a load of laundry at home (so, electricity, water, laundry supplies, etc.) is roughly $1.40.

-- The average cost of doing a load of laundry at the laundromat is roughly $3.10.

-- If you do the U.S. average 300 loads of laundry per year, you pay $420 per year at home, and $930 per year at the laundromat. So you save $510 per year by doing your laundry at home.

You'll note that these numbers don't factor in the cost of buying a washer and dryer. Well, you can purchase a low-end washer and dryer set for roughly $1,000, so it would take just two years ($510 annual savings x 2 years) to offset the difference—everything after that is pure financial upside.

But that's no help to a person who can't save $1,000 to buy a washer and/or dryer, or doesn't have accommodations big enough to store those appliances.

Low-income people not only miss out on this cheaper cost of doing laundry—they also lose time. That includes the time of doing laundry at the laundromat rather than multitasking at home, and the time it takes to drive (or ride the bus) to and from the laundromat. And that time really is money; it could be spent picking up more hours at work or even doing a side hustle.

Do you want to get serious about saving and planning for retirement? Sign up for Retire With Riley, Young and the Invested's free retirement planning newsletter.

5. Transportation

The cost of getting yourself from A to B is one of the biggest line items in a family budget.

Research published by the Bureau of Transportation Statistics shows that in 2022, transportation was the second highest household expenditure, eating up 15% of budgets on average. But transportation costs hit much harder for low-income households, which spent an average of 30% of their after-tax income on getting there and back.

Part of that is because of the low income itself. But it also has to do with various aspects of vehicle ownership.

For one, many households can buy new cars outright, or at least finance them at decent rates. However, lower-income households often can only afford used cars, which traditionally are financed at higher rates. And used cars usually don't have the benefit of warranty coverage, so owners typically have to start paying for repairs much sooner than new-car owners.

Public transportation is a great, affordable option in some cities. But it's not widely available everywhere. And in some places, it's cost-prohibitive. So some people are stuck between paying high public transportation rates or buying a car at usurious rates.

Even situational costs are different. Wealthier households typically have more than one car, so if one car does break down, they can simply use a different car until the first one is repaired. But many low-income households have just one car—so if that car breaks down, they're looking at either public transportation costs or expensive ride-share fees until they get their vehicle back. 

Related: Feeling Thrifty? How to Save Money at Thrift Stores

6. Banking + Credit Card Fees

Banking is exceedingly more expensive for people with low incomes thanks to numerous factors.

Overdraft fees disproportionately impact low-income households for obvious reasons—people with higher incomes are better able to maintain sufficient fund balances—and they're extremely punitive.

Per the Consumer Financial Protection Bureau: "CFPB research has found that people who pay more than 10 overdraft fees per year end up paying nearly three-quarters of all overdraft fees, and on average, these frequent overdrafters paid $380 in overdraft fees during the year." After all, if you have so little money that you can't avoid an overdraft fee, a $35 overdraft fee is going to substantially deepen the hole you need to climb out of.

Poor people face other banking issues as well. Low-income people are more likely to run out of cash on hand and need to pay out-of-network ATM surcharges. People who need to take a cash advance from a credit card typically pay 3% to 5% of the total amount of each advance. Late fees and high interest rates can also disproportionately weigh on low-income households.

And many households simply go unbanked. When they do, they sometimes have to rely on payday lenders, which charge much higher interest rates than traditional banks and are frequently referred to as "financial quicksand."

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7. Housing

Most people are aware that people with lower incomes are less able to afford the cost of buying a home. That means renting in perpetuity, which means never really owning the place in which they live.

But even when they can afford a home, lower-income households might still end up paying more.

For one: People who don't make much money often have more difficulty saving for a significant down payment (if any). Not only does a smaller, or no, down payment make it harder to successfully bid on a home, but that's also more money that's being financed—which means more money paid in interest over time.

Also, a person's debt-to-income ratio can factor in the interest rate offered; someone with high income and/or a better credit score likely will pay less for a similar-priced home than someone with low income and/or bad credit.

People with less money also sometimes have to settle for fixer-upper homes in low-income areas. And if substantial renovations become necessary, they might end up having to pay far more overall than they can afford.

Related: 5 Best Vanguard Retirement Funds [Start Saving in 2024]

8. Higher Education

Higher education costs in the United States can be astronomical. While some fortunate undergrads get their college tuition paid for by their parents, others have to take out student loans—and doing so creates a significant additional financial burden.

To obtain a college degree, the average public university student borrows roughly $33,000, according to the Education Data Initiative. On a 10-year payback period at a 6% interest, that comes out to nearly $11,000 in additional interest payments.

In other words, people who can't afford college upfront have to pay an extra $11,000 for the privilege.

If there's any good news here, it's that many students from low-income families can qualify for college financial aid. They can find out how much by filling out the Free Application for Federal Student Aid (FAFSA).

Related: 7 Best Value Stocks for 2025 [Smart Picks to Buy]

9. Job Opportunities

If you don't earn much, a quick way to improve your situation would be to get a better-paying job, right?

OK. Let's say you work a minimum-wage job and barely make ends meet. And let's say you get an interview for a company offering a very livable salary.

What happens if they can only interview on a day you're supposed to work? You might not have any paid personal, vacation, or even sick days. At best, you'd miss out on a day's wages. But if your current job is understaffed—or if you just have a crappy boss—you might have your job threatened for missing a shift. An interview is not a guarantee you'll be hired, so many people in that situation won't risk their current hours or job.

There are other hurdles that narrow potential opportunities, too. What if you need to wear a nice suit to interview for that job? A person with higher income might already own a suit or have the income to spare—a person barely making ends meet probably won't.

People with low incomes also might not be able to afford relocation, so that can eliminate a lot of opportunities outside their current city. And people without a financial safety net might not want to risk a job offer by negotiating a higher salary, so even while they might improve their income situation, they might earn far less than what another candidate might have been able to negotiate up to.

Related: How to Get Free Stocks for Signing Up: 9 Apps w/Free Shares

10. Car Insurance

All states except New Hampshire, South Carolina, and Virginia require drivers to have a minimum amount of auto liability insurance—and South Carolina and Virginia require those without car insurance to pay an uninsured motorist fee.

That means in most states, if you're caught driving without insurance, you have to pay a fee. Depending on the state, a first offense might cost anywhere between $50 to $1,500.

If your state's fee is low, it might seem worth the risk to simply not carry auto insurance. But fees aren't the only punishment you need to worry about—you might have your license, registration, or both suspended, which can make getting to work much more difficult. You might even face jail time.

In other words: Being too poor to afford auto insurance means either cutting back on other necessities or taking massive risks by simply doing your daily driving.

Related: Federal Tax Brackets and Rates

Breaking the Cycle of Poverty

Once you've started paying the "poverty premium," it can be challenging to stop. As you improve your financial situation, there are a few key actions you should do and some you should strictly avoid.

1. Don't Use Payday Loans

Payday loans, which are known for short terms and high interest rates, can end up doing more harm than good for your financial situation. Pretend you got a two-week payday loan to tide you over until your next paycheck. It wouldn't be uncommon for it to have a $15 per $100 fee, which equates to an APR of nearly 400%!

If you desperately need money, you're better off doing any number of things, including borrowing money from family friends, personal loans, or (while still not ideal, but better) cash advances.

2. Weigh the Value of Employee Benefits

While a job's pay rate is important when choosing a job, don't underestimate the value of benefits. If Job A pays minimum wage, but also offers health and dental insurance, that might actually be a better financial choice than Job B, which offers 50¢ more per hour but with no benefits. Other benefits matter, too.

Paid time off can make it more cost-efficient to manage your health, miss a day of work for your sick kid, or get your car repaired. Access to unemployment insurance, which you usually can't get through gig work, could be a much-needed safety net, too.

Related: Career Compensation Is More Than Salary: 10 Other Financial Perks to Consider

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3. Take Advantage of Services

Don't be too proud to use the services available to you. If you were laid off from your job, there is nothing wrong with applying for unemployment benefits. You might be eligible for food assistance, housing aid, and more. To learn more about governmental programs that might help you, visit USA.gov's benefits center.

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Related: 10 Best Monthly Dividend Stocks for Frequent, Regular Income

The vast majority of American dividend stocks pay regular, reliable payouts—and they do so at a more frequent clip (quarterly) than dividend stocks in most other countries (typically every six months or year).

Still, if you’ve ever thought to yourself, “it’d sure be nice to collect these dividends more often,” you don’t have to look far. While they’re not terribly common, American exchanges boast dozens of monthly dividend stocks.

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But having those packages stolen? Not so convenient. 

As retail deliveries have become ubiquitous, so too has package theft, so much so that a cottage industry of "porch pirates"—thieves who steal packages left outside by carriers—has sprung forth.

Having a package stolen is frustrating, time-consuming, and cost you money. Sure, sometimes all you're losing is a box of garbage bags or a package of back scratchers. But sometimes you might have a high-ticket purchase or a sentimental item sent by family snatched away.

It's extremely difficult (and often impossible) to track down stolen packages after the fact. So for most people, the best step forward is deterrence to keep porch pirates at bay.

Today, I'm going to provide some of the best ways to prevent your packages from being stolen. These simple tricks can give you some peace of mind that your deliveries will be safe from the clutches of local porch pirates.

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How Common Is Porch Piracy?

Porch piracy is a lot more widespread than people realize. 

The concrete numbers vary by survey, but broadly speaking, data shows that between 35% and 45% of Americans have fallen victim to a porch pirate at some point in their lives. According to a January 2024 report from Security.org, some 44 million Americans (17%) lost a package to a porch pirate over just the prior three months.

People are happy to point the finger. A survey by Lombardo Homes found that more than half of Americans believe retailers don't do enough to prevent delivery theft, and roughly the same number think delivery companies aren't doing their part.

But ultimately, the buck largely stops at your doorstep. If a package is delivered to the correct address, it's up to consumers to protect their purchases.

How to Stop Porch Pirates

You might imagine porch pirates as careful planners who stake out homes and wait patiently for the right moment to strike. 

While this type of porch pirate exists, most package thefts tend to be crimes of opportunity.

A person walking or driving by your home sees an attractive-looking box, perhaps one donning the logo of an electronics or luxury brand, and quickly grabs it. If the porch pirate doesn't see a package, or has reason to believe they would be caught, there's a high chance they'll skip your home and move on to an easier target.

Try these strategies to make your home unappealing to thieves.

1. Choose Package Pickup Over Delivery

Do you order online primarily for the simpler shopping experience, and not necessarily the convenience of home delivery? Well, if you don't mind a little driving to pick up your order, this strategy keeps packages from ever hitting your porch—robbing porch pirates of the opportunity to steal them.

For Amazon orders, consumers can sometimes choose to have eligible packages delivered to Amazon Lockers, Amazon Counter, or UPS AccessPoint Locations. Not every order has these options, but when they do, you can select that option during checkout. 

Families who get frequent deliveries and are unable to bring them inside quickly might also decide to get a Post Office Box (PO Box). These are locked mailboxes at a post office that people rent. As a bonus, a PO Box is a great way to avoid giving out your home address too often, giving you more privacy. 

Related: 50+ Best Money-Making Apps That Pay You Real Money

2. Use "Ship to Store" Options

In a similar vein, you can select "ship to store" options.

Did you find the perfect dress, but it's sold out in your size at the store nearby? You could order the proper size online and have it shipped directly to your home. But if your area has a porch pirate problem, most brick-and-mortar retailers will let you buy online but have your order shipped to a physical store location.

Sure, driving to the store to pick it up might be a bit less convenient, but it's far less work than trying to get reimbursed for a stolen package.

Plus, if you see the item and have instant buyer's remorse, you're already where you need to be to make a return.

Related: 7 Best Round-Up Apps for Saving + Investing Money Instantly

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3. Package Tracking

While some people hate delivery workers knocking or ringing their doorbells because it wakes up babies or riles up pets, others wish they would take these measures more often. Sometimes, the deliverer is as quiet as a mouse … and you don't realize your boxes have been delivered until you leave the house or open the door for another reason.

If you want to be bothered, sign up for package tracking functions like delivery notifications. A notification on your phone can inform you when your packages arrive so you can grab them right away. The less time boxes sit on a porch, the less likely they are to be swiped. Among the most prominent options:

-- For U.S. Postal Service packages, sign up for Informed Delivery. The service lets you preview packages that will arrive soon and sends alerts about the status of your delivery. 

-- FedEx Delivery Manager works similarly. Users can easily track their boxes, receive notifications, give instructions, or schedule a delivery time. Choosing your delivery time isn't free, though. 

-- UPS has two membership options for consumers who want more control over their deliveries. UPS My Choice is free and lets people request package delivery to a neighbor, receive delivery notifications and photos, and view estimated delivery times. However, options like changing the delivery date, have boxes delivered to a UPS location or different address, and two-hour delivery windows incur additional fees. Rather than pay for additional services every time, people who frequently get packages might sign up for UPS My Choice Premium. It costs $19.99 per year, but everything is included.

-- Amazon will send emails and, if enabled, push notifications whenever a package is delivered.

My significant other receives a lot of deliveries as part of his job and is signed up for all the free tracking services. Because I work from home and he doesn't, he'll sometimes send me a text during the day to grab some delivered packages off the porch. It gives him peace of mind to know porch pirates won't have a chance to grab any of his work tools. 

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4. Provide Specific Delivery Instructions

In addition to letting you track your deliveries, Amazon, the UPS My Choice tool, FedEx Delivery Manager, and USPS Informed Delivery will all let you leave delivery instructions. 

For instance, if you know you'll be home, you might ask the carrier to knock on the door or ring the doorbell. Whether you'll be there or not, you could request a specific delivery spot, asking the package to be obscured by, say, a plant or a wall. 

Importantly, not every single package is automatically eligible for these requests. Also, carriers sometimes miss these instructions. So for extremely valuable packages, you might want to employ this method alongside several others listed here.

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5. Security Cameras + Motion-Sensing Lights

Thieves want to remain anonymous. If one home clearly has security cameras, and the one next door doesn't, you can guess which one a porch pirate is more likely to choose. If you're particularly cash-strapped, even a fake security camera can deter theft—after all, your average stranger probably can't tell whether a camera is real or not.

Security cameras are a great way to ward off porch pirates at any time of day. But another way to bolster your nighttime defenses is to install motion-sensing lights, which turn on whenever they detect motion after dark. Many people will turn tail the second a light comes on. These can be effectively used near any area of your house where delivery services drop your packages, especially if that area isn't normally well-lit. 

That said, you can optimize your security by using a combination of cameras and lights.

Related: 7 Best Video Intercom Systems for Apartments [Fix Your Callbox]

6. Get Packages Delivered Inside Your Home or Garage

Having a package delivered in your home or garage isn't always an option, but when it is, it's an extremely convenient one. 

If you're an Amazon Prime member, you could get your packages put inside your garage and away from the eyes of thieves. Amazon Key In-Garage Delivery has users link their garage door to Amazon Key in the app. At every checkout, the user is given the option to choose an in-garage delivery. 

Per usual, consumers receive real-time delivery notifications. Once the Amazon worker reaches your home, the person gets a one-time secure access. Amazon won't open the door until the package and driver's location are confirmed. Customers are never expected to share garage codes. 

Is Walmart your go-to store? Walmart+ members can get "InHome" delivery. Whether you need food or household essentials, you can opt to have your order brought into your garage, home, or even have food put right into your fridge! If you're home, you can let the person inside. Otherwise, entry is done through a keypad or smart entry device, meaning it can't be done with a physical key.

The service is a free part of the membership and already includes tips. You must make a $35 minimum order amount, though, so don't expect a Walmart employee to bring over a single carton of milk. 

Personally, if I were to use these kinds of services, I would lock the garage door to the house and install a security camera in the garage for some additional comfort. These are extremely convenient options, but there is a higher degree of risk.

Related: How to Get Free Money Now [15 Ways to Earn Money]

7. Get Packages Delivered to a Work Address

Rather than getting an important package delivered to your home, consider getting it sent to your work address … if your boss has no issues with it.

Packages delivered to workplaces are usually brought inside and often handed directly to a person. Thieves are much less likely to try to steal a box inside a busy building that's likely equipped with cameras than they are on an unmonitored porch in a quiet neighborhood. 

Another benefit of workplace deliveries is that you're ensured your package is delivered during normal business hours, rather than late at night. A delivery driver can bring a package to your house when you're already asleep, but they can't bring something to a closed business building.

Related: 7 Best Wealth + Net Worth Tracker Apps [View All Your Assets]

8. Make Agreements With Neighbors

Are you friendly with your neighbors? They might be willing to help you out.

If you've already entrusted a neighbor with a key to your house in case of an emergency, you could ask them to stick a package in your house when they know you aren't home. Alternatively, they could grab sitting boxes and have you pick them up later. You might even get some expensive orders delivered straight to your neighbor with the agreement that you'll retrieve them once you're home. 

The drawback of only utilizing this method is that neighbors might not always be around and might not always notice delivered packages before porch pirates do.

Also, if you're asking these favors, just make sure you show your appreciation with some kind deeds of your own.

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9. Use Anti-Porch Pirate Products

A few companies heard consumers' porch pirates complaints and responded by designing several types of anti-porch pirate products.

For example, you can find a "porch pirate bag" on sites like Amazon and Etsy. The bag locks onto a mailbox, porch post, handle, or elsewhere. Delivery people can place the package into the bag, then lock it. However, based on comments, results seem to vary—some claim it's a great deterrent, but others say delivery people simply won't use the bags.

Similarly, some people use a porch lockbox or package vault. These boxes are a bit sturdier than bags and seem to have higher ratings, though they're also more expensive. It's worth noting that some buyers have complained that gaps in these boxes let water in, so they might not be a great fit for people in rainy or snowy locations.

If you're looking for something more technologically advanced, there are products like the Package Guard. When a package is delivered and set on one of these devices, Package Guard sends you an alert—and it can even notify a trusted neighbor you designate. If the package is removed without you using your app, an alarm will go off. 

I have not personally used any of these products, so I highly recommend due diligence if you choose to purchase one.

Related: From Complimentary to Costly: 10 Previous Freebies You Now Have to Pay For

10. Obstruct View of Package Delivery Areas

Thieves tend to steal packages that are clearly visible—it's quicker, it's easier, and there's less time spent than searching for hidden packages, thus there's less of a chance of getting caught.

So, another way you can deter would-be porch pirates is to obstruct the view of areas where packages are typically delivered.

Large plants, furniture, and even decorative pieces can help eliminate sightlines to your packages. And many carriers are well aware of porch piracy (and often want to help prevent it), so if you supply the hiding spot, the delivery person may very well use it to keep your package hidden from view. Help them help you.

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What Should I Do If My Package Is Stolen?

Even if you do everything right, porch pirates might end up stealing one of your packages. It happens.

But if this happens to you, don't automatically chalk it up as a loss and move on.

First, check your tracking number to see whether the package was delivered. If you confirm it was, ask other members of your household if they brought a package inside.

Once you're sure a delivery was stolen, contact both the retailer and the carrier. Sometimes, they will either reimburse you or re-deliver the product.

If neither is helpful, and you paid with a credit card, see if you have credit card purchase protection that will cover your loss. Sometimes, homeowners' or renters' insurance will cover mail theft. However, doing so will likely only be worth it if you're making a claim for a high-ticket item that exceeds your deductible.

For stolen large purchases, consider contacting the authorities. Some people also try out their detective skills by looking at new For Sale ads on Craigslist and Facebook Marketplace. If you bought a rare item and it shows up online for sale near you the next day, that might have been your purchase. But if you do play sleuth, avoid directly contacting the assumed thief—instead, raise the issue with your local police. 

Related: 10 Best Monthly Dividend Stocks for Frequent, Regular Income

The vast majority of American dividend stocks pay regular, reliable payouts—and they do so at a more frequent clip (quarterly) than dividend stocks in most other countries (typically every six months or year).

Still, if you’ve ever thought to yourself, “it’d sure be nice to collect these dividends more often,” you don’t have to look far. While they’re not terribly common, American exchanges boast dozens of monthly dividend stocks.

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Home Depot's freebies are designed to help customers of all skill levels, whether you're a seasoned professional, a first-time DIYer, or even a kid. (No, really! Home Depot even offers workshops for kids.) And while its freebies are generally provided in-person, when applicable, they're also offered online.

If you're looking to get a head start on your projects without spending a dime, look no further. I've compiled a list of some of the best freebie services and items available at Home Depot.

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Don't Miss Out on These Home Depot Freebies

The Home Depot has nearly 2,350 stores across the U.S. (including several territories), Canada, and Mexico. While much of its success can be chalked up to competitive pricing and an extremely wide offering of home improvement products, its free services and samples have likely convinced at least a few customers to return.

However, many of Home Depot's freebies fly under the radar—they're not widely advertised, and they don't get prime real estate on their website. But they're still worth checking out.

Here are some of Home Depot's top free services and items you should know about.

1. Wood Cutting

Let's say part of your wooden fence breaks, so you need to buy a few new replacement boards. Well, Home Depot sells a lot of wood. From pressure-treated lumber to plywood to boards and planks, and much more, you're bound to find what you need.

And you won't need to follow your trip to Home Depot with a visit to a generous neighbor to ask about using their saw. That's because a Home Depot employee will cut them to your desired length(s) at the store's Cutting Center.

Home Depot will do a certain number of cuts for free, but how many varies by store. Some will only do a few at a time, while others' limits are closer to 10 or 12. Also, note that some stores might not make cuts under 6 inches for safety reasons.

Related: 7 Contractor Scams to Avoid

2. Kids Workshops

Looking for more free, fun activities for your children? Home Depot has you covered. 

On the first Saturday of every month, Home Depot hosts free in-store kids workshops. Some workshops have a theme that matches the season, such as creating haunted candy boxes around Halloween, while others are more timeless, such as making toy excavators.  

The workshops, which are designed for children ages 5 through 12, give kids practice with hand tools, such as screwdrivers, and experience painting. Each Kids Workshops kit also comes with a related STEAM activity your child can do at home.

Adults and kids can arrive any time between 9 a.m. and noon (though supplies are limited, so earlier is better), and kits take 30 minutes on average to build and paint. You can see the upcoming workshops on the website and register for any that you think your kid would enjoy. This could be an easy way for one adult to do some shopping for home essentials while another keeps the child occupied. 

Related: Frugal vs. Cheap: What's the Difference?

3. Kids DIY Projects

Don't feel like making the drive to Home Depot for a workshop? No problem! Home Depot also has free kids DIY projects available online. Every guide or video comes with a supply list (usually everyday household items) and step-by-step instructions.

The crafts and projects are appropriate for various age groups. For example, younger kids might enjoy the guide on How to Create a DIY Interactive Sensory Board. Older kids might prefer making a fire-glass suncatcher, creating a road-trip game box, or building a milk-carton birdhouse.

These projects are an excellent way to bond with your child and teach them useful skills.

Related: Best Custodial Accounts: How to Start Investing for Kids

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4. Livestreamed How-To Workshops for Adults

Kids aren't the only ones who need a little handiwork help! Adults do, too—which is why Home Depot also offers two types of free virtual how-to workshops for adults who need help with DIY projects.

The first type is livestreamed how-to workshops, during which associates help you with projects and explain how to care for different areas of your home. Because they're live, you can ask clarification questions in real-time and participate in polls. A few examples of livestream sessions done in the past include:

--How to Install Tile Backsplash

--How to Update Cabinets

--Power Tool Basics

--How to Plan for Your Bathroom Project

--Electrical Basics

You can filter for workshop categories, viewing days, and viewing times to find livestreams that work well with your goals and schedule.

Related: 12 Free Things for Seniors to Do

5. On-Demand Adult How-To Workshops

If you're not able to fit a livestream into your busy schedule, that's all right. Home Depot also has on-demand how-to workshops.

You can watch these videos any time you need a little help with home-related tasks. A small sample of available videos includes:

--How to Un-Ding Siding

--How to Install Window Treatments and Blinds

--How to Un-Stop a Disposal

--How to Remove and Install Carpet

--How to Stain a Deck

You can filter by workshop category, such as choosing a room in your home, to more easily find the how-to videos you need.

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6. Written Resources

Personally, I prefer to learn from written documents, rather than videos—and fortunately for people like me, Home Depot also offers a variety of written resources and educational documents, such as:

--How to Hang Wall Décor

--How to Repot a Plant

--How to Replace a Window Screen

--Sanding Basics

--Tape Measure Basics

--How to Tile a Shower

Some guides are also available in Spanish.

Related: Career Compensation Is More Than Salary: 10 Other Financial Perks to Consider

7. Paint Swatches, Shakes, and Sticks

Home Depot has you covered with freebies throughout your painting process.

Like many stores that sell paint, Home Depot will let you take home free sample swatches. This allows you to hold colors up against various surfaces you want to paint to see how it would look in your home. (And afterwards, you could even use the swatches for crafting.)

Once you've picked the perfect color, an associate can shake the paint for you to ensure it's mixed and ready to go. Paint should be stirred before use to recombine components that have separated, which will help evenly distribute the color. 

Finally, you can take home a paint stir stick to mix it up again later as necessary.

Related: Budgeting Priorities if You're Laid Off

8. Virtual or In-Home Consultations

Whether you want to do a full-room renovation or just make a small change, Home Depot can give you advice through a free virtual or in-home consultation. 

Let's say you want a virtual consultation about storage solutions. You would take measurements, then initiate a video chat with a design consultant. The consultant would discuss custom storage solutions, show you product samples, use a 3D digital design tool to help you see options, and offer you a quote for doing the work. Virtual consultations usually last around an hour to 90 minutes.

If you opt for an in-home consultation instead, the design associate would visit your home to talk about your project. Just like with the virtual consultation, they would show you samples, use the 3D design tool, and give you a quote. Better still: The consultant will take measurements for you. In-person consultations generally last between 45 and 90 minutes.

Related: 10 Highest-Rated Kirkland Signature Products You Don't Want to Miss

9. Carpet Samples

Home Depot has (an admittedly limited) number of free carpet samples available in its stores. 

You won't be able to take enough to fill your room, but you can snag a square to see how it looks in a space and feels between your toes. If you schedule a flooring measure, you can also get curated carpet samples sent to you for free. 

Currently, if you want an in-home flooring measure, you must pay a non-refundable deposit of up to $50, depending on the location. However, the deposit is then credited toward the total cost of your carpet installation. 

If you already know you're planning to buy and have your carpet installed by Home Depot, it makes sense to get curated free samples sent to you. If you're still unsure who you're getting your carpet from, it's best to stick with the in-store samples.

Related: 10 Highly Rated Member's Mark Products to Add to Your Shopping List

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10. In-Store + Curbside Pickup

Free in-store and curbside pickup are a pair of conveniences that are becoming more commonplace, but they're still worth mentioning.

Home Depot offers free in-store pickup in two hours for thousands of eligible items. When you order online, you simply select the Pick Up In-Store option. Once you receive the pickup notification, you can head over to the store's service desk. Then, you show your identification and notification email. 

Don't even want to enter the building? The store also offers curbside pickup. When completing your online order, you choose Curbside Pickup at checkout, assuming your items are eligible. After you receive an email or text message that your order is ready, you can head over. As you're leaving, use the link from your notification to check in on The Home Depot App and let them know you're on your way. (Note: Curbside pickup is only available in select stores between 9 a.m. and 6 p.m.)

Finally, you park in the designated Curbside Pickup spot and mark in the app that you've arrived. An associate will bring out your order, look at your identification, and load your items into your vehicle. 

Related: Plan for These 7 Hidden Retirement Costs

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Related: 15 Best Long-Term Stocks to Buy and Hold Forever

As even novice investors probably know, funds—whether they're mutual funds or exchange-traded funds (ETFs)—are the simplest and easiest ways to invest in the stock market. But the best long-term stocks also offer many investors a way to stay "invested" intellectually—by following companies they believe in. They also provide investors with the potential for outperformance.

So if you're looking for a starting point for your own portfolio, look no further. Check out our list of the best long-term stocks for buy-and-hold investors.

Related: 7 Best Vanguard Dividend Funds for 2026 [Low-Cost Income]

What's better than a smart, sound dividend income strategy? How about a smart, sound dividend income strategy with very little money coming out of your pocket?

If that sounds good to you, you need look no farther than low-cost pioneer Vanguard, which offers up a number of payout-oriented products. Find out what you need to know in our list of five top-notch Vanguard dividend funds.

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And its affordability proposition goes a set farther than most. That is, whereas many fund providers require investments in the hundreds or even thousands of dollars to get started in their mutual funds, Fidelity has no minimum for most funds. That means, realistically speaking, you could buy most of its mutual funds with as little as $1.

Importantly, you don't need a Fidelity account to invest in Fidelity funds. Most brokerage and retirement accounts (outside of 401(k)s, which are highly limited and vary from one plan to the next) that allow you to buy mutual funds will let you own Fidelity's products.

Today, I'll introduce you to some of Fidelity's best mutual funds to buy in 2026—a collection of products that showcase both Fidelity's track record as a haven for smart stock and bond pickers, as well as its ability to provide superior index funds with thin fees. Better still: Every Fidelity fund on this list represents the Investor-class shares, which are available to all retail investors and have no investment minimums.

Editor's Note: Tabular data presented in this article is up-to-date as of May 6, 2026.

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Disclaimer: This article does not constitute individualized investment advice. Individual securities, funds, and/or other investments appear for your consideration and not as personalized investment recommendations. Act at your own discretion.

Why Fidelity Mutual Funds?

Fidelity is a leader in mutual funds (and exchange-traded funds, for that matter) and has been a force in the industry since the launch of its Fidelity Puritan Fund (FPURX) back in 1947.

Today, this premier mutual fund company has $18 trillion in assets under administration thanks in large part to the success of its talented fund managers. Most notably, that includes Peter Lynch, the longtime manager of the Fidelity Magellan Fund (FMAGX) who averaged an incredible 29.2% per year between 1977 and 1990. But Fidelity can also thank other successful managers, such as Joel Tillinghast and Will Danoff.

However, while Fidelity first built its name on actively managed funds, over the past three decades, the firm has built out its low-cost and even no-cost index funds as part of the movement to reduce expense ratios and transaction costs for individual investors.

The end result? A fund lineup that can serve just about every need, and that's typically competitive on price.

How Were the Best Fidelity Mutual Funds Selected?

Fidelity offers up quite the collection of mutual funds—in the hundreds, in fact, making it easy to succumb to analysis paralysis.

To whittle our way down to a more manageable list of the truly best Fidelity mutual funds, I started the same way I begin most of my reviews: by booting up Morningstar Investor and running a quality screen I customize for each article. In this case, I looked for only Fidelity mutual funds that have earned a Gold Morningstar Medalist rating.

Unlike Morningstar's Star ratings, which are based upon past performance, Morningstar Medalist ratings are a forward-looking analytical view of a fund. Per Morningstar:

"For actively managed funds, the top three ratings of Gold, Silver, and Bronze all indicate that our analysts expect the rated investment vehicle to produce positive alpha relative to its Morningstar Category index over the long term, meaning a period of at least five years. For passive strategies, the same ratings indicate that we expect the fund to deliver alpha relative to its Morningstar Category index that is above the lesser of the category median or zero over the long term."

As I've written in other Young and the Invested articles, a Medalist rating doesn't mean Morningstar is necessarily bullish on the underlying asset class or categorization. It's simply an expression of confidence in the fund compared to its peers.

Fidelity actually has dozens of Gold-rated funds, but several of them are specific share classes that are only available to certain subsets of investors—those enrolled in Fidelity Wealth Services, for instance, or those enrolled in eligible employer-sponsored retirement plans. So I've further narrowed the list to only Investor-class funds. Importantly, these funds typically offer no investment minimums, meaning you can get started for as little as one dollar.

From the remaining universe of funds, I selected a range of both indexed and actively managed mutual funds displaying the best Fidelity has to offer. This list includes both core portfolio holdings, as well as satellite products you can use to try to generate alpha.

The Best Fidelity Mutual Funds to Buy

As mentioned before, Fidelity boasts some of the fund industry's top managers. So while this list of Fidelity's best mutual funds includes a few dirt-cheap index funds, I've highlighted several actively managed products—both core and satellite holdings alike—that demonstrate the firm's ability to identify the market's best opportunities.

Also, every fund highlighted on this list boasts annual expenses that are at least below their category average. So while Fidelity's actively managed funds might be more expensive than your average index fund, you're still getting good relative value. (That said, if you have access to more inexpensive share classes via your wealth manager, retirement plan, or elsewhere, use those instead!)

One last reminder: Each fund on this list has no investment minimums. So you can get started with as little or as much capital as you'd like.

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1. Fidelity 500 Index Fund

• Style: U.S. large-cap stock
• Management: Index
• Assets under management: $791.7 billion
• Dividend yield: 1.1%
• Expense ratio: 0.015%, or 15¢ per year for every $1,000 invested

If a major mutual fund provider's lineup includes a cheap S&P 500 index fund, chances are it'll be one of their best-rated funds, and that's the case here with Fidelity 500 Index Fund (FXAIX).

The logic goes like this: The S&P 500 Index is commonly used as a performance benchmark for mutual funds that invest in U.S.-based large-cap stocks*. But the majority of fund managers who run these funds typically struggle to beat their benchmark. Consider the following, according to S&P Dow Jones Indices:

• In 2025, 79% of all active large-cap U.S. equity funds underperformed the S&P 500.
• Over the past 10 years, 86% of those funds fell short of the index.
• That number ticked up to almost 90% over the trailing 15-year period.

"I know guys that rate active managers in all these categories, and even they’re like, 'I'm not buying actively managed large blend; I'm just indexing,'" says Daniel Sotiroff, Senior Analyst for ETF and Passive Strategies at Morningstar. "Because it’s so brutally tough to beat a dirt-cheap index fund in the large blend category."

Related: How to Rebalance Your Portfolio: A Quick Guide

So if even the pros can't beat it, shouldn't we just join it?

The S&P 500 Index is a collection of 500 of the largest American businesses, and a barometer of the American stock market. The index requires a few other criteria for a company to join, including a market cap of at least $22.7 billion, highly liquid shares (the stock is frequently bought and sold), and more. There's a bit of a quality check, too: A company must also have positive earnings in the most recent quarter, and the sum of its previous four quarters must be positive. (Note: Once a company becomes an S&P 500 component, it's not automatically kicked out if it fails to meet all of the criteria. However, the selection committee would take this under consideration and possibly boot the company.)

People like to consider the S&P 500 a reflection of the U.S. economy. But it's hardly a perfect representation. For instance, the technology sector accounts for 35% of FXAIX's assets; however, utilities, real estate, and materials merit less than 3% apiece. This is in no small part because, like many indexes, the S&P 500 is market capitalization-weighted, which means the greater the size of the company, the more "weight" it's given in the index. Currently, trillion-dollar-plus companies Nvidia (NVDA), Apple (AAPL), and Google parent Alphabet (GOOG, GOOGL) sit atop Fidelity 500 Index Fund's holdings list at weights of 6%-8% apiece, meaning their individual performances have a very outsized effect on the fund's returns compared to the other components.

Related: Best Fidelity Retirement Funds for a 401(k) Plan

Turnover, which is how much the fund tends to buy and sell holdings, is always low, given that only a handful of stocks enter or leave the index in any given year. This tamps down (and often eliminates) capital-gains distributions, which receive unfavorable tax treatment. This makes FXAIX an extremely tax-efficient option for taxable brokerage accounts.

It's this combination of traits—the S&P 500's excellence as an index, bare-bones costs, and tax efficiency—that earn this Fidelity index fund a Gold Medalist rating from Morningstar. In fact, FXAIX is one of the cheapest ways to buy the S&P 500 across mutual funds and exchange-traded funds (ETFs) alike.

All of this makes FXAIX not just one of the best Fidelity index funds you can buy and one of its best products overall, but one of the best mutual funds on the whole darn market.

* There are different ways to define "cap" levels. We're adhering to Morningstar's definition, which says the largest 70% of companies by market capitalization within a fund's "style" are large caps, the next 20% by market cap are mid-caps, and the smallest 10% by market cap are small caps.

Related: 10 Best Schwab Funds You Can Buy: Low Fees, Low Minimums

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2. Fidelity Growth Discovery Fund

• Style: U.S. large-cap growth stock
• Management: Active
• Assets under management: $6.5 billion
• Dividend yield: 0.2%
• Expense ratio: 0.62%, or $6.20 per year for every $1,000 invested

If you did want to try to beat the index, Fidelity Growth Discovery Fund (FDSVX) has historically been up for the job.

S&P 500 funds (like FXAIX) are considered large-cap "blend" funds because they hold both growth stocks and value stocks. But FDSVX wants to exclusively hold the former.

Related: The 13 Best Mutual Funds You Can Buy for 2026

Managers Christopher Lin and Daniel Kelly, both of whom took the co-captains chairs in 2025, look for stocks with above-average profit margins and long-term earnings power, but try to avoid names with unreasonably high valuations or crumbling business fundamentals.

The 151-stock portfolio puts about 80% of its weight in larger companies, with almost all of the rest allocated to mid-caps. You'll see a lot of S&P 500 holdings here—Nvidia, Microsoft (MSFT), Alphabet, and the like—though several of those stocks boast even higher concentrations than they sport in the index. NVDA, for instance, accounts for more than 13% of assets.

There's also some international exposure; Taiwan Semiconductor (TSM) and Belgian biopharmaceutical company UCB (UCBJY) are among the fund's overseas holdings.

Related: 15 Best Long-Term Stocks to Buy and Hold Forever

Fidelity Growth Discovery Fund has beaten the S&P 500, not to mention the large-growth category average, across every meaningful time frame. We can't chalk that up to newcomers Christopher Lin and Daniel Kelly, but Morningstar still likes what it sees.

"The new duo was named here in April 2025 and took charge fully on Oct. 1, 2025, when their predecessors moved to help run Fidelity Contrafund," Morningstar Senior Analyst Todd Trubey says in his explanation of the fund's Gold Medalist rating. "Lin and Kelley have great independent track records, but here they collaboratively build the portfolio. While they haven’t done so for long, they’ve already shown great teamwork and embody many qualities that characterize great investors. It’s early for a new investment team to carry a High People rating, but it’s not premature here."

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3. Fidelity Equity-Income

• Style: Large-cap dividend stock
• Management: Active
• Assets under management: $11.5 billion
• Dividend yield: 1.5%
• Expense ratio: 0.52%, or $5.20 per year for every $1,000 invested

Fidelity Equity-Income (FEQIX) is one of Fidelity's less scintillating products. This income-focused, large-cap value fund will never be a topic of water-cooler conversation, and in fact, it will typically lag a little when the market is screaming higher.

But if you find yourself in peril, you’ll love having it in your corner.

Related: 14 Best Investing Research & Stock Analysis Websites

FEQIX invests in about 125 large-cap stocks, mostly U.S.-based blue chips like Exxon Mobil (XOM), JPMorgan Chase (JPM), and Dividend Aristocrat Johnson & Johnson (JNJ) that pay out better-than-average dividends. You do get some international exposure (about 15% of assets currently), with the same focus on big, dividend-paying firms such as AstraZeneca (AZN) and Shell (SHEL). Technically, manager Ramona Persaud is allowed to invest in debt securities and even trade covered calls to manage the fund’s assets, but right now, the fund’s assets are virtually all in equities, with about 3% in cash.

This kind of portfolio construction lends itself to less upside in bull markets but better protection during bear markets and other downturns. It outperformed the market slightly during the COVID crash and late 2018 downturn, and by a much wider margin during the 2022 bear market and through 2025’s spring turbulence.

Related: 7 Best High-Yield Dividend ETFs for Income-Hungry Investors

“Persaud consistently strives for the best possible approach grounded in details and data,” Morningstar Senior Analyst Todd Trubey says. “Her training as an engineer anchored her emphasis on structure and stability, which informs the weight she puts on traversing difficult periods successfully and the precision she uses to generate downside protection. But unlike many investors who stress quantitative rigor, she invokes the art of investing often and consistently demonstrates humility when the market shifts."

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4. Fidelity Mid Cap Index Fund

• Style: U.S. mid-cap stock
• Management: Index
• Assets under management: $50.0 billion
• Dividend yield: 1.0%
• Expense ratio: 0.025%, or 25¢ per year for every $1,000 invested

Mid-cap stocks are a way to thread the needle between the relative size and stability of large-cap stocks and the high growth potential of small-cap stocks. Indeed, this ideal middle ground has earned mid-caps the nickname of "Goldilocks" stocks.

Related: The 10 Best Fidelity ETFs for 2026 [Invest Tactically]

"Since 1978, mid-cap stocks have outperformed small-caps over each of these rolling time periods: five, 10, 20, 30 and 40 years," says Oregon-based equity manager Jensen Investment Management. "They've even bested large-caps over the 30- and 40-year windows. These returns came with lower volatility than small-caps as well, making the evidence even more compelling.

"That means mid-caps haven't just delivered better performance—they've done it more consistently, with fewer drawdowns."

Fidelity Mid Cap Index Fund (FSMDX) is an exceedingly cost-efficient way to tap this area of the market. FSMDX tracks the Russell MidCap Index, which is made up of the 800 smallest stocks in the Russell 1000 (which is itself an index of the U.S. market's 1,000 largest stocks). As a result, you're getting exposure to around 800 mostly mid-cap stocks—the fund usually is 75% weighted in mids, with another 5%-10% in smaller large caps, and another 10%-15% in larger small caps.

Related: 11 Best Vanguard Funds for the Everyday Investor

Why not 100% mid-caps? It's hard to know for sure; some fund companies define mid-caps differently, while others might want a broader portfolio than what pure mid-caps alone can provide. Regardless, it's actually common across the fund industry for 15%-30% of a mid-cap fund's holdings to bleed into small- and/or large-company territory, and some funds invest even more outside of mid-caps. Where FSMDX stands out is that it "tends to go higher up the market-cap ladder than other mid-cap indexes, favoring large-cap stocks that tend to be more established than mid-cap stocks," Morningstar says.

Sector weights will naturally change over time as certain businesses come into and go out of favor, but right now, industrials are tops at 18%, followed by technology stocks (15%), financials (12%), consumer discretionary (12%), and healthcare (9%). Also, thanks to both the market cap-weighting of the Russell MidCap Index and the high number of holdings, single-stock risk is minimal—all stocks account for less than 1% of assets.

A sound methodology for Wall Street's mid-sized companies, dirt-cheap fee, and strong historical performance all make FSMDX one of the best Fidelity funds you can buy.

Related: The 12 Best Vanguard ETFs for 2026 [Build a Low-Cost Portfolio]

5. Fidelity Nasdaq Composite Index Fund

• Style: Large-cap growth
• Management: Index
• Assets under management: $25.7 billion
• Dividend yield: 0.5%
• Expense ratio: 0.29%, or $2.90 per year for every $1,000 invested

When you visit a financial website or look at a business channel chyron, you'll typically see data for the S&P 500 and Dow Jones Industrial Average prominently displayed. That's because when the average person asks "how did the stock market do today?" they're typically asking about one of these two American stock-market benchmarks.

They're probably not asking about the Nasdaq Composite Index.

Related: Best Vanguard Retirement Funds for an IRA

The market cap-weighted Nasdaq Composite Index is made up of all the roughly 3,300 stocks that are listed on the Nasdaq Composite, which serves alongside the New York Stock Exchange as the world's two largest stock exchanges by market capitalization. And while it holds a place of prominence right alongside the S&P 500 and DJIA, it's less as a broad-market index, and more as a proxy of the tech sector.

That makes the Fidelity Nasdaq Composite Index Fund (FNCMX) particularly interesting as a Fidelity retirement fund for anyone who wants to be more aggressive with the equity portion of their portfolio.

Related: Best Schwab Retirement Funds for an IRA

FNCMX holds nearly 3,000 Nasdaq Composite stocks—not the index's full roster, but a representative amount accounting for the vast majority of the index's market cap. As I write this, about half of the fund's assets are invested in the technology sector, and another 30% or so is split between the tech-esque communications services sector and the consumer discretionary sector, which includes tech-adjacent mega-caps like Amazon (AMZN) and Tesla (TSLA). Large-cap growth funds normally favor tech and tech-esque companies, but Fidelity Nasdaq Composite Index is even more concentrated in those holdings than competitor funds.

That said, while FNCMX is an aggressive product, it's not a trading hive. Turnover is actually minimal, at just 4%. That makes this Fidelity fund fairly tax-efficient, and thus perfectly appropriate for taxable accounts and tax-advantaged accounts alike.

Do you want to get serious about saving and planning for retirement? Sign up for Retire With Riley, Young and the Invested's free retirement planning newsletter.

6. Fidelity Select Pharmaceuticals Portfolio

• Style: Industry (Pharmaceuticals)
• Management: Active
• Assets under management: $1.4 billion
• Dividend yield: 2.9%
• Expense ratio: 0.67%, or $6.70 per year for every $1,000 invested

Fidelity has roughly 30 "Select" funds—the company's name for its sector- and industry-specific funds. Several of these funds currently boast Morningstar Gold Medalist ratings and thus deserve a spot among the best Fidelity funds you can buy; I'll cover a pair of them in this article.

First up is the Fidelity Select Pharmaceuticals Portfolio (FPHAX), which replaces the now Neutral-rated Fidelity Select Medical Technology and Devices Portfolio.

OK, technically, FPHAX isn't a pure single-industry fund, but it's close enough to count. About 80% of assets are invested in pharmaceutical companies, and virtually all of the rest is used to own biotechnology stocks. (What's the difference? Pharma companies use chemical processes to create their treatments, while biotech companies use living organisms.)

Related: 9 Best Schwab ETFs to Buy [Build Your Core for Cheap]

Manager Karim Suwwan de Felipe has hand-picked a portfolio of around 55 stocks that leans toward large caps but still has adequate exposure to the kinds of small-cap companies that have the potential to explode higher (or plummet) based on FDA approvals or denials, or that might be attractive as M&A targets to bigger firms. But the largest weights are dedicated to multinationals such as Johnson & Johnson (JNJ), Merck (MRK), and AstraZeneca, which is how FPHAX delivers a high yield of almost 3%.

One potential red flag to note is a massive overweight to Eli Lilly (LLY), which right now accounts for a full quarter of assets. It's certainly a potential boon if it recreates the outstanding 400% or so return it has generated over the past five years, but a liability should Wall Street cool on the weight-loss-drug manufacturer.

FPHAX is more expensive than your typical indexed sector or industry product, but it has largely been worth it. Suwwan de Felipe has been on board since 2017; we can't yet use 10-year performance comparisons to measure his performance, but he has overseen a five-year total return that bests 99% of all other category funds.

Related: The 10 Best Dividend ETFs [Get Income + Diversity]

7. Fidelity Select Semiconductors Portfolio

• Style: Industry (Semiconductors)
• Management: Active
• Assets under management: $43.1 billion
• Dividend yield: <0.1%
• Expense ratio: 0.60%, or $6.00 per year for every $1,000 invested

While many investors unload their sector-specific needs to basic index exchange-traded funds (ETFs), Fidelity manager Adam Benjamin makes a case for human stewardship with his Fidelity Select Semiconductors Portfolio (FSELX).

The long-term appeal of chips is pretty straightforward: As both our personal and business worlds become increasingly dependent on technology, semiconductor companies—which design and manufacture one of the most essential components of technology—stand to benefit. And some of the greatest opportunities rest within those semiconductor companies powering emergent and high-growth technologies such as data centers, cloud computing, and artificial intelligence.

Related: The 8 Best T. Rowe Price Funds for 2026

Benjamin, who has led the fund for five years, aims to beat the broader semiconductor industry by picking winners and losers within the space. In addition to single-company research, Benjamin also attempts to identify themes that will impact the largest end markets, and determine how technology disruptors might impact incumbent companies. 

FSELX's 66-stock portfolio might seem tight, but it's pretty standard for a single-industry fund. The same goes for the massive 25% weight in Nvidia—as it goes, so too goes most semiconductor portfolios, not just Benjamin's pick list.

Kudos to Benjamin and Fidelity Select Semiconductors: In addition to earning a Gold Medalist rating, they have beaten every meaningful benchmark—the S&P 500, the technology sector, the MSCI US IMI Information Technology 25/50 Index—across every significant time frame. Indeed, FSELX has been in the top 2% of tech-stock funds across the trailing three- and five-year periods, and it's in the top 1% over the trailing 10 and 15 years.

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Related: 8 Best Schwab Index Funds for Thrifty Investors

8. Fidelity Total International Index Fund

• Style: International all-cap stock
• Management: Index
• Assets under management: $23.5 billion
• Dividend yield: 2.5%
• Expense ratio: 0.06%, or 60¢ per year for every $1,000 invested

U.S. markets have long been among the most productive in the world, and if you believe in the American economy's ability to keep growing, that should remain the case—and thus, most experts would tell you to own primarily U.S. stock and bond funds.

But those same experts would tell you that it's worth having at least some international exposure, and you can do that mighty inexpensively through the Fidelity Total International Index Fund (FTIHX).

Related: The Best Dividend Stocks: 10 Pro-Grade Income Picks for 2026

FTIHX tracks an international index that holds large-, mid-, and small-cap stocks in both developed and emerging markets—basically anywhere that isn't the U.S. And its passport is covered in stamps. The fund holds well more than 5,00 stocks across a few dozen countries. 

Like with most index funds, Fidelity Total International Index Fund hardly does any of this equally. Geographically speaking, this Fidelity mutual fund favors developed markets, including Japan (15%), the U.K. (9%), and Canada (8%). From a company-size perspective, it's predominantly large-cap in nature—nearly 80% of the portfolio is invested in big, blue-chip international firms such as Taiwan Semiconductor, Swiss pharma company Roche (RHHBY), and British financial HSBC Holdings (HSBC). That's common for international funds, and it tends to result in dividend yields that are much bigger than U.S. large-cap funds—FTIHX's yield is well more than double the S&P 500's.

Related: 8 Best High-Yield Dividend Stocks: The Pros’ Picks for 2026

I will note, however, that while Fidelity Total International Index Fund does enjoy a Morningstar Gold medalist rating, a lot of that is shouldered by its dirt-cheap investment fee. FTIHX's historical performance has been good, but not necessarily excellent.

Are you compelled to build the lowest-fee portfolio possible? Do you have a Fidelity account (or are you willing to open one)? If so, you can own a similar, Bronze-rated fund—Fidelity ZERO International Index Fund (FZILX)—for an annual fee of literally nothing.

9. Fidelity Investment Grade Bond Fund

• Style: Intermediate-term core bond
• Management: Active
• Assets under management: $11.7 billion
• SEC yield: 4.3%*
• Expense ratio: 0.45%, or $4.50 per year for every $1,000 invested

Most investors need some exposure to bonds, which is debt that's issued by governments, companies, and other entities. Their interest payments and relative lack of volatility make them an excellent tool for providing a portfolio with stability and income. But how much bond exposure you need will vary by age—because they're better at protecting wealth than growing it, people typically start with little in the way of bond holdings earlier in life, then gradually hold more bonds as they get closer to (and into) retirement. (Purpose-built investment products called target-date funds capture this dynamic automatically for investors.)

Related: The 10 Best Vanguard Index Funds to Buy in 2026

But individual bonds can be a hassle. Data and research on individual issues is much thinner than it is for publicly traded stocks. And some bonds have minimum investments in the tens of thousands of dollars. But you can blunt these problems by purchasing a bond fund, which allows you to invest in hundreds or even thousands of bonds with a single click—and, in many cases, very low fees.

Core bond funds like the Fidelity Investment Grade Bond Fund (FBNDX) are the, ahem, gold standard.

It's "everything you want in a core bond fund," Morningstar Senior Analyst Max Curtin says.

FBNDX's five co-managers have built a portfolio of more than 4,700 investment-grade securities spanning numerous debt types. The fund's largest current allocation is to U.S. Treasury bonds, which command 47% of assets. It also has a 23% weight in corporate bonds, 15% in pass-through mortgage-backed securities (MBSes), 9% in asset-backed securities (ABSes), 6% in commercial MBSes (CMBSes), and sprinklings of other debt.

Related: 8 Best-in-Class Bond Funds to Buy

Diversification goes beyond debt categories, too. The fund holds bonds with maturities of between just a few months and more than 20 years, though the biggest slug (~51%) is in medium-term bonds of five to 10 years until maturity. Duration, a measure of interest-rate sensitivity, is six years. While the actual calculation is much more complex, this basically implies that for every 1-percentage-point increase in interest rates, FBNDX would suffer a short-term decline of 6%, and vice versa. It's a moderate amount of risk, but no more.

"Strict guardrails around duration, a measure of interest-rate risk, help to limit that volatility when there are big moves in interest rates," Curtin says. "The team often keeps the portfolio’s duration within one third of a year of its Bloomberg US Aggregate Bond Index's."

From a performance standpoint, Fidelity Investment Grade Bond's management has been up to the task, beating both its category average and index over every meaningful time period. It is particularly productive over the long-term, sitting in the top 10% of funds over the trailing 10- and 15-year periods.

Long story short: Fund shareholders are instantly plugged into a widely diversified and well-selected set of fixed-income assets, and at a very reasonable cost. This makes FBNDX one of the best Fidelity mutual funds to buy for anyone who wants to buy a single core bond product and call it a day.

* SEC yield reflects the interest earned across the most recent 30-day period. This is a standard measure for funds holding bonds and preferred stocks.

Related: The 7 Best Closed-End Funds (CEFs) for 2026

10. Fidelity Total Bond Fund

• Style: Intermediate-term core-plus bond
• Management: Active
• Assets under management: $42.3 billion
• SEC yield: 4.6%
• Expense ratio: 0.45%, or $4.50 per year for every $1,000 invested

Fidelity's FBNDX is referred to as a "core" bond fund, which means it holds several types of core debt categories, such as U.S. Treasuries and investment-grade corporate bonds. Investors with a little more appetite for risk might also consider a "core-plus" bond fund, which also holds a variety of debt securities—but in addition to core bond categories, they can also hold noncore categories such as below-investment-grade (junk) corporate bonds and emerging-market debt.

One such core-plus fund is the Fidelity Total Bond Fund (FTBFX). A team of eight co-managers spreads the fund's assets across 6,650 issues in a number of categories. Currently, it invests 42% of assets in U.S. government debt, another 26% in corporate debt, and 14% in pass-through MBSes. The rest is scattered across ABSes, CMBSes, foreign sovereign debt, and more. 

Related: 7 Best Vanguard Dividend Funds [Low-Cost Income]

Sure, the portfolio isn't a huge deviation from a typical core bond fund. But this isn't a fully investment-grade portfolio like FBNDX—you're getting some exposure to high-yield corporate debt (10%) and emerging-market bonds (3%), too.

Credit quality is still high overall. And while management holds bonds with maturities ranging anywhere from 20 years to a few months, the biggest chunk of bonds (48%) sits between five and 10 years. Duration, meanwhile, is also six years.

Performance-wise, Fidelity Total Bond has been in the top quarter of its category peers over the trailing five-, 10-, and 15-year periods. And you're buying that quality at a below-average 0.45% in annual fees.

Do you want to get serious about saving and planning for retirement? Sign up for Retire With Riley, Young and the Invested's free retirement planning newsletter.

11. Fidelity Freedom Index Funds

• Style: Target-date
• Management: Index
• Assets under management (collectively): $237.9 billion
• Expense ratio: 0.12%, or $1.20 per year for every $1,000 invested

Target-date funds (TDFs) are the ultimate buy-and-hold instrument, meant to stay in your portfolio for literally decades.

In short, TDFs are funds that shift their asset allocation over time to meet investors' changing needs as they age. A person who turned 25 in 2025 would expect to retire in 2065, so they'd buy a fund with a target retirement date of 2065. That fund will probably start out with a very heavy allocation to stocks (to grow the investors' wealth), but as the years roll on and the fund approaches its target retirement date, it will start putting more of its assets into bonds (to protect the investors' wealth).

Many fund providers have at least one target-date series, though larger asset managers sometimes offer more. Fidelity is well outside the norm, however, with a whopping four—and the highest-rated among them are the Fidelity Freedom Index Funds.

Fidelity Freedom Index Funds, which are built exclusively from Fidelity's lineup of low-cost index funds, are a rarity—few target-date series can boast a Gold Medalist rating. That rating is due in no small part to extremely low costs. Unlike actively managed target-date funds whose management fees tend to be different across the series, all Fidelity Freedom Index Funds charge the same fee (0.12%).

Related: The 7 Best Fidelity Index Funds for Beginners

Here's a quick look at the full lineup:

• Fidelity Freedom Index 2010 Fund (FKIFX)
• Fidelity Freedom Index 2015 Fund (FLIFX)
• Fidelity Freedom Index 2020 Fund (FPIFX)
• Fidelity Freedom Index 2025 Fund (FQIFX)
• Fidelity Freedom Index 2030 Fund (FXIFX)
• Fidelity Freedom Index 2035 Fund (FIHFX)
• Fidelity Freedom Index 2040 Fund (FBIFX)
• Fidelity Freedom Index 2045 Fund (FIOFX)
• Fidelity Freedom Index 2050 Fund (FIPFX)
• Fidelity Freedom Index 2055 Fund (FDEWX)
• Fidelity Freedom Index 2060 Fund (FDKLX)
• Fidelity Freedom Index 2065 Fund (FFIJX)
• Fidelity Freedom Index 2070 Fund (FRBVX)
• Fidelity Freedom Index Retirement Fund (FIKFX)

That last product, Fidelity Freedom Index Retirement Fund, is designed for people who have reached retirement, and it boasts the most conservative asset blend. When a Fidelity Freedom Index target-date fund expires, it merges with Fidelity Freedom Index Retirement.

For a longer explanation of all of Fidelity's target-date lineups, check out our Beginner's Guide to Fidelity Target-Date Funds.

Related: Best Target-Date Funds: Fidelity vs. Schwab vs. T. Rowe vs. Vanguard

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Learn More About These and Other Funds With Morningstar Investor

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Morningstar Investor provides a wealth of information and comparable data points about mutual funds and ETFs—fees, risk, portfolio composition, performance, distributions, and more. Morningstar experts also provide detailed explanations and analysis of many of the funds the site covers.

With Morningstar Investor, you'll enjoy a wealth of features, including Morningstar Portfolio X-Ray®, stock and fund watchlists, news and commentary, screeners, and more. And you can try it before you buy it. Right now, Morningstar Investor is offering a free seven-day trial and a discount on your first year's subscription when you use our exclusive link.

What Is the Minimum Investment Amount on Fidelity Mutual Funds?

Fidelity's mutual funds (and ETFs, for that matter) make plenty of sense for investors of all shapes and sizes, but they have a particular appeal among people who don't have much money to work with. That's because many Fidelity mutual funds have no investment minimums—you can literally start with as little as $1.

That's extremely beneficial in self-directed accounts like a brokerage or health savings account (HSA). Many mutual funds from other providers require high minimums in the thousands of dollars, hamstringing investors with little capital to work with.

Actively Managed Funds vs. Index Funds

There are infinite types of mutual funds, but all can be divided into two main camps:

-- actively managed funds

-- passively managed funds, also known as passive funds or, most commonly, index funds

Actively managed funds have professional managers that use their discretion to buy and sell securities. Whether they are value funds, growth funds, or anything in between, they are all essentially run the same way: A manager or team of managers buys and sells stocks, bonds, or other securities in the pursuit of price returns, dividends/income, or both.

Related: The 7 Best Mutual Funds for Beginners

Index funds, in contrast, are passive. There's no manager actively looking to "beat the market." The fund is simply looking to copy an index—which is based on a set of rules that the index automatically applies—enjoying that underlying investment exposure. Actively managed stock funds will try to cherry pick the stocks or bonds they like best. An index fund simply buys whatever its rules say to buy, then lets that portfolio run until it's time to "rebalance" (apply the rules again).

The primary advantages of actively managed funds is that a talented manager can potentially outperform over time and may be adept at navigating a difficult period such as a bear market. But with an index fund, you generally get much lower costs in terms of management fees and trading expenses, better tax efficiency and performance that often ends up being better than that of many active managers.

Related: 5 Best Stock Recommendation Services [Stock Tips + Picks]

What Are Balanced Mutual Funds?

Balanced mutual funds, sometimes also called "hybrid funds" or "allocation funds," hold both stocks and bonds. However, while the name might imply that all balanced funds hold an equal amount of stocks and bonds, that's not quite the case.

Some balanced funds are "aggressive" and dedicate far greater assets to stocks than bonds—say, 80/20 stocks, or 70/30 stocks. Meanwhile, some balanced funds are "conservative" and invest most of their assets in bonds. Still more are much closer to a 50/50 split.

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How Are Mutual Funds Different From Exchange-Traded Funds?

There is a lot of overlap between traditional mutual funds and their cousins, exchange-traded funds (ETFs). That's because exchange-traded funds are very similar to mutual funds, but with a few different traits.

Related: 7 Low- and Minimum-Volatility ETFs for Peace of Mind

Like traditional mutual funds, an ETF will hold a basket of stocks, bonds, and other securities. These can be broad and tied to a major index like the S&P 500, or they can be exceptionally narrow and focus on a specific sector or even a specific trading strategy. For the most part, anything that can be held in an exchange traded fund can also be held in a mutual fund.

But there are some major differences. When you invest in a mutual fund, you (or your broker) actually send money to the manager, who in turn uses the cash to buy stocks or other investments. When you want to sell, the manager will sell off a tiny piece of the securities the mutual fund owns and send you the proceeds. Money generally enters or exits the fund once per day.

Related: Buy 'The Future': 5 Tech Stock ETFs You Should Own in 2026

Exchange-traded funds, on the other hand, trade on the New York Stock Exchange or another major exchange like a stock. If you want to buy shares, you don't send the manager money; you just buy shares from another investor on the open market.

There are two advantages here. The first is that ETFs allow for intraday liquidity. If you want to buy or sell in the middle of the trading day—or multiple times throughout the trading day—you can.

The second advantage is tax efficiency. In a traditional mutual fund, redemptions by investors can generate selling by the manager that creates taxable capital gains for the remaining investors who didn't sell. This doesn't happen with ETFs, as the manager isn't forced to buy or sell anything when an investor sells their shares.

Related: The 9 Best ETFs for Beginners

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Why Does a Fund's Expense Ratio Matter So Much?

Every dollar you pay in expenses is a dollar that comes directly out of your returns. So, it is absolutely in your best interests to keep your expense ratios to an absolute minimum.

The expense ratio is the percentage of your investment lost each year to management fees, trading expenses and other fund expenses. Because index funds are passively managed and don't have large staffs of portfolio managers and analysts to pay, they tend to have some of the lowest expense ratios of all mutual funds.

This matters because every dollar not lost to expenses is a dollar that is available to grow and compound. And over an investing lifetime, even a half a percent can have a huge impact. If you invest just $1,000 in a fund generating 5% per year after fees, over a 30-year horizon, it will grow to $4,116. However, if you invested $1,000 in the same fund, but it had an additional 50 basis points in fees (so it only generated 4.5% per year in returns), it would grow to only $3,584 over the same period.

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Related:The 10 Best-Rated Dividend Aristocrats Right Now

Dividend growth puts more cash in our pockets and signals that the company we're invested in is confident in its ability to keep churning out profits. And there's no more heralded group of dividend growers than the Dividend Aristocrats, which are companies that have paid higher cash distributions each year for at least a quarter-century.

But even Aristocrats aren't created equally. Check out which dividend growers Wall Street loves the best right now in our list of the top-rated Dividend Aristocrats.

Related: 10 Best Monthly Dividend Stocks for Frequent, Regular Income

The vast majority of American dividend stocks pay regular, reliable payouts—and they do so at a more frequent clip (quarterly) than dividend stocks in most other countries (typically every six months or year).

Still, if you’ve ever thought to yourself, “it’d sure be nice to collect these dividends more often,” you don’t have to look far. While they’re not terribly common, American exchanges boast dozens of monthly dividend stocks.

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It might not just be a feeling. The average price for a home remains elevated even after several months of easing, and with interest rates still sitting around multi-decade highs, the actual cost of buying a home isn’t just uncomfortably aloft—for many, it’s simply out of reach.

But just how badly prospective homebuyers are feeling the pinch largely rests on where they live.

If you’re looking to move within your current city or to a new city (or if you’re just curious about the state of the housing market), read on. Today, I’ll be looking at the most expensive U.S. cities to buy a house.

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Methodology (Part 1)

Data for this article used to identify these cheapest cities to buy a house come from the Council for Community and Economic Research (C2ER), which among other things provides research and data about the cost of living across the U.S.

Specifically, I’m looking at data from their Cost of Living Index, which measures relative price levels for consumer goods and services—namely, grocery items, health care, housing, transportation, utilities, and miscellaneous goods—in 276 participating urban areas. And I’m winnowing the selection down to U.S. cities with at least 100,000 residents as of the 2022 census.

Average Mortgage Principal and Interest

To determine which cities offer the most expensive housing, we’ve relied on the city-wide averages for the average principal and interest (P+I) paid for new homes. This C2ER data point is based on homes with the following specifications:

-- Newly built (not previously occupied)

-- Single-family detached

-- 2,400 square feet (not including garage)

-- Full purchase price

-- "Good" or "very good" construction quality based on the Marshall & Swift method

However, P+I doesn’t tell the whole story, which is why I also looked at a few other statistics that help paint a picture of a city’s general homeownership affordability (or lack thereof):

Median Household Income and City Population

The income figures cited in this article come from the Bureau of Labor Statistics’ Current Population Survey assessment of median household income by city from 2022, the most recent year available as of the time of publication. Likewise, this same survey provides information about each city’s population.

Methodology (Part 2)

Cost of Living vs. the National Average

This data point, provided by C2ER, represents the percentage difference between each city and the calculated national average of the total cost-of-living index.

Average Percentage of Income Spent on P+I

This calculation is a combination of the three data points above. We take the median household income for each city and divide it by 12 times the average monthly P+I. This provides a percentage that shows the amount of median household income that goes toward the average P+I.

Regarding the Commingling of Median Household Income and Mean Principal and Interest

One wonky data item I’d like to point out is a calculation we provide detailing the percentage of median household income as a percentage of the average principal and interest (P+I) paid on a mortgage. You’ll notice that some of these figures are unsustainably high. That’s due to the use of median household income provided by the Bureau of Labor Statistics (BLS) and the mean (average) principal and interest balance paid on a mortgage in these cities.

In an ideal world, we’d have a perfect match between either median household income and median mortgage payment or mean household income and mean mortgage payment. Given the limitations of the data sets we’ve used, we’re forced to marry two sets of data points that can skew how certain calculations work. As a for-instance, using median household income and mean P+I generally results in a higher average % income spent on P+I than reflects reality.

Most Expensive Housing Markets

Home prices aren’t the only factor to consider. An expensive house and/or a high cost of living becomes a lot more achievable if you can find a job that pays well—and in many cities with high-priced homes, those jobs are plentiful.

Read on as I show you the cities with the highest costs of buying a new home, based on C2ER data and the above methodology.

These cities are listed in order of average monthly P+I (from lowest to highest).

10. Seattle, Washington

-- Average monthly P+I: $4,924

-- Median annual household income: $116,068

-- Population: 749,256

-- Average % income spent on P+I: 50.9%

-- Cost of living vs. U.S. average: +44.6%

The seaport city of Seattle is the most populous city in the state of Washington. It has a reputation of being one of America’s rainiest cities—while the overall yearly precipitation isn’t a spectacular amount, it does average 152 days a year with at least a little drizzle. All that rain keeps the city’s landscape lush, though; indeed, its high number of evergreen trees and other greenery are what earned Seattle its nickname of “The Emerald City.”

Past that, Seattle is known for the Space Needle, coffee (it’s the home of Starbucks), grunge rock, and Frasier. It’s also the birthplace of Boeing, home to Amazon’s headquarters, and just a hop, skip, and a jump from Microsoft’s corporate HQ.

Seattle might be the “cheapest” place to buy a house on this list, but it’s hardly cheap. Principal and interest costs the owner of a 2,400-square-foot home more than $4,900 each month. As I mentioned above in the methodology, the average percent of income spent on P+I is somewhat misleading because of the types of data available, but Seattle residents still do cough up quite a bit on homeownership.

In fact, you’ll spend quite a bit no matter whether you buy or rent—housing costs are more than twice the national average. Healthcare, transportation, and grocery costs also significantly contribute to a total cost of living that’s nearly 45% higher than what you can expect across the country. If there’s any consolation, median household income is nearly 55% above the U.S. average; even minimum-wage workers earn one of the highest hourly rates in the country.

Related: 7 Best Vanguard Dividend Funds [Low-Cost Income]

9. San Diego, California

-- Average monthly P+I: $5,169

-- Median annual household income: $98,657

-- Population: 1,381,162

-- Average % income spent on P+I: 62.9%

-- Cost of living vs. U.S. average: +42.0%

In contrast to Seattle, “America’s Finest City” is known for its perpetually pleasant weather—as the old saw goes, “the easiest job in the world is a weatherman in San Diego.”

This coastal city boasts dozens of international cuisines, but Mexican fare is king. Thanks to its proximity to the U.S.-Mexico border, you can’t walk five feet without bumping into life-changing tacos or mariscos.

There’s plenty you can do to build up an appetite, too. The city is home to the famous San Diego Zoo (the only one outside Australia to house platypuses!), SeaWorld, Torrey Pines State Natural Reserve, the USS Midway Museum, and the Maritime Museum of San Diego.

Like with Seattle, San Diego residents spend roughly twice as much on housing than the national average, regardless of whether they’re renting or buying. But owning a home is particularly pricy, at nearly $2,800 per month more than the average of all cities within C2ER’s dataset. On top of that, groceries, transportation, and miscellaneous goods and services all cost significantly more, leading to an overall cost of living that’s 42% more than the average city.

Related: 10 Monthly Dividend Stocks for Frequent, Regular Income

8. Arlington, Virginia

-- Average monthly P+I: $5,381

-- Median annual household income: $137,387

-- Population: 234,000

-- Average % income spent on P+I: 47.0%

-- Cost of living vs. U.S. average: +36.8%

Arlington, which sits directly across the Potomac River from Washington, D.C., technically isn’t a city. It’s instead an “urban county”—one with no incorporated cities or towns within its limits. It does have 10 neighborhoods, though, as well as 1,100 acres of parks and open space. Indeed, there are 157 parks and nature centers, providing plenty of opportunities to get fresh air.

Arlington, like nearby Washington, is home to numerous memorials, including Arlington National Cemetery, Air Force Memorial, Military Women’s Memorial, Marine Corps War Memorial (Iwo Jima), and the National 9/11 Pentagon Memorial. But it’s perhaps best known as the home of the Pentagon—the headquarters for the U.S. Department of Defense.

No wonder, then, that government and service sectors compose the largest chunk of Arlington’s jobs. And that might explain both the much-higher-than-average median annual household income, as well as the extremely high cost of buying a home.

Arlington’s housing costs are also more than double the national average, including average principal and interest costs that are nearly $3,000 more per month than the U.S. mean. Other costs of living are plenty higher, too, including healthcare, groceries, and miscellaneous goods and services, though utility costs and transports are roughly on par. Again, though, chances are you’ll be well-compensated—the median annual household income in Arlington is nearly $63,000 higher and ranks No. 1 on this list of cities.

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7. Washington, D.C.

-- Average monthly P+I: $5,844

-- Median annual household income: $101,722

-- Population: 671,803

-- Average % income spent on P+I: 68.9%

-- Cost of living vs. U.S. average: +46.8%

Washington, D.C., the capital city and federal district of the United States, is positioned across the Potomac River from Virginia, and it shares land borders with Maryland.

Perhaps no other city holds more American political and historical significance than Washington. It’s home to the White House, Capitol Building, and Supreme Court Building. It’s brimming with memorials, including the Washington Monument, Lincoln Memorial, Jefferson Memorial, and numerous war memorials. It’s also home to the famous Smithsonian group of museums (and the National Zoo!), all of which are free to visit.

This vibrant city is bustling year-round; there’s always something to see. Among its most prized annual events are the early-spring National Cherry Blossom Festival and the winter National Christmas Tree Lighting.

Washington boasts a high median annual household income in the low six digits, but it also requires an average monthly P&I (on a 2,400-square-foot home) that’s more than $3,400 above the U.S. mean. Housing costs are by far and away the most impactful factor in Washington’s high cost of living, though all other measures—groceries, utilities, transportation, health care, and miscellaneous goods and services—are anywhere from 5% to 15% above the national average.

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6. Los Angeles, California

-- Average monthly P+I: $5,847

-- Median annual household income: $76,244

-- Population: 3,822,238

-- Average % income spent on P+I: 92.0%

-- Cost of living vs. U.S. average: +48.9%

Los Angeles is California’s biggest city and the second-most populous city in the U.S. It’s also home to the stars—Hollywood, which is a neighborhood that’s mostly contained within Los Angeles, contains several notable film studios, including Paramount Pictures, Sony Pictures, Universal Pictures, Walt Disney Studios, Warner Bros., and many more.

But there’s more to L.A. than that. The metropolitan area is chock full of professional sports teams, including two teams each in the NFL, NBA, MLB, NHL, and MLS, as well as the WNBA’s Los Angeles Sparks. It’s also teeming with colleges—it’s best known for the University of California, Los Angeles (UCLA), but it also has a pair of California State University institutions (Los Angeles and Northridge), as well as several private colleges and a community college system.

And on top of all that, L.A. boasts the Griffith Observatory, the Getty Center, the Los Angeles County Museum of Art, Rodeo Drive … and it’s one of the best food cities in the U.S.

According to C2ER data calculations, Los Angeles has the third-highest average percentage of income spent on P&I across all cities, at 92%. But again, this is where median income and mean P&I data clash—median income is only looking at the midpoint, which minimizes many residents’ much higher incomes. Non-Census data puts the average annual household income at closer to $107,000. Also worth noting: In many situations, people bought houses decades ago when the home price was just a fraction of what the housing market deems those places are worth today.

Still, that only means Los Angeles isn’t impossibly expensive—but it’s still a very expensive place to live. Transportation is nearly 25% higher than the national average, while groceries, utilities, health care, and miscellaneous goods and services are also more expensive.

Editor’s Note: C2ER data for Los Angeles also takes Long Beach into account.

Related: Federal Tax Brackets and Rates

5. Orange County, California

-- Average monthly P+I: $6,554

-- Median annual household income: $109,361

-- Population: 3,151,184

-- Average % income spent on P+I: 71.9%

-- Cost of living vs. U.S. average: +50.3%

C2ER data looks at “urban areas”—in most cases, these are individual cities, but there are a few outliers. For instance, it could be a pair of cities considered to be one area, an “urban county” like Arlington, Virginia, or in this case, all of Orange County.

The “O.C.”—yes, the setting of the so-named popular teen drama series from the early 2000s—is the second most densely populated county in California, behind only San Francisco County. It’s bordered on the southwest by the Pacific Ocean, and within it are several cities, including Anaheim, Irvine, and Santa Ana.

The most famous attraction within Orange County is the Disneyland Resort, which predates Florida’s Walt Disney World by 16 years. Other popular attractions include Knott’s Berry Farm (a farm long ago, but now an amusement park), Huntington Beach, and Laguna Beach.

Orange County’s average monthly P+I is more than $4,100 than the national average, and by far and away the greatest contributor to the area’s pricey overall cost of living. It also has much higher-than-average transportation, grocery, and miscellaneous goods and services costs, though interestingly, utilities and health care costs are below-par. OC employers do provide much higher compensation, however, with a median annual household income that’s close to $110,000.

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4. San Francisco, California

-- Average monthly P+I: $7,224

-- Median annual household income: $136,689

-- Population: 808,437

-- Average % income spent on P+I: 63.4%

-- Cost of living vs. U.S. average: +70.0%

San Francisco has numerous claims to fame, including the Golden Gate Bridge, Alcatraz Island, Fisherman’s Wharf, great sourdough bread, and even the row of Victorian houses dubbed “the Painted Ladies.” And while you’re there, you can ride the cable cars, take in a Giants game at gorgeous Oracle Park, or drive up the Twin Peaks for an incredible 360 view.

Of course, San Francisco is basically synonymous with technology—scores of tech companies are headquartered either in the city itself, or more commonly, in the San Francisco Bay Area. Apple, Alphabet (Google), Meta (Facebook), Intel, and Nvidia, are just a handful of the large tech names that have nested in the area—and many more not based in San Francisco have a significant office presence.

Unsurprisingly, these firms—and the extremely high-paying jobs they provide—contribute to an extremely high median annual household income of $136,689 that’s some $62,000 more than the national median. But home prices are sky-high, too; principal and interest on a 2,400-square-foot home is nearly triple the U.S. average. Meanwhile, groceries, utilities, transportation, health care, and miscellaneous goods and services are all between 25% and 35% higher than the norm.

Related: 12 Best Apps That Give You Money for Signing Up [Free Money]

3. Honolulu, Hawaii

-- Average monthly P+I: $8,009

-- Median annual household income: $99,816

-- Population: 995,638

-- Average % income spent on P+I: 96.3%

-- Cost of living vs. U.S. average: +80.3%

Honolulu, the capital of Hawaii, sits in the midst of a tropical paradise perfect for water sports, enjoying nature, or just relaxing on the beach. Volcanoes and waterfalls are literally part of the landscape.

But if you’re envisioning an episode of Gilligan’s Island, Honolulu is far more than that. Those who prefer plentiful restaurants, shopping, and other amenities can find plenty of that across the city, such as in the resort-laced downtown Waikiki.

Just a few of Honolulu’s popular attractions include the Pearl Harbor National Memorial and USS Arizona Memorial, Diamond Head State Monument, the Battleship Missouri Memorial, and the Byodo-In Temple. Fitness lovers can travel to enjoy The Great Aloha Run, the Honolulu Marathon, and the Honolulu Triathlon (an Olympic distance triathlon).

But before you pack your bags and set sail for paradise, remember: Paradise ain’t cheap.

Honolulu has the highest cost of living for any city for which C2ER has data—a full 80% more than the national average. It also has a sky-high average percent of income spent on principal and interest (again, the data is skewed … but Honolulu is still expensive). A 2,400-square-foot house will cost you a hair over $8,000 per month, which is easily more than triple the national mean. Utilities are sky-high too, at 51% more than what an average American pays, as are transportation costs, which are 35% higher.

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2. New York (Manhattan-Brooklyn-Queens), New York

-- Average monthly P+I: $8,562

-- Median annual household income: $76,607 (NY Metro Area)

-- Population: 8,335,897 (NY Metro Area)

-- Average % income spent on P+I: 138.4%

-- Cost of living vs. U.S. average: +75.0%

New York City is America’s biggest city by population, at more than 8 million residents across its five boroughs—the Bronx, Brooklyn, Manhattan, Queens, and Staten Island.

NYC is home to some of the nation’s most iconic destinations, including the Statue of Liberty, Times Square, Broadway, Central Park, the Metropolitan Museum of Art, and the Brooklyn Bridge. It’s home to the New York Yankees, Mets, Knicks, Nets, Islanders, Rangers, NYCFC, and Liberty. (And if your favorite New York team is missing from this list, that’s because they play in New Jersey.) It also hosts one of tennis’s four majors—the U.S. Open, in Queens’ USTA Billie Jean King National Tennis Center.

It’s home to countless cultures and cuisines and so much more, from the United Nations to the best steak you’ll ever have.

And it’s also home to some truly breathtaking home prices.

New York City is covered by multiple C2ER data sets, meaning the numbers above are just an average of several boroughs. For instance, the average P+I on a 2,400-square-foot home in Queens is actually $5,236 per month, while it’s a whopping $13,535 in Brooklyn. So between that, and the natural skew of using median annual household income, no—no, people aren’t spending nearly 140% of their income to afford housing in NYC.

But it’s still very, very expensive to live there.

Housing costs (whether it’s to buy or rent) are well more than triple the national average, which is the overwhelming factor in New York City’s pricey cost of living. A few costs aren’t bad—utilities are at least close to “normal” prices—but in general, you’re still paying more for just about anything you want to buy in NYC.

Related: 7 Best Wealth + Net Worth Tracker Apps [View All Your Assets]

1. San Jose, California

-- Average monthly P+I: $8,581

-- Median annual household income: $136,010

-- Population: 971,233

-- Average % income spent on P+I: 75.7%

-- Cost of living vs. U.S. average: +74.4%

What city could possibly have higher housing costs than New York City?

San Jose, California.

This Bay Area city sits southeast of San Francisco and in the center of Santa Clara County. As I mentioned in discussing San Francisco, the Bay Area is America’s seat of technology—and San Jose is actually called the “capital of Silicon Valley.”

But it’s not just cookie-cutter skyscrapers here. San Jose has an impressive cityscape, but also an array of vividly styled neighborhoods, boasting all sorts of architectural influences, from Spanish Colonial to Mediterranean Revival to Neoclassical and more. It’s home to the San Jose Museum of Art and the Tech Museum of Innovation. But it also has plenty of green spaces, such as the Japanese garden in Kelley Park, Municipal Rose Garden, and Overfelt Gardens.

Just like with San Francisco, San Jose’s high housing costs are well known. Indeed, LendingTree analyzed data from the U.S. Census Bureau’s American Community Survey and found that million-dollar homes make up a majority share of homes in both San Francisco and San Jose.

The monthly P+I of $8,581 for a 2,400-square-foot home is the highest on this list. (Rent isn’t exactly cheap, either, at $3,652 per month.) Utilities and transportation are both 30% costlier than the national average. Grocery, health care, and miscellaneous goods and services all cost more, too.

The only saving grace is an extremely high median annual household income—which, like San Francisco, you can chalk up to the glut of tech jobs around the city.

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Related: 15 Best Long-Term Stocks to Buy and Hold Forever

As even novice investors probably know, funds—whether they're mutual funds or exchange-traded funds (ETFs)—are the simplest and easiest ways to invest in the stock market. But the best long-term stocks also offer many investors a way to stay "invested" intellectually—by following companies they believe in. They also provide investors with the potential for outperformance.

So if you're looking for a starting point for your own portfolio, look no further. Check out our list of the best long-term stocks for buy-and-hold investors.

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But college is expensive. And saving enough money for a child’s higher education can place a huge strain on a family’s overall finances. This is particularly true for parents with more than one child under their roof.

As a result, parents usually have a lot of questions when it comes to saving for a child’s college education. How much money do I need to save? Where should I store college savings? Can student loans cover all college expenses? 

Saving for college is complicated, but we have answers to these questions, and more, in the discussion below.

The Current Cost of College

Although the inflation-adjusted average for tuition and fees has dipped a bit over the past couple of years, the cost of college still remains high. According to the College Board, the advertised annual tuition and fees for a full-time undergraduate student at a four-year college during the 2022-23 school year averaged out to:

-- $10,940 at a public, in-state college

-- $28,240 at a public, out-of-state college

-- $39,400 at a private nonprofit college

And that doesn’t include room and board. For students living on campus, tack on an average of $12,310 for a dorm room, meal card, and other related expenses at a public college. Private college costs for room and board averaged 14,030 per year.

When you add it all up, the average combined total for annual tuition, fees, and living expenses for a full-time undergraduate student at a four-year college during the 2022-23 school year was:

-- $23,250 at a public, in-state college

-- $40,550 at a public, out-of-state college

-- $53,430 at a private nonprofit college

No doubt these figures caused sticker shock for parents and students alike. A 2021 survey by Fidelity Investments found that about 25% of high schoolers’ parents and 38% of high school students believed a year of college only costs $5,000 or less. So, you can imagine their reaction when they discovered the actual price.

Parents might also be used to college costs from decades ago. However, those costs are way out of date. According to a recent study by Georgetown University’s Center on Education and the Workforce, the average price for undergraduate education—including tuition, fees, room, and board—rose 169% from 1980 to 2019.

Is College Worth It?

Yes, college costs are high. But don't let that prevent you from saving for your child’s higher education. While there are always exceptions, people with a bachelor's degree still tend to make more money than those without one. Next, we cover data from the Bureau of Labor Statistics that shows the importance of going to college and its impact on weekly earnings and unemployment rates.

Earnings and Unemployment Rates by Educational Attainment

According to the most recent data from the Bureau of Labor Statistics, the median weekly earnings of full-time workers with a high school diploma is $809. By comparison, the median weekly earnings of someone with a bachelor's degree is $1,334. That’s a 65% increase over the wages earned by a high school graduate.

Taking it further, people with a master’s degree have a median weekly paycheck of $1,574, while the mean weekly earnings for someone with a doctoral degree is $1,909. So, in general, the more education you have, the more you're likely to earn.

There are other financial and work-related benefits of a college education, too. For example, as your level of education rises, your chances of being unemployed decrease.

College also opens up a lot of employment opportunities. Even in fields where a degree isn't a hard requirement, connections made at college can help secure a better job down the road.

Many college students also discover unknown passions through classes and end up in careers they didn't even know existed.

As a result of these and other reasons, college is still worth the time and money for most students.

Related: Millennial Spending Habits & Income Statistics to Know

How Much to Save for Your Kid's College Costs

If you start saving for your child's college education early, you can help set them up for a better financial future. But that’s usually easier said than done.

Not only is saving for college difficult, but knowing how much to save can be complicated, too. As a result, parents have many questions when it comes to savings goals. For instance, parents often ask if they should try to save enough all by themselves to cover the total cost to obtain a four-year degree. Knowing exactly how much to save is another head-scratcher for most parents. And whether a child should pay some of the costs is another puzzler.

Let’s take a look at these common questions.

Related: Everyone Needs to Learn These Financial Subjects

Should You Save to Cover the Entire Cost?

Every family's financial situation is different, so how much of your child's college costs you should cover is a personal decision. It should also depend on how much you’ve saved for your own retirement, since most financial experts recommend that your first priority should be your own financial security in your golden years. (It’s akin to securing your own airplane oxygen mask first before those of your dependent passengers.)

How Likely Is It For Your Child to Attend College?

When deciding how much to save, we recommend first determining the likelihood of your child attending college. If you aren't certain about their desire to attend college, squirreling away too much for higher education might not be the smartest choice—especially if you’re contributing to a 529 plan, since in the past you could be hit with a penalty if leftover money in a 529 plan is used for anything other than qualified education expenses.

Now, that decision has gotten easier as a new rule allows you to roll over up to $35,000 in unused 529 plans into Roth IRA for the child.

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Public or Private College, In-State or Out-of-State?

Next, consider your child’s interest in going to a public vs. private college, and to an in-state vs. out-of-state school. As noted above, college costs vary widely, and an in-state, public college is usually considerably less expensive than a private university.

Based on which type of school and school location your child is most likely to attend, you should be able to come up with a rough estimate of how much everything will cost.

As a general rule of thumb, we suggest aiming to cover about half the total cost of college as an initial savings goal. That leaves some room for potential scholarships or other financial aid to cover part of your child’s college expenses while lowering the risk of having leftover funds in a 529 plan. (Again, a new rule allows you to roll over up to $35,000 in unused 529 funds into a Roth IRA.)

Another option is to have your child take on some student loans to cover the remaining costs. It will also give them some skin in the game, which might make them take college more seriously and study harder.

You can also encourage them to take core classes at a junior college near home to complete their basic requirements before attending a public or private four-year college. That will likely help bridge the gap between the amount you’ve saved and the total costs of your child’s college education.

Related: 7 Best Fidelity ETFs [Invest Tactically]

How Much Should Your Child Contribute?

Having your child contribute to his or her own college fund is another way to reach your overall college savings goal. However, how much your child saves for college (if anything) is completely up to you and based on your family’s financial situation and values.

For example, suppose you're in an excellent spot financially and want your child to focus entirely on impressing the college board and participating in extracurricular activities. In that case, you might not ask your kid to contribute anything.

However, if you’re not sure you can reach your savings goal, it's certainly acceptable to ask your child to contribute to their college savings, especially if their heart is set on a particularly expensive school.

Teenagers can have summer jobs, but there are plenty of other ways for teens to make money (including online jobs). Some of the money your kids earn before they’re off to college can be used to pay for college. Student income earned while working during college can also be put toward higher education expenses.

Either way, don't keep college expenses a secret from your child. Explain the cost differences between a private college and a public college as well as the price differences between an in-state college and an out-of-state college.

If you want them to help save for college, make sure you set clear expectations and don't give the impression that you’ll cover everything if you actually won't.

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How Much Should I Be Saving for My Child?

Not every student pays the same amount for college. Some students attend an expensive private school, while others stick to a more affordable public school in their home state. In addition, some kids get scholarships or grants, while others don’t qualify for any financial help.

Plus, not everything always goes according to plan. For instance, a student who expects to get an athletic scholarship might get a severe injury and lose out on the free ride. Therefore, you need to have a backup plan.

To estimate how much you should save for college, try using the "2 for 10" method. With this technique, multiply your child's age by $2,000 for every $10,000 of college costs you plan to cover per year. The exact formula is:

($2,000 x Child’s Age) x (Annual Costs to Cover ÷ $10,000) = Optimal Savings To Date

So, for example, let's say Charlie wants to see if his college savings are on track for his son Greyson, who is 14 years old. Greyson wants to attend a private college that currently costs $50,000 per year.

Charlie plans to cover 60% of the total costs for four years of college with his savings, which comes to $120,000 ($200,000 x .6 = $120,000) ... or $30,000 per year. Charlie expects scholarships and financial aid to cover the rest. To estimate how much he should have saved by now, Charlie first multiplies $2,000 x 14 (i.e., Greyson’s current age), which equals $28,000. He then multiplies that amount by three (i.e., the amount he plans to pay each year divided by $10,000), which equals $84,000. That’s how much Charlie should have saved for Greyson’s college expenses.

Fidelity Investments has a college savings calculator on its website that uses this model. The online tool will also help you come up with a monthly savings goal if you’re behind where you ought to be and need to catch up.

Tax-Smart Ways to Save for College

If you’re saving for a child’s college costs, the most important thing is to have a savings goal and plan. But if you’re going to the trouble of planning out a savings strategy, you might as well factor taxes into the equation.

You’ll have to put your college savings in some sort of an account. (Please don’t hide it under your mattress!) Fortunately, certain types of investment accounts come with tax benefits that can save you hundreds or even thousands of dollars while you’re saving for college.

Here are three such tax-advantaged investment accounts that you should consider for your education savings.

Related: 12 Best Long-Term Stocks to Buy and Hold Forever

1. 529 Plans

A 529 plan is designed specifically for college savings (and sometimes K-12 tuition or trade schools). It's a tax-advantaged investment account you fund with after-tax money. Basically, that means you don’t get any federal tax deductions when you put money in a 529 plan, so you ultimately end up paying income tax on the money before you put it in the account.

However, there are two other tax benefits that you do get with a 529 plan. First, you get tax-free growth on the earnings. Second, when it comes time to make withdrawals, you don't pay taxes on any of the money as long as you use it for qualified higher education expenses.

Besides tuition, qualified expenses can include fees, books, room and board (must be at least a half-time student), certain technology (such as a computer), special needs equipment, student loan payments (up to $10,000), and more.

Young and the Invested Tip: There are actually two types of 529 plans: investment plans and prepaid tuition plans. With a prepaid tuition plan, you pay tuition and fees at the current rate for college expenses to be incurred years in the future. Our discussion focuses on investment plans, which are by far the most popular type of 529 plan.

Related: 5 Best Vanguard Retirement Funds [Start Saving More, for Less]

You Can Only Use 529 Funds for Qualified Education Expenses

Unfortunately, you can only use 529 plan funds for qualified education expenses. If you use the money for anything else, the earnings (not contributions) withdrawn are subject to income tax at ordinary tax rates and a hefty 10% penalty.

There is no way out of the taxes if you use 529 funds for non-education purposes (unless you meet the new requirements to roll unused 529 funds into a Roth IRA), but the IRS will waive the penalty in some instances. For example, you won't pay a penalty if the child does any of the following:

-- Earns a tax-free scholarship or fellowship grant

-- Becomes disabled or dies

-- Attends a U.S. military academy

-- Receives veterans’ educational assistance, employer-provided educational assistance, or any other tax-free payments as educational assistance

The 10% penalty is also avoided if 529 plan funds are included in income only because qualified education expenses were taken into account in determining the American Opportunity tax credit or Lifetime Learning credit.

Although a 529 account can only be established for one child, you don't have to use all of the money in an account for the education of the child for which the account was created. So, for example, if there’s still some money remaining after the child's education is complete, you can transfer the funds to a 529 plan established for a family member (e.g., a sibling).

Related: Best Side Hustles for Teens

When is a 529 plan a bad idea?

Previously, using a 529 college savings plan was a bad idea if you weren't confident your child will attend college because ff your kid didn't go on to a public or private university, you would have had to pay taxes on the gains and a 10% penalty. However, since 2024, a beneficiary can also transfer some of the leftover money in a 529 plan into a Roth IRA (more on this later).

Related: Best Alternatives to 529 Plans [Other College Savings Options]

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2. Roth IRA Accounts

Roth individual retirement accounts (IRAs) are designed primarily for retirement savings, but there are other ways to take advantage of the tax-free growth they offer—including saving for college.

Like 529 plans, a Roth IRA investment account is funded with after-tax money and the earnings grow tax-free in your account. You can take the contributions out at any time, but withdrawing earnings before age 59½ or before you've had a Roth IRA for at least five years typically results in a 10% penalty.

However, there are a few exceptions to the penalty rules. One of them allows you to withdraw any amount from a Roth IRA to pay higher education expenses for yourself, your spouse, your child or grandchild, or your spouse’s child or grandchild. For this reason, Roth IRAs are sometimes used to save for college.

As with 529 plans, money from a Roth IRA can be used penalty-free for such things as college tuition, fees, books, room and board (must be at least a half-time student), certain technology (such as a computer), and special needs equipment. It can’t be used for student loan payments or K-12 tuition.

Related: Best Vanguard Retirement Funds for an IRA

Roth IRA Contribution Limits

There are limits on how much money you can put in a Roth IRA each year.

Related: IRA Contribution Limits [Save for Retirement]

First, contributions for the year can’t exceed the account holder’s “earned income” for the year. According to the IRS, earned income includes “wages, salaries, tips, professional fees, bonuses, and other amounts received for providing personal services.”

There’s also an annual contribution limit based on your age (the limit is adjusted annually for inflation). For 2o26, the most you can put in a Roth IRA is $7,500 if you’re under 50 years old at the end of the year. If you’re 50 or older by Dec. 31, 2026, you can put in up to $8,600 for the year.

When is a Roth IRA better than a 529 plan?

If you’re not sure your child will attend college, then saving for college with a Roth IRA might make more sense than with a 529 plan. That’s because you can just keep the money in the account and let it continue to grow tax-free for retirement if you don’t end up using the money you saved for your child’s college education.

Related: Roth IRA vs 529 Plans: Which is Better for College Savings?

3. Custodial Accounts

Custodial accounts are run by an adult custodian (often a parent) for a beneficiary (usually a child). While the custodian can invest the money in the account, the funds legally belong to the child. The child gains control of the account once he or she reaches the age of majority for their state, which is typically when they turn 18 or 21 years old.

Withdrawn money must be used in ways that benefit the child, but there are many, many possible uses. One popular use of funds is for the child’s college costs.

However, if the funds don't go toward paying for college, that's fine too. There are no penalties for using the money in a custodial account for something else that benefits the child. Then, once the child takes over the account, the funds can be used for any purpose at all.

There are no limits on how much you can contribute to a custodial account, but you might not want to exceed the annual federal gift tax limit. For 2026, the limit is $19,000 ($38,000 for married couples filing a joint tax return). If you exceed the limit, you need to tell the IRS and you might have to pay gift tax on the amount (although in most cases you won’t owe any tax at that time). The IRS will also deduct the excess amount from your lifetime estate and gift tax exemption, which is $15 million in 2026 and $30 million for married couples.

Young and the Invested Tip: Both the annual limit and lifetime exemption are adjusted annually for inflation.

You’ll also have to pay capital gains taxes on any assets held in a custodial account if those assets are sold.

Tax Benefits for Using a Custodial Account

While money in a traditional custodial account doesn’t grow entirely tax-free, some of the earnings aren’t subject to income tax and another portion is taxed at the child’s tax rate, which is usually lower than the parent’s rate. Unfortunately, thanks to the “kiddie tax,” the rest is taxed at the parent’s rate.

For the 2026 tax year, earnings in a custodial account are taxed as follows:

-- $0 through $1,350 is tax-free

-- $1,351 through $2,700 is taxed at the child’s marginal tax rate

-- $2,701 or more is taxed at the parents’ marginal tax rate 

You can also open a custodial Roth IRA or custodial 529 plan. The tax benefits generally associated with Roth IRAs and 529 plans will generally be available with the custodial versions of those accounts.

Custodial Account’s Impact on Financial Aid

Be warned, however, that using custodial accounts to save for college can have a negative impact on your child’s financial aid eligibility. When applying for financial aid, custodial accounts are considered assets of the child, while 529 plans are typically considered assets of the parent and Roth IRA funds aren’t included in financial aid calculations.

Since students are expected to use a higher percentage of their assets to pay for college (20%) than what their parents are expected to pay (up to 5.64%), the student’s overall expected family contribution will be higher with a custodial account than with a 529 plan or Roth IRA. And as the amount your family is expected to pay rises, the financial aid your child is likely to receive drops. (We discuss expected family contributions in more detail below.)

When Does a Custodial Account Make Sense for College Savings?

There’s a great deal of flexibility when it comes to spending money in a custodial account, which makes it a good choice for educational savings if you’re not sure college is in your child’s future and you can handle the potential negative impact on financial aid.

For example, suppose your child doesn’t need money for college, but does need it for something else—like braces or a car. Unlike 529 plans, there’s no penalty if money in the account is used for something unrelated to education. And unlike Roth IRAs, there are no early withdrawal fees if you take money out of a custodial account for non-educational expenses before a certain age.

Related: 7 Best Schwab ETFs to Buy [Build Your Core for Cheap]

What Is the Best Way to Save for Your Child's Future?

The best way to save for your child's future is to save early, save regularly, and have the proper amount of risk for your investments.

The earlier you start to save for your child, the more money you can accumulate. The same amount of money saved a few years earlier can be worth far more than saved later because of the power of compounding.

Setting aside money for your child's future as part of your regular monthly budget helps make saving for college more manageable and steadily raises the funds needed for a college education.

It's also important to invest some of the savings in ways that will help it grow. Funds sitting in a standard savings account can actually lose value when you factor in inflation. On the other hand, money in high-yield savings accounts or brokerage accounts that are invested in ETFs, mutual funds, or blue-chip stocks have the potential to grow significantly.

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Make College Savings Part of Your Overall Financial Planning

Households function better financially when there’s a budget in place and a plan for covering upcoming major costs, such as the cost of college after your child graduates high school.

The easiest way to save for your child's college is to make it part of your overall financial planning. To do this, you'll need to find out approximately how much your child's education will cost.

As noted earlier, the cost of college can vary greatly depending on whether your child is looking at private schools or public schools, and if he or she is interested in attending an in-state or out-of-state school.

Once you have an estimated total cost in mind, consider how much you can realistically contribute on a regular basis to put toward college expenses.

While completely covering the cost is ideal, it might be financially wiser for you to cover 50%, for example, and have the other half be paid through a combination of scholarships, financial aid, and money your child has saved.

Then, you can calculate a monthly contribution and put that cost in your budget with all of your other usual monthly expenses. Preferably, set up a direct deposit to a 529 account, Roth IRA, or custodial account.

Related: Best Schwab Retirement Funds for an IRA

How did the Formula Used to Determine Your Financial Aid Eligibility Change?

Starting with the 2024-2025 school year, the formula used to determine your financial aid eligibility changed. The Student Aid Index (SAI) is a calculation used to calculate how much of your college education you are deemed to afford by yourself. It is determined based on information you provide on your Free Application for Federal Student Aid (FAFSA). The SAI replaced the EFC.

Once the school you're applying to receives your SAI figure, they'll use it to calculate just how much federal student aid you can receive to attend that school.

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What Happens to Money Left in a 529 Plan?

You have several options if money is left in a 529 savings account after your child has completed college. If there’s a chance your child will attend grad school, you can keep the money in the account until that decision is made.

One of the most popular ways to use leftover money is to transfer money in the account to another family member. It doesn't have to be an immediate family member, like a sibling, though that is a popular choice.

Changing the beneficiary to a family member doesn't count as a distribution. Therefore, you don’t have to pay income tax on the money and the 10% penalty is avoided.

Up to $10,000 can also be used to pay off student loans for the beneficiary or a sibling.

In addition, you can also transfer leftover 529 funds to a family member's ABLE account, which is a savings account for people with disabilities. Money from a 529 plan can also be transferred to an ABLE account set up for the same beneficiary as the 529 plan. If moving money to an ABLE account, just make sure the transfer doesn’t exceed the ABLE account’s annual contribution limit.

As of 2024, a beneficiary can also transfer up to $35,000 of leftover money in a 529 plan into a Roth IRA in his or her name. Any rollover is subject to annual Roth IRA contribution limits, and the 529 account must have been open for at least 15 years.

Of course, you can always withdraw the extra funds and use them for non-qualifying expenses if you're willing to pay taxes and the 10% penalty on the earnings.

Related: The 7 Best Dividend ETFs [Get Income + Diversify]

We love exchange-traded funds (ETFs) because they can provide one-click access to hundreds, even thousands of stocks, while charging often minuscule fees.

One way to put that low-cost diversification to work? Collecting dividends. But trying to choose from literally hundreds of income-producing funds could take up a lot more time than you have. So let us help you narrow the field—check out our list of seven top dividend ETFs.

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Which means that very shortly after you lose your job, you need to get to work rearranging your financial life.

Today, I'm going to review what should be your top budgeting priorities after a layoff. 

Which of the following steps you'll need to adopt will depend on your personal financial situation. It's unlikely you'll need to execute on every one of these actions, but it's possible you'll need to put several of them to work.

Budget Adjustments to Make After a Layoff

Before we get into the budgeting changes you'll need to make after a layoff, it bears saying that if you don't already have a budget, you need to create one. If you already have a budget, it's time to get out the red pen, because you'll almost certainly need to make changes.

The following suggestions are in no particular order. Some of them are simply executed and relatively painless, though a couple are more complex and risky in nature. Don't execute on any of these blindly—first, evaluate your financial situation to ensure they even make sense for you.

1. Stop Overpaying Debt / Switch to Monthly Minimums

Some people overpay on student loans, auto loans, and even mortgages to get them paid down early. Between reducing how much interest you'll pay overall, and the sheer mental satisfaction of eliminating your debt more quickly, this can be a great decision for both your finances and your state of mind.

Regardless, it's a luxury—and if you've just lost a major source of income, it's a luxury you can no longer afford.

Set these types of bills to the monthly minimum payments to free up extra cash. You can always increase your payment amounts later once you've found a job and have reclaimed your financial security.

Related: How Much Social Security Will I Receive?

2. Talk to Your Credit Card Company

It's one thing to only pay the minimum on loans with interest rates likely in the single digits. But credit cards, and their often 20%-plus annual percentage rates (APRs), are a different story. Even a little bit of credit card debt can result in you paying an extravagant amount of interest if you only pay the minimum. And after a layoff, you might need to rely more heavily on your credit card.

Reach out to your credit card company. Card issuers will sometimes offer temporary flexibility after a layoff, in the form of waiving late fees, reducing your APR and/or minimum payments, and/or extending your due dates.

Your luck likely will be better if you have a long history of on-time payments with the card provider.

Alternatively, you could execute a credit card balance transfer from a card with a high APR to one that offers a 0% balance transfer. Balance transfer credit cards will often provide interest-free introductory periods of six to 18 months, and occasionally even longer than that. 

You would still have to make the minimum payment each month to retain the 0% interest rate, and the action could result in a hard credit pull. But it could save you a great deal of money until you have a new income source.

Related: What Is the Rule of 55 for 401(k) Withdrawals?

3. Ask About Debt Repayment Plans

If you have some form of debt that you don't believe you can repay at current levels while laid off, you should reach out to your lender about a debt repayment plan.

Debt repayment plans generally ease your debt burden, albeit temporarily, though they differ from one lender to the next, and they sometimes differ by type of debt.

For instance, federal student loans often offer the ability to participate in income-driven repayment (IDR)—a recalculation of your monthly payment that factors in income and family size. Firms that service private student loans are generally far less flexible, typically providing only very short-term relief.

Have a mortgage? You might be able to get a forbearance, which temporarily reduces or pauses your payments. But you'll want to contact your service provider right away—some servicers require you to request forbearance within a set amount of time after your layoff.

No matter what type of debt repayment plan you arrange, any money you owe won't disappear. But temporary relief might give you enough breathing room until you find a new job—and that's a lot better than nothing.

Related: Tax Implications of Getting Laid Off

4. Consider a HELOC

A home equity line of credit (HELOC) is an open-ended line of credit that lets you borrow money against the available equity in your home. 

Your equity is the value of your home minus how much you still owe on your mortgage. For instance, if your home is valued at $750,000 and you have $500,000 left on your mortgage, your available equity to borrow against would be $250,000. 

Once you enter the repayment period, you have a predetermined schedule for repaying the balance—usually 10 to 20 years. The average interest rate for a HELOC is about 8% right now, and it's usually variable, so that number will change over time. Still, that's substantially lower than the average credit card interest rate, which currently sits at 24%, making HELOCs an appealing option for covering your basic expenses.

Importantly: You don't actually have to use a HELOC—and interest typically only accrues on whatever balance you spend. So you could secure the line of credit as a backup plan in anticipation of a layoff but never end up using it.

HELOCs do have a massive pitfall, however: If you don't make your payments, you risk losing your home. So you should only consider a HELOC if you're highly confident you can make all of your loan payments on time.

Related: Should I Pay Off My Mortgage Before I Retire?

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5. Call 211

Many people know what you get if you dial 911 or 411, but another three-digit number happens to be very useful in this particular situation: 211.

You can call 211 in 50 states, the District of Columbia, and Puerto Rico, or visit the website 211.org, to be connected to useful resources. 211 has staff and volunteers available every day, 24/7, to direct you to assistance for needs such as paying bills, securing food for your family, or addressing your mental health after a layoff. Eligibility for these resources will vary; you must call to find out. And every call is confidential.

Another useful resource is USA.gov's benefit finder tool, which can help you find programs to keep you on your feet.

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6. Reduce Discretionary Expenditures

It goes without saying that right after a layoff, it's essential to either review your budget or, if you don't have one, create one. (Check out our budget directions and template.)

From there, you'll want to determine which expenditures can't go (necessary expenses) and which can (discretionary expenses).

Among the most common discretionary expenses:

--Digital subscriptions

--Memberships

--Eating at restaurants

--Food delivery

--Vacations

--Entertainment expenses (movie/theater/sports tickets)

--Nonreplacement clothing

When it comes to necessary expenditures, there's not much you can do to reduce those, but you do have a few options. For instance, you could try to use less electricity to bring down your power bill, switch to a lower-tier phone/internet plan, and be more cost-conscious when shopping for groceries. But ultimately, each of these categories will have a bottom line you can't drop below.

Related: Should You Tap Into Retirement Savings After a Layoff?

7. Look for Short-Term Income Streams

You can only push off debt and cut expenses so much. But a budget is more than expenses—it's also income, which is why you're looking for another full-time job in the first place.

But until you land a new role, you should look for other ways to prop up the income side of your ledger. The two most impactful things you can do are:

--Apply for unemployment insurance benefits. Every state administers their own unemployment insurance program within Federal guidelines. As such, benefit amounts and length of benefits vary by state. To apply, contact the State Unemployment Insurance agency for the state where you worked. 

--Start a side hustle. You might drive for Uber or Lyft a couple of nights per week or sell unwanted items on eBay or Mercari. If you're fortunate, you might even find a short-term gig related to your work, such as consulting.

No matter what, the more income you bring in, the less you'll have to worry about making cuts and/or depleting your emergency fund.

Related: What Is Rule 72(t) for Penalty-Free Retirement Account Withdrawals?

Related: 7 High-Quality, High-Yield Dividend Stocks

It’s difficult to resist the charm of high-yield dividend stocks. Their ability to generate outsized amounts of cash makes them the stuff of dreams for those living on a fixed income—as well as for any investors who simply want a little performance ballast during periods of rough stock-price returns.

But we prefer quantity and quality. For instance, our favorite high-yield dividend stocks deliver much sweeter yields than the average stock, show more signs of fundamental quality than most, and have the confidence of Wall Street's analyst community.

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One of the most common mistakes people make is not thinking about how their current assets affect their future net worth. By controlling your spending, reducing debt, saving more and investing wisely, you can grow your net worth in no time.

In fact, there are many ways to grow your assets and improve your net worth. In this article, we will discuss proven ways to grow your assets and how they will help build up your net worth!

Featured Financial Products

What is Net Worth?

Net worth is the total value of what you own, minus the total amount of debt. Your net worth is your assets minus liabilities. The resulting figure is your net worth.

A more nuanced view of the net worth involves looking at your liquid net worth vs. illiquid net worth. Liquid net worth is the amount of cash, investments and other liquid assets that you have. Liquid in the financial world means readily able to convert into cash or cash-like instruments.

This compares to illiquid net worth, which looks at your non-liquid assets like real estate, rental property, a new car, retirement assets or other assets not readily accessible and convertible into cash and then subtracts the outstanding debt you hold.

Ignoring these liquidity concerns, you can look at your total basket of assets and how they compare to your overall debt burden. This will tell you your net worth.

Can You Increase Your Net Worth?

Absolutely. This article teaches you strategies to increase your net worth. Getting started sooner makes it easier to build your net worth later.

By using the formula above (Assets - Liabilities = Net Worth), you can begin to control your expenses, eliminate debt and grow your assets.

Related: Everyone Needs to Learn These Financial Subjects

How to Increase Net Worth

The first step in building your net worth is to get rid of debt. Net worth is another term for equity or residual value, meaning assets minus liabilities.

Therefore, lowering debt becomes a strategy to increase your net worth by realizing guaranteed returns on the interest you don't pay. This compares to the expected returns you earn on investments like stocks, real estate, or other assets you buy which earn a return.

One of the best ways to increase net worth is through smart investments. Buying a suitable car for your situation, a house you can afford or renting in a location that fits comfortably into your budget, and keeping extravagant expenses low all act as important steps.

Net worth doesn't necessarily equate to rich. For some, having a positive net worth is a goal well worth pursuing. When we live with debt, the size of our net worth is often negative.

When people with high debt balances on a mortgage, student loans or credit card debt see their net worth go from negative to positive, they often have a reason to celebrate for turning debt into wealth.

The following pathways help you to build personal savings in a bank account, the market, housing and more while learning to manage your financial health and grow your wealth over the short term and long term.

Building your net worth is a process that could lead you to your magical number where you feel you have enough savings and funds built up to care for your family and not need to worry so much about the next time funds will come through the door.

Related: 10 Best Fidelity Funds to Own

1. Pay Off Credit Card Debt

Interest-bearing loans are a liability and can hurt your ability to boost your net worth. As you're able, pay off all of your debt and ensure that no penalties are applied for early or frequent payment (as is the case with some mortgages).

The best ways to grow your assets and increase net worth include targeting debt with the highest interest rates first, then paying other debts off as you go.

Consolidating your debt through a lower rate personal loan to pay down high-yield debt is a time-tested strategy. It is possible to pay off debt, increase your assets, and grow your net worth. Have a plan for getting from A to B and manage your payments within your budget.

One of the easiest ways to grow your assets is by tapping into any extra savings or income you have and making an extra payment to reduce your debt burden.

Shed this debt fast and watch your net worth rise fast.

Related: Do Installment Loans Build Credit?

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2. Build an Emergency Fund

An emergency fund is an account containing cash set aside to cover urgent necessities such as sudden health problems or automobile emergencies. But they can also cover expenses like:

-- Home-appliance repair or replacement.

-- Unemployment.

-- Unexpected travel.

-- Family emergency.

One way to grow your assets and increase net worth is to create an emergency fund that can help you stay financially afloat without having to rely on any other money, especially high interest debt from credit cards or expensive personal loans. It is crucially important that you have an emergency fund of savings if you have debt, because it can help avoid taking out more loans.

One of the first things to do when getting out of debt is to not go further into debt. It seems simple and straightforward, but if you've got debt to your name, you know you don't want it to be to your name. You want it gone. So, how much should you have set aside in your emergency fund? It depends on your situation.

For simplicity, the best place to start is by setting a dollar target that proves challenging but not so much that you can't ever motivate yourself to achieve it. If starting small, consider starting at a lower milestone like saving $500. As you can afford to save more, work your way up and try to reach half a year’s expenses before contributing money toward your retirement.

Though, the right amount for you depends on your financial circumstances. It is a good idea to maintain enough assets to cover individuals living expenses for up to six months. If your job or income earned by your family has less predictability (like you work as a freelance financial writer or in seasonal work) or proves harder to replace, consider having a bigger buffer saved in an emergency fund.

To manage any unexpected unemployment, you can utilize your savings to help with any necessary expenses and supplement any benefits provided by the government. Start small, but start. One of the most basic ideas to grow your assets is having even $500 saved. This could help you out in plenty of tough financial situations.

If you don't already have an emergency fund set up for you and your family, consider opening a high-yield savings account which you can easily access. This might be through your existing bank but it could also be through an online-only bank like Bread Savings. That way, you can access it from anywhere and it remains separate from your daily banking activity.

Make sure the bank account you choose offers competitive interest rates and can connect with many other financial institutions, allowing for easy transfers. Having quick access to emergency funds is imperative in order to prevent circumstances from getting out of hand. Therefore, you shouldn't tie up these funds in a long-term investment or something illiquid.

Though, the account shouldn't be so easily accessed that it sits in the same bank account you use daily. Having it reside at a separate banking institution might avoid temptations to dip into your rainy day fund and depleting your financial reserves.

Having a savings account with a high-interest rate will make you money while you sleep and allow it to work for you. These accounts carry federal insurance up to $250,000, making the funds safe. The money can earn interest, and you have access to your cash when needed whether through withdrawal or a fund transfer. Consider an online-only, high-interest savings account through Bread Savings to establish your emergency fund.

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Related: 8 Best Net Worth Tracker Apps [Track Your Wealth]

3. Pay Off Student Loans

Millennials and Gen Zers have a mountain of student loans to their names. The Federal Reserve estimated as much as $1.6 trillion in student loans exist today. This number looks set to climb despite the temporary reprieve many borrowers received due in part to efforts from Presidents Trump and Biden for deferring student loan payments for all federal borrowers during the pandemic.

Many will begin repaying these loans this fall when the deferment ends, leading to the reemerge of the classic question of, "Should you invest or pay off student loans?" In most cases, it makes sense to do both simultaneously. Borrowers should consider the rate of interest they currently pay and whether they think they can get a better return in an investment like the stock market.

You want to maximize your expected return on your money within your acceptable risk tolerance. This will reduce what you owe on your student loans while also growing your assets through investments.

One way to reduce your interest rate is through refinancing your student loans. To bring down the costs of these loans, many have sought using refinancing options. Once young adults can put their student loans in good standing, they should turn to investing for the future and growing their net worth through their retirement accounts.

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4. Max Out Retirement Contributions

Many private employers offer 401(k) retirement accounts that provide great tax advantages for saving and investing your money. For example, many employers have matching programs that will help you to grow your contribution and build wealth faster than you could by yourself.

You also have other tax-advantaged accounts available to you as well, such as Traditional and Roth IRAs, or individual retirement accounts. Taking advantage of these accounts keeps money invested for the long-term through mutual funds, stocks and other investment options. It grows in value and builds your savings balance as you approach retirement. Using these accounts saves you tax expenses and invests your income for the long term.

Use these employer-matched funds to upsize your retirement contributions and grow your income further by getting more money to save. By choosing to ignore such programs, you leave money on the table.

Retirement contributions serve two benefits. First, in the case of traditional retirement accounts, they allow you to defer your taxable income to your lowest earning years in retirement and second, act as a way to increase your available investment assets. Achieving your retirement goals can be slowed by taxes. Taking action now will prevent this and help you achieve your goals quicker.

Start contributing to your employer-sponsored plan and consider investing in low-cost index fund mutual funds or even target date funds aligned to your desired retirement date. These funds invest in stocks and bonds and transition the amounts you hold in each over time as you near retirement. They automatically switch your savings goals from wealth accumulation to wealth preservation, de-risking your retirement assets and working toward providing you a retirement income.

You can invest in investment vehicles like these through your own IRA as well. Though, IRAs offer many more investment choices for you to consider. Apps like E*Trade offer you an all-in-one investment management experience, complete with access to an IRA.

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Related: Retirement Plan Contribution Limits and Deadlines for 2024 + 2025

5. Live Below Your Means by Cutting Expenses

It's not easy to maintain a lifestyle that doesn't require much money. But you might end up with more cash if you're willing to live on less.

Taking the first step toward living below your means (and possibly no longer hemorrhaging money) begins with making a list of your expenses. Try to include everything from the things you spend money on every day, like food and transportation, to items that are only purchased once in a while.

Then, take time to consider the items on your list and determine if they're necessities or luxuries. Start small and work your way down the list of things that don't make financial sense for you, from eating out at restaurants every day to buying clothes you don't need. As you go, you'll also need to reevaluate major money decisions in your life.

That's because it's not enough just to cut back on the little things, you have to be intentional about it and work your way up the expense categories.

Doing so will require a financial plan that accounts for your needs and wants while still giving you some leeway in terms of what luxuries or indulgences you can afford.

No matter how good your intentions are when trying to live below your means, you'll need conviction to make the hard changes necessary to spend less. Remember, living on less than you earn can be a great way to build your net worth and prepare for the future.

You might think living below your means is impossible, but by making a concerted effort little by little, you can manage your expenses and leave more money for debt repayment or saving.

You can track all of your expenses and visualize your money through using a budgeting app like Quicken Simplifi. The app allows you to see your entire financial life in one place, providing you with a comprehensive tool for budgeting, tracking your investments and planning for retirement.

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6. Pay Yourself First

Leveling up your decision to live below your means involves paying yourself first.

Pay yourself first means that you set aside money for your future before you make any other financial moves. It's not an easy feat, but if you can start with small changes like canceling unused memberships or making a standing order to put funds away in savings on payday it'll get easier the more committed you are.

There will be opportunities to increase your savings as you grow and progress in your career. Though, that doesn't mean you should delay saving more now.

Rather, the earlier you start to pay yourself first through higher savings and contributions to your investment accounts, the more time you'll allow compounding returns to work for you.

Compound interest occurs when you earn not only on the initial investment but also its accumulated earnings from previous years (or months).

You can also work toward building passive income streams by, for example, investing in real estate, buying income generating assets and the best investments or starting a side hustle.

Look here for a full list of passive income ideas.

7. Invest in Yourself

One way to pay yourself more first is through investing in yourself. You may have heard of it before, but the best investment you can make is in your own education.

This could mean pursuing more rigorous job training programs or paying for a certification course to improve your skill set and grow into higher-paying positions with better benefits.

Flipping this equation around, if we invest in ourselves first then money will flow into our checking accounts quicker.

It is also important to invest in our health. This can happen by taking care of your body and mind with regular exercise, nutritious food, sufficient sleep for the individual and their family members, relaxation techniques like meditation or yoga as well as mental wellness practices that include therapy sessions when necessary.

Related: Should You Pay Off Your Mortgage Before You Retire?

8. Keep Money You Have Saved In Places It'll Grow

You may already have a savings account because you've got an emergency fund with enough set aside to cover at least three to six months of expenses. But are you using it?

Your checking account should have a balance that covers your regular spending and everything else should be in an interest-bearing bank account earning you returns. Even better, invest what you can.

Even if you're saving for yourself in a mattress in your bedroom (figuratively), that should not be your long-term goal. You want that money to turn into more money.

Further, resist the urge to spend a windfall. Invest it so you will continue to benefit in the future.

Most people tend to be risk averse, so consider investing in index funds instead of trying to pick stocks yourself. Although, by choosing to add individual stocks to your portfolio, this can open your returns up to higher potential.

If you don't know where to look, consider subscribing to one of the best stock picking services or signing up for an investment newsletter to learn about stocks.

You can learn how to research stocks and perform stock analysis to uncover growth companies worth investing in for the long-term.

One service worth considering is Motley Fool's Stock Advisor. The subscription recommends investing in "Steady Eddies," or companies that perform well over long-periods of time and deliver consistent returns. These serve as a strong foundation to a diversified portfolio and can deliver you solid returns over long periods of time.

Read more in our Motley Fool Stock Advisor review.

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9. Buy Your Forever Car

It is a sure bet that any car you buy today will be worth much less in one year's time. That's the case in almost every situation, save perhaps the period immediately following the pandemic.

Cars depreciate rapidly as you drive them and rarely act as physical things that appreciate in value. Add in maintenance costs, insurance premiums and operating expenses (gas) and you have an understanding of the true cost of owning a car.

Every time you buy a car, it inevitably leads to a decrease in your net worth. Buying a car means you will be paying interest and depreciation over the course of that vehicle's life. Purchasing vehicles only when they are necessary can significantly reduce these financial penalties.

10. Buy Your Forever Home

Buying a home often represents the single largest purchase you'll ever make. While there are many different strategies for spending your money, buying a home is generally considered one of the most sound investments you can make in terms of increasing net worth.

The reason it's so powerful has to do with leverage and return on capital: A person who buys a house usually puts down 20% or less of the purchase price as cash, while borrowing 80% from a lender.

Over time, the home price should appreciate in value and generate equity.

The home's value is leveraged by the homeowner who typically pays less in interest rates and has more time to pay off the debt than a renter, which means they get an improved ROI on their investment.

Additionally, homeownership may also help you build wealth and income by treating part of it as a rental property. You can rent out rooms or even purchase a separate property to treat as rental property and earn extra money.

Regardless of your intended use, by purchasing a forever home and living in it for many years, you can build equity for when you later in life decide to downsize and take out the equity for retirement.

Do you want to get serious about saving and planning for retirement? Sign up for Retire With Riley, Young and the Invested's free retirement planning newsletter.

11. Avoid Liabilities, Acquire Assets

One of the smartest choices in personal finance is to acquire assets and avoid liabilities. The first thing you should think about when evaluating your personal financial situation is how to grow assets and minimize liabilities.

The best way for Americans to build wealth, short term or long term, is by acquiring assets.

Taking on no debt, though, might not be the smartest choice. For example, taking out student loans to finance a medical career or buying a home in a nice area with a mortgage serve as good financial decisions for the long-term.

You want to use debt strategically for investments in your life, not for frivolous expenses on wants. Being smart and using liabilities to increase your long-term net worth can serve as a strong decision to compound your returns with someone else's money.

Sometimes, high-yield investments justify the cost of debt to get them in your hands.

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12. Get Extra Money from Freelancing

Another way to earn more money and build your net worth comes from augmenting your income. You can do this by getting promoted at work but also by taking on freelance work on the side as well.

Freelancing in your line of work or doing something you enjoy can be a side hustle, but also your main source of income.

Working as a freelancer means you likely won't get any added employment benefits like health insurance or paid time off, but instead, you should receive a higher rate or compensation to account for this.

Related: 19 Best Side Hustles for Retirees to Earn Extra Money

13. Improve Your Financial Health

Improving your financial health requires planning and looking into your finances to identify areas of financial stress in your life. Consider the following steps to improve your financial position:

1. Determine where you're starting from and establish goals for where you want to go.

2. Tell your money where to go and what you want it to invest toward down the line. Less money on a credit card and more money in a retirement account or investment account invested in the market.

3. Start to spend less, live within your means and pay yourself first.

4. Begin planning for your future and what it might entail.

5. Take actions to accomplish this future and put yourself in a better financial position.

By following these steps, you'll learn how to increase net worth for yourself sooner than later.

14. Protect Your Net Worth with Insurance

Once you've started to build your net worth with good personal finance choices, you'll want to protect it. When you've got nothing to lose, it's easy not to think about what could go wrong.

When you've got something on the line, you need to watch your bottom line and look for ways to protect it.

One way of watching the eggs in your basket comes from buying insurance through a life insurance policy, personal insurance policy, liability insurance, umbrella coverage and more.

Depending on your unique situation and needs, you might consider getting free quotes from relevant insurers to understand how much protecting what you've built could cost.

Having financial peace of mind after accumulating a positive net worth adds icing to your cake.

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Riley Adams, CPA

Licensed CPA and Financial Advisor

Want to talk more about your financial goals or concerns? Our services include comprehensive financial planning, investment management, estate planning, taxes, and more! Schedule a call with Riley to discuss what you need, and what we can do for you.

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They want straightforward funds with strategies they can understand. They want to buy from a name they know and trust. And they don't want fees to dig too deeply into their returns.

Investors don't, however, usually need to check off all those boxes with the same fund provider. They're happy to purchase, say, a U.S. stock fund from Vanguard, an international stock fund from T. Rowe Price, and a bond fund from Pimco. And there's absolutely nothing wrong with that.

But a handful of providers can meet all of those asks by their lonesome—and Schwab is among them. It's one of the largest investment account providers, boasting nearly 39 million brokerage accounts and another 5.6 million workplace plan participant accounts. However, "Chuck" also is among the country's leading fund providers, with more than $1 trillion in assets under management (AUM).

Today, I'll introduce you to some of Schwab's best funds for retirement savers, whether you invest via a 401(k), individual retirement account (IRA), health savings account (HSA), or another tax-advantaged vehicle. Each of these products tackles a widely used investment strategy that many savers put to use. Each fund also boasts low annual fees, and you can get started in any one of them with as little as $1.

Editor's Note: The tabular data presented in this article is up-to-date as of May 6, 2026.

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Disclaimer: This article does not constitute individualized investment advice. Individual securities, funds, and/or other investments appear for your consideration and not as personalized investment recommendations. Act at your own discretion.

Why Schwab Mutual Funds?

Charles Schwab is a U.S.-based brokerage and banking company founded in 1971 as a traditional brokerage company and then as a discount brokerage service in 1974. It's the largest publicly traded investment services firm with more than $12 trillion in client assets. And it offers a wide range of financial services, such as investment advice and management, trading services, financial planning, banking services, workplace and individual retirement plans, annuities, and more.

But why would you invest in Schwab mutual funds?

Schwab's 100-plus mutual funds have attracted more than $1 trillion in AUM. That's in large part because they feature not only below-industry-average annual expenses, but they also charge no load or transaction fees, and most have no initial investment minimum—you can start with as little or as much money as you can afford. Schwab also offers products for whichever management style you prefer; it has numerous actively managed funds run by seasoned teams, but it's also one of the largest providers of indexed mutual funds.

In short: Schwab's retirement funds are among some of the best on the market, you have plenty to choose from, and they won't leave your wallet in tatters.

What Should You Look For in a Retirement Fund?

Here are some of the most critical factors to consider as you invest for retirement:

• Costs: When you buy an investment fund, you pay an "expense ratio." For instance, if a fund charged 0.5% annually, that means for every $1,000 you invest in the fund, $5 is spent paying the fund company. In other words, that's $5 that can no longer grow and compound for you over time. The general idea, then, is if all else is equal, the lower the cost, the better (though some funds can justify their higher fees). Good news here: Schwab's costs are frequently below the category average.
• Taxes: A taxable account, such as a standard brokerage account, is better suited to take advantage of tax-advantaged investments like municipal bonds. Conversely, you can make the most of tax-inefficient investments—like actively managed stock funds (which can throw off large capital gains distributions because of heavy trading) and bond funds (which throw off interest income that's typically taxed at your marginal rate)—by stuffing them into tax-advantaged retirement accounts like 401(k)s and IRAs.
• Diversification: You've likely always been told that you should hold a diversified portfolio, which means that you hold a variety of investments, not just one or two. That could mean holding multiple assets (stocks, bonds, commodities), but that could also mean holding, say, stocks from different countries, or stocks from different sectors. And investment funds, which can own any number of stocks, bonds, or other holdings all at once, can help you achieve that diversification. But every fund has its own level of built-in diversification. Some funds hold dozens of stocks while others hold thousands. Some funds invest heavily in their biggest stocks while others spread their assets out more evenly. So always consider how diversified a fund really is, as well as whether that level of diversification suits your needs.
• Income: You ideally want your retirement portfolio to produce regular income—in the form of both bond interest and dividend income. Stock prices can suffer during nasty corrections and bear markets, but income-generating funds can help provide for your living expenses without forcing you to sell at an inopportune time.

Schwab's wide assortment of retirement-focused funds provides just about any investor with the tools to address these and other vital planning considerations.

The Best Schwab Retirement Funds You Can Buy

These retirement funds are best held in tax-advantaged retirement accounts, such as a 401(k) or IRA. That's because many of them feature at least one (if not more) of the following traits:

1. High turnover: Turnover refers to how often investments are rotated in and out of a fund. If a mutual fund sells a stock for a profit, that generates a capital gain, which can be passed on to you in the form of a capital-gains distribution. You would then owe capital gains taxes on that distribution during that tax year. Funds with high turnover can be really tax-inefficient, as they can pass along a lot of short-term capital gains that are taxed as ordinary income, at rates up to 37%, not to mention an additional 3.8% for the net investment income tax.
2. Dividends: When a company pays you a dividend, that dividend income is taxable. Most dividends from traditional stocks are considered "qualified," which means they're at least taxed at more favorable long-term capital gains tax rates. However, dividends from some entities, such as many real estate investment trusts (REITs), are nonqualified, meaning they're taxed at the less favorable ordinary income rates.
3. Interest income: Interest income, which is paid out by bonds, preferred stocks, and other fixed-income assets, is also tax-inefficient, as it's taxed as ordinary income (again, up to 37%). And given that interest income is typically the bulk of your return from bonds, most of your returns are being taxed at those unfavorable rates.

While dividends, capital-gains distributions, interest income, and other fund payments have tax consequences inside of a taxable brokerage account, they don't when they occur within a tax-deferred account such as a 401(k) or IRA—you'll only ever be subject to taxes when you withdraw funds, likely at retirement. (That said, some of these Schwab retirement funds will still do perfectly fine even inside of a good, old-fashioned brokerage account.)

Now that we're through with introductions, let's explore some of the best Schwab retirement funds you can use to craft a long-term portfolio.

Do you want to get serious about saving and planning for retirement? Sign up for Retire With Riley, Young and the Invested's free retirement planning newsletter.

1. Schwab S&P 500 Index Fund

• Style: U.S. large-cap stock
• Management: Index
• Assets under management: $138.6 billion
• Dividend yield: 1.1%
• Expense ratio: 0.02%, or 20¢ per year for every $10,000 invested

Another year, another 12 months of large-cap managers getting smacked by the algos.

"In our largest and most closely watched comparison, 79% of all active large-cap U.S. equity funds underperformed the S&P 500, worse than the 65% rate observed in 2024 and the fourth-worst year for active large-cap managers over the 25-year history of our SPIVA Scorecards," says S&P Dow Jones Indices in its year-end 2025 S&P Indices Versus Active Funds (SPIVA) report. "Headwinds from unrelenting large-cap outperformance subsumed the tailwinds from higher dispersion, resulting in fewer potential opportunities for stock pickers to capitalize on."

And it's not just one year. Only 14% of large-cap managers have managed to beat the S&P 500 over the trailing 10-year period, and that number drops to just 10% over the trailing 15 years.

Related: The 11 Best Fidelity Funds You Can Own

So if the pros can't even beat it, maybe we should just join it.

The Schwab S&P 500 Index Fund (SWPPX) is one of the least expensive ways to do just that, charging a razor-thin expense ratio of just 0.02%. That's one of the thinnest fees for an S&P 500 tracker across mutual funds and ETFs alike.

For those not familiar: The S&P 500 is a collection of 500 large American companies. To be selected for this stock market index, a company must have a market capitalization of at least $22.7 billion, its shares must be highly liquid (shares are frequently bought and sold), and at least 50% of its outstanding shares must be available for public trading. It also must have positive earnings in the most recent quarter; the sum of earnings from its previous four quarters must be positive, too. (Note: Once a company is in the index, it doesn't necessarily get kicked out if it fails to meet all of the criteria at some point in the future, but the selection committee would take that under consideration.)

At the moment, technology stocks such as Nvidia (NVDA) and Apple (AAPL) account for the largest percentage of assets (35%), while financial stocks, consumer discretionary companies, and communication services firms also have significant weights above 10%. However, the makeup of the S&P 500 can vastly change over time. Years ago, for instance, energy was one of the best-represented sectors. Now, its weight is in the low single digits.

Turnover tends to be low in this Schwab index fund, as only a handful of stocks enter or leave the index in any given year. This makes SWPPX an extremely tax-efficient option for taxable investment accounts. But if you do the majority of your investing through a tax-advantaged retirement account, consider holding SWPPX there, too. Sure, you won't enjoy a premium tax edge, but you'll still be putting your money into one of Schwab's best retirement funds.

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Related: 11 Best Vanguard Funds for the Everyday Investor

2. Schwab U.S. Large-Cap Value Index Fund

• Style: U.S. large-cap value stock
• Management: Index
• Assets under management: $1.1 billion
• Dividend yield: 1.6%
• Expense ratio: 0.035%, or 35% per year for every $1,000 invested

The Schwab U.S. Large-Cap Value Index Fund (SWLVX) provides access to large-cap value stocks, but in a way I don't think most people would expect.

SWLVX tracks the Russell 1000 Value Index, which is made up of Russell 1000 companies with "relatively lower price-to-book ratios, lower I/B/E/S forecast medium term (2-year) [earnings] growth and lower sales per share historical growth (5 years)." That makes this fund an odd one, for several reasons:

Related: 10 Best ETFs to Beat Back a Bear Market

1. Only one of the index's three main criteria (price-to-book) is a true valuation metric; those other two figures define value through relatively low growth.
2. That lone true valuation metric (P/B) is a little odd in and of itself. Sure, it's helpful when trying to value capital-intensive businesses (manufacturers, energy companies, banks), but it's not very useful when trying to value companies (like technology firms) that have a lot of intangible assets, such as patents and intellectual property.
3. Despite effectively being the inverse of the Russell 1000 Growth Index, which includes fewer than 400 of the Russell 1000's stocks, Russell 1000 Value is made up of some 860 of the Russell 1000's stocks.

I suppose we can put all of these oddities aside, however. Because Schwab U.S. Large-Cap Value Index Fund's resulting portfolio does end up being bargain-priced across a range of metrics—not just P/B, but also P/E and P/CF as well.

Related: 8 Best Schwab Index Funds for Thrifty Investors

Schwab U.S. Large-Cap Value Index is currently heaviest in financials, which account for more than 20% of assets. Industrials, technology, and health care account for more than 10% of assets each. Top holdings include the likes of Berkshire Hathaway (BRK.B), Google parent Alphabet (GOOGL), and JPMorgan Chase (JPM).

While it’s not technically a dividend fund, SWLVX provides an above-average level of dividend on par with some large-cap equity funds that explicitly try to provide more income. And it’s certainly more than the 1.1% the S&P 500 is paying.

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3. Schwab International Index Fund

• Style: International large-cap stock
• Management: Index
• Assets under management: $14.0 billion
• Dividend yield: 3.3%
• Expense ratio: 0.06%, or 60¢ per year for every $1,000 invested

Domestic stocks typically will make up the lion's share of at least a person's equity holdings, if not their entire portfolio. However, most advisers would tell you to own at least some international stocks. That's in part because they provide some diversification should U.S. stocks hit patches of weakness, but also because many foreign companies—especially those in more developed nations—provide higher levels of dividend income.

Consider the Schwab International Index Fund (SWISX). For a measly 0.06%, SWISX invests you in 712 stocks, primarily from developed markets in Europe and Asia. Japanese firms represent 23% of assets, though you also get significant exposure to the U.K., France, Switzerland, and Germany, as well as modest exposure to a number of other countries.

Related: 8 Low- and Minimum-Volatility ETFs for Peace of Mind in 2026

Schwab International Index Fund is loaded with multinationals; large caps make up 90% of assets, and mid-caps account for virtually all of the reest. Top holdings are a who's who of foreign firms you've likely heard of, such as Dutch semiconductor firm ASML Holding (ASML), British pharmaceutical company AstraZeneca (AZN), Swiss foods giant Nestlé (NSRGY), and Japanese automaker Toyota Motor (TM).

As a general rule, international blue-chip funds will out-yield their U.S. counterparts. That's certainly the case with SWISX, whose heavy bent toward large firms results in an outsized dividend yield north of 3% that's three times what the S&P 500 pays. And that high level of income makes SWISX an ideal pick for tax-advantaged accounts like IRAs and 401(k)s.

Also, many financial experts will generally point you toward a little international exposure for diversification purposes. Yes, U.S. markets have long been among the most productive in the world, and if you believe in the American economy's ability to keep growing, that should remain the case. But from time to time—including as recently as 2025—international stocks do outperform American equities.

Related: Best Vanguard Retirement Funds for a 401(k) Plan

4. Schwab Global Real Estate Fund

• Style: Global real estate
• Management: Active
• Assets under management: $289.3 million
• Dividend yield: 3.2%
• Expense ratio: 0.72%, or $7.20 per year for every $1,000 invested

Real estate is a preferred asset class, but buying physical properties is extremely inaccessible to people with modest funds. However, real estate investing was democratized in 1960 with the creation of real estate investment trusts (REITs), which are companies specifically designed to own (and sometimes operate) real estate.

The good news? Many REITs are publicly traded, just like plain ol' stocks, and they're prolific dividend payers to boot. You see, REITs enjoy a special tax status that allows them to avoid corporate taxation so long as they distribute at least 90% of their net profits as dividends. Because of this tax incentive, REITs tend to be one of the highest-yielding sectors and a perennial favorite among income investors.

The bad news? This also makes REITs very tax-inefficient, as a large percentage of the total return comes from taxable dividends. What's more, REIT dividends are generally classified as nonqualified dividends, which again, are taxed like ordinary income and can face rates as high as 37%, depending on your bracket. Thus, it makes more sense to hold REITs and REIT funds in a tax-advantaged fund like a 401(k) or IRA rather than a taxable brokerage account.

Related: 7 Best Fidelity Retirement Funds [Low-Cost + Long-Term]

Schwab investors looking for real estate exposure could consider the Schwab Global Real Estate Fund (SWASX). The fund is a diversified REIT fund with a global presence, split roughly 60/40 between U.S. and international REITs. That means you get access to American REITs such as medical/senior housing property owner Welltower (WELL) and datacenter specialist Equinix (EQIX), as well as real estate companies from Europe, Asia, Australia, and Canada. All told, the portfolio's holdings represent about 20 different types of real estate, albeit unevenly; industrial, diversified, and retail real estate account for the largest shares of assets.

This is a growth-focused real estate fund that focuses on total return, including both capital gains and income. But the income portion is no slouch, either; the 3%-plus current yield is almost triple the S&P 500's modest payout.

Another reason to consider SWASX for your retirement account? Turnover. There is no precise, universally accepted threshold for what constitutes "a lot" of active trading, but I would consider any fund with portfolio turnover over 30% or so to be fairly tax-inefficient. The higher that number goes, the more inefficient the fund. Schwab Global Real Estate has annual turnover of about 85%. All of that trading creates capital-gains distributions, but you can snuff out the IRS consequences in a tax-advantaged account.

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5. Schwab Small-Cap Equity Fund

• Style: U.S. small-cap stock
• Management: Active
• Assets under management: $718.2 million
• Dividend yield: 0.1%
• Expense ratio: 1.09%, or $10.90 per year for every $1,000 invested

There's a lot of wisdom in the old Wall Street maxim, "you never go broke taking a profit."

As a general rule, buying and holding good stocks or good funds and allowing them to compound over years or even decades is the way to go. But having at least part of your portfolio in actively traded strategies can also make sense, particularly in bear markets. Actively traded strategies have their stretches when they outperform passive index strategies, and they can potentially help you to avoid major declines.

But as mentioned before, active trading strategies are tax-inefficient. And you see a lot more of that in the world of small-cap equities. Because smaller companies are often younger companies, the small-cap space tends to move quickly. Successful companies "graduate" to mid- or even large-cap status, and those that are unsuccessful often disappear altogether. So it's common to see a lot of turnover.

Related: 11 Best Stock Trading Apps & Platforms [Free + Paid]

Case in point: Check out Schwab Small Cap Equity Fund (SWSCX), managed by Wei Li, Iain Clayton, and Holly Emerson. Their 340-stock portfolio's annual turnover sits at a whopping 108%, effectively meaning that each year, on average, the entire portfolio turns over (and then a little more on top). That has resulted in some significant capital gains returns over the years.

Like, the S&P 500, the sector breakdown can change significantly over time, too, and it often doesn't look quite like the large-cap index, either. For instance, healthcare is tops right now at 19% of assets; technology is significant, but at 18% of assets, that's roughly half the representation the sector gets in the S&P 500. Financials and industrials also enjoy double-digit weights.

Small-cap stocks have only recently started to get their groove back after years of lagging their large-cap peers. Regardless, SWSCX has managed to return an annualized 10.1% since inception, and that's not too shabby. Also, while the strategy itself is pretty aggressive compared to other strategies, among small-cap blend funds, it actually presents pretty average-level risk.

Related: 8 Best High-Yield Dividend Stocks: The Pros’ Picks for 2026

6. Schwab U.S. Aggregate Bond Index Fund

• Style: U.S. intermediate-term bond
• Management: Index
• Assets under management: $8.1 billion
• SEC yield: 4.3%*
• Expense ratio: 0.04%, or 40¢ per year for every $1,000 invested

Bonds are simply debt that's issued by governments, companies, and other entities. Their interest payments and relative lack of volatility make them an excellent tool for providing a portfolio with stability and income.

Most investors need at least some exposure to bonds, though exactly how much exposure that is will vary by age and risk tolerance. Debt isn't great for generating wealth, which is your prime concern when you're younger; but it's outstanding for protecting wealth, which becomes increasingly pivotal as you age. So generally speaking, you'll want to be heavily invested in stocks and modestly invested in bonds (if at all!) when you're younger, and that mix should increasingly shift toward bonds as you age.

Related: 9 Best Fidelity Index Funds to Buy for 2026

You might not want to buy individual bonds, however. Data and research on individual issues is much thinner than it is for publicly traded stocks. And some bonds have minimum investments in the tens of thousands of dollars. So, your best (and most economical) bet is to buy a bond fund, which allows you to invest in hundreds or even thousands of bonds with a single click.

The Schwab U.S. Aggregate Bond Index Fund (SWAGX) plugs you into tens of thousands of debt issues. This highly diversified fund currently invests 46% of its assets in U.S. government and agency bonds, then invests a little less than 25% each into mortgage-backed securities (MBSes) and corporate bonds. The remaining assets are peppered around foreign government-related bonds, municipal bonds, and other debt.

SWAGX holds bonds across the maturity spectrum, from less than a year to more than two decades, but the weighted average maturity comes in at just over 8 years. Duration—a measure of interest-rate sensitivity—is 5.8 years. I'm simplifying a bit here, but this basically implies that a 1-percentage-point hike in interest rates would result in a 5.8% short-term decline in the fund, and vice versa. This is moderate interest-rate risk, which is perfectly acceptable for a basic core bond holding like this.

You get all of this for a mere 0.04% in annual fees, making it one of the best Schwab retirement funds you can buy if you want to tap into the bond market.

* SEC yield reflects the interest earned across the most recent 30-day period. This is a standard measure for funds holding bonds and preferred stocks.

Related: Best Schwab Retirement Funds for an IRA

7. Schwab Balanced Fund

• Style: Moderate allocation
• Management: Active
• Assets under management: $761.1 million
• Dividend yield: 1.9%
• Expense ratio: 0.51%*, or $5.10 per year for every $1,000 invested

Schwab Balanced Fund (SWOBX) and other funds like it go by many names: "Balanced funds." "Allocation funds." "Portfolios-in-a-can." Regardless of the moniker, what they do is all the same—they hold both stocks and bonds, giving you access to a pair of core assets in a single investment.

SWOBX specifically is a moderate allocation fund—one that currently holds a roughly 60/40 split between stocks and bonds/cash.

Related: Best Schwab Funds to Hold in an HSA

Managers Zifan Tang and Patrick Kwok achieve their blends not with individual stocks and bonds, but with a small collection of Schwab funds. At the moment, roughly half of SWOBX's assets are invested in U.S. equities, while another 10% are in international equities, Meanwhile, virtually all of its bond holdings come from Schwab U.S. Aggregate Bond Index Fund, meaning you're getting exposure to U.S. government bonds, investment-grade corporate debt, MBSes, and SWAGX's other holdings.

Allocation funds like Schwab Balanced are an ultra-simple way to get stock and bond coverage in the click of a button. Indeed, if you wanted, this Schwab retirement fund could act as your entire portfolio—but only if its stock/bond allocations make sense for achieving your financial goals. SWOBX alone might be too conservative for most investors; if that's the case for you, it might make more sense as part of a more broadly diversified holdings set.

Schwab Balanced's turnover is low at a little more than 10%, and capital-gains distributions are usually in the low single digits. But the bond portfolio also generates a decent amount of interest income. Thus, tax-advantaged accounts like IRAs and HSAs are still the most fitting home for SWOBX.

* SWOBX has a temporary fee waiver to limit operating expenses. The result is a fee reduction from 0.53% to 0.51%. This waiver will remain as long as Schwab Asset Management serves as the adviser to the fund. The agreement can only be amended or terminated with the approval of the fund's Board of Trustees.

Related: The 7 Best Gold ETFs You Can Buy

8. Schwab Target-Date Funds

• Style: Target-date
• Management: Active
• Expense ratio: Schwab Target Funds: 0.25%-0.58%*, or $2.50-$5.80 per year for every $1,000 invested; Schwab Target Index Funds: 0.08%, or 80¢ per year for every $1,000 invested

One of the challenges in retirement planning is getting the asset allocation right, or having an asset class mix that is appropriate for an investor at your age and stage of life. An ideal portfolio for a 20-year-old is likely going to be very different from that of a 40-year-old, and both those portfolios will be different from what's ideal for a 60-year-old.

That's where target-date funds can really add value.

Target-date funds—also called life-cycle funds—are a type of mutual fund that are designed to change their asset allocation over time. Target-date funds start out invested heavily in stocks, then slowly reduce their stock exposure and replace it with bond exposure as they approach their target retirement date, following a glide path.

The target retirement dates are intended to be estimates; they don't have to be super precise. Generally, most mutual fund families will create target-date funds in five-year increments (say, 2025, 2030, 2035, etc.).

Related: 7 Best Closed-End Funds (CEFs) Paying Us Up to 15.2%

And given the hyper-specific focus on retirement, target-date funds tend to be a mainstay of 401(k) and other retirement plans.

Schwab offers two target-date fund series, both of which hold various funds to provide exposure to U.S. and international stocks and bonds:

• Schwab Target Funds: These hold a collection of actively managed and index funds. While most of Schwab Target Funds' holdings are other Schwab mutual funds, they will also hold funds from outside providers, including Dodge & Cox and Baird.
• Schwab Target Index Funds: These primarily hold Schwab ETFs.

In general, all of these Schwab retirement funds tend to be economical, but the Schwab Target Index Funds are flat-out cheap, at just 0.08% in annual expenses. And at least as far as Morningstar Medalist ratings go, the Target Index series is considered the better of the two, earning a Bronze rating.

Also worth noting is that Schwab Target Index Funds, despite the name, do have human managers: the aforementioned Zifan Tang and Patrick Kwok.

For a longer primer on Schwab's target-date lineups, take a look at our Beginner's Guide to Schwab Target-Date Funds.

* Schwab Target Funds have temporary fee waivers to limit operating expenses. These waivers will remain as long as Schwab Asset Management serves as the adviser to the funds. The agreement can only be amended or terminated with the approval of the fund's Board of Trustees.

Related: The 7 Best Index Funds for Beginners

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Learn More About These and Other Funds With Morningstar Investor

If you're buying a fund you plan on holding for years (if not forever), you want to know you're making the right selection. And Morningstar Investor can help you do that.

Morningstar Investor provides a wealth of information and comparable data points about mutual funds and ETFs—fees, risk, portfolio composition, performance, distributions, and more. Morningstar experts also provide detailed explanations and analysis of many of the funds the site covers.

With Morningstar Investor, you'll enjoy a wealth of features, including Morningstar Portfolio X-Ray®, stock and fund watchlists, news and commentary, screeners, and more. And you can try it before you buy it. Right now, Morningstar Investor is offering a free seven-day trial and a discount on your first year's subscription when you use our exclusive link.

Do you want to get serious about saving and planning for retirement? Sign up for Retire With Riley, Young and the Invested's free retirement planning newsletter.

What Is the Minimum Investment Amount on Schwab Mutual Funds?

Schwab is one of the most friendly fund companies for beginners. That's not just because both its mutual funds and ETFs sport below-industry-average expense ratios, but because you don't need much money to invest in them in the first place. Most Schwab mutual funds have no investment minimum—you can literally start with as little as $1.

That’s extremely beneficial in self-directed accounts like an IRA. Many mutual funds from other providers require high minimums in the thousands of dollars, hamstringing investors with little capital to work with.

What Are Index Funds?

There are two kinds of funds: actively managed funds and index funds.

With an actively managed fund, one or more managers are in charge of selecting all of the fund's holdings. They'll likely have a specific strategy to adhere to, and they'll be tasked with beating a benchmark index, but they'll be given a lot of discretion about how to achieve that. These managers will identify opportunities, conduct research, and ultimately buy and sell a fund's stocks, bonds, commodities, and so on.

An index fund, on the other hand, is effectively run by algorithm. The fund will attempt to track an index, which is just a group of assets that are selected by a series of rules. The S&P 500 and Dow Jones Industrial Average? Those are indexes with their own selection rules. Index funds that track these indexes will generally hold the same stocks, in the same proportions, giving you equal exposure and performance (minus fees) to those indexes.

If you guessed that it's more expensive to pay a conference room full of fund managers than it is a computer that tracks an index, you'd be right. That's why actively managed funds tend to cost much more in fees than index funds.

And that's why ETFs are generally cheaper. Most (but not all) mutual funds are actively managed, while most (but not all) ETFs are index funds.

Related: The Best Retirement Plans for 2026 [Workplace + Individual]

Why Does a Fund's Expense Ratio Matter So Much?

Every dollar you pay in expenses is a dollar that comes directly out of your returns. So, it is absolutely in your best interests to keep your expense ratios to an absolute minimum.

The expense ratio is the percentage of your investment lost each year to management fees, trading expenses and other fund expenses. Because index funds are passively managed and don't have large staffs of portfolio managers and analysts to pay, they tend to have some of the lowest expense ratios of all mutual funds.

This matters because every dollar not lost to expenses is a dollar that is available to grow and compound. And over an investing lifetime, even a half a percent can have a huge impact. If you invest just $1,000 in a fund generating 5% per year after fees, over a 30-year horizon, it will grow to $4,116. However, if you invested $1,000 in the same fund, but it had an additional 50 basis points in fees (so it only generated 4.5% per year in returns), it would grow to only $3,584 over the same period.

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Related: 15 Stocks You Can Buy and Hold Forever

As even novice investors probably know, funds—whether they're mutual funds or exchange-traded funds (ETFs)—are the simplest and easiest ways to invest in the stock market. But the best long-term stocks also offer many investors a way to stay "invested" intellectually—by following companies they believe in. They also provide investors with the potential for outperformance.

So if you're looking for a starting point for your own portfolio, look no further. Check out our list of the best long-term stocks for buy-and-hold investors.

Related: 7 Best Vanguard Dividend Funds You Can Buy Now

What's better than a smart, sound dividend income strategy? How about a smart, sound dividend income strategy with very little money coming out of your pocket?

If that sounds good to you, you need look no farther than low-cost pioneer Vanguard, which offers up a number of payout-oriented products. Find out what you need to know in our list of seven top-notch Vanguard dividend funds.

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A Roth IRA can be opened for anyone, regardless of their age. Contributions to an account made when your child is at a young age have decades to grow tax-free, too. Plus, contributions can be withdrawn tax- and penalty-free at any time, while earnings can be taken out before retirement age to cover college expenses or buy a home.

And with custodial Roth IRAs, an adult can manage the account until the child reaches the age of majority. That way, there’s proper oversight while your children learn about the benefits of investing. Adults can even help with matching contributions, too.

So, if you want a tax-smart, flexible, and supervised way to help your children invest for the future, consider opening a custodial Roth IRA for your kids. I’ll explain the important rules, tell you want to look for, and even provide recommendations for the best custodial Roth IRAs for children. Read on for all the details about these under-appreciated retirement savings vehicles.

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What Is a Roth IRA?

Let’s start with some of the basics about IRAs and, more specifically, Roth IRAs. There are  also some special rules you need to know in order to understand how a Roth IRA for kids works.

First, an IRA—which is short for “individual retirement account”—is a tax-advantaged retirement savings account. In other words, you get tax breaks for using them instead of putting your retirement savings in certain other types of accounts (e.g., a regular savings account from your bank or a standard brokerage account). However, as you’ll see, there are also certain restrictions and limitations that go along with IRAs.

There are two basic types of IRAs: Traditional IRAs and Roth IRAs. The main difference between the two is when you pay taxes on the money in the account (more on that in a second). There are annual contribution limits for both types of IRAs, but there’s an additional income limit for Roth IRAs that prevents wealthier people from contributing to them or contributing as much.

There’s no age limit for IRAs, so there’s no restriction on opening a Roth IRA for kids. But there is an earned income requirement, so a child must have a job or similar source of compensation to contribute to a Roth IRA.

The main purpose of a Roth IRA is retirement saving. However, under certain circumstances, funds in this type of retirement account can be used for other purposes before reaching retirement age. This makes Roth IRAs an especially good investment vehicle for children who have their whole lives ahead of them.

Tax Treatment of Traditional IRAs vs. Roth IRAs

Traditional IRAs are often called “pre-tax” accounts because contributions are made before taxes are imposed on the amount contributed (there’s generally no tax at the time thanks to a tax deduction for the contributions). Money in the account also grows tax-free … until you withdraw funds in retirement. At that point, the money you take out of the account is considered taxable income and you must pay income tax on it.

On the other hand, a Roth IRA is an “after-tax” account, because contributions are made after taxes have been paid on that money. Thus, unlike traditional IRAs, no tax deduction is allowed when you contribute to a Roth IRA. However, once that money is in the Roth IRA, it’s allowed to grow tax-free, and you don’t pay taxes when you withdraw the funds, either.

Young and the Invested (YATI) Tip: Don’t worry too much about your child contributing his or her own money to a Roth IRA. If your child has to file a tax return, the tax rates that kids face are typically so low that taxes on a Roth IRA contribution would mostly be avoided anyway. Plus, since money in a Roth IRA grows tax-free, the “kiddie tax” won’t apply to the investment earnings.

Annual Roth IRA Contribution Limits

An annual contribution limit applies to both types of IRAs. For 2026, the most that can be contributed to a child’s Roth IRA is $7,500 (people 50 or older can contribute $1,000 more). That's up from the $7,000 limit in 2025. 

The annual IRA contribution limits are combined limits that apply to all your traditional and Roth IRAs. So, for example, if a child puts $5,000 in a traditional IRA in 2026, then no more than $2,500 can be put in the child’s Roth IRA (or any other IRA) for 2026.

Related: Best Fidelity Retirement Funds for an IRA

Annual Roth IRA Income Limits

As I mentioned earlier, there’s also an income limit and phase-out rules for Roth IRA contributions. So, if your income is too high, you can’t contribute to a Roth IRA at all.

For the 2026 tax year, the maximum amount you can contribute to a Roth IRA is gradually reduced to zero if your 2026 modified AGI is:

-- At least $153,000 but less than $168,000 for single and head-of-household filers ($150,000 to $165,000 for 2025)

-- At least $242,000 but less than $252,000 for joint filers ($236,000 to $246,000 for 2025)

That also means you can’t contribute to a Roth IRA at all for 2025 if your modified AGI for the year is:

-- $168,000 or more if you use the single or head of household filing status on your tax return ($165,000 for 2025)

-- $252,000 or more if you’re married and file a joint return ($246,000 for 2025)

If you’re married but file a separate tax return, your annual maximum contribution is gradually reduced to zero if your modified AGI is between $0 and $10,000.

Related: Child Tax Credit FAQs [What Every Parent Needs to Know]

Do you want to get serious about saving and planning for retirement? Sign up for Retire With Riley, Young and the Invested's free retirement planning newsletter.

Roth IRA Earned Income Requirements

The account holder must also have earned income in order to contribute to an IRA. If an IRA is in a child's name, then it’s the child’s earned income that counts.

Also, in addition to the annual contribution limits noted earlier, IRA contributions for the year can’t exceed the child’s earned income for the year. However, there are still ways for parents, grandparents, or other loved ones to put money in a child’s Roth IRA account (as I'll discuss in a minute).

Related: Kiddie Tax: What Is It, Who Must Pay, How Much + More

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What Is Earned Income for Purposes of Roth IRA Requirements?

According to the IRS, compensation that satisfies the earned income requirement generally includes “wages, salaries, tips, professional fees, bonuses, and other amounts received for providing personal services.” A commission that’s a percentage of profits or sales satisfies the requirement, too.

Self-employment income also counts as earned income. However, if you’re self-employed, don’t include any contributions made to retirement plans on your behalf or the deductible part of your self-employment taxes. Earned income includes self-employment income even if you don’t have to pay self-employment tax because of your religious beliefs. Don’t subtract a net loss from self-employment from salaries or wages when calculating your total earned income.

What’s not treated as earned income? Among other things:

- Interest, dividends, rental income, and other earnings and profits from property

- Pension or annuity income

- Deferred compensation from a previous year

- Amounts excluded from gross income for tax purposes

So, for a kid’s Roth IRA, the necessary income can come from an after-school or summer job (including online jobs for teenagers). It can also come from walking dogs, mowing lawns, babysitting, or performing other jobs kids can do to make money. However, allowance money or financial gifts for babies or other kids don’t count toward a child’s earned income.

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Earned Income Limit for a Child’s Roth IRA

Even though Roth IRA contributions to a kid’s account can’t exceed the child’s earnings, that doesn't mean it has to be the child’s money that’s contributed to the account. Parents and other adults can contribute to a child's Roth IRA—up to the amount of the child’s earned income. For instance, if Johnny earns $2,500 during the year by walking dogs in the neighborhood after school, his parents can contribute up to $2,500 of their money into his Roth IRA, while Johnny keeps the money he earned from dog walking.

A child can also choose to work, but only contribute gift money received for holidays, birthdays, or other celebrations to his or her Roth IRA. Again, the child can’t contribute more than his or her earned income for the year (or more than the annual contribution limit for the year).

Deadline for Contributing to a Roth IRA

You have until the tax filing deadline for the year to make contributions to a Roth IRA. So, for example, you have until April 15, 2026 (April 17 to put money in an account for the 2025 tax year. You'd have until each year's filing deadline around market close to make that contribution for the prior tax year.

If you request an automatic filing extension for your 2025 tax return, you'll have until Oct. 15, 2026, to contribute to a Roth IRA for the 2025 tax year. Similar deadlines will apply for 2026 IRA contributions.

YATI Tip: If you make a 2025 contribution in 2026, make sure you let the account administrator know that the contribution is for the 2025 tax year.

Related: 11 Education Tax Credits and Deductions

Use of Roth IRA Funds

Because IRAs are retirement accounts, a 10% penalty might be imposed if you withdraw money from an IRA before you’re 59½ years old. The distribution might also be considered taxable income if you’re not yet 59½ years old.

The early withdrawal penalty and tax generally apply if you pull either contributions or investment earnings out of a traditional IRA, or if you withdraw earnings from a Roth IRA. (You can withdraw contributions from a Roth IRA at any time, since taxes have already been paid on your contributions.)

However, there are exceptions to the 10% penalty for certain circumstances or if the withdrawn funds are used for particular purposes. Some of the more common situations or uses of money that trigger a penalty-free withdrawal before age 59½ include:

- You’re totally and permanently disabled.

- The funds are used to buy, build, or rebuild a first home (including to pay typical closing costs).

- You have unreimbursed medical expenses exceeding 7.5% of your adjusted gross income for the year.

- You’re paying health insurance premiums while unemployed.

- The withdrawn funds aren’t more than your qualified education expenses.

Related: Best Schwab Retirement Funds for an IRA

What Is a Custodial Account?

If you open a Roth IRA for kids, it can be set up as a custodial account. In that case, the Roth IRA is held in the name of the child by a custodian, who manages the account for the benefit of the child. Custodians can technically be any adult, but they’re usually the child’s parent, guardian, grandparent, or other relative.

With custodial Roth IRAs, the custodian maintains full control over the account until the child reaches the termination age, which is usually when the child reaches the age of majority. This can be when the child turns 18 years old; however, depending on the child's state of residence, it can also be as late as age 21 or 25. At this point, the child can make decisions as he or she sees fit with how funds get invested, contributed, or spent.

YATI Tip: A custodian can generally withdraw contributions (but not investment earnings) from a custodial Roth IRA tax-free and penalty-free at any time. However, if possible, it's usually best to keep funds in the account and continue to invest for the child's retirement. That way, the child's money stays invested and can continue to benefit from tax-free growth.

When contributions are made into a custodial Roth IRA, it’s considered an irrevocable gift that now belongs to the child. As a result, unlike 529 plans or other tax-advantaged savings accounts for kids, assets placed into custodial Roth IRAs can’t be transferred to another person.

Custodial accounts generally offer flexibility, too. Money held in a custodial account typically can go toward any number of expenses—as long as they benefit the child. For example, funds in a custodial brokerage account don’t need to be earmarked for one specific purpose, such as how money in a 529 plan generally must go toward qualified education expenses. (However, custodial Roth IRAs will have the same spending limitations as Roth IRAs for adults.) There’s general flexibility in how you invest custodial account funds for the benefit of a child as well. The account can hold investments in stocks, bonds, ETFs, mutual funds, and other traditional financial assets.

And custodial accounts are an excellent tool for teaching kids about money. By saving and investing with real money they'll actually control one day, children can see firsthand how funds in a custodial account can grow over time. They can also learn how to research stocks. Parents also feel more comfortable knowing that this learning process is supervised while the account is still under the custodian’s control.

Related: Roth IRA vs. 529 Plan: Which Is Better For College Savings?

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What’s the Best Custodial Roth IRA for Kids?

Now that you know more about Roth IRAs and custodial accounts, perhaps you’re ready to take the next step and open a Roth IRA for your child.

You have many different options for custodial Roth IRAs, including investing with a brokerage or bank. In most cases, your Roth IRA for kids should be an investment account. Brokerage accounts offer much higher potential returns than bank Roth IRAs, most of which only allow you to invest in CDs, money market accounts, and other interest-bearing products.

While there’s no black-and-white “best account,” there are some considerations that can help you make a decision for what will work best for your individual financial situation.

- Fees. This is one of the most common considerations when choosing an account. Typically, custodial accounts have low or no fees if you’re a customer with a brokerage firm. Some firms charge trading commissions, while others opt for a monthly or annual fee. A free stock trading app might also come with the account. Some brokers even offer free stocks for signing up and opening an account.

- Account minimums. Before opening an account, look into how much you'll need to cough up as an initial deposit and the minimum account balance you'll need to maintain.

- Investment options. You'll also want to think about the types of investment options available. Some custodial accounts offer a wide range of investment choices, while others provide guardrails with fewer choices but simplified offerings.

- Investment support. You shouldn't need to be an investment professional with ten years of Wall Street experience to manage your account. However, sometimes you want a little help beyond your own knowledge or a simplified menu of investment options. Some brokers offer research and resources to help you make your own stock picks, while others provide free personal advice and support. Choose the online broker that meets your needs.

If you need some additional help picking the right custodial Roth IRA for you, read on to see my top pick available today.

Related: How to Give Stocks as a Gift in a Tax-Efficient Way

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E*Trade: IRAs for Minors

- Available: Read Our Review

- Platforms: Web, mobile app (Apple iOS, Android)

Most people know E*Trade as one of the leading providers of individual brokerage accounts, but you can also put the powerful platform to work saving for your child’s future.

E*Trade’s IRA for Minors offering allows you to open up a traditional custodial IRA or a custodial Roth IRA for children under age 18 who have earned income. Within the account, you can build a personalized portfolio through thousands of stocks, bonds, ETFs, and mutual funds, or you can have E*Trade select your holdings for you through its Core Portfolio robo-advisory service.

Just like with its individual brokerage accounts, E*Trade custodial IRAs offer zero-commission stock, ETF, and options trading. It also has a leg up on some platforms by offering $0-commission mutual fund trading.

And if you want to learn more about investing—or want your young one to learn alongside you—E*Trade also boasts educational resources, including articles, videos, classes, monthly webinars, and even live events.

Visit our E*Trade review to learn more or sign up today.

Related: Best Free Debit Cards for Kids and Teens

Related: 10 Best Monthly Dividend Stocks for Frequent, Regular Income

The vast majority of American dividend stocks pay regular, reliable payouts—and they do so at a more frequent clip (quarterly) than dividend stocks in most other countries (typically every six months or year).

Still, if you’ve ever thought to yourself, “it’d sure be nice to collect these dividends more often,” you don’t have to look far. While they’re not terribly common, American exchanges boast dozens of monthly dividend stocks.

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But some dividend stocks take the generosity a step further by occasionally increasing the amount they pay out to their shareholders. Others go the extra mile by doing so every year. And a select few really set themselves apart from the crowd by doing so every year for so many years that someone decided to slap a label on them:

Dividend Aristocrats.

Today, I'm going to tell you a little bit about the Dividend Aristocrats, then highlight the 10 best-rated members of a particular blue-chip subset called the S&P 500 Dividend Aristocrats.

Editor's Note: Tabular data presented in this article is up-to-date as of May 5, 2026.

Disclaimer: This article does not constitute individualized investment advice. Individual securities, funds, and/or other investments appear for your consideration and not as personalized investment recommendations. Act at your own discretion.

Why You Should Care About Dividend Growth

When a company starts up a dividend program, that in and of itself is a powerful statement by corporate management about that company's ability to generate profits. If logically implies that they expect their business to regularly produce a level of earnings so high, they can afford to share some of it with us.

That's great! If a business wasn't paying us squat on Monday, then decided on Tuesday to start paying us a dollar per share every year for the rest of my life? Well, you wouldn't hear a peep of complaint out of me.

But what if a company started paying us a dollar per share one year, then raised it every year after that? I'd argue that would look a lot more attractive, for several reasons:

1. A higher dividend over time means a higher "yield on cost" for us. If we bought a share of stock for $100, that $1 per share would equal a 1% yield on our purchase. If the stock price and dividend both doubled, to $200 per share and $2, respectively, new investors would still be buying at a 1% yield. But us? We'd be earning 2% on our original $100 purchase.
2. A higher dividend over time fends off inflation. In most years, we experience inflation, which is when the worth of our currency slightly declines. So $1 worth of groceries, gas, etc. this year will generally buy you slightly less groceries, gas, etc. next year. High inflation over the past few years really drives home this point—according to the U.S. Bureau of Labor Statistics, in May 2026 you would need $1.96 to buy what $1 could have bought in January 2020, right before the COVID pandemic hit a fever pitch. So if you receive $1 in dividends every year in perpetuity, your dividend income will lose its value over time. But if that initial $1 dividend is raised enough every year, your income could keep pace with (or even outrun) inflation.
3. A higher dividend can be a sign of quality. Just like initiating a dividend says "we have so much money that you can have some," a track record of raising dividends typically signals a company's ability to continue growing its bottom line.

Put simply: Regular dividend growth signals a higher caliber of operations (and thus potentially a higher caliber of stock), and it puts more money in our pockets. That's a lot to love.

The S&P 500 Dividend Aristocrats

The term "Dividend Aristocrats" generally refers to stocks with some sort of track record of dividend growth. There are, in fact, many types of Dividend Aristocrats—European Aristocrats, Canadian Aristocrats, mid-cap Aristocrats, and so on—and each group has a certain set of criteria for inclusion, including a baseline of dividend growth.

But most discussions around Dividend Aristocrats revolve around one particular subset: the S&P 500 Dividend Aristocrats.

The S&P 500 Dividend Aristocrats are the biggest, blue-chip dividend growers that the U.S. equity markets have to offer. And ultimately, they have to meet just two criteria for inclusion:

1. Be members of the S&P 500.
2. Have increased dividends for at least 25 consecutive years.

That second criterion needs a little explaining, however.

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There's More Than One Way to Grow Dividends Every Year

Most companies' annual dividend increases go exactly the way you'd expect: Every year, they raise the amount they regularly pay across the calendar. 

Example: Woodley Inc. (KW) distributed $1 per share every quarter in 2026, then to start 2027, it increased that payout to $1.10 per share across the whole year. 2027 would count as one year toward the 25-year streak.

However, technically speaking, dividend increases are calculated across the entire year. So what really mattered wasn't the increase from $1 to $1.10 per share, but the fact that Woodley Inc. paid out $4 per share across 2026, then $4.40 per share across 2027. Why does that matter? Well …

Example: Woodley Inc. started 2026 paying 90¢ per share per quarter. In mid-2026, it raised its quarterly payout to $1 per share. It paid $3.80 per share (90¢ + 90¢ + $1 + $1) across all of 2026. The next year, Woodley Inc. didn't increase its quarterly dividend, so it paid out $1 per share quarterly, and thus $4 per share ($1 + $1 + $1 + $1) across the whole year. 2027 would still count as one year toward the 25-year streak. (However, the company would have to increase the quarterly dividend in 2028 to earn another year of growth.)

In short: A Dividend Aristocrat doesn't necessarily have to raise its periodic dividend every year to achieve a streak of annual dividend growth. (But they frequently do.)

Lastly, whenever a Dividend Aristocrat announces a dividend increase, we in the media typically give them the benefit of the doubt and add another year to their dividend-growth streak. But on rare occasions, the year doesn't end up qualifying, usually resulting in a broken streak and exclusion from the Aristocrats.

Example: Woodley Inc. paid $1 per share quarterly in 2026, good for $4 per share across the entire year. In January 2027, the company increased the quarterly dividend to $1.10 per share. In mid-year, sudden cash-flow issues forced the company to reduce its dividend by 50%, to 55¢ per share. Woodley Inc. paid out $3.30 per share ($1.10 + $1.10 + 55¢ + 55¢) across 2027. That would not count as a year of dividend growth, thus Woodley Inc.'s dividend-growth streak would end.

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The Best-Rated Dividend Aristocrats Right Now

Currently, there are 69 S&P 500 Dividend Aristocrats—a group of stocks that most people would generally consider to be stable, dependable companies.

But that doesn't mean they all make equally worthy investments.

Let's separate the wheat from the chaff. I'll show you the 10 best-rated Dividend Aristocrats right now, as determined by their consensus analyst rating, provided by S&P Global Market Intelligence. S&P boils down consensus ratings down to a numerical system where …

• 1 to 1.5: Strong Buy
• 1.5 to 2.5: Buy
• 2.5 to 3.5: Hold
• 3.5 to 4.5: Sell
• 4.5 to 5: Strong Sell

All of the Dividend Aristocrats on this list have a rating of 2 or less, indicating that at worst they enjoy a pretty firm consensus Buy rating, if not an outright Strong Buy rating.

I've listed all 10 stocks in reverse order of consensus analyst rating (from worst to best).

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Best Dividend Aristocrat #10: Nucor

• Sector: Materials
• Market cap: $53.0 billion
• Dividend yield: 1.0%
• Consensus analyst rating: 1.80 (Buy)

Nucor (NUE) is North America's largest steel manufacturer and recycler. It produces a wide variety of products, including hot-rolled, cold-rolled, and galvanized sheet steel products; bar steel products; and steel joists and joist girders, among other products. It also has a raw materials segment that produces direct reduced iron, processes scrap metal, and even engages in natural gas production.

It's among the top-rated materials stocks right now, too, enjoying 11 Buys versus just three Holds and a single Sell.

Related: The 7 Best Gold ETFs You Can Buy

"Nucor kicked off 2026 on a strong note, with a solid 1Q'26 beat and constructive outlook commentary," says BMO Capital Markets metals and mining analyst Katja Jancic, who rates shares at Outperform (equivalent of Buy). "Backlogs are healthy, and pricing environment continues to surprise to the upside. Meanwhile, with multiple projects advancing commissioning or ramp-up phases, Nucor's profitability and FCF generation potential are improving, in turn supporting Nucor's strategy to pursue further growth while returning capital to shareholders. We increase our estimates and target to $250."

Nucor is a highly cyclical stock whose fates are closely tethered to economic activity, both here and abroad. That's typically not going to be fertile breeding ground for dividend stability.

But NUE is an exception to the rule: It has delivered 53 years of dividend growth, good enough for inclusion among the Dividend Kings, which have raised their distributions for at least 50 years without interruption. No. 53 came in December 2025, when the company raised its payout by 1.8%, to 56¢ per share.

Related: How to Get Free Stocks for Signing Up: 9 Apps w/Free Shares

Best Dividend Aristocrat #9: Amcor

• Sector: Consumer discretionary
• Market cap: $17.5 billion
• Dividend yield: 6.9%
• Consensus analyst rating: 1.75 (Buy)

Amcor (AMCR) produces flexible and rigid packaging products for a wide variety of industries. Its rigid packaging is used on any number of grocery-store items, including soft drinks, water, sports drinks, sauces, spreads, even personal-care items, while its flexible packaging is used in the food-and-beverage, medical, and pharmaceutical industries, among others. (Thus, while Amcor is considered a consumer discretionary name, it's truly closer to being a consumer-industrial hybrid.)

Amcor grew considerably bigger last year, acquiring rival Berry Global in April 2025 to create a combined entity with more than 400 facilities and 75,000 employees, and boasting a reach of over 40 countries. But it has grown smaller this year by virtue of a double-digit decline on the back of elevated energy and freight costs, courtesy of America's war on Iran. 

Related: 8 Best-in-Class Bond Funds to Buy

Regardless, analysts remain bullish overall, with AMCR shares boasting eight Buys, four Holds, and no Sells. That puts it among the 10 best-rated Dividend Aristocrats right now.

"We believe the company has multiple avenues at its disposal to drive more pronounced volume growth, EBITDA, and FCF [following the Berry] acquisition, which we view as a transformational transaction," says Truist Managing Director Michael Roxland, who rates shares at Buy. "Volumes should improve by at least 100bps through a combination of cross-selling, new geographies, and do-it-yourself. Further, EBITDA and FCF growth will be driven by better volumes as well as cost synergies, which we believe have upside."

This Aristocrat currently has more than four decades of uninterrupted dividend growth. It marked 42 years with the announcement of a 2% raise, to 65¢ per share, in November 2025. (Note: The dividend amount here has been adjusted for a 1-for-5 reverse stock split, also announced in November, that was completed in mid-January 2026. At the time of the announcement, the increase was listed as a 2% raise to 13¢ per share.)

Related: 14 Best Investing Research & Stock Analysis Websites [2026]

Best Dividend Aristocrat #8: AbbVie

• Sector: Consumer discretionary
• Market cap: $364.8 billion
• Dividend yield: 3.3%
• Consensus analyst rating: 1.75 (Buy)

AbbVie (ABBV) is a mega-cap biopharmaceutical company that was spun off of fellow Dividend Aristocrat Abbott Laboratories (ABT) in 2013.

It has a wide and deep lineup. Some of its best-known drugs include Skyrizi (autoimmune diseases) and Rinvoq (inflammatory diseases), and it has several cancer drugs including Imbruvia, Venclexta, and Elahere. Its other medicines treat everything from schizophrenia and bipolar disorder to Parkinson's and migraines. AbbVie also offers a number of eye-care products including Refresh/Optive, Durysta, and Restasis, and even cosmetic therapies for crow's feet, forehead lines, and facial volume loss.

ABBV, like much of the healthcare sector, is sitting in the red this year. But the Street remains optimistic after a strong first-quarter earnings report released in late April.

Related: 10 Best ETFs to Beat Back a Bear Market

"While competition will continue to be something to monitor, management's strong commentary on Skyrizi growth and market share combined with success of the subcutaneous induction regimen in Crohn's disease and intriguing combination data with ABBV-382 in Crohn’s disease bolster longer-term competitiveness of the company’s immunology franchise," say William Blair analysts, who rate the stock at Outperform. "Combined with bullish commentary on Temab-A, the Parkinson's and migraine portfolio, and earlier-stage assets, we continue to believe there are reasons to be constructive on AbbVie shares."

William Blair is among 24 research firms that rate ABBV a Buy. Another eight say the stock is a Hold, and no one's calling it a Sell at present.

AbbVie is another Dividend King, with 54 consecutive years of payout raises. The most dividend increase came in January 2026, when the company announced a 5.5% improvement to $1.73 per share.

Best Dividend Aristocrat #7: Coca-Cola

• Sector: Consumer staples
• Market cap: $337.7 billion
• Dividend yield: 2.7%
• Consensus analyst rating: 1.71 (Buy)

The Dividend Aristocrats are littered with consumer staples stocks: companies that make goods considered to be basic necessities.

It's pretty easy to understand why. When times get tough, households might spend less on vacations and designer jeans, but they're not going to stop going to the grocery store. (This is why staples make for some of the best dividend stocks for beginners, too.)

Take Atlanta-based beverage titan Coca-Cola (KO), which has more than 130 years of operating history and currently serves up more than 200 brands to more than 200 countries and territories.

Sugary soft drinks might not be a growth business in an age of healthier living, but Coca-Cola products still enjoy strong baseline demand. But more importantly: This mega-cap powerhouse is more than just Coke. Coca-Cola boasts a wide variety of other beverage brands, including Vitaminwater and Dasani water, Fuze teas, Powerade sports drinks, Minute Maid juices, Costa Coffee, Fairlife ultra-filtered milk, and many more drinks that are likely to meet your definition of a household staple.

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But Coke isn't just a consumer staples stock—it's one of the best, boasting a huge bull contingent of 19 Buys versus five Holds and not a single Sell call right now.

"Coke's new CEO (Elect) Henrique Braun laid out his vision at CAGNY, which we view as evolutionary rather than revolutionary, and makes sense given clear existing business model/execution advantages," says Morgan Stanley analyst Dara Mohsenian, who rates the stock at Overweight. "We see Coke as a strong long-term compounder with sustained higher organic sales growth than peers."

"We came away from the day with a view that the company's '26 outlook is embedding additional flexibility to account for an external environment that remans volatile/unpredictable (particularly on the margin front) and will likely prove to be more than achievable," UBS analyst Peter Grom (Buy) adds.

And then there's Coca-Cola's place among the Dividend Aristocrats (and Kings). KO currently boasts 64 years of unfettered dividend growth, most recently announcing a 4% hike to its payout (to 53¢ per share) in February 2026.

Related: 7 Best Value Stocks to Buy Right Now

Best Dividend Aristocrat #6: Abbott Laboratories

• Sector: Healthcare
• Market cap: $151.8 billion
• Dividend yield: 2.9%
• Consensus analyst rating: 1.68 (Buy)

Abbott Laboratories (ABT) is a large healthcare firm that develops, makes, and sells medical devices, diagnostic products, nutritional products, and generic pharmaceuticals. Among other things, it's responsible for FreeStyle (and FreeStyle Libre) glucose monitors, Pedialyte hydration products, Similac formulas, PediaSure children's nutritional products, and BinaxNow COVID-19 antigen tests.

It's also the owner of Cologuard screening tests following the March 2026 closure of its acquisition of Exact Sciences.

Medical devices are Abbott's biggest breadwinner at nearly half of revenues, and they've been a key driver of growth of late. The company has reported 13 consecutive quarters of double-digit top-line growth in medical devices; in the first quarter of 2026, it enjoyed a 14% year-over-year improvement in electrophysiology revenues and 11% growth in heart failure product sales.

Abbott has been weighed down by short-term headwinds, including weakness in nutrition that could persist through the first half of this year. Regardless, ABT enjoys a crowded bull camp of 21 Buys (versus seven Holds and no sells).

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"Abbott’s pivot to a price-cutting strategy in Nutrition raises concerns about increased competition in the market," says Argus Research analyst David Toung (Buy). "On the other hand, we believe Abbott’s growth drivers (including the FreeStyle Libre, electrophysiology products, leadless pacemakers, and cardiovascular devices) as well as its ability to develop and launch new products could lead to continued growth in sales and earnings. We note that Abbott plans to expand the FreeStyle portfolio beyond the diabetic market to the consumer market."

"Abbott's continued growth on the MedTech side, disciplined M&A, and margin leverage over time buoy our constructive stance on the name," add Oppenheimer analysts, who rate the stock at Outperform [equivalent of Buy]. "The relative buffers provided by the different business segments, the cash-on-hand, dividend yield, and potential for margin expansion form the basis of our constructive stance on the name."

Abbott is another Dividend King, this one boasting 54 years of uninterrupted dividend growth. The most recent increase to the quarterly payout—a 7% hike to 63¢ per share—was announced in December 2025. The distribution itself dates back more than a century, to 1924.

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Best Dividend Aristocrat #5: Linde

• Sector: Materials
• Market cap: $231.4 billion
• Dividend yield: 1.3%
• Consensus analyst rating: 1.68 (Buy)

Materials companies are often extremely cyclical investments that tend to rise and fall based on broad-based economic trends and industrial demand. That said, a few have passed the test of time and managed to deliver consistent dividends regardless.

Case in point: Ireland-based Linde plc (LIN). Linde is the world's largest industrial gas producer, offering oxygen, nitrogen, argon, helium, hydrogen, electronic gases, acetylene, and rare gases. It also produces air separation, synthesis, olefin, and other plants for third-party customers. And it does this across every continent.

It's a cyclical business, but Linde offers some shelter from the economic shocks that many of its businessmates suffer. That's in part because of its diverse offerings, but also because of the industries it supplies.

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"The company has a strong presence in many defensive end markets, including healthcare, food and beverages, and electronics that should generate consistent revenues even in a soft economic environment," says Argus Research analyst Alexandra Yates, who is one of 21 Buys on LIN shares (vs. seven Holds and no Sells). "In addition, Linde currently manages a significant $10 billion backlog of projects, mostly under contract with blue-chip companies, which provide strong and steady cash flow and maintain a solid balance sheet. The long-term contracts allow for safe and consistent returns and position the company for future growth."

In fact, its business has been so relatively stable that it has—by virtue of its 2018 merger with fellow gas giant Praxair—been able to deliver 33 consecutive years of increased dividends to its shareholders, most recently a 7% hike announced in February 2026, to $1.60 per share.

While long-term buy-and-holders might look away from the materials sector, Linde sticks out as both a Dividend Aristocrat and a surprisingly stable "forever stock."

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Best Dividend Aristocrat #4: West Pharmaceutical

• Sector: Healthcare
• Market cap: $21.9 billion
• Dividend yield: 0.3%
• Consensus analyst rating: 1.53 (Buy)

When is a pharmaceutical company not a pharmaceutical company? When it's West Pharmaceutical (WST).

Apologies to those of you who hate riddles, but West Pharmaceuticals doesn't deal in drugs. Instead, it designs, manufactures, and sells the containment and delivery systems that house drugs. Its products include syringe and cartridge components, stoppers and seals for injectable packaging systems, entire self-injection systems, and drug containment solutions (including a cyclic olefin polymer called Crystal Zenith). It also provides analytical lab services, regulatory expertise, and other integrated solutions.

In short: Whereas buying a pharmaceutical company is a play on the success of that pharmaceutical company's treatments, buying West Pharmaceutical is effectively a play on the overall growth of the pharmaceutical industry … and, of course, West's ability to convince other pharmaceutical companies that it's the ideal packaging partner.

Related: 8 Best T. Rowe Price Funds to Buy for 2026

Wall Street is certainly convinced—the stock enjoys 12 Buys versus three Holds and no Sells.

"We rate the stock Outperform, and that rating is predicated on West being a high-quality, franchise name that provides quality and dependable earnings and cash flow, a clear leadership competitive position, and access to attractive end-market trends without single-product or technology risk," William Blair analysts Matt Larew and Jacob Krahenbuhl wrote in January. More recently, in March, the pair reiterated their Outperform rating after West announced that CEO Eric Green would retire from his position as soon as a successor is named. "From speaking with the company, it does sound like this was a personal decision, and we expect the role to attract high-quality interest."

A business built on the broader growth of the healthcare sector has also meant growing income over time, which WST has been happy to increasingly share with investors. In late July 2025, the company announced its 33rd consecutive hike to the cash distribution—a 22¢-per-share dividend it began paying in November.

Related: 9 Best Vanguard Retirement Funds [Start Saving in 2026]

Best Dividend Aristocrat #3: Walmart

• Sector: Consumer staples
• Market cap: $1.0 trillion
• Dividend yield: 0.8%
• Consensus analyst rating: 1.45 (Strong Buy)

Walmart (WMT) needs no introduction, but I'll give it one anyways.

Walmart is a global retailing behemoth, recently eclipsing $1 trillion in market capitalization. It operates nearly 11,000 stores and clubs in 19 countries, including 4,600 stores—not just Supercenters, but also discount stores, Neighborhood Markets and small-format stores—in the U.S. That doesn't even include its 600 Sam's Club warehouse-club locations.

WMT is frequently contrasted with fellow big-box store Target—the former is considered a lower-priced but lower-quality retailer, while the latter is pricier but perceived to be more upscale. But Walmart has been addressing this in numerous ways over the past few years, including improving store standards and widening price gaps.

Now, Walmart is going after beauty.

Related: The 7 Best REITs to Buy for 2026

"Management believes it can double the size of its beauty biz, noting that while WMT already serves the beauty shopper, ~60% of her spend still occurs elsewhere," says a team of Jefferies analysts, which rates shares at Buy. "That gap represents a meaningful wallet-share opportunity as assortment improves and the in-store experience elevates. WMT US digital is expected to lead growth and drive share gains."

Also helping Walmart is its continued rapid technological adoption to address changing consumer interests. For instance, its AI partnership is expected to benefit from reports that OpenAI is retreating from its idea to introduce direct shopping within ChatGPT, instead directing product checkouts to retailer apps.

"We view this as a net positive for Walmart," say BofA Global Research analysts Christopher Nardone and Madeline Cech (Buy). "This change would bring about an integrated commerce solution that's similar to Walmart's partnership with Google's Gemini (announced in January). There will likely be fewer retailers (at first) with this integrated app capability and once Sparky is integrated within the platform, Walmart should have an advantage showing up in searches given its low pricing and vast product assortment."

Walmart is among the best-rated Dividend Aristocrats there are, boasting 38 Buys versus three Holds and one Sell right now. WMT also enjoys King status; its 53rd consecutive dividend improvement came in March 2026, when it juiced its distribution by 5%, to 24.75¢ per share. 

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Best Dividend Aristocrat #2: Cardinal Health

• Sector: Healthcare
• Market cap: $46.1 billion
• Dividend yield: 1.0%
• Consensus analyst rating: 1.41 (Strong Buy)

Cardinal Health (CAH) is a relatively boring but extremely essential cog in the healthcare machine, providing both products and services to hospitals, healthcare systems, pharmacies, ambulatory surgery centers, physician offices, even home patients.

Just a small sample of its offerings include distributing branded, generic, and specialty pharmaceutical, medical supplies, over-the-counter healthcare products, and consumer products; pharmacy management services; Cardinal Health-manufactured and branded medical, surgical, and laboratory products; and supply chain services. This wide reach provides both revenue diversification across the sector, as well as ample opportunity for growth in several segments.

Related: 8 Best Stock Portfolio Tracking Apps [Portfolio Trackers]

Cardinal shares rocketed higher in 2025, up 76% on a total-return basis (price plus dividends). It's down in 2026, however, though you can't blame its fiscal third-quarter earnings report, released in late April.

"We view the CAH thesis as unchanged with underlying growth trends across the Pharma and 'Other' segments remaining strong as management continues to execute and deliver earnings beats and guidance raises," says Jefferies analyst Brian Tanquilut, who rates the stock at Buy. "We read early FY27 commentary from management positively and believe they should initially guide to at least the +12% to 14% EPS growth [long-range plan]."

The consensus is for more of the same; Tanquilut is one of 15 Buys on the stock, in contrast to two Holds and no Sells.

Cardinal Health also extended its dividend growth streak in May 2026, when it raised its payout by 1% to 51.58¢ per share. That puts the Dividend Aristocrat at 30 years of uninterrupted payout increases.

Best Dividend Aristocrat #1: S&P Global

• Sector: Financials
• Market cap: $125.5 billion
• Dividend yield: 0.9%
• Consensus analyst rating: 1.29 (Strong Buy)

I get a little enjoyment out of informing you that S&P Global (SPGI)—parent of S&P Dow Jones Indices, which produces the S&P 500—is also the best-ranked Dividend Aristocrat within the S&P 500.

The S&P 500, of course, is America's most ubiquitous index—literally trillions of dollars worth of fund assets are either indexed to it or benchmarked against it. (And as I point out every year in my list of the best ETFs, active managers have a really hard time beating it.)

Related: How to Choose a Financial Advisor

But S&P Global is more than just the S&P 500. It's also responsible for the Dow Jones Industrial Average, the Dow Jones Transportation Index (the oldest index in use), and more than a million other indexes across a number of asset classes. It's also home to …

• S&P Global Ratings: Credit ratings, research, and analytics
• S&P Global Commodity Insights: Information and benchmark prices for commodities and energy
• S&P Global Market Intelligence: A wide variety of financial markets and asset data and analytics, enterprise technology, and advisory services.
• S&P Global Mobility: Solutions for vehicle manufacturers, automotive suppliers, mobility service providers, and other companies in the automotive value chain. (Note: The company announced in 2025 that Mobility will be spun off, likely sometime this year.)

"We are Buy rated on S&P Global (SPGI) seeing the company as a bellwether for the info services sector and a category leader for financial analytics and essential services," says Citi analyst Peter Christiansen, who rates shares at Buy. "We think investors can appreciate the company’s diversification across various asset classes and high degree of subscription/recurring revenue (>50% subscription, ~30% recurring), which positions the company well in both positive and challenging market environments."

SPGI took a big hit in early February on the back of a mixed fourth-quarter earnings report that further fueled worries about AI disruption, but it has since leveled off and produced a much better Q1 2026 report in late April.

This varied and growing set of businesses has allowed S&P Global to pay dividends every year since 1937, as well as grow those dividends for 53 consecutive years. That makes SPGI a King, too. (You can check out our full list of Dividend Kings to see which other stocks make the cut.) The company's latest improvement was a 1% uptick, to 97¢ per share, announced in January 2026.

Wall Street remains overwhelmingly bullish; 23 pros call it a Buy, versus one Hold and no Sells. That makes it tops among the Dividend Aristocrats ... for now.

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Investment advisory services offered through NewEdge Advisors, a registered investment advisor.

Related: 7 Best Vanguard Dividend Funds for 2026 [Low-Cost Income]

What's better than a smart, sound dividend income strategy? How about a smart, sound dividend income strategy with very little money coming out of your pocket?

If that sounds good to you, you need look no farther than low-cost pioneer Vanguard, which offers up a number of payout-oriented products. Find out what you need to know in our list of seven top-notch Vanguard dividend funds.

Related: The 10 Best Dividend ETFs [Get Income + Diversify]

We love exchange-traded funds (ETFs) because they can provide one-click access to hundreds, even thousands of stocks, while charging often minuscule fees.

One way to put that low-cost diversification to work? Collecting dividends. But trying to choose from literally hundreds of income-producing funds could take up a lot more time than you have. So let us help you narrow the field—check out our list of 10 top dividend ETFs.

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Standard deduction amounts are adjusted each year to account for inflation, which helps taxpayers by increasing their deduction nearly every year. Those increases have become milder over the past couple of years as inflation has been pared down. Still, for smart taxpayers who want to start thinking about their 2026 tax situation now, the IRS has already released the standard deduction amounts for the 2026 tax year.

Want to get a jump on your 2026 tax planning? Read on, as we lay out all of the various standard deduction amounts for next year. This is typically the most important tax deduction for about 90% of all Americans—so it’s something you definitely want to be on top of well before it’s time to file your return.

Standard Deduction Amounts for the 2026 Tax Year

Your standard deduction for the year primarily depends on your filing status, but it can also be impacted by your age, whether or not you’re a dependent, and even your vision.

For the 2026 tax year, the basic standard deduction based on your filing status will be as follows:

Standard Deduction Limit for Dependents

The basic standard deduction is capped for people who can be claimed as a dependent on someone else’s tax return. For 2026, a dependent’s basic standard deduction will be limited to the greater of:

• $1,350
• Your earned income plus $450 (but not more than the applicable basic standard deduction amount)

Earned income includes salaries, wages, tips, professional fees, and other compensation for work. It also includes any part of a taxable scholarship or fellowship grant.

Related: Federal Tax Brackets and Rates for 2025+ 2026

Additional Standard Deduction for Age and/or Blindness

Anyone who’s at least 65 years old or legally blind at the end of next year will be able to claim the following additional standard deduction amount for the 2026 tax year:

• $1,650 for married couples filing jointly, married taxpayers filing separately, and surviving spouses
• $2,050 for single and head-of-household filers

For married couples who file a joint tax return, both spouses will get an additional standard deduction for being at least 65 years old or blind. If you or your spouse is both 65 or older and blind, then the additional deduction for that person will be doubled.

If you’re married but file a separate return, your spouse will be eligible for the additional standard deduction on your return only if he or she has no income, isn't filing a return, and can't be claimed as a dependent on someone else’s tax return for the tax year. The additional deduction will also be doubled for separate filers for either qualifying spouse who is both 65 or older and blind.

For more on the standard deduction, including the 2025 standard deduction amounts, see What Is the Standard Deduction?

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Senior Deduction

The passage of the 2025 budget reconciliation bill also ushered in a new (albeit temporary) Senior Deduction. 

To qualify for the Senior Deduction, you must turn 65 within the tax year you want to claim it, you must have a Social Security number (an individual taxpayer identification number, or ITIN, is not enough), and if you're married, you must file a joint return. You can take the Senior Deduction regardless of whether you itemize or take the standard deduction, and you can take it in addition to the additional standard deduction.

All qualified seniors start with a $6,000 deduction. If you’re married and filing a joint return, both you and your spouse start with a $6,000 deduction, for a total of $12,000. However, if your “modified adjusted gross income” (MAGI) is more than $75,000 ($150,000 if you’re filing a joint return), then your $6,000 deduction is reduced by 6¢ for every dollar of MAGI over the applicable threshold. The $6,000 deduction is reduced all the way to $0 when your MAGI reaches $175,000 ($250,000 for joint filers).

For purposes of this deduction, MAGI is equal to the adjusted gross income reported on your tax return, plus any:

• foreign earned income or housing excluded from taxation
• income excluded from taxation for residents of Guam, American Samoa, the Northern Mariana Islands, or Puerto Rico

Example: Suzanne is 80 years old and single. Her MAGI for the year is $90,000, which is $15,000 over the phase-out threshold for single taxpayers ($90,000 – $75,000 = $15,000). As a result, her deduction is reduced by $900 ($15,000 x .06 = $900). So, her Senior Deduction for the year is $5,100 ($6,000 – $900 = $5,100).

Just note that the Senior Deduction is temporary: Per the reconciliation bill, it is only available through the 2028 tax year. It also will not change in value from one year to the next.

Related: Capital Gains Tax Rates [2025+2026]

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Inflation Adjustments for the 2026 Standard Deduction Amounts

The 2026 basic standard deduction amounts represent an increase of 2.22%. That continues a string of smaller increases, including 2.7% for 2025, 5.4% for 2024 (5.3% for head-of-household filers), and 6.95% for 2023 (7.22% for head-of-household filers).

Young and the Invested Tip: The 2.2% increase translates to a $350 jump in the basic standard deduction from 2025 to 2026 for single taxpayers, an $700 rise for joint filers, and a $525 boost for head-of-household filers.

When the standard deduction was nearly doubled by the Tax Cuts and Jobs Act of 2017 (starting with the 2018 tax year), annual increases were more modest. High inflation in the post-COVID era resulted in much larger-than-usual hikes in the standard deduction, with the size of those increases shrinking as inflation has slowed.

Also worth noting is that the 2025 budget reconciliation bill provided an additional increase in the standard deduction.

You can see the standard deduction's changes over time in the table below:

Note that, if any increase triggered by the inflation adjustment rules is not a multiple of $50, the increase is rounded to the next lowest multiple of $50.

Related: Tax-Loss Harvesting: How Investors Can Cut Their Tax Bill

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But your retirement savings don't need to suffer just because you didn't earn a degree in finance or accounting. For a long time, you could have someone handle your investing for you—or, thanks to the advent of robo-investing, you can have something do the job instead.

The demand for financial help is growing, and robo-advisors are helping to fill that need. Robo-advisors—which use algorithms and sometimes artificial intelligence (AI) to choose a client's investments—are expected to manage more than $4.6 trillion worldwide by 2027, according to data from Statista Market Insights.

But can you trust robo-advisors with your money, or should you leave your nest egg in the hands of a human financial advisor? Well, read on, and I'll help you make a more informed choice by going over the pros and cons of robo-advisors, then briefly discussing which people are best suited for robo-advisors vs. human management.

Advantages of Robo-Advisors

Robo-advisors are one of the latest in a long line of innovations—index funds, exchange-traded funds, fractional shares—that have made investing more accessible to the masses.

Specifically, robo-advisors fill a need for people who want some direct help in constructing a portfolio, but who either don't want or can't access the help of a human financial advisor. Although in some cases, it's just a matter of preference.

To understand more about why people invest with robo-advisors, I'll start by looking at the advantages of this technology. Each "pro" listed here is a general upside for robo-advisory products; however, there might be specific instances in which the advantage doesn't apply.

They're Time-Efficient

I've had to review a number of robo-advisory products over the years, and virtually all of those reviews have included the setup process.

So you can take it to the bank: Getting set up with a robo-advisor is typically quick and easy.

Most of the robo-advisory services out there are attached to a brokerage firm. So, if you've already opened a brokerage or retirement account, the hard part (paperwork, linking a bank account) is done! Setting up the robo-advisory feature itself involves simply providing some basic information and answering a few financial questions, often involving risk tolerance, time horizon, and financial goals, among other things). Your responses will educate the robo-advisor's investment choices.

Better still, many robo-advisors provide automatic rebalancing and even other portfolio adjustments on a regular basis, which means you don't just save time upon setup—you save time over the years by not having to manually tweak your holdings.

Robo-advisory services are often referred to as "set-it-and-forget-it" solutions, and I'm sure Ron Popeil would agree.

Related: Budgeting in Retirement: Our Step-by-Step Guide

They're Cost-Efficient

Robo-advisors won't just save you time … they frequently will save you money, too.

To be clear: From one advisor to the next, pricing can vary wildly for both human financial advisors and robo-advisors.

Still, a 2023 AdvisoryHQ report gives us a good idea of what we can broadly expect. According to AdvisoryHQ, traditional financial advisor fees for the "percentage of assets under management (AUM)" pricing structure usually fall between 0.59% and 1.18%, with many advisors charging lower fees for clients with greater assets. Robo-advisory fees can sometimes vary based on assets, but typically fall between 0.25% and 0.50%.

Some human advisors may charge a flat rate per period, instead—say, $2,000 a year. The percentage you'd be charged would depend on how much in assets you were investing. Thus, someone with lesser assets might be overcharged, while someone with greater assets might be getting a good deal. 

A few robo-advisors offer flat-dollar fees, and of those, some have a hybrid model where clients are charged a flat-dollar fee up to a certain level of AUM, then a percentage-of-AUM fee above that threshold.

Another way in which robo-advisors might save you money is in "acquired fund fees." Regardless of whether you go human or go robot, financial advisors typically will invest most if not all of your money in investment funds—and these funds charge their own management fees. That said, robo-advisors frequently lean toward exchange-traded funds (ETFs), with an emphasis on low-fee products. Human advisors sometimes utilize ETFs only, but more commonly, they'll use a blend of mutual funds and ETFs, or mutual funds exclusively. Depending on which mutual funds (and which share classes) they're invested in, your costs could be significantly more than an all-ETF portfolio.

In short: While assessing an advisor, human or otherwise, determine the fees they charge for management—as well as the fees charged by the funds they hold.

Related: How Much Does Financial Advice Cost?

They Require Less Money to Begin Investing

"It takes money to make money," or so the saying goes.

But how much money does it take?

Well, if you're asking that as it pertains to advisory services, it usually takes a lot more money to start with a financial advisor than it does to start with a robo-advisor.

Necessary minimum asset thresholds can vary significantly depending on the advisor and the services they provide. But it's unusual to find an advisor who will accept clients with less than $25,000 in liquid assets, and the starting line is typically much more than that—in many cases, six or even seven digits.

Minimum initial investments are much, much lower for robo-advisors, though these levels can vary, too. For instance, Betterment starts at $10, Vanguard Digital Advisor requires a $100 account minimum, and Wealthfront's robo-advisory services require a $500 account minimum.

Related: Are You Saving Enough for Retirement?

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More Accessible

Past lower fees and lower asset requirements, robo-advisory services often simply feel more accessible to your average person who knows little to nothing about investing.

The sign-up process is typically very straightforward. If you have social anxiety, you don't have to worry about having to field a sales pitch. Robo-advisors rarely deal in complex assets, so you can get an understanding of their portfolios in just a few bullet points. They're also good at keeping financial jargon to a minimum.

For what it's worth, many good financial advisors share these qualities—they keep terminology simple, they don't build exotic portfolios, and they have straightforward pricing that they list upfront. But on the whole, robo-advisors are more likely to exhibit these traits than human advisors.

Related: 10 Best Dividend Stocks to Buy [Steady Eddies]

Disadvantages of Robo-Advisors

Of course, there's a reason why robo-advisors command a sliver of assets compared to human managers, and why most surveys show that investors trust human advisors more.

Actually, there are a few reasons.

For all of their benefits, robo-advisors do have some downsides. These might not necessarily be deal-killers in your book, but they're worthwhile shortcomings that anyone should understand before signing up for one of these services.

Like with advantages, each "con" listed here applies in a broader sense, but specific exceptions might apply.

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They Provide Less Portfolio Customization

Investment management is both an art and a science.

Most of the science is done on the computer front, whether you're dealing with a human or a robo-advisor. Even human advisors use algorithms and other technology to assist in modeling and assembling an ideal portfolio.

But the art aspect comes from the input—that is, getting the information from the client that ultimately educates the portfolio.

A robo-advisory service will ask a limited number of questions, then generate a portfolio for you based on the answer to those questions. And anyone with a similar profile as you might end up with the exact same portfolio.

A human advisor will have set questions too, but they'll typically have many more questions to start with … and they have the ability and agency to pore even deeper as your conversations progress. The ability to go beyond a standardized list of queries allows advisors to personalize your portfolio in a way that an AI investing system simply can't.

They're Less Capable of Adjusting to Your Financial Situation

Robo-advisors tend to be limited from the get-go. They frequently invest only in a fixed number of ETFs, limiting both what you can invest in through the wider world of ETFs, not to mention your ability to own individual stocks and bonds, mutual funds, alternative investments, and more.

Additionally, robo-advisors may have a limited ability to pivot for you when your financial situation changes. You might be able to go back through the system and adjust original answers to questions about your risk tolerance and desired aggression. But a robo-advisor typically won't know how to handle the complexities that come with major life events, such as a marriage, divorce, new addition to the family, buying a home, or developing a disability.

Related: 9 Monthly Dividend Stocks for Frequent, Regular Income

They Can't Take Care of Related Financial Needs

As a general rule, human financial advisors tend to offer many more services than what you can get out of a robo-advisor, which usually only run a simple portfolio.

On the investment side, you might lose out on better account, portfolio, and tax optimization (such as tax-loss harvesting and charitable giving). And if the market is in the midst of a steep downturn, a human advisor can help you get control of your emotions and not make panicked decisions—a robo-advisor might not sell for you, but that's about all they can do.

But the differences become so much more apparent when you look outside of the investment space.

If you adopt a child, you might need help adjusting your financial goals, changing insurance coverage, and beginning an estate plan. If you get married, that can alter your retirement goals and will greatly impact your tax situation. If a financial advisor knows you run a business, they might suggest you switch to a more beneficial business structure. And human advisors can help you set up a personalized retirement withdrawal strategy that ensures you have the money you need for day-to-day expenses while also accounting for potential wealth-crushers like inflation and bear markets.

In short, robo-advisors are extremely limited in their scope. Human advisors tend to have both better breadth and depth of capabilities.

Related: Don't Make These 7 Mistakes When Choosing a Financial Advisor

Are All Robo-Advisors the Same?

Oh no, not even close.

From one robo-advisor to the next, you'll find a pretty wide differentiation in number and types of investment options and customization. Some robo-advisors might offer just a few core portfolios, while others can offer hundreds of semi-personalized portfolios based on varying combinations of funds. Some might offer income-specific funds, or environmental, social, and governance (ESG) investing options, while others might not.

Features can vary somewhat, too—a handful offer tax-loss harvesting, whereas that's too complex a task for others.

A relative rarity, but a helpful one for many investors, is the offering of a "hybrid" model where robo-advisor clients can still get access to a human advisor. The robo-advisor might handle your investments, but you can ask the advisor about why your assets have performed the way they have, whether there's any way to have the robo-advisor invest differently for you, and other financial advice. 

Guided Wealth Portfolios, for instance, are a low-cost, diversified portfolio that provides access to a financial advisor.

Related: 17 Best Investment Apps and Platforms [Free + Paid]

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Who Should Consider a Robo-Advisor?

Robo-advisors are very beginner-friendly tools. Thus, they work best for people with simple finances who don't have the time to manage their own investments. 

They're also an excellent option for people whose finances don't yet necessitate a human advisor. 

Related: How to Choose a Financial Advisor

Who Isn't a Good Fit For a Robo-Advisor?

Very high-net-worth individuals should stick to using a human advisor. Traditional advisors can offer up a much more personalized portfolio utilizing a far wider range of investments than a robo-advisor could ever hope to handle. Plus, they're far better equipped to handle complex financial situations, such as needing to set up an estate or starting a business.

If you want a professional to handle other aspects of your financial world—not just investing—talking to a human financial advisor is probably for the best, too.

Traditional advisors also make more sense if you want to regularly discuss your portfolio, or if in general you want to have a more active hand in your finances.

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Riley Adams, CPA

Licensed CPA and Financial Advisor

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Investment advisory services offered through NewEdge Advisors, a registered investment advisor.

Related: Mega-Yielding Funds You've Never Heard Of

You've assuredly heard of mutual funds and exchange-traded funds (ETFs). But how much do you know about closed-end funds (CEFs)?

If the answer is "not much," don't worry—they get a fraction of the attention of those other investment funds. But you should also learn more about them. That's because CEFs have a host of enticing characteristics, including that they frequently pay mammoth yields. Check out our list of the best CEFs, many of which pay in the high-single and even double digits.

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And in the same vein, routine maintenance now can end up both extending your vehicle's life and saving you many thousands of dollars over the long run. In just about every walk of life, it's much better (and cost-efficient) to catch and fix a smaller problem than wait for it to ruin a major vehicle component.

Today, I'm going to discuss a few car maintenance tasks that, if done regularly, can save you serious money in the long run. I'll also discuss a couple of ways to make car preservation feel like less of a drain on your finances.

Prevent Major Car Repairs With These Maintenance Tasks

Public transportation is limited in the vast majority of the country, meaning most people simply need a car to get to their job and tackle other daily tasks.

A vehicle is a costly investment, however—one that frequently demands you sink more money into it. The good news? You can reduce your chances of needing major vehicle repairs (or at least delay the breakdown of certain components) by keeping up with maintenance.

Let's go over some common car maintenance tasks that will help you prevent or delay pricey future repairs.

1. Oil Changes

The No. 1 recommendation of auto experts and concerned fathers alike: Don't forget to get your oil changed!

Of course, how often you have this performed will vary from vehicle to vehicle. From the American Automobile Association (AAA):

"Depending on vehicle age, type of oil and driving conditions, oil change intervals will vary. It used to be normal to change the oil every 3,000 miles, but with modern lubricants most engines today have recommended oil change intervals of 5,000 to 7,500 miles. Moreover, if your car's engine requires full-synthetic motor oil, it might go as far as 15,000 miles between services! You cannot judge engine oil condition by color, so follow the factory maintenance schedule for oil changes."

However, if you drive extremely infrequently, your oil still needs to be fresh. So it can be wise to get an oil change at least once or twice a year, even if you haven't reached the mileage recommendation.

The U.S. average cost of an oil change at an auto repair shop, dealership, or auto change facility is about $100 and typically includes a filter change, according to 2024 data aggregated by Yelp. The price will vary by location and provider, as well as the type of oil you use. For example, conventional motor oil is more affordable than full-synthetic oil.

So what happens if you don't get regular oil changes? 

Engine oil reduces friction between your internal car parts and stops overheating. If you skip your routine oil changes, you could reduce your fuel efficiency—in other words, you'll have to purchase gas a little more often. That'll add up over time.

A much bigger one-time hit could come in the form of engine damage. as not getting oil changes can decrease your engine's lifespan. The longer you wait to change the oil, the more dirt and debris that oil will pick up as it continues to cycle through your engine. That will wear on the engine, and eventually warp it or even cause a gasket to blow. The new price tag on an engine might land anywhere from $2,000 to more than $10,000, depending on your vehicle's model, year, and the engine you want, according to Autozone. 

Also, if you don't get regular oil changes, you could void your vehicle's warranty. Not only would you be out the money you spent on the warranty—but you would also become liable for any repairs that would have been covered by the warranty.

Put differently: A couple hundred dollars on oil changes each year is a relative bargain.

Related: 7 Best Vanguard ETFs to Buy in 2025

2. Tire Maintenance

Good tire health involves a few different components.

For one, you'll want to maintain proper tire pressure, particularly during the winter (low temperatures can make air denser and thus lower your tire pressure).

You'll also want to keep the wear even on your tires, which keeps them operating efficiently (read: gas mileage), reduces the risks of tire failure, and improves their safety. You do this by getting your tires rotated—a service you'll need about every 6,000 to 8,000 miles. The average cost of a tire rotation is between $60 and $72, according to Kelley Blue Book.

There's also tread depth. Have you ever worn down a pair of running shoes to the extent that the bottom has become too smooth and less grippy? The same can happen to your tires—and that can result in either a tire failing (which, depending on where and how it happens, can cause damage to the wheel or other parts of the car) or you losing control of your vehicle, which could result in an accident.

The "penny test" is an easy way to see how your tires are doing. Take a penny, Lincoln's head facing down, and put it between the tread ribs on a tire. If you can see his entire head, your tread might be too shallow and need to be replaced.

The price range for new tires is so wide—per J.D. Power, we're talking between $89 each for inexpensive winter tires to $1,209 a pop for Pirelli sport tires—that it's almost useless to provide an average. Your costs will vary based on your vehicle, tire type, and quality of tire. Plus you'll have installation costs, which come to about $100 for a set of four tires.

Related: 7 Best Fidelity ETFs to Buy for 2025

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3. Brake Inspections

You're obviously aware of how malfunctioning car brakes could be disastrous, but you might not realize that maintaining your braking system is a smart financial decision, too.

Brake pads, for one, need to be changed out—though not super-frequently. Pads can last anywhere between 30,000 and 70,000 miles. But when you do replace them, you'll likely pay somewhere between $115 and $270 per axle, says AutoZone. If you also replace the rotors (which work alongside brake pads to slow your wheels), you're looking at a range of $250 to $500 per axle. And a full brake repair (pads, rotors, and calipers, which house and apply pressure to the brake pads) sits around $300 to $800 per axle.

That's not exactly cheap … but if deteriorated brakes result in you getting into an accident, you'll likely pay much more either immediately via damage, or over time via a significantly stepped-up auto insurance rate.

Related: 7 Best High-Quality, High-Yield Dividend Stocks to Own

4. Air Filter Replacements

How many times have you gone to get service performed on your vehicle, and a mechanic came in to show you a dirty cabin air filter that needed to be replaced?

Believe it or not, this is a frequently reported scam in which the filter isn't even yours, your air filter is actually fine, but they managed to charge you an extra $20 or $40 for effectively nothing.

That said, cabin air filters actually do need to be replaced on the regular.

Clean air filters help engines run efficiently. Failing to replace air filters when needed, then, can lead to lower fuel efficiency (thus more money spent on gas), reduced horsepower, and even engine damage. 

You should check (and when necessary, replace) your air filter every 12,000 to 15,000 miles. RepairPal says the average cost of an air filter replacement is between $59 and $78, excluding taxes and fees. However, between $27 to $34 of that cost is the labor, and this is a task people with car familiarity can often handle themselves.

If you don't plan on replacing air filters yourself, but you want to avoid getting scammed, whenever a mechanic asks you if you want to replace your air filter and shows you a dirty one, ask them to show you where on your vehicle they pulled the filter from your vehicle (to ensure it was indeed yours).

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5. Battery Terminal Cleanings

A lesser-known car-care task is cleaning your battery terminals. If you let a battery terminal go long enough without a proper cleaning, they can begin to corrode, which in turn can cause the battery to crack or otherwise stop working.

A mechanic can perform cable battery terminal end service to make sure everything is clean for a charge of $26 to $33 on average, per RepairPal. (Alternatively, you could clean everything yourself with water, baking soda, and a $5 steel wire brush.)

If you need to replace the battery itself, you're looking at $378 to $388 on average, most of which is the battery cost itself. If you end up needing to replace the battery cables, that averages between $342 and $369, again with most of that cost coming from parts.

Related: 10 Best Dividend Stocks to Buy for Your Portfolio in 2025

6. Coolant Changes

Over time, coolant becomes more acidic. Neglecting to change your coolant means it could start to corrode your radiator, thermostat, water pump, other cooling system components, and the heater system.

Needless to say, a coolant change is preferable to the alternative of having to replace these components.

While there is a lot of variation on how often one's coolant needs to be changed, AutoZone gives a (wide!) range of 30,000 to 100,000 or two to five years. The average cost of a coolant change runs between $375 and $402 on average, RepairPal says.

An alternative for-instance? If corrosion resulted in your car needing a radiator replacement, you could be ponying up $1,068 to $1,253, on average.

Related: 7 Best T. Rowe Price Funds to Buy and Hold in 2025

7. Transmission Fluid Changes

Transmission fluid works as a lubricant to keep your transmission functioning properly. It does need to be changed, but not all that frequently. The general guidance is pretty wide—every 30,000 to 60,000 miles for manual-transmission vehicles, and every 30,000 to 100,000 miles for automatic-transition vehicles.

Some vehicles claim to have "lifetime fluid," but even then, it's still generally recommended to replace your fluid every 100,000 miles.

There are two ways a mechanic will deal with your transmission fluid (average prices, in parentheses, provided by Kelley Blue Book):

1. A transmission fluid change ($150 to $175): Some fluid is drained out, then fluid is added to fill it back up.

2. A transmission fluid flush ($165 to $290): All transmission fluid is pulled out, a solution is pushed through the system to clean it, and then the transmission is filled back up with fluid.

What happens if you decide to skip this maintenance task? Well, most critically, your transmission may overheat and result in a system failure. Were you to need to replace your transmission entirely, the cost would likely land between $5,584 to $5,789, says RepairPal. And given that the bulk of that price is parts, that'd be an expensive fix even if you were to replace the transmission yourself.

Related: Is Your Retirement on Track? Here Are the Average 401(k) Balances By Age

Do you want to get serious about saving and planning for retirement? Sign up for Retire With Riley, Young and the Invested's free retirement planning newsletter.

How Else Can I Save Money on Car Maintenance?

Regular auto maintenance shouldn't cost you an arm and a leg. And there are ways to reduce the cost, including:

-- Performing some simple maintenance yourself (you might still need to buy the occasional component or tool, like a wire brush, but it will be less expensive than having the service performed by a mechanic).

-- Comparison-shop auto mechanics in your area.

-- Go to independent mechanics and chain repair shops, rather than the dealership, as they might be more open to price negotiations and more likely to provide discounts.

-- Ask about AAA or AARP discounts.

Be honest about how handy you truly are before trying to save money by performing DIY auto maintenance. Unless you're very comfortable under the hood of a vehicle, some work should be left to the professionals.

And lastly, no matter how much you care for your car, at some point, you'll probably need to repair or replace a major component. As is true for other large expenses, you can reduce the sting by planning ahead and saving for expected car maintenance. For example, if your tire tread depth indicates you'll need new tires soon, start setting money aside for that purchase. Or even better: Start saving for new tires as soon as you change out your old ones.

Related: 10 Best Vanguard Funds to Buy in 2025

Related: 15 Best Long-Term Stocks to Buy and Hold Forever

As even novice investors probably know, funds—whether they're mutual funds or exchange-traded funds (ETFs)—are the simplest and easiest ways to invest in the stock market. But the best long-term stocks also offer many investors a way to stay "invested" intellectually—by following companies they believe in. They also provide investors with the potential for outperformance.

So if you're looking for a starting point for your own portfolio, look no further. Check out our list of the best long-term stocks for buy-and-hold investors.

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While some physical objects and information should continue to be passed down, some are now obsolete. So while you should keep passing down those high-quality cast-iron pans, many of the money lessons people used to follow simply can't be relied upon in modern times.

Let me highlight several money rules from your elders that you should ignore. I'll explain why each outdated rule used to work, why it no longer applies, and the current guidelines you should be using instead. After all, keeping up-to-date on your monetary recommendations is an essential part of any person's financial planning process.

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These Old-School Financial Tips May Not Work for You

As the employment landscape, stock market, and overall economic environment evolve, so should your financial practices. 

"The economy has changed faster than the advice we pass down, and clinging to old rules is the real risk," says Fei Chen, investment strategist and CEO at Intellectia. "Young people need tools that match today's economy, not yesterday's." 

These are some of the stubborn financial tips that no longer apply—and the more current recommendations you should follow instead.

1. Put Your Money in a Savings Account to Help it Grow

Back in the 1980s, rates on boring ol' savings accounts soared as high as 8%—not too far removed from the average annual return you could expect from the stock market!

Were that still true today, parking a chunk of your money into these low-risk, liquid accounts would be a smart financial move. But today's rates for traditional savings accounts aren't nearly as high. As of Dec. 15, 2025 (the most recently available data from the FDIC), the national average savings and interest checking account rate was a mere 0.40%. That's barely better than stuffing your cash under a mattress.

Considering the stark difference in rates, the advice to grow your money in savings accounts no longer applies.

If you're looking to keep your money liquid and safe while still gaining a modest but decent rate on it, you could look toward a high-yield savings account (HYSA), 

For those who seek liquid, low-risk savings account alternatives, instead consider putting some of your money in a high-yield savings account, money market account, or certificate of deposit (CD). You still won't earn 8%, but you're still likely to earn around four to five times what you would in a traditional savings account without sacrificing much in the way of liquidity or security.

Of course, if you want true growth, you'll want to turn to the stock market or alternative investments.

2. Credit Cards Are a Debt Trap

I would argue that "credit cards are a debt trap" has always been an exaggeration.

Used foolishly, yes, credit cards and their high annual percentage rates (APRs) will put you at risk of a "debt spiral" in which the costs of merely paying off the interest become too much to bear, compounding your debt until something breaks.

But used properly (that is, carrying extremely low balances or, better still, paying them off each month), credit cards are a way to get more out of your finances. Among the reasons?

--Many credit card companies offer cash back or other rewards. As long as you're only buying what you would anyways, you're being financially rewarded for no extra work.

--Credit cards can help you build a credit history. This makes you more likely to be approved for mortgages, car loans, and other debt—and at better rates to boot.

--They're more secure than cash. If someone swipes your card and makes unauthorized purchases, it's relatively easy to have that debt wiped away. But if your cash is stolen, it's likely gone for good.

--They have less liability than debit cards. If you report a stolen credit card before any fraudulent charges are made, you have no liability. If you don't report it until after fraud occurs, your maximum liability would be $50—and many credit card companies won't even charge you that. But with debit cards, if you report fraudulent charges within two days of those charges, you'll have a maximum liability of $50; if it's between two and 60 days, you might be responsible for as much as $500; and anything over 60 days might leave you liable for all unauthorized charges.

--You can't beat the convenience. Credit cards are simply easier to use.

To be fair, credit cards weren't always as secure as they are today. Embedded EMC smart chips, which were a massive step up in protection, didn't become standard in the U.S. until the mid-2010s. So it would make sense that older adults would be more hesitant about their use over cash.

But today, credit cards are more secure and highly beneficial. Just make sure to pay off your credit card balance every month so you don't fall into a debt spiral.

Related: Is It Better to Pay With Cash or a Credit Card? The Answer: It Depends

3. A College Degree Ensures Financial Stability

It is generally true that your salary will increase alongside your education level. Per 2024 data from the Bureau of Labor Statistics, the annual median salary by education level is as follows:

--No diploma: $38,376

--High school diploma: $48,360

--Some college (no degree): $53,040

--Associate degree: $57,148

--Bachelor's degree: $80,263

--Master's degree: $95,680

--Doctoral degree: $118,456

--Professional degree: $122,876

But it takes more than just hard work to get a college degree nowadays. It often requires student loans, too. And in a 2023 Pew Research Center survey, only 22% of people said the cost of getting a four-year college degree today is worth it, even if the person has to take out loans.

Some of that sentiment comes from the fact that student loans have ballooned in size, making them more difficult to pay off—some adults carry that debt with them into their 40s and even 50s. Some of it has come more recently as advances in artificial intelligence have cut into the job market for some career paths requiring more advanced degrees.

Meanwhile, there are many high-paying jobs that don't require a degree and also are more insulated from advances in AI.

Again, a college degree will get you farther in some professions, and it remains a prerequisite for others. Not to mention, a college education provides more benefits than just making you employable. But it's no guarantee of financial success, and it's hardly the right path for everybody nowadays.

Related: 10 High-Paying Jobs You Can Get With 'Vanity Degrees'

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4. You Should Stick With One Company Throughout Your Career

Once upon a time, if you were loyal to your job, you would be rewarded for that loyalty with pay raises and promotions.

Is that still true today? Occasionally, but it's hardly the norm. Younger generations have found that loyalty is rewarded with career stagnation, and that sticking with one company limits their salary growth potential.

The average salary increase gained from switching jobs is 14.8%, according to a Zippia analysis, which compares favorably to just 5.8% wage growth for those staying put. 

The belief used to be that if you were loyal to your job, you would be rewarded for that loyalty with pay raises. However, younger generations have found that loyalty isn't always rewarded with monetary increases and sticking with one company often limits their salary growth potential. 

Zippia analysis shows that the average salary increase when switching jobs is 14.8%. Comparatively, wage growth staying put is 5.8%. Compound those effects over time, and a job-hopper could expect hundreds of thousands of dollars in additional lifetime earnings compared to a loyal "company man."

This isn't to say you should automatically leave your dream job because of some invisible ticking clock. If your workplace is good at recognizing and compensating its best performers, and—importantly—if you're happy, you should stay.

But don't be afraid to jump ship if your employer doesn't understand the worth of loyal and hard workers.

Related: Career Compensation Is More Than Salary: 10 Other Financial Perks to Consider

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5. Never Carry a Mortgage Into Retirement

Older generations, more than the new, have a fixed mentality that all debt is bad and should be avoided at all costs. Following this logic, they believe you should always pay off your mortgage before you retire.

To be clear: This can be extremely beneficial to some people. Homeowners stuck with high interest rates can save a significant amount of money by paying off their mortgages early, not to mention it can improve your cash-flow situation during retirement and provide breathing room in your budget.

Older generations often have the mentality that all debt is bad and should be avoided at all costs. Given this logic, they say you should always pay off your mortgage before you retire. 

For many people, this is a good move. Homeowners with high interest rates can save a significant amount of money by paying off their mortgages sooner. A paid-off mortgage can immediately help your cash flow and give your retirement budget a lot more breathing room.

But it's not universally good advice.

For instance, if you're about to retire and you have other debt at a higher interest rate than your mortgage, you should prioritize that debt over your mortgage. You also shouldn't necessarily move all your financial resources into paying off the mortgage if you're behind on investing for retirement. And if you claim the mortgage interest deduction, sticking to your regular payoff schedule might make more sense from a tax perspective.

If you're wondering whether you should carry your mortgage into retirement, you should ask a financial advisor—not your grandparents.

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6. Use the 60/40 Rule for Your Retirement Portfolio

The 60/40 rule is an investment guide for your retirement portfolio that says you should allocate 60% of your assets in stocks, and 40% in bonds and other fixed-income investments. This was considered a "balanced" portfolio when the rule was created … in the 1950s.

This retirement rule is terribly outdated. 

Not only is a 60/40 split considered way too conservative for younger people just starting to invest for retirement—because of much longer life expectancies, it might even be too conservative for some investors who are near or in retirement!

Additionally, sticking to only stocks and bonds might not offer enough portfolio diversification. For some, alternative investments—such as real estate or commodities, or even cryptocurrency or fine wine—might be more appropriate in small allocations.

As far as the broader stock/bond guidance goes, some suggest a 70/30 mix is healthier, but many others prefer a rolling split that could be as aggressive as 100/0 when you begin investing, and as conservative as 0/100 once you're well into retirement.

Given that your portfolio needs to reflect your time horizon, goals, and risk tolerance, that blend is up to you—and if you're not sure, you should talk to a financial advisor.

Related: How to Rebalance Your Portfolio: A Quick Guide

7. Use the 4% Rule for Retirement Withdrawals

The 4% rule is a highly popular variation of the dollar-plus-inflation retirement withdrawal strategy. 

This rule states that you should withdraw 4% of your savings in your first year of retirement. Then, in each subsequent year, you take the previous dollar amount and adjust it for inflation or deflation. 

The 4% rule assumes your retirement portfolio is 50% to 75% invested in stocks, and 50% to 25% invested in bonds and cash. If not, the rule doesn't work.

But over time, many people started to believe that the 4% rule was outdated, including creator William Bengen himself. Within the past few years, Bengen suggested the maximum safe withdrawal rate could be as high as 4.5% and even more recently bumped it up to 4.7% during the first year of retirement. 

Previously, Morningstar had also recommended the 4% rule, but they too have changed their tune. Morningstar points out that spending patterns aren't static in retirement:

"Based on studies of actual spending during retirement, retirees often decrease their inflation-adjusted spending over time, a pattern that can also lead to considerably higher safe withdrawal rates. Incorporating actual spending patterns over retirees' lifecycles leads to a safe starting withdrawal percentage of 4.8%, assuming a 30-year horizon and a 90% probability of success."

Your withdrawal strategy doesn't need to be the 4% rule—that's just one of several popular and effective retirement withdrawal strategies. But whatever your strategy, you should adopt it only after you consider your personal financial situation, current market conditions, inflation, and other factors. Moreover, your chosen strategy doesn't need to be set in stone—it can be flexible.

Because withdrawal strategies can be fairly complex and require a holistic view of your retirement savings, resources, and plans, you should consider discussing your retirement withdrawal strategy with a financial professional. 

Related: Don't Make These 7 Mistakes When Choosing a Financial Advisor