But scammers never seem to be too far behind.

A 2023 Ipsos poll, conducted on behalf of Wells Fargo, found that almost one in three respondents (31%) have been victim to an online financial fraud or cybercrime. Moreover, while nearly three-quarters of Americans feel they've taken the appropriate steps to combat being scammed, nearly half (48%) think they'll become a financial cybercrime victim in the future regardless.

While it's true that there's no 100% foolproof way to prevent yourself from falling victim to a financial scam, you can stack the deck significantly in your favor by taking a number of commonsense steps.

Today, I'm going to go over some of the easiest, most effective ways to protect yourself from financial scams. By taking the proper precautions, you can still enjoy the convenience of modern-day banking and shopping without leaving yourself completely vulnerable.

But you know what's more exhausting? Untangling your financial life after you've fallen victim to fraud.

Depending on the scam, you might not be able to get your money back. Or if you can recoup your funds, you can do so only after a long process involving a lot of forms.

It might take effort, but your best bet is still to try to prevent getting hit by a financial scam rather than having to clean up after one. These simple tips can help you do just that.

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Let's say your credit card information is stolen. Under federal law, your responsibility for unauthorized charges is limited to $50, assuming you report the charges within 60 days. Many major credit card companies won't even charge you that amount; card issuers frequently offer zero liability, meaning as long as you report fraudulent charges promptly, you won't be responsible for any of them.

The laws for debit cards leave less room for error. Per federal law, your maximum loss is $50 if you report a lost or stolen debit card within two business days after you discover it has gone missing. That's a pretty short window. If it's more than two business days, but within 60 calendar days, the maximum loss is $500. If you make the report more than 60 calendar days after a statement is sent to you, you might lose all of the money taken from your account (and possibly more if you have linked accounts).

Because your debit card is directly linked to your bank account, debit card theft can cause additional issues. If money is stolen, your account might not be able to cover bills that are automatically paid from that account. So you could either face overdraft fees, or late or missed payments, which could harm your credit score.

Related: 20 Expenses to Cut From Your Budget

Routinely check your bank and credit card statements for unauthorized purchases. Even if your physical card hasn't been stolen, your card's information might have been—and could be used to make online purchases. Also remember: You need to promptly report fraudulent charges so you aren't found liable. And don't just look out for large, suspicious activity—some scammers refrain from making big, immediate purchases. Instead, they'll make small purchases over time so the theft isn't obvious, then strike when it's clear no one is monitoring the account.

Stolen information isn't the only reason to check your accounts, either. You also need to look out for human and technological mistakes. A restaurant might have misread (and mis-entered) a much larger tip than you left. You might still be getting charged for a subscription you thought you canceled. Maybe your credit card company charged you a late fee even though you thought you paid on time.

And beyond spotting fraud and mistakes, regularly checking your financial statements gives you a better idea of where your money is going. That's a basic building block of successful budgeting.

Young and the Invested Tip: Enable push notifications for mobile banking apps and credit cards. Often, you can get notifications for every transaction or set notifications for over a certain dollar amount. This helps you notice any fraudulent charges right away.

Related: 7 Contractor Scams to Avoid

Checking your credit report can reveal a number of negative weights on your credit score, including fraud.

Recently, Consumer Reports asked thousands of participants to check their credit reports and respond with their results. Nearly half of the respondents (44%) found at least one error on their reports, and of those, more than a quarter (27%) were "serious enough to potentially affect their creditworthiness."

According to the Consumer Financial Protection Bureau (CFPB), some of the most popular credit report mistakes include:

-- Misspelled name; incorrect Social Security, address, or phone number

-- Credit accounts and loans you didn't open

-- Accounts incorrectly listed as late or with wrong balances, credit limits, or delinquency dates

-- Closed accounts listed as opened or accounts listed multiple times

-- Accounts not correctly marked as "current" when payments were subject to relief from the COVID-19 pandemic

Whether you discover that you've become a victim of identity theft or other fraud, or simply that your report has errors, you can find fixes to these problems—but doing so can take time. So the sooner you catch fraud and mistakes, the better.

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For instance: A scammer might send you a text message claiming to be from your utility company. The text says there's an issue with a recent payment, and that you need to click an included link so you can update your payment information. When you click the link, you might be sent to a fake page where the scammer hopes you'll input sensitive personal financial information, or your device might download malware that gives the scammer control.

Fortunately, there are a few tell-tale ways to differentiate phishing scams from legitimate notices. Be on the lookout for the following:

-- Misspellings and poor grammar in the body of the email.

-- Sender email addresses that seem legitimate, but are slightly misspelled. (For instance, …@faceboook.com or …@facebo0k.com.)

-- Dramatic or urgent language demanding immediate action

-- Requests for financial or other personal information

-- Shortened, untrusted URLs

-- Generic greetings, such as "Dear Customer"

If you receive an obvious phishing attempt, you can simply mark it as spam and ignore it. But what should you do if a message is very convincing and you're not sure whether it's legitimate? For instance, what if you get a realistic email purporting to be from your utility company saying you're late on your payment? Either open a new browser tab and directly navigate to your utility company's website (in other words, don't use the links in the email), or directly call the company, to determine whether they actually sent the email.

Want to help fight scammers? You can forward phishing emails to the Anti-Phishing Working Group at reportphishing@apwg.org or forward texts to SPAM (7726). You can also report the scammer to the Federal Trade Commission (FTC) at ReportFraud.ftc.gov.

Related: Don't Believe These 17 Social Security Myths

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The FTC recommends making your passwords at least 12 characters long or using a passphrase (several words separated by spaces) of random words. It's also helpful to mix in both uppercase and lowercase letters, as well as numbers and symbols. And many websites will automatically require some of these criteria—for instance, they might require a 12-character minimum with at least one number and one symbol.

Worried you'll forget your new complicated passwords? You can either have your web browser remember your passwords, or you can use a third-party password manager.

And in the event of a data breach, change your password(s) as soon as possible.

If a website requires you to pick from security questions and provide answers, avoid questions with very limited answers and anything that's answerable by public information that's easy to look up online. For instance, if you've lived on the same street your whole life, avoid the question "What street did you grow up on?" as your acquaintances would know the answer, and the information would be simple for strangers to dig up.

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

Two-factor authentication (2FA) is a security standard that requires two types of identification to access an account. For instance, once you key in a password, you might also need to enter a PIN, answer a security question, pass a facial recognition test, or provide a one-time verification code sent by text, email, or an authenticator app.

I'll be honest: Sometimes, I find two-factor authentication kind of annoying. It adds a little extra time to every login. But you don't necessarily have to use 2FA for every single app—just use it for important accounts, like your bank, peer-to-peer payment apps, crypto accounts, etc.

But while it may not be necessary to use two-factor authentication for every single app you have, it's wise to do so for financial apps—banking apps, crypto accounts, peer-to-peer payment apps, etc.

Note: Some apps and websites offer 2FA but don't make it the default option. You might need to go to account settings and enable it.

Related: The 13 Best Mutual Funds You Can Buy

Let's say you make a food pickup order with a store-specific app. It populates a checkbox asking whether you want to save your credit card information for a faster checkout process next time. If this is a restaurant you rarely order from, don't bother saving your information, and instead just manually type it in next time.

The concern here isn't that someone will steal your phone and order themselves some food. (Although, if you have children in the home, this could happen to you!) The worry is that, if the app becomes the victim of a data breach, your credit card information might be stolen and used to make fraudulent purchases. Thus, the more sites that have your data, the higher your risk of having it stolen.

Ideally, you shouldn't let any website store your credit card or bank information, but for many people, this decision is about finding a balance between convenience and safety. A good middle ground is to only keep your information stored in the handful of sites where you most frequently pay bills or make purchases. 

Note: If a retail website lets you use a credit card from your digital wallet, this is a safer option as the merchant won't gain access to your card's information.

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Social media scammers work in myriad ways. For instance, you might get a generic-sounding message about a job opportunity or lucrative investment that turns out to be completely fake. You might buy something after clicking on a link on social media, only to never receive the product. Or someone who has hacked an old friend's account might reach out to you, pretending to be the friend, to ask for money or sell you something.

A friend recently told me about seeing a post from one of her friends. The post said she was selling the possessions of a deceased parent. They were offering great deals on big-ticket items, including a car and an all-terrain vehicle (ATV). Anyone interested was told to send an initial payment over Venmo to show they were serious buyers. 

It was a scam. Someone had hacked the friend's account. Thankfully, the hack was discovered before anyone sent any payments. 

In short: If someone you think you know reaches out on social media with an odd request or a sudden need for money, ensure it's really them before sending money or even sharing any personal information. (For instance, you might text them to ask whether they had just reached out to you on the social media site.)

By the way: If you share a lot of information on social media, fraudsters might not even need to hack your financial accounts. Do you make a post every year announcing your birthday? Did you post a picture of your mother and use her full maiden name? Perhaps you posted a video of your child playing in the front yard and it shows your street name in the background. This type of information sometimes can be enough for scammers to answer your security questions. So be very careful about anything you share on social media.

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

Unfortunately, this type of financial fraud isn't just popular—it's on the rise. Based on FICO data, the number of U.S. debit cards skimmed went up 77% year-over-year between the first half of 2022 and the first half of 2023.

The good news is that there are a few ways to protect yourself:

-- Before getting gas at a pump, check to see if the card reader looks like it has been tampered with or seems loose. You can also compare the card reader to nearby pumps to see if it looks different. If anything feels off, avoid that pump and notify an employee of your suspicions. If you're not in a rush, you can opt to pay inside.

-- Only use ATMs in well-lit areas, preferably indoors, as these are less likely to be targeted. 

-- Pay using either a chip or contactless technology. Skimmers grab information via your card's magnetic strip.

-- Pay with credit instead of debit.

-- Turn on notifications for your credit and debit cards that activate when you've spent above a (preferably low) threshold.

Related: Stop Shrinkflation! 10 Products Affected + Tips to Save Money

Scammers pretend to represent a variety of places—your credit card company, your health insurer, the IRS, the Social Security Administration, and so on. More often than not, they'll aggressively try to get you to divulge personal information or financial account data. But in almost all situations, these companies and organizations won't call you to get this information. So if you're ever worried that a call might be legitimate but you're scared to provide the information, hang up and directly call your credit card company, health insurer, etc., at their listed phone number, and ask to confirm whether they needed said information.

For the record, there are situations where it's much safer to share your information over the phone. For instance, if you call an organization or business—say, a local pizza parlor you've frequented for years—you know that they're a legitimate business, and you know they'll ask for your credit card information to finalize your order. The important difference is that you're calling them and know who you're talking to.

To limit fraudulent calls, consider adding your phone number to the National Do Not Call Registry. 

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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.

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.

Did you find this article helpful? We'd love to hear your thoughts! Leave a comment with the box on the left-hand side of the screen and share your thoughts.

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It's possible you've spent years contributing to savings and retirement accounts to help foot some of those costs. But it's virtually certain you've been paying into Social Security—the backbone of most retirees' income streams.

Like most federal government programs, Social Security is complex—which in turn leads to a lot of confusion about even some of the program's most basic rules. That has sprouted dozens of myths that, when taken as truth, can lead to significant retirement planning missteps and financial shortfalls.

Today, then, I'm going to go over some of the most widely repeated myths, and debunk them, so you can make the most out of Social Security.

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Whatever you do, don't fall for them. In many cases, believing these myths (and worse: planning around them!) could result in any number of issues, including receiving much smaller checks than expected once you retire.

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According to the Social Security Administration (SSA), on average, it replaces around 40% of one's pre-retirement earnings. For you, it might be higher or lower. As of January 2026, the average monthly benefit for "Old-Age" and Survivor's Insurance sat at $2,071, the SSA says.

While you absolutely should include your expected Social Security benefit in your retirement budget, you should plan on having other income sources, too.

Fact: Nowadays, you can begin receiving Social Security benefits as early as age 62. However, if you take benefits any earlier than "full retirement age" (FRA), your benefits will be reduced for the rest of your life.

In a nutshell, if you take Social Security early, your benefits will be reduced by …

-- 5/9ths of a percent for each month before normal retirement age up to 36 months. (Or 6.67% each year up to three years)

-- 5/12ths of a percent for each month before normal retirement age past 36 months. (Or 5% each year up after three years)

So, for example, here's how much your benefits would be reduced by age (using whole years; partial-year amounts would differ):

-- 66: -6.7%

-- 65: -13.3%

-- 64: -20.0%

-- 63: -25.0%

-- 62: -30.0%

The good news? You can get bigger paychecks by delaying Social Security benefits. The percentages depend on your year of birth, but for anyone born after 1943, your benefit improves by 2/3rds of 1% for each month you delay receiving benefits, or 8% for each full year—and this caps out at age 70. So, here's how much your benefits would grow by age (using whole years; partial-year amounts would differ):

-- 68: +8.0%

-- 69: +16.0%

-- 70: +24.0%

That brings us to Myth #2 …

However, while you can still receive some Social Security benefits at age 65, full retirement age—when you receive full retirement benefits—is a little bit older, and depends on when you were born:

-- If you were born in 1943-1954, FRA is 66.

-- If you were born in 1955, FRA is 66 and 2 months.

-- If you were born in 1956, FRA is 66 and 4 months.

-- If you were born in 1957, FRA is 66 and 6 months.

-- If you were born in 1958, FRA is 66 and 8 months.

-- If you were born in 1959, FRA is 66 and 10 months.

-- If you were born in 1960 or later, FRA is 67.

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

There are a couple of key differences, however.

For one, whereas the benefits from a retirement savings account are largely tied to how much you contributed (and, of course, how well your investments performed), benefits from Social Security are determined by how much money you've earned over the years.

Retirement age also factors in differently. Yes, if you start withdrawing from a retirement account earlier in life, it's likely the amount you can regularly pull out will be lower than if you started withdrawing later in life. But it's also possible, depending on how your investments perform, that you'll be able to take larger withdrawals later on. But with Social Security, taking benefits early guarantees a lower payout for the rest of your life.

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

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Pensions won't reduce your Social Security benefits anymore, assuming your employer withheld FICA taxes from your paychecks. If they did, your pension shouldn't affect your benefits at all.

However, if your employer didn't withhold FICA taxes, you won't have contributed to Social Security and thus are ineligible to file a claim under your own benefits. You still can under any eligible spousal benefits.

Prior to January 2025, the WEP was a formula that could decrease a person's Social Security retirement or disability benefit if their job didn't pay Social Security payroll taxes—the longer you worked at such a job, the more your benefits will be reduced, up to half the amount of your pension. This most commonly happened to employees of state and local governments, who were allowed to (but don't necessarily) exclude their employees from Social Security if they had a large enough pension.

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

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However, there's no guarantee that every year's COLA will result in an improvement in your Social Security income.

The COLA is connected to a federal index of prices for certain consumer goods and services called the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W). The index is measured during the third quarter of each year, rounded to the nearest tenth of a percent. If the index rises (and it usually does), there will be a COLA increase for the year. However, if the rounded increase is zero—or if the index actually declines, which happened in 2010, 2011, and 2016—there will be no COLA increase.

In case you're wondering, 2025's measurement resulted in a 2.8% COLA increase for 2026.

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But there is a cap. In 2026, the first $184,500 of your earned income in a year is subject to Social Security. Above that, neither you nor your employer pay into the system.

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In the past, senators and representatives did not pay into Social Security—instead, like most civilian federal employees, they were covered under the Civil Service Retirement System (CSRS).

That changed with the 1983 passage of several amendments to the Social Security Act. Starting in 1984, federal employees first hired after 1983 were compelled to participate in Social Security—that included all members of Congress, who had to participate regardless of when they were first elected. (However, those who were already in office before 1984 also remained in CSRS.)

So today, every member of Congress participates in Social Security.

Related: Best Vanguard Retirement Funds for an IRA

The federal government doesn't just reach its hand in the Social Security cookie jar and steal whatever it needs. It does borrow from Social Security, however … and doing so resulted in a $69.1 billion windfall for the program in 2024 alone.

The vast majority of Social Security's money comes from taxes paid by employers and employees, which is split roughly 80/20 into a pair of Social Security trust funds:

-- Old-Age and Survivors Insurance (OASI), ~80%: This fund gives benefits to retirees, their family members, and survivors.

-- Disability Insurance (DI), ~20%: This fund pays benefits to workers with disabilities, their family members, and survivors.

But Social Security earns revenue from other sources, too. Those sources include federal income taxes paid on Social Security benefits, as well as interest from Social Security funds invested in federally backed guaranteed securities—in other words, U.S. Treasuries.

Treasuries are simply bonds, which is the U.S. Treasury's way of borrowing money. So because Social Security holds bonds, the Treasury is borrowing from Social Security—and those bonds must be repaid with interest. In 2024, that interest came to more than $69 billion.

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It's true that Social Security is paying out more than it's taking in as the large baby boomer generation retires—expanding the retiree population more quickly than the workforce. Annual costs began to exceed non-interest income in 2010, and they surpassed total income in 2021.

But Social Security also had a $2.7 trillion reserve as of the beginning of 2025 that it can tap to continue funding full payments. Granted, it can't do so indefinitely—Social Security's trustees project that reserve will be depleted by 2033. But even at that point, benefits from Social Security's trust funds would be paid out of annual tax revenue at a reduced rate expected to be around 80% at first, then slowly declining over time.

So, no, Social Security will not "run out" soon. But something will have to be done to address the shortfall to prevent an eventual reduction in benefits, whether that's increasing Social Security revenue, reducing benefits, increasing the age to collect, or another method. And that "something" will have to come from Congress.

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

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Today, however, members of the military pay Social Security taxes, just like everyone else. (And as a note: Military pensions won't affect the amount of Social Security benefits you get—but they can and often do make Social Security benefits taxable. Depending on the size of the pension, up to 50% or up to 85% of a military member's benefits will be subject to taxation.

Related: Best Fidelity Retirement Funds for an IRA

That's false—in fact, most studies point to the opposite being true.

Documented, lawful noncitizens who are authorized to work in the United States by the Department of Homeland Security can legally qualify for the Social Security program. At that point, as long as they work for an employer that takes out FICA taxes (or they pay FICA themselves as a self-employed person), they contribute to Social Security, and they're eligible to collect Social Security.

Undocumented workers aren't legally eligible to pay into or collect from Social Security, but they do a lot more of the former than the latter. Many undocumented immigrants use an Individual Taxpayer Identification Number (ITIN) to pay taxes, largely so that, in the event they actually can apply for permanent residency, they're in good standing with the IRS. But they can't use an ITIN to collect benefits. Others use fraudulent or stolen Social Security numbers to gain employment, in which case they're still paying into the system—and yes, they sometimes successfully use those numbers to collect benefits.

But the disparity is massive. For instance, the Social Security Administration estimated that in 2010, unauthorized immigrant workers and their employers contributed $13 billion in payroll taxes—and that only $1 billion in benefit payments went to unauthorized workers. That means in just one year, undocumented immigrants provided a $12 billion surplus to Social Security. And nonprofit, bipartisan immigration research firm New American Economy estimates undocumented immigrants have generated a $100 billion surplus to Social Security in a decade's time.

Related: 11 Ways to Avoid Taxes on Social Security Benefits

Depending on where you live, you might owe state taxes on Social Security benefits, too. The following states tax Social Security benefits:

-- Colorado

-- Connecticut

-- Minnesota

-- Montana

-- New Mexico

-- Rhode Island

-- Utah

-- Vermont

Related: 2 States Repeal Tax on Social Security Benefits [Do You Live in One of Them?]

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-- Step 1: The higher-earning spouse claims spousal benefits at FRA, deferring claiming their own worker benefits until a later point. The lower-earning spouse claims their own worker benefit at FRA.

-- Step 2: At age 70, once they have maxed out their delayed retirement credits, the higher-earning spouse begins to claim their own worker benefits and simultaneously discontinues claiming spousal benefits.

-- Step 3: The lower-earning spouse either keeps their own benefits, or claims spousal benefits, whichever is higher.

That's no longer the case. Now, anyone who is eligible for benefits both as a retired worker and as a spouse during the first month they want their benefits to begin automatically applies for both retired-worker and spousal benefits and receives the higher of the two. That prevents people from both receiving one type of benefit while simultaneously earning a bonus (delayed credits) on the other benefit.

Related: 13 Best Long-Term Stocks to Buy and Hold Forever

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Not true.

If you decide to collect Social Security benefits before full retirement age, then you might temporarily receive a reduced benefit from working (in addition to the permanently reduced benefit from collecting benefits early). Even then, your income from working must exceed a certain limit before your benefits are reduced—that income limit changes every year, and how much your benefits will be reduced is determined by how much you exceed that limit, as well as how close you are to retirement.

Once you stop working or reach FRA, the temporary income-related reduction in benefits will be lifted. (Though you'll still have reduced benefits from collecting benefits early.) After FRA, you can earn as much as you'd like without any worries about it affecting your Social Security check.

Better still? You'll get that money back over time. After you reach FRA, if you had benefits reduced because you generated excess income from working, your benefits will be readjusted higher to give you credit for those months.

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However, if a worker has paid into Social Security, their spouse, ex-spouse, children, or parents might be eligible for spousal, survival, or children's benefits—even if they haven't paid into Social Security. (Eligibility for those monthly Social Security payments will hinge on the worker's earnings record.)

Note: You don't necessarily need 10 years' worth of work to qualify for Social Security disability payments, either. Typically, the younger you are, the less of both an overall work record and recent work record you need to qualify. You can see a full set of guidelines for determining disability payments at SSA.gov.

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

But while you might think that if you work for yourself, you'd only be responsible for "your" share of FICA taxes, that's unfortunately not how it works. Self-employed people have to pay both the employee and employer's share of Social Security taxes, so the full 15.3%. You do get a partial break, however—you can deduct the employer-equivalent portion of those taxes (so, half) in determining your adjusted gross income. This deduction affects income tax only.

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-- Never have received or been entitled to any benefits payable by Social Security programs

-- Be a member of a recognized religious sect conscientiously opposed to receiving benefits under a private plan or system that gives money in the event of disability, death, or retirement, or pays toward or provides medical care

-- Be a member of a religious sect that makes a reasonable provision of shelter, food, and medical care for dependent members and has done this continuously since at least Dec. 31, 1950

The applicant must also waive their right to all Social Security benefits—not just payments, but other benefits including hospital insurance.

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That’s where these retirement withdrawal strategies come in.

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This newfound freedom has sparked a surge in demand for remote positions, proving that high-quality work doesn't necessitate a physical office space.

I've compiled a list of some of the highest-paying remote jobs available today. You'll find that working from home doesn't need to mean working for less. (And you just might find a remote job that's a great fit for you or someone you know.)

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Not only can these jobs be done working remotely, but you can also be paid handsomely for doing these roles. The annual mean wage for all occupations, according to May 2023 data from the Bureau of Labor Statistics (BLS), is $65,470. All of the high-paying remote jobs on this list have an annual average salary more than double that number.

Just remember: Employer preferences vary widely. While some companies offer fully remote opportunities for the following occupations, others might want these types of employees to show up to a physical workplace at least occasionally, if not full time.

All of the annual mean wages are from the May 2023 National Occupational Employment and Wage Estimates provided by the BLS. The jobs are in order from the lowest to the highest-paying remote jobs.

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-- 2023 employment: 77,530

Purchasing managers ensure companies have all of the products, materials, and services they need. These professionals compare costs, negotiate contracts, and determine time frames for orders. Tasks are easier when purchasing managers are familiar with the industry. For instance, a purchasing manager in the construction realm should be familiar with pricing for common building materials.

The majority of these workers have full-time positions, and overtime is common. In exchange for their important role, BLS data shows a mean annual wage of more than $146,000.

To land this job, applicants usually need a bachelor's degree, preferably in supply management, business, or finance. It's also typically expected that purchasing managers have at least five years of work experience in procurement as a buyer or purchasing agent.

-- 2023 employment: 272,190

People turn to personal financial advisors for monetary advice customized to their situations. A personal financial advisor can educate and advise clients about investments, mortgages, taxes, retirement planning, and more. Together, the advisor and client can make financial plans. Then, the financial advisor can invest for the client, monitor those investments, keep clients in the loop on the progress, and discuss adjustments as necessary.

Personal financial advisors usually work full time. Some work over 40 hours per week. The schedule might not be standard Monday-through-Friday business hours, however. Sometimes, these professionals have meetings with current or prospective clients in the evening or over the weekend. According to BLS data, personal financial advisors bring in a mean annual wage of over $150,000.

Sound like your kind of work? To become a personal finance advisor, you typically need a bachelor's degree. Most employers don't ask for a specific course of study, but it's popular to start with a degree in business, mathematics, or social science. Anyone looking for quick advancement might want to get a master's degree. 

Additionally, advisors will typically need some sort of license. Advisors who directly buy or sell investments may need a combination of licenses that depend on the products they sell. At small firms, personal financial advisors need to be registered with state regulators. Those working at larger firms have to be registered with the U.S. Securities and Exchange Commission.

Once hired, people can expect to work under supervision for over a year. 

Related: How to Choose a Financial Advisor

-- 2023 employment: 18,690

Compensation and benefits managers handle everything involved with paying employees, from organizing the pay and benefits structure to choosing insurance brokers and investment managers to preparing a program budget. (Just note that this job title excludes job analysis and description managers, which are instead included in the employment category of human resources managers.)

This typically is a full-time position. Also, some compensation and benefit managers might work more than 40 hours per week, particularly during their organization's benefits enrollment period. The average salary for this type of work is $150,940, based on BLS data.

Considering breaking into the field? These workers often need a bachelor's degree in human resources, business, or a related field. Previous work experience is necessary and prior to becoming a compensation and benefits manager, an individual often works as a compensation, benefits, and job analysis specialist.

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-- 2023 employment: 20,630

A product won't sell if nobody knows about it. And that's where advertising and promotions managers come in. These employees plan, prepare and produce promotional materials, which can involve coordinating with numerous departments; conferring with department heads about contracts, advertising media, and products to be advertised; and inspecting and editing advertising copy, designs, or videos.

This is usually a full-time position—one that, per BLS data, pays a mean annual wage of more than $150,000.

Most advertising and promotions managers are expected to have earned a bachelor's degree, but some positions don't have this requirement. You can't come in completely green, though; work-related experience and/or skills are usually necessary to land these roles.

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-- 2023 employment: 200,600

Human resources (HR) managers handle many of the administrative needs of a business, such as finding, interviewing, and ultimately hiring new staff. The task many people know the HR department best for is mediating disputes. But they also sometimes take part in strategic planning, coordinate work of specialists and support, and advise other managers about HR issues.

Although this role may involve employee benefit programs, this employment category excludes managers whose main role is handling compensation and benefits.

Most of these managers work full time and complete their tasks during standard business hours, though some may work extra hours. In return, they earn a mean annual wage of $154,740.

It's standard for these employees to need a bachelor's degree, which may be in human resources or a related field, such as business or communications. For some positions, a master's degree in human resources, business administration, or labor relations might be necessary.

Related: Financial Prep If You're Worried About Being Laid Off

-- 2023 employment: 35,210

The role of computer and information research scientists is much more complex than information technology (IT) support. These workers conduct research on fundamental computer and information science and create solutions to issues in the field of computer software and hardware. They can determine a business's or organization's computing needs and system requirements. And they might even develop new software or computing languages to improve how their org works with computers.

This is typically a full-time position that earns a mean annual wage of $157,160, per BLS data.

But if you don't enjoy higher education, this probably isn't the job for you. You often need a master's degree or higher for this role. An exception: A bachelor's degree might be sufficient for some roles within the federal government. Those who work in a specialized field, such as biomedical applications, might also need field-specific knowledge. 

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

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-- 2023 employment: 575,880

Sales managers ensure a product or service reaches the intended customers. They do so by establishing sales territories, quotas, and goals. Other tasks can include creating training programs for sales representatives, analyzing sales statistics, preparing budgets, determining pricing, and even resolving customer complaints.

Usually, a sales manager works full time, and it's common to work additional hours in the evening or over the weekend. BLS data puts the mean annual wage for this profession at $157,610.

While it's common for employers to request a bachelor's degree for this role, some positions might only require a high school diploma. However, to stand out, prospective workers should consider taking some courses in management, business law, finance, mathematics, or marketing. Typically, a minimum of one to five years of sales experience is desired, too.

Related: 11 of the Highest-Paying Blue-Collar Jobs

-- 2023 employment: 72,760

A popular saying goes, "All publicity is good publicity." Well, many public relations managers probably disagree with that assessment. Above all else, a public relations manager focuses on helping an organization or client maintain a positive reputation. A few of the ways a worker might carry out that goal are by assigning and reviewing the activities of public relations staff, creating promotional materials, and developing crisis communication plans.

Public relations managers frequently work over 40 hours per week and might need to work non-standard work hours if there is an important event or an emergency arises. But, they're at least compensated well for the flexibility: The mean annual wage in exchange for this type of work is $159,420, per BLS data.

Most of these occupations require a bachelor's degree, but not all do. Either way, previous experience, knowledge, or related skills are often necessary.

Related: Is Your Personality Limiting Your Income? Here's What the Research Says

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-- 2023 employment: 368,940

Marketing managers are often responsible for a wide range of tasks. These workers may have to develop pricing strategies, create or evaluate marketing strategies, and coordinate product promotions, among other tasks.

While most marketing managers work a standard full-time schedule, they may need to start work early or finish late for conference calls or finishing up urgent projects. But their mean annual wage is more than $100,000 over the annual mean wage for all occupations, according to BLS data.

Often, these positions require applicants to hold a bachelor's degree in marketing, communications, business, or a similar field, though not every position considers this necessary. Workers should have a high amount of marketing expertise and applicable skill sets.

Related: How to Achieve Financial Minimalism to Reduce Stress

-- 2023 employment: 207,800

Within their respective fields of engineering, architecture, or the research and development of those fields, you'll find architectural and engineering managers. These managers handle planning and coordinating activities. They may also be responsible for determining staff, training, and equipment needs, hiring and supervising staff, and proposing program and project budgets. (The BLS also notes that natural sciences managers are excluded from this employment category.)

These managers are typically full-time employees and often work extra hours, particularly when there are deadlines to meet. According to BLS data, the mean annual wage for architectural and engineering managers is $172,290.

Anyone interested in this type of work should be prepared for math-heavy coursework. It's common to require at least a bachelor's degree in architecture or engineering. Engineering programs usually take four years, while architecture ones tend to take five years. Also, some of these managers must complete a master's degree either prior to the role or while working as a manager.

Besides the education requirements, companies frequently also expect prospective employees to have a considerable amount of work experience as an architect or engineer.

Related: 10 High-Paying Jobs That Will Hire You Without a College Degree

-- 2023 employment: 787,340

Financial managers make sure an organization's health is financially sound through planning, coordinating, and directing financial activities. These employees communicate frequently with top executives and departments that develop data they need for analysis, ensure legal compliance of financial reporting, and analyze market trends to maximize sales and earnings. (BLS notes that this type of employment doesn't include financial risk specialists.)

Typically, this is a full-time job, and some managers work over 40 hours per week. Workers are paid well for their time, though; BLS data puts the mean annual wage at $174,820.

Usually, financial managers need to have a bachelor's degree. At least five years of experience in another business or financial job, such as a financial analyst or accountant, is often necessary as well.

Related: Today's 10 Fastest Dying Careers

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-- 2023 employment: 592,600

Computer and information systems managers, commonly referred to as information technology (IT) managers or IT project managers,  come from several different types of fields, such as information systems, electronic data processing, systems analysis, and computer programming.

While these workers must be knowledgeable within their fields, they aren't always directly doing that work, but rather directing the activities of other employees. They're also typically in charge of other high-level tasks, such as assessing costs and benefits of new projects, planning installation and maintenance of technology systems, negotiating with vendors, and determining personnel needs. Note that "computer occupations" is a separate employment categorization.

This job is usually around 40 hours per week, but if there are issues, employees may have to work additional hours until a solution is determined. But they're rewarded with the highest pay on this list of remote workers, at $180,720, per BLS data.

You're unlikely to stumble into this type of employment—it takes preparation. Usually, a bachelor's degree in computer or information science is necessary and often these managers also have a graduate degree. In addition to educational requirements, related work experience is needed.

Related: 7 Best High-Quality, High-Yield Dividend Stocks to Buy in 2025

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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.

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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To be clear: I don't mean hiding cash in a wall safe or setting up an elaborate system of booby traps around a piggy bank.

No, preserving your wealth involves careful planning, smart decision-making, a little discipline … and understanding which actions can do the most to keep your financial worth intact.

Let me show you what I mean. Read on as I discuss some of the best ways to keep your nest egg from cracking. By implementing some (or all!) of these strategies, you'll put yourself in a much better position to keep what you've earned.

However, while building your wealth takes a lot more work, protecting it takes a lot more care and caution.

That's another way of saying that some of the most effective ways to protect your money fall under the "work smarter, not harder" umbrella. all probably agree upon Most people likely agree that it's much easier to lower one's net worth than to increase it. I don't want your life savings to seemingly slip through your fingers like sand. These are the actions you need to take to maintain, or even grow, your wealth.

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For example: Let's say you put 100% of your investment money into Corporate Inc. stock. If that stock goes to zero, your nest egg is gone. Now let's say you only put 1% of your funds into Corporate Inc. stock, and did the same for 99 other stocks. If that same stock goes to zero, sure, the worth of your portfolio will decline—but the most you would lose is 1% of your funds!

Owning a larger number of investments is one way to diversify. But there are many others that you can utilize to achieve an ideal balance of return and risk:

-- Asset diversification: You can own assets other than stocks. Bonds, for instance, have much different investment characteristics—whereas stocks provide growth but also higher risk, bonds have less upside potential but can deliver income and stability. Alternative investments (those outside stock and bonds) have their own pros and cons.

-- Style diversification: If you hold nothing but growth stocks, you might significantly outperform the market—but you could also be subject to wild swings in the worth of your portfolio, triggering you into making rash decisions. So you might consider holding, say, a mix of growth and value stocks, as the latter often offers higher dividend income, stability, and even outperformance in difficult markets for growthier firms.

-- Sector diversification: If you own 100 stocks, but every one of them is in the energy sector, your whole portfolio will more or less be at the whims of prices in commodities such as oil and natural gas. However, by spreading your exposure across different sectors—which represent different areas of the economy—your whole portfolio won't be beholden to just a handful of industry trends. Plus, different sectors tend to have different risk-reward compositions.

-- Geographic diversification: OK, so, the U.S. has historically been one of the best places to invest your money. Having a portfolio that's 100% allocated to American companies wouldn't necessarily be the worst thing in the world, in part because many large American companies are actually multinationals whose success hinges on performance in many other countries. But you also never know. Investing in other parts of the world is seen as a way to hedge against any weakness in the U.S., and depending on which markets you're investing in, a way to invest in countries with much higher rates of economic growth.

If you want to diversify your portfolio, you'll want to become familiar with investment funds, which include mutual funds, exchange-traded funds (ETFs), and closed-end funds (CEFs), among others.

An investment fund will hold hundreds or even thousands of stocks, bonds, and other investments—and all it takes is a single buy order to gain exposure to these holdings.

That's a much more attractive proposition than trying to build and manage a portfolio of thousands of holdings all by yourself. Plus, funds are more cost-effective—you might spend $20 or $30 to buy a share of a fund holding 100 stocks, but you might spend thousands or even tens of thousands of dollars to buy all those stocks individually.

Alternatively, you could have a financial advisor construct a diversified portfolio for you, then manage those investments over time.

Earlier in your life, when you're young and energetic, you might consider supplementing your income from a primary job with a side hustle. This isn't an overt blessing of hustle culture—it's certainly not for everyone, and there are clear downsides from overworking yourself—but having multiple income streams can help you accelerate your savings and partially cushion you from the loss of a job.

It's also helpful to have multiple sources of income once you're ready to call it a career.

Most people will enter retirement with at least two income streams: Social Security benefits, and withdrawals from at least one tax-advantaged retirement plan.

However, it might help to have multiple retirement plans with differing tax advantages, such as a traditional IRA (taxes aren't paid until you withdraw) and a Roth IRA (funded with already-taxed money, but you don't take out taxes when you withdraw). 

Additional income streams—such as a pension, life insurance policy, settlement, even a part-time job—can help reduce the risk of any one source of money running dry.

Related: Stop Shrinkflation! 10 Products Affected + Tips to Save Money

The problem is, there's no stopping inflation—there's nothing you, nor I, nor anyone else can do to halt the march of rising prices.

But we can (and should) invest with the idea of rising prices in mind.

Near the end of 2024, data from the Federal Reserve Bank of Cleveland showed that inflation over the next 10 years was expected to average 2.3%. If that came to pass, that would mean if you left $10,000 in cash under your mattress, that cash would lose 2.3% of its value every year. So, if you wanted your money to at the very least maintain its value, you'd want to invest it in something capable of delivering at least 2.3% growth per year—say, a high-yield savings account (HYSA) or a certificate of deposit (CD).

Dividend investors sometimes invest with inflation in mind, too. The most obvious solution would be to look for companies with yields higher than the rate of inflation. But you need to understand that inflation can erode your dividends' spending power, too. If you hold a $100 stock that pays $1 per year, and it continues to pay $1 per year for 10 years, your dividend income is actually losing ground to inflation every year.  So if you're evaluating dividend stocks, consider prioritizing names with a track record of inflation-beating dividend growth, and that you believe will continue to hike its payout at a rate higher than inflation. This can help ensure your dividend income at least keeps up with (if not surpasses) inflation over time.

Lastly, factor in inflation as you budget for retirement. For instance, you might currently live comfortably on an annual income of $80,000, so, using the 80% rule, you'd project that you'd live comfortably on $64,000 per year in retirement. But if you're decades away from retirement, inflation could greatly increase the headline income number you need to hit.

(Note: Everything I've said above applies for money you won't need in the very short term. It goes without saying that you need some money in a checking account to deal with your everyday expenses, even if that money doesn't earn a cent of interest.)

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The investment world provides a wealth of opportunities:

-- A tax-deferred account, such as a traditional 401(k) or IRA, allows you to contribute pre-tax dollars (reducing your taxable income), allows your investments to grow tax-free, and allows you to withdraw the money in retirement at a potentially lower rate than you would've paid when you contributed that cash.

-- A tax-exempt account, such as a Roth 401(k) or IRA, is funded with money that has already been taxed, but it too allows investments to grow tax-free, and you generally won't have to pay taxes when you withdraw that money in retirement.

-- Health savings accounts (HSAs) use pre-tax contributions and allow funds to grow tax-free. Plus, withdrawals aren't taxed (at any age!) if they're used for qualified medical expenses. (You can also withdraw funds for any purpose once you reach age 65; you'll be taxed, but you won't face a penalty.)

-- Did some of your investments fare poorly this year? You can use tax-loss harvesting to turn disappointing portfolio holdings into tax savings.

You have myriad other options for using tax planning to protect your wealth outside the investment space.

One for instance: If you want to sell your house for a gain but have lived there for under two years, you might consider waiting until you reach that two year mark. Why? The tax code allows for you to exclude up to $250,000 in capital gains on the sale of your home ($500,000 for married filers). In recent years, several new homeowners locked in low mortgage rates prior to a rapid increase in interest rates to stem the effects of inflation. Many of those homeowners may now qualify for this gain on sale of home exclusion, saving potentially thousands of dollars.

Another real estate-related tax-smart move: taking advantage of the “Augusta Rule” that allows homeowners to rent out their primary residence for up to 14 days per year tax-free. If you’re comfortable with having guests rent your home while you’re away, this can be an easy way to earn tax-free income.

Related: New Capital Gains Tax Rates for 2025 Are Now Available

Take health insurance, for instance. Health insurance is one of the biggest withholdings from your paycheck, amounting to hundreds, sometimes even thousands of dollars each month. But without it, an injury, serious condition, or some other catastrophic health event could send you into serious debt.

Indeed, medical debt is a widespread problem in the U.S. According to leading health policy organization KFF, around 14 million American adults owe more than $1,000 in medical debt. Approximately 3 million owe more than $10,000. Yes: Health insurance doesn't guarantee you won't accumulate some medical debt, but it can significantly improve your chances.

Here are some other popular types of insurance—some of which are often mandated, and some of which are optional—that can help you protect your wealth:

-- Homeowners/renters insurance

-- Auto insurance

-- Umbrella insurance

-- Life insurance

-- Disability insurance

-- Long-term care insurance 

Again, the hope here is that you'll never need to use your insurance. But if something goes wrong, you'll be glad you were covered.

Related: Retired But Too Young for Medicare? Health Insurance for Early Retirees

An emergency fund, as the name implies, is a bucket of money set aside for something—typically an emergency—that you don't budget for. Your car breaks down and requires an expensive repair. Your refrigerator bites the dust. You have to fight off a hyperaggressive groundhog infestation.

It also can be used to pay for everyday expenses in the event you're laid off or otherwise suffer a loss of income.

If you have an emergency fund, you can pay for the necessary expenses and never look back. If you don't? Well, you might end up having to pay for it with a credit card or a high-interest loan, making the emergency far more expensive than it otherwise would have been.

Experts typically recommend keeping at least three to six months' worth of regular expenses in your emergency fund. And per our inflation advice above? You can keep this in an HYSA or money market account, both of which are liquid enough to provide immediate access to your money, but still will earn you a few percentage points of annual yield.

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

Regularly check your financial accounts and credit reports. American consumers reported losing more than $10 billion to fraud in 2023 alone, says the Federal Trade Commission (FTC). And imposter scams were the most prominent category.

You might have most of your bills on autopay for convenience, and there is nothing wrong with that, but you still need to check your credit card bills and bank account balances to ensure you aren't improperly being charged for goods or services. 

Additionally, check your credit report regularly (you can do so for free once a year at annualcreditreport.com) to ensure no accounts have been fraudulently opened in your name. While you'll rarely be held financially liable for such things, these accounts could weigh on your credit score, costing you money in the form of higher interest rates on products such as mortgages and auto loans.

Related: What's the Standard Deduction for 2025?

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Well, if you exert some self-control, yes. If not, you'll fall victim to "lifestyle creep" (or sometimes called "lifestyle inflation"), which is when you increase your spending in tandem with your available income.

It can be a slow process—sometimes so slow it's difficult to even notice. Maybe you had food delivered once per week, but after you got a raise, you celebrated with an extra time. Then that became the norm. Then it slowly moved its way up to three weeks. 

But it can also be abrupt. You get a raise, so you go out and buy a better car with a commensurately higher monthly payment.

The problem is, of course, that lifestyle creep takes newly available money that you could be saving and sends it right back out the door. Indeed, this is how seemingly very well-to-do individuals with high-compensation jobs can still feel poor.

The best way to avoid lifestyle creep? Create and follow a budget, and prioritize savings—not spending—every time you redo the budget to account for any raises or bonuses.

Related: States With the Highest Minimum Wages [How States Stack Up in 2024]

But you can protect your and your family's legacy, and ensure that your wealth is intelligently passed on to your family, your friends, and/or your most cherished causes.

The best way to ensure your wealth goes where you intend is to create an estate plan. This includes writing a will, setting up trusts, and establishing gifts to charities, among other tasks. It also usually involves determining the most tax-efficient ways to pass on this wealth to maximize the money you're leaving behind.

While estate planning may seem only necessary for ultra-wealthy individuals, people of varying socioeconomic statuses should consider it. Having a plan can give you peace of mind and make the financial transition easier for your loved ones and causes.

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

A financial advisor can help you with everything above—investing, planning for retirement, estate planning—and more, such as navigating new financial waters amid major life events (marriage, divorce, receiving an inheritance).

Northwestern Mutual's 2024 Planning & Progress Study found that Americans who worked with a financial advisor saved twice as much money for retirement than people without an advisor. The study also revealed that 79% of respondents with an advisor said they "have a long-term plan that factors for up-and-down economic cycles over time." Only 38% of respondents without an advisor could say the same.

Indeed, if you had to follow one single step to protect your wealth, choosing a financial advisor—which opens the gates to numerous best practices—might just be the most effective.

Related: Is Your Retirement on Track? Here Are the Average 401(k) Balances By Age

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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.

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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But they need the right account.

It's very unlikely you'll save enough just by tucking money away in a high-yield savings account or a money market account. You want to invest your retirement funds so they grow into a nest egg big enough to sustain you in retirement.

If your workplace doesn't offer a 401(k)—and many don't—or you're self-employed, take heart. You can save for retirement without a workplace retirement plan like a 401(k), and today, I'm going to explore several of the methods available to you.

And remember: The earlier you begin investing for retirement, and the more money you invest early on, the easier it will be for your funds to accumulate.

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Fortunately, it's not the only way to save for your future. Virtually all American adults can sign up for several types of retirement accounts—they can open one or contribute to several simultaneously to take advantage of their different strengths. In fact, many people who contribute to a 401(k) also build their retirement savings using one or more of the accounts I'm about to discuss.

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A traditional IRA is a tax-deferred account. You fund the account with pre-tax dollars, and as long as you and your spouse (if you have one) don't have access to a workplace retirement plan, your contributions are fully tax deductible, lowering your tax burden for the year. If you or your spouse are covered by a workplace plan, whether and how much of your contribution is deductible depends on your income.

As your IRA investments grow over the years, you don't pay taxes on your earnings until you make withdrawals during retirement. Also, you'll likely be in a lower tax bracket in retirement than when you contributed to your IRA, so it's an ideal place to store any investments that don't have tax advantages.

A Roth IRA operates differently. You fund a Roth with post-tax money (money that has already been taxed). Money grows tax-free like a traditional IRA, but when you withdraw money in retirement, you don't have to pay any taxes. You should contribute to a Roth IRA at any point in your life when you think you'll have a higher tax bracket in retirement than your current one.

Related: What Is FIRE? A Beginner's Guide to the Early Retirement Movement

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Related: Best Vanguard Retirement Funds for an IRA

Meanwhile, depending on how much you make, you could be shut out of a Roth. For 2026, anyone with a modified adjusted gross income of over $168,000 (single or head of household) or $252,000 (married filing jointly) is ineligible to contribute to a Roth IRA.

The "phase-out range" of workers who can make partial contributions, but not the full limit, is $153,000-$168,000 (single or head of household) and $236,000-$246,000 (married and filing jointly).

If eligible, some people choose to contribute to both types of accounts so they have both taxable and tax-free withdrawal options during retirement.

Related: Best Schwab Retirement Funds for an IRA

You will generally face a 10% penalty for withdrawing money from both IRAs and Roth IRAs before age 59½, though there are some exceptions. (Additionally, with Roth IRAs, at least five years must have passed since you first contributed before you can withdraw penalty-free.)

While you can choose to take distributions at or after age 59½, traditional IRAs require people to start taking distributions—and paying taxes on them—starting at age 73 (this rises to age 75 in 2033). However, Roth IRA withdrawals aren't required at all until after the death of the owner.

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Thanks to "catch-up" contributions, if you're 50 or older, you can shovel an additional $1,100 into savings each year, for 2026.

That said, you can only contribute up to the amount of earned income you'll claim for a given year. So if you only earned $5,500, your contribution limit is $5,500, not $7,000.

Related: IRA Contribution Limits for 2026

In a nutshell, here are the three tax benefits of HSAs:

1. Those who have HSAs through their employers can make pre-tax contributions. Anyone self-employed who opens an HSA can deduct their contributions from their taxes.

2. Earnings grow tax-free.

3. At any age, you can take tax-free withdrawals if the money is used for qualified medical expenses.

Just know that if you take money out of your health savings account to pay for anything other than a medical expense, you'll have to pay taxes on it. And if you're younger than 65, you'd have to pay a 20% penalty as well, so that's something to avoid. At age 65 and beyond, there is no penalty, no matter how you spend the money. You just pay ordinary income tax on anything you take out if used for non-medical expenses. You're never required to start taking distributions.

Related: Best Fidelity Funds to Hold in an HSA

To qualify for an HSA, you must be covered under a high-deductible health plan (HDHP), not have any other health coverage, not be enrolled in Medicare, and you can't be claimed as a dependent on someone else's tax return.

This type of account has so many tax advantages and can be used toward medical expenses at any age without penalty, making it an excellent addition to any retirement plan.

Related: Best Vanguard Funds to Hold in an HSA

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The downside of this type of account is that there is no tax benefit. For this reason, it's best if you pair it with a tax-advantaged retirement account.

A perk of a taxable brokerage account is that you have complete control over what investments you choose, which isn't the case with all retirement plans. Stocks, bonds, exchange-traded funds (ETFs), mutual funds, you name it. There are a vast variety of investments to choose from.

You can select very liquid investments and are allowed to sell and cash out at any time with no penalty, although it's recommended to hold investments long term for growth and to pay less in taxes. Distributions are never required at any age.

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A SEP IRA, like a 401(k), is a tax-deferred retirement plan. You don't have to pay taxes on any interest or capital gains until you make withdrawals.

It's easy for employers and self-employed folks to set up a SEP IRA plan, and the administrative costs are low.

Aside from a few exceptions, withdrawals made before age 59½ face a 10% penalty, in addition to ordinary taxes. The account holder must start taking distributions by age 73. This age will rise to 75 starting in 2033.

Related: Best Fidelity Retirement Funds for an IRA

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When you take distributions, you pay income taxes on that money. Any withdrawals taken before age 59½ also face an additional 10% tax. But beware: If you take out money within the first two years of participating in the plan, that additional tax rises to 25%.

Currently, you're required to start taking distributions at age 73, but it will change to age 75 beginning in 2033.

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

If the SIMPLE IRA plan allows catch-up contributions, the limit for people 50 through 59 would be an additional $4,000 and up to $5,250 for those 60 through 63.

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

Typically, the employer is required to match each employee's salary reduction contributions dollar-for-dollar up to 3%. The employer can decide to make a lower matching contribution, but it must still be at least 1% and for no more than two out of five years. Employees must be given reasonable notice about the lower match.

An exception to the 3% rule is made for employers who make nonelective contributions instead. Rather than matching contributions, an employer can make nonelective contributions of 2% of every eligible employee's compensation.

These contributions must be made regardless of whether the employee makes salary reduction contributions. An employee's salary of up to $360,000 is taken into account when figuring out the contribution limit for 2026.

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If you previously had a 401(k) and then become self-employed, you can roll over that money into your solo 401(k) to stay more organized.

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

When you take withdrawals during retirement, the money is taxed as ordinary income. Withdrawals made prior to age 59½ also face a 10% penalty. Starting at age 73, distributions are required. In 2033, the age will increase to 75.

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Related: Retirement Plan Contribution Limits and Deadlines for 2026

But it's a little more complicated than that. People who own a solo 401(k) can make contributions to their own account as both the employee and employer:

-- As an employee, you can put away as much as 100% of your earned income—up to the annual contribution limit, which for 2026 is $24,500 for those younger than 50. With a catch-up contribution of $8,000, the limit for people 50 to 59 and $34,750 if 60 to 63.

-- As an employer, you can also pump in employer non-elective contributions up to 25% of your compensation until you reach the combined total limit.

When you add up both types of contributions, the grand total cannot exceed $72,000 for 2026 for those younger than 50. If you're 50 or older, the grand total is even grander: $80,000 in 2026.

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Related: How to Start a Retirement Plan [Build Your Retirement Savings]

If you qualify for an HSA, it's a great addition to retirement plans as it has several tax benefits, including tax-free withdrawals for any money spent on qualifying health care. For retirement options with higher contribution limits, consider a solo 401(k), SEP IRA, or SIMPLE IRA (if eligible). Taxable brokerage accounts have no limits.

Related: Should You Max Out Your 401(k) Each Year or Invest Elsewhere?

To save for your retirement quickly, open one or more investment accounts. Preferably, these are tax-advantaged accounts. An HSA and IRA are great places to start. If you can afford to do so, max out these accounts and then open another investment account. Options vary depending on your work.

Many accounts offer catch-up contributions if you're 50 or older. Make sure to contribute as much as possible for your age.

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If your job offers no type of employer-sponsored account, there are still retirement account options available to you, such as an IRA or HSA. You can also invest through a standard brokerage account.

Self-employed workers and small-business owners have additional options. Depending on whether or not they have employees and, if so, how many, a solo 401(k), SEP IRA, and SIMPLE IRA are more retirement account options.

Related: 9 Best Fidelity Index Funds to Buy

Workers who aren't offered a 401(k), whether because they are part-time, self-employed, or any other reason, should open up other accounts to invest for retirement.

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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.

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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1. Follow us by clicking the [+ Follow] button above,

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Maybe a medical issue has pushed you into early retirement, or you need to take off a few years to be a caregiver for a parent. But fortunately, you have hundreds of thousands, maybe even millions saved up, that could help keep you afloat now.

You absolutely can withdraw that money … but if you're not yet age 59½, you're not only going to be liable for taxes on those withdrawals, but you'll also face a 10% early withdrawal penalty that will further eat away at your nest egg.

Early withdrawal penalties serve to deter people from taking money out of their retirement accounts at too young of an age, kneecapping the funds that are meant to last them through their post-working years. But sometimes, there are financial situations that simply can't wait. Fortunately, there are a few loopholes that help people from being penalized for needing money—and Rule 72(t) is one of them.

Read on, and I'll explain Rule 72(t), show you how it works, help you determine whether you should take advantage of it, and list a few alternative steps you might consider if Rule 72(t) isn't right for you.

Rule 72(t) is a nod to Internal Revenue Code section 72(t), which outlines the 10% tax penalty imposed whenever a taxpayer receives funds from a qualified retirement plan (which for purposes of Section 72(t) includes both workplace plans and individual retirement accounts), including its exceptions. 

For instance, Section 72(t) explains that no 10% penalty will be applied when an employee reaches age 59½.

But that's not the only situation in which the penalty goes away.

When people talk about Rule 72(t), they're typically talking about a particular sliver of the section—specifically, Section 72(t)(2)(A)(iv), which says that anyone may avoid the 10% penalty if they take a minimum of five substantial equal periodic payments (SEPPs) or adhere to the payment schedule until age 59½, whichever is longer.

In other words, in theory, you could do this at age 25, 30, 35, 40 … you get the picture.

There are several limitations, however. Payments must be withdrawn on a specific schedule, based on one of three calculation methods you choose (more on this later). You can't adjust the SEPP amounts, nor can you make additional withdrawals; doing so would subject you to the 10% penalty you're trying to avoid. And once you begin withdrawing from the account, you can no longer contribute additional funds.

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The retirement plans eligible for Rule 72(t) include 401(k), 457(b), 403(b) Thrift Savings Plans (TSPs), and IRAs. 

All Rule 72(t) calculations use life expectancy, as determined by the IRS. (You can see which tables should be used on IRS.gov.) That may be only your life expectancy, though in some cases, it will be the joint life expectancies of you and your designated beneficiary.

Generally, the older you are when payments begin, the larger the payment amounts.

Using your life expectancy number, you can choose which of the three following IRS-approved calculation methods you want:

--Required minimum distribution (RMD) method

--Amortization method

--Annuitization method

Let's take a look at each method.

Related: Is Your Retirement on Track? Here Are the Average 401(k) Balances By Age

This tends to result in the smallest annual payment of the three methods. And the payment will change—every year, you must re-calculate based on your new account balance and your updated life expectancy.

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This method produces fixed annual payouts, and it typically generates the largest payments of all three methods.

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

The annual payment, which is the same each year, usually lands somewhere between the RMD and amortization methods.

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You have a 401(k) with a $500,000 balance that you expect to earn 8% annually. The reasonable distribution interest rate is 5%.

Here are the annual distributions you could expect to receive according to each method:

--Required minimum distribution (RMD): $15,823 (note, this would change each year upon recalculation)

--Amortization: $31,807

--Annuitization: $31,428

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That's a long way of saying, "This is a risky choice. This shouldn't be your first resort if you need money."

However, in some situations, using Rule 72(t) can be useful. If you have ample retirement savings and need to retire early, Rule 72(t) would allow you to enjoy penalty-free income during your early retirement.

Related: How to Invest for (And in) Retirement: Strategies + Investment Options

The rule allows you to start taking distributions from your 401(k) without the early withdrawal penalty if you have lost or left your job during or after the calendar year in which you turn 55. Taxes will still apply, of course, just like they would if you were age 59½ or older—you're just dodging the penalty.

The Rule of 55 does not apply to IRAs and similar accounts, however.

Related: Rule of 55 vs Rule 72(t): What's the Difference?

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--Up to $5,000 per child for qualified birth or adoption costs

--Up to $10,000 or 50% of account (whichever is less) for domestic abuse victims

--Any funds used after the total and permanent disability of the account owner

--Amount of unreimbursed medical expenses (>7.5% AGI)

The IRS has a full list of exceptions to tax on early distributions. All of the examples listed here apply to both workplace plans and individual accounts. But some exceptions are limited by account type.

Related: Financial Prep If You're Worried About Being Laid Off

Like just about any loan, a 401(k) loan lets you borrow money from your retirement savings, and requires you to pay back that money (with interest) over time.

But you should only consider this route if you are confident you can pay back the loan and interest in a timely manner. Not repaying the full loan and interest will result in any unpaid amounts to be treated as a distribution, which will trigger any applicable taxes and penalties. Some plans require the loan to be paid in full if you exit your job. Also, the interest rate for 401(k) loans is commonly a percentage point or two higher than the current prime rate.

Related: How Much Should I Save Each Month?

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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.

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 no matter how difficult it might be, it's worthwhile—and arguably important—for retirees to declutter their homes.

Retirees frequently downsize or otherwise move in retirement, and the fewer things you have to lug from Place A to Place B, the better. But even if you're staying put, you should prioritize home organization; clutter can become a tripping hazard, lead to pest infestations, and even be a fire risk. Not to mention: Physical clutter can lead to mental clutter, too.

So for your safety and peace of mind, if you're retiring soon or are retired, you should consider decluttering. It's easier said than done, but with these top decluttering techniques, it's very doable.

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First, you need to get in the right headspace. Then, you need to decide what to keep … and what to give away, sell, donate, or in the worst case, trash.

The following tips will help make the process easier—sometimes from an organizational standpoint, and sometimes from an emotional one.

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You don't want to pull everything out of your drawers and closets and then be surrounded by stuff and burnt out. Even if fatiguing yourself results in you ridding yourself of a lot of things, it won't have created any sustainable habit changes; indeed, it could cause you to rebound and start accumulating clutter again.

Instead, acknowledge that the project may take several days, or even longer, and focus on doing it right, rather than rushed. You should also work on making this a step toward making your lifestyle a little more minimalistic, rather than a one-time cleaning spree; that should help prevent the clutter from accumulating once more.

Ditch that old, broken coffee pot. You already have a new one and are unlikely to fix the old one. Second microwave just sitting in the basement? You're not going back to it; let it go.

If you need a really easy way to get the ball rolling, clean out the fridge. Tossing expired food items and anything else that looks past its prime is brainless but gets you in the right frame of mind.

You could also address any stockpiles of papers that are several years old and no longer useful to you … but you'll probably want to consult our "shred or save" list first.

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

Why wait? Give them away now.

You might have loved ones who could and actually would make immediate use of those antique clocks or hand-sewn quilts! Don't let useful or beautiful objects sit in the attic when they could be making those close to you happy.

In some cases, doing this might even help your family from a financial perspective. Let's say your granddaughter and her husband recently bought their first home. This would be an excellent time to offer up the antique dressers or dining set you've been holding on to. Receiving these gifts from you now could save them money during a time when they might be strapped for cash—not to mention, by the time you pass away, they might have a fully furnished home with no room for your furniture.

By the way: This doesn't have to apply to just heirlooms passed down through your family. Consider anything you own that you don't have a need for and ask yourself, "Would my family and friends benefit from receiving this?"

Related: How Much Should You Financially Support Adult Children?

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Selling unneeded, high-value items can add to your financial cushion and reduce financial worries. It's a win-win: Your "stuff" collection goes down, and your account balance goes up.

Monetary compensation can ease the mental burden of decluttering, helping you determine which things have true sentimental value and which are simply goods you bought and are willing to part with.

You can sell your stuff in a number of ways. Traditional garage sales are still alive and well. You could also list some of your higher-ticket items on selling platforms such as craigslist, Facebook Marketplace, eBay, and Poshmark. But be aware of online sales scams; if you're selling an item, there is never a good reason for you to give the other person money, even if they claim to have overpaid you via a payment app.

Related: Elderly Scams: Beware These 15 Schemes Targeting Seniors

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Secondhand shops, such as St. Vincent's or Goodwill, are go-to donation stops. You can drop off your goods and go, though giving away items can also save you money at thrift stores—some stores will give you a discount on your next purchase after you donate.

But thrift stores aren't your only choices. Local homeless shelters or women's shelters will often accept clothing, blankets, backpacks, and more. So too will many faith-based charities. And knowing that your old items could help people who really need them can be an excellent motivator for decluttering. 

Don't forget about animals, either! If you decide not to have pets in retirement, you might be able to donate unopened food, treats, cleaning supplies, and other items to an animal shelter near you. 

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In truth, ditching unnecessary mail is just a bandage. You're better off treating the sickness, not the symptoms, by ensuring all that mail never reaches your home in the first place.

Start by redirecting mail that was never intended for you. If you're receiving mail for a previous resident or somebody else who doesn't live with you, return the mail back to the mailstream with "Not at this address" written on the envelope. If you get a "We ReDeliver for You" PS 3849 form for a different address or for a person who doesn't live at your address, do the following:

--Check the "Other" box.

--Write in "Refused."

--Return the form to a mail carrier or your mailbox. 

Next, focus on your own mail deliveries. Call to unsubscribe from magazine and ad mailing lists you're no longer interested in.

Do you receive a pile of bills in the mail? Contact each company and request digital billing. If you're worried about missing payments this way, you can create calendar notifications or set up automatic payments. (If you do the latter, double-check your bank or credit card statements to ensure you're being charged the proper amount.)

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

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Do you still have your daughter's program from that musical she was in? What about that flight ticket you saved from your dream vacation? These items might hold sentimental value, and it could be difficult to get rid of them. The same goes for plenty of non-paper items, too, whether it's a broken heirloom clock from your grandfather or trophies from when you were younger. And having photos makes it easier to share memories with others, too.

You can also save space by digitizing your photos. Photo scanners from the likes of Epson, or even photo scanner apps on your phone, can help you retain your memories while getting rid of bulky bins of Polaroids. 

Just remember: If you do decide to digitize, you should keep those files in multiple places (such as your hard drive and a USB flash drive, or the cloud and your hard drive) to ensure if they're somehow deleted in one place, you have a backup you can duplicate again.

Related: What Are the Average Retirement Savings By Age?

1. Have I used this item in the last 90 days?
2. Will I use it in the next 90 days?

If the answer to both questions is a solid "no," that usually means you should get rid of the item. Seasonal items, such as Christmas decorations, are an exception. The "90" is less important than having a set, predetermined number of days as a guideline. 

The point is that you shouldn't hold onto items that you might need eventually because you may never actually need them. Even if an object would have been useful five years later, it isn't necessarily worth storing that long. If you haven't used something soon and have no plans to use it, give yourself more space by getting rid of it. 

Related: How Retirees Can Master Budgeting With a Variable Income

Or it might just be that you need help with certain steps of the decluttering process. For instance, if part of your strategy is to donate items to charity, you could find a charity that will pick it all up for you. 

Many major charities, such as Habitat for Humanity, Salvation Army, and Big Brothers Big Sisters of America, offer free donation pickup. Consider contacting local charities to see if they are willing to collect your donations. Policies may vary by location, and they might have limitations on what types of items they will accept. 

Some moving and packing companies specifically offer senior decluttering services, too. These professionals can help you organize your belongings, decide what to keep and what to ditch, and haul away what you don't want. If you're moving in retirement, they can also help you pack up and relocate your possessions. 

Related: Downsizing in Retirement? 10 Tips to Follow

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The same goes for decluttering your financial affairs, too.

Do you have five different 401(k) accounts from various jobs throughout your career? That could lead to unnecessary confusion and complexity for your beneficiaries. You might consider 401(k) rollovers to consolidate your retirement accounts into a single individual retirement account (IRA). If you have several checking accounts or taxable brokerage accounts, you can consolidate those as well. 

The less complexity and the fewer accounts you have, the easier the financial transition will be for your heirs down the road.

Related: How to Achieve Financial Minimalism to Reduce Stress

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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.

Also, do you want to stay up-to-date on our latest content?

1. Follow us by clicking the [+ Follow] button above,

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4. And lastly, if you think this information would benefit your friends and family, don't hesitate to share it with them!

But in addition to carrying intriguing products, the store has some policies and practices that range from uncommon to downright unheard of (outside of Trader Joe's, of course).

In other words: Don't treat a shopping trip to Trader Joe's like going to any other grocery store.

Today, I'm going to go over some of the best tips to make the most out of your Trader Joe's experience. These tricks can help you shop without buyer's remorse, keep your children entertained, and more. Once you become a Trader Joe's pro, you may shop there more than you expected.

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But let's say you spot a bag of Strawberry Yogurt Flavored Covered Almonds (a favorite of my sister). You probably aren't sure whether they'll taste as delicious as they sound.

At Trader Joe's, you can just ask a staff member.

Employees get to sample the shop's latest products, making it easy for them to provide recommendations. Also, Trader Joe's stores purposely ensure there are always plenty of workers around, so don't feel shy using a few minutes of an employee's time to ask questions.

At Trader Joe's, that's a viable option—employees will let you sample nearly anything, with a few logical exceptions. For instance, you can't try frozen foods that would need to be microwaved or thawed and baking mixes can't be sampled in their current state. Also, don't plan on doing any "pregaming" there, either, as you can't sample alcohol.

And pretty please, don't overdo it and try to get a meal out of samples. Don't be the person who ruins this excellent perk for everyone else.

Related: 20 Expenses to Cut From Your Budget in 2025

Unfortunately, the crackers weren't all they were, ahem, cracked up to be, and the Chardonnay doesn't hit the same way a pumpkin spice latte would. 

If you bought those items at just about any other supermarket, you'd have to eat the cost of that dining experience. But not at Trader Joe's. The store has a remarkably lenient return policy—just bring back an item (even if the box is opened) and a receipt, and you'll likely be allowed to return them. (Depending on your state, you might have to receive a like product in return for alcohol returns.)

Also, you can even get your refund at a different store than where you originally purchased the items

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

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Every shop has a stuffed animal hidden somewhere for children to find among the shelves and stacks. Different stores have different animals, so kids might be searching for a bear, eagle, or another creature.

Once the child finds the animal, they can point it out to an employee or tell them where they found it. If the child finds the stuffed animal, they earn a prize—candy, fruit, a sticker, or another small item.

Related: How Much Should I Save Each Month?

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You can subscribe to the Flyer here, and it will be sent to your inbox every time there's a new edition. The company will still occasionally mail a physical copy, and physical copies can also be found in stores.

Related: Should You Buy a Car Outright or Finance It?

If you fall in love with a snack, toothpaste, frozen meal, or anything else, stock up on it—especially if it's seasonal. Otherwise, you might purchase your last box without actually knowing it until it's too late.

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But please don't hold your breath for a sale at Trader Joe's. They don't do sales. They don't print coupons. They don't give online discounts. Nothing. Nada. Zilch.

So if you come across an item you like, you simply have to decide whether it's worth the price to keep buying it. (And if it's a product you've never tried, remember what I said above: There's a good chance you can try it in the store before buying it.)

There is one exception, and that's manufacturer coupons. Most Trader Joe's products are store brands. But it does carry other regional and national brands—and if you're able to find manufacturer coupons for those products, you should still be allowed to use them.

The one exception is manufacturer coupons. While most Trader Joe's products are store brands, some other brands are carried. If you're able to find manufacturer coupons for those products, you can use them. 

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Related: Stop Shrinkflation! 10 Products Affected + Tips to Save Money

Trader Joe's shoppers who bring their own grocery bags and spend at least $25 can enter to win weekly prizes, such as a $25 gift card. You could buy a lot of tasty goodies with that gift card on your next shopping trip.

The cashiers usually don't bring this up, so make sure you ask about it when you're checking out!

Related: 10 Items You Should Always Buy New

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For example, in 2023, they had the Burger Bun-anza Recipe Contest. Customers were challenged to create the best possible burger recipe using seven or fewer Trader Joe's ingredients (a few ingredients, such as salt and pepper, didn't count toward the ingredient tally). Contestants crafted their recipes, used them to make burgers, photographed those burgers, wrote captions, and posted the photos on Instagram. The winner received a $200 Trader Joe's gift card, and two runner-ups earned one $100 gift card apiece.

Other Trader Joe's contests from the past include a Pizza Party Recipe Contest in spring 2024, and a banana recipe contest in 2023.

Ask an employee at a local Trader Joe's about any current or upcoming contests. You might be able to have some fun and win a prize.

Related: 20 Big-Ticket Items Worth Splurging On

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Unsure whether there is a location close by? You can check locations here. 

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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.

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.

Also, do you want to stay up-to-date on our latest content?

1. Follow us by clicking the [+ Follow] button above,

2. Subscribe to Retire With Riley, our free weekly retirement planning newsletter, and

3. Give the article a Thumbs Up on the top-left side of the screen.

4. And lastly, if you think this information would benefit your friends and family, don't hesitate to share it with them!

Banks charge a wide variety of fees. It's understandable—after all, banks are businesses, not charities—but those fees do cut into our savings, our earnings, and our potential returns. It's a begrudging trade-off: credit cards are convenient, but paying credit card fees sure isn't.

Happily, while credit card and bank fees are aggravating, you do have ways of reducing or even avoiding them. So if you're trying to hold on to more of your hard-earned cash, read on as I go over some of the most common bank fees, then the most common credit card fees, and discuss whether you can dodge them.

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The clear way to avoid this is by keeping enough money in your account to satisfy the minimum. However, it's tricky to avoid temporary dips below the threshold in a primary checking account, where money is frequently coming in and going out. So, if you're worried about this issue, seek out bank accounts that don't carry minimum balance requirements.

Luckily, monthly maintenance fees are easy to avoid.

Many financial institutions waive monthly fees if you use enough qualifying services. For example, a credit union I use waives the monthly fee if you use at least five qualifying services or have combined deposit and/or loan account balances of $20,000. Many of these qualifying services are simple to meet, such as having a savings account, checking account, paperless statements, mobile or direct deposit, and debit card usage.

But it's also easy to find a bank account with no monthly fees whatsoever, especially among larger banks and financial apps. Among accounts we rate, Bread Savings, Sofi Checking & Savings and Axos Rewards Checking all offer robust banking offerings with no monthly fees.

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

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A bank charges an overdraft fee when it clears a transaction that's overdrawn the account and temporarily covers your shortfall. But if a bank declines to cash a check or approve a payment that would overdraw the account, it will charge an NSF fee.

The glib answer: Don't overdraw your account. But if we're being practical, and you want to prevent an accidental overdraft or NSF fee, consider switching where you do your banking. Many banks and credit unions provide overdraft protection (though that sometimes requires its own fee), or otherwise allow you to avoid overdraft fees as long as you aren't overdrawn by a substantial amount and reimburse the account in a timely manner. For instance, Axos Rewards Checking charges no overdraft fees whatsoever.

Related: The 7 Best Vanguard Index Funds for Beginners

ATM fees are naturally frustrating because it's an extra charge to access your own money. And while the fees might only be a couple bucks in many locations, a few are eye-poppingly high. I recently used an ATM while traveling to Costa Rica, and I was charged a $7.80 fee!

You have two realistic options for getting around these fees. You can either bank with an institution that has an exceedingly high number of in-network bank and/or third-party ATMs. Or you can bank with a financial institution that reimburses out-of-network ATM fees.

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

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-- Incoming domestic (U.S.) transfers usually range between $0 and $15

-- Incoming international transfers usually range between $0 and $20.

-- Outgoing U.S. transfers usually range between $15 and $40.

-- Outgoing international transfers usually range between $35 and $50.

There's no negotiating these funds, but you can find ways around them.

If you expect to make frequent wire transfers, you should comparison-shop among banks. Some banks offer one or more free incoming and outgoing wire transfers with high-level accounts, though that's not the norm for a standard savings or checking account.

Of course, the best way to avoid wire transfer fees is, when the choice is available, to use another method to transfer money. Many banks permit free ACH transfers between bank accounts, though those payments aren't instantaneous. You could also use apps like Zelle—an instant transfer method between bank accounts—as long as both financial institutions have Zelle functionality. In a pinch, peer-to-peer money apps, such as PayPal and Venmo, can let you send money to friends or family for free, too.

Related: The 7 Best Fidelity Index Funds for Beginners

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That said, if you're not careful, you could accumulate a laundry list of different fees.

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While annoying, credit card companies are typically upfront about annual fees, so if you don't want to pay an annual fee, simply choose from the credit card world's wide variety of free options. And though it won't work often, it's worth at least calling to see if you can get the fee waived; the worst they can say is "no."

But sometimes, it pays to pay the fee. Just make sure you take a close look at all of the rewards, and how likely you'll be to use them all, to get an idea of whether you're going to come out ahead.

Related: The 10 Best Vanguard ETFs for 2025 [Build a Low-Cost Portfolio]

Like with many fees, the best way to avoid foreign transaction charges is to shop around—many cards (especially travel-oriented cards) don't charge foreign transaction fees. Alternatively, though, if you rarely travel internationally, when you do, you might opt to primarily pay in cash.

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It's recommended to put credit card bills on autopay or set calendar reminders so you always pay on time. Still, accidents happen.

A quick call to your credit card issuer can often get this fee removed, especially if it's a first-time offense. Some companies are more strict, however, and might refuse to waive the fee.

But the best way to avoid these fees is to (obviously) pay on time. My advice? You can set a calendar reminder so you always know to pay your bill on time. Or set up autopay to at least cover the minimum charge you'd face each month (and manually go into your account to pay off greater amounts as you can).

Related: 9 Best Fidelity ETFs for 2025 [Invest Tactically]

The interest on a card is expressed through annual percentage rate (APR). You can use this APR to determine how much you'll be charged in interest every year as a percentage of the balance you hold. And while many credit cards will offer a 0% introductory APR when you first sign up, eventually, you'll be held to that rate.

The easiest way to avoid paying interest is to pay your full balance on time every month. If you do that, you'll never be charged any interest.

However, if you pay less than the full balance, you'll be charged interest. Depending on the source, the average credit card APR right now sits between 22% and 28%. You'll also be charged interest if you pay the full balance late, though if you usually make on-time payments, you can call your credit card company to see if they'll waive the interest.

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

Some people avoid this fee by making an infrequently used credit card the payment method for one annual subscription—so that way you're using it at least once per year.

It's worth seriously considering this option: Cards that are inactive for very long periods might be canceled by the credit card company altogether. And especially if it's one of your earlier or larger lines of credit, having that card shut down could negatively impact your credit score.

Related: 60 Personal Finance Statistics You Might Not Know (But Should!)

This fee is relatively easy to get around. Credit cards occasionally have promotions where they'll allow customers to execute free balance transfers. Even outside of a promotional period, you might be able to find a new card offering a $0 introductory balance transfer fee. Just read the fine print: You don't want to sign up for a card for the beneficial balance transfer fee alone, only to find out it charges a host of other fees.

Related: How to Get Free Stocks for Signing Up: 10 Apps w/Free Shares

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We never recommend getting a cash advance except in an emergency, just given how high the financial penalties are. You're better off withdrawing money from an ATM, getting cash back from a store, or borrowing money from your savings account or emergency fund.

Related: 11 Best Alternative Investments [Options to Consider]

If a bank or card charges a monthly or annual fee, see if the price will actually be worth the perks. And try to avoid usage fees on transactions you'll complete frequently—if you travel internationally often, for instance, you'll want to avoid a credit card with foreign transaction fees.

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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.

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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1. Follow us by clicking the [+ Follow] button above,

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That doesn't mean you shouldn't do it. On the contrary, you'd be surprised at just how much money you can save by eliminating a few regular purchases from your budget. And if you can get over the initial hurdle, you'll likely find you don't miss most of those non-essential expenses anymore.

If you're looking to trim your budget, see how many of the following expenses you can cut down to meet your savings goals.

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One important thing to remember: In many cases, you don't even have to completely cut these products and services from your life—merely reducing your usage of some of them will be enough to make significant financial progress.

To start, menu prices on food delivery apps are often higher than the restaurant's regular menu. Then, there is usually a service fee, delivery fee, or both. Taxes apply to any food order, of course, but you might also see miscellaneous costs. Finally, there is gratuity, which you'd owe at a typical sit-down restaurant, but that you probably wouldn't pay at a fast-casual or fast-food chain.

It isn't unheard of for all the extras to add up to between 50%-100% of what the cost would be if you had just picked up an order yourself. Restaurants don't exactly love it, either; these delivery apps can be prohibitively expensive for them.

So, whenever you can, pick up the order yourself. Or save a little more money by cooking your own meals a little more often.

Choose one or two services that you watch the most and cut the rest from your monthly budget. If you only subscribe to a service for one or two shows, consider buying one-month subscriptions once the full season's worth of episodes have been released.

If you don't have any specific interests and just like to have options, consider free, ad-supported streaming services such as Pluto TV, Tubi, and Freevee.

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But Prime is doing its best to convince its subscribers otherwise.

The cost of Prime has slowly risen over the years 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 over a set dollar amount—has become much more commonplace for retailers than when Amazon first introduced it. So now, you can frequently buy an item directly from a manufacturer without having to pay shipping (plus you know it's the real deal).

The most recent knock: In late December 2023, Amazon announced that Prime Video would begin including ads on Jan. 29, 2024. Want an ad-free experience? You 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: 14 Items to Buy in Bulk + 7 You NEVER Should

But washing your own car is easy, and the equipment (a hose, soap, and towels) are fairly cheap. You can also clean the inside of your vehicle with an inexpensive handheld vacuum.

Car washes aren't a big monthly expense, but they're easy to boot from your budget to earn a little extra wiggle room.

Related: 25 Best Jobs for 15-Year-Olds [In-Person + Online]

Yes, you might only spend a few dollars playing the lotto every week. But over time, those tickets add up to real money you could use toward necessary expenses or small luxuries. Rather than fantasizing about that yacht you would buy with your winnings, you could actually buy yourself a treat here and there instead.

Other types of gambling might involve some skill, but at the end of the day, you still heavily rely on chance. Remember: Casinos are profitable for a reason. Consider changing out your casino nights for more affordable recreational activities. And if you really miss the casino's watered-down cocktails, you can make your own at home.

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Maybe you've told yourself that you don't have time to pack your meals, or maybe you can't think of enough tasty meals to bring to work every day. Whatever the case, here are a few quick ways to make this task easier:

-- Pack leftovers for the next day's lunch before you even eat dinner. As soon as the food is ready, put some in a reusable container and into your lunch bag. This ensures you'll have enough saved for lunch and that you won't be too tired to pack it once you're full and sleepy.

-- Have a meal-prep day. Most people use Sundays to make a lot of food and pack their lunches for the entire week. (This method also solves the problem of not having time during the week to pack lunches.)

-- The internet is full of recipes for people who have little time. Just search "30-minute meal-prep recipes," and you'll be buried in enough meal ideas to last you the rest of your life.

-- Keep a variety of grab-and-go meal options, like Lunchables, microwavable meals, and snack packs. It's not as cost-effective as making your lunches, but it's still a cheaper alternative to eating out. 

Related: 60 Personal Finance Statistics You Might Not Know (But Should!)

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Produce prices can actually vary significantly depending on when the items are in and out of season. Especially during the winter, prices of fresh out-of-season produce can soar.

The good news? Frozen produce has the same nutrients as fresh items (as long as no sugars or extra ingredients are added). So you can cut down on your grocery bills (and stay just as healthy) by stocking up on certain frozen fruits and veggies to use when they're out of season.

Related: How to Get Free Stocks for Signing Up: 10 Apps w/Free Shares

In many cases, you can lower your monthly expenses (and be more environmentally friendly) by purchasing reusable products rather than single-use items. Great examples include ditching paper towels for washable rags or reusable bamboo towels, replacing individual water bottles with reusable bottles (if you don't like the taste of your sink water, consider a Brita filter or a water bottle with a built-in filter), and using reusable plastic containers and even reusable zipper storage bags instead of Ziplocs and other single-use storage.

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But the truth is: Most people will understand if you need to cut back gift giving.

You don't have to go cold turkey. For instance, if you celebrate Christmas, you can recommend a white elephant or Secret Santa exchange so each person buys just one present instead of many. Or instead of buying scads of presents for your friends, host a potluck, cookie exchange, or some other low-cost activity that gets everyone what they really want: a little more time with the people they enjoy. You can even try gifting services such as making a home-cooked meal or offering to babysit.

Related: 10 Best Financial Gifts for Babies, Kids, and Grandkids [No More Toys]

You likely already have the materials you need in your cabinet or fridge to make homemade cleaning solutions—and if you don't, buying those materials is still cheaper than buying most household cleaning solutions.

For instance, I run diluted distilled white vinegar through my coffee pot to keep it clean, soak water bottle parts in it, and use it for a variety of other cleaning tasks.

Baking soda is another powerful, cheap cleaning ingredient that I use. I buy generic, 16-ounce boxes for only 99¢. I use what I need for baking, then use the rest for cleaning. Not only does it clean well, but it absorbs smells—which is why many people (myself included) stick an open box in their refrigerators.

And if you're worried you'll miss the lemony smell of your favorite cleaner, you can add actual lemon juice to produce the same scent.

A quick online search for DIY cleaning recipes provides many cheap options. As a bonus, your homemade cleaning products won't contain any harmful chemicals that some store-bought solutions contain.

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Try consuming alcohol only at home and gatherings at people's houses. Buy yourself a few of your favorite beverages (or ingredients to make them) and enjoy your drinks with others at home. Not confident you can create your own cocktails? Premixed cocktails are more common than ever.

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Borrow board games or video games from a library. Cook a meal together. Take a long walk.

Even mixing in just a few at-home date nights can give you more room in your budget to splurge occasionally for special occasions.

Related: How to Get Free Money Now [15 Ways to Earn Money]

Specifically, there are eight IRS Free File Online tax preparation services. All of them have adjusted gross income requirements (varies by service), so if you make too much money, you might not be eligible to use them, though. And a couple are only for certain age groups. But if you qualify, this can be a great way to save money each year. These services include:

-- 1040NOW.NET (federal return free in some states; state return never free)

-- FileYourTaxes.com (federal return free in all states; state return free in some states)

-- 1040.com (federal return free in all states; state return free in some states)

-- TaxAct (federal return free in all states; state return free in some states)

-- FreeTaxUSA (federal return free in all states; state return free in all states)

-- TaxSlayer (federal return free in all states; state return free in some states)

-- OLT (federal return free in all states; state return free in all states)

-- IRS Free File Program delivered by ezTaxReturn (federal return free in some states; no free state tax return in any state)

For the past couple of years, I've used ezTaxReturn.com. I admit, it has a scammy sounding name, and the website feels a bit, ahem, old-school … but I'm willing to put up with a less-than-optimal user experience for a free, quality service. My returns have always been accepted.

The IRS is also currently piloting Direct File in 12 states: Arizona, California, Florida, Massachusetts, Nevada, New Hampshire, New York, South Dakota, Tennessee, Texas, Washington, and West Virginia.  Eligible filers in those states with simple tax filing needs, as well as certain types of income, credits, and deductions, can use the service to file for free online.

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According to several state and local health department guides, people who smoke a pack of cigarettes a day can expect to spend anywhere between $2,200 and $4,400 per year—and that doesn't include any potential medical costs you could incur from the habit down the road.

And we'll state the obvious: Avoiding these products would be great for your health, too.

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I love adorable onesies and tiny, sparkly baby shoes as much as the next person. I do. And I support you playing dress-up with your child as much as you please (assuming the baby doesn't mind).

But don't bother buying new baby clothes and shoes.

Some kids' items you should always buy new, such as car seats. But shoes and clothes aren't on that list. Why? They grow out of them too quickly. It's not uncommon for toddlers to pass through three shoe sizes per year. My 10-year-old nephew is flying through shoe sizes so quickly that his feet are already bigger than mine.

Instead, ask people for their kids' used items, check local Facebook giveaway groups, and take some time pursuing yard sales. You'll find just-as-cute items that are free or you can buy with the spare change at the bottom of your purse.

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You can do that by improving the level of care you give to your current clothes—for instance, only wash and dry garments that are actually dirty/smelly, wash dark clothing inside out, and carry a stain removal pen with you at all times.

If you need outfits to remain presentable for work, obviously don't touch that part of your budget. But consider reducing how much you spend on outfits you wear outside of the workplace.

Also try browsing a brick-and-mortar thrift store or app, such as Poshmark or Mercari, for your next clothing purchases. Sometimes, items have never even been worn and still have the original tags attached. (This type of shopping can be better for the environment, too, as these clothes might otherwise end up in a landfill.)

Related: How to Get Free Stocks for Signing Up: 10 Apps w/Free Shares

For one, services like Xbox Game Pass allow you to try hundreds of games without having to buy them—so if you grind through a high volume of games, services like Game Pass make a lot of sense.

If you're not a hardcore gamer, you might lean the other way—in that you've bought several video games that you never got around to playing. So a good way to get yourself to cut back on buying more games is to stop yourself from purchasing anything new until you've finished the games you've already bought.

And a surprising way to save: your local library. Libraries carry far more than books nowadays—you can rent movies, music, and even video games. Yes, you might not be able to check out the very latest hits, but it's a good way to casually game while you're on a tight budget.

Related: 30 Best Side Hustles for Teens [In-Person + Online]

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We'll start with a few simple tips. During the summer, draw your curtains in rooms that don't need sunlight. Blackout curtains in particular can drastically reduce heat gain from windows and keep your home cooler. Try cooking outside on particularly hot days. During the winter, reverse the direction of your ceiling fans, close off unused rooms, and make sure you're replacing your filters.

Some measures that are more expensive up front but can drastically reduce energy use include cleaning your heating system, using a humidifier, and insulating your attic.

Getting a smart thermometer can be useful year-round. You can set these to raise and lower temperatures at different times. For example, you might have it automatically cool your home down at night and begin to warm it up an hour before you need to wake up in the morning. Or, you might set your home to cool down or heat up while you're driving back from work.

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I love books. I'm even part of a book club. But rather than buying books, which can be pretty pricey, I take advantage of my local libraries.

Based on Follet and Baker & Taylor data, the average price of an adult-geared, fiction hardcover book in 2022 was $27.43. Using that number, a person who opted for the library—which, every public library is free to join—over buying a new book once a month would save roughly $330. If you prefer nonfiction books or read more frequently, your savings would be even higher.

This can be a simple item to cut from your budget until you can afford more discretionary spending. Plus, that library card might encourage you to read more.

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Showering typically uses less water than baths. And if you shower already, reducing your shower time just a little each day can add up.

Check for any leaks from your sinks, toilets, and hoses; even small leaks can result in a lot of wasted water. You can also install water-saving fixtures, use a dishwasher over hand washing, and adjust your landscaping to require less watering.

Related: How to Negotiate Medical Bills in Collections [13 Steps to Follow]

When possible, walk, bike, or take public transportation instead of driving yourself. Don't live in an area where everything is accessible that way? You might be able to save on gas in other ways, such as starting a carpool.

Even a little bit of planning can help. Give your significant other a quick call to see if there is anything else you need to grab. It's not only thoughtful—but you'll save on gas by not having to make a separate trip to the store.

Axos Rewards Checking Account has no monthly maintenance fees, overdraft fees, or non-sufficient funds fees, and you will get reimbursed for all domestic ATM fees. Plus, you can earn a high annual percentage yield (APY)—especially when compared to other checking accounts—based on your spending, direct deposits, and other account activity.

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Simply put: You have to wipe the debt out.

For most people, this won't be a quick fix like many of the other expense-cutting measures listed here. Instead, you'll actually have to add to your expenses (in the form of putting more toward paying off your debt each month) until it's actually paid off.

Related: Do Installment Loans Build Credit?

Credit cards often carry exceedingly high interest rates into the high teens and even 20s. If you're only making minimum interest payments, you could pay hundreds if not thousands of dollars in additional interest expense—and have those monthly payments locked into your budget for far longer than you'd want.

Once you pay off old credit card debt, you'll want to improve your spending habits, and also make sure to pay off your balance in full each month.

If your credit card debt seems insurmountable, consider speaking to someone at a nonprofit credit counseling agency.

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One great method: The 30-day rule. It's simple. When you get the urge to make an unplanned purchase, write it down and wait 30 days. If you still want to spend money on that item or service after 30 days, buy it. But in many cases, once you've had some time to think about it, you won't feel the need to pull that money.

Related: 12 Best Apps That Give You Money for Signing Up [Free Money]

Still, even in those situations, you might be able to negotiate a better rate or get a better deal through another provider.

In a better interest-rate environment, you could refinance your mortgage to make your mortgage payment lower each month. (You might also be able to get rid of any private mortgage insurance you carry.) Shop around for cheaper home and car insurance; yes, changing providers takes time and effort, but a lower monthly payment can be worth it.

You can also save money through couponing. These days, you don't even need to search for coupons to cut out—some apps and extensions that can do that for you.

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

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.

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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You might not have the time, energy, or expertise to prepare the types of elaborate meals you can get at your favorite restaurants. It can also be nice to have a change of scenery and not have to worry about cleaning dishes.

But eating out can be expensive—and many Americans are increasingly feeling this pinch. According to YouGov's "US Dining Out Report 2025," 37% of respondents said they're dining out less frequently than they did a year ago, and of those diners, 69% cited a perceived rise in cost as a reason.

The good news? There are several ways to save money at restaurants—and the more of these money-saving strategies you implement, the more cash you can hold on to. Let's discuss some of the easy ways to spend less money dining out.

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While that absolutely will cut down on your spending, you deserve to treat yourself sometimes. Not to mention, cooking at home doesn't feel so cheap, either—while it's still less expensive than eating out, grocery prices have been swelling, and at times they've been doing so at a much faster rate than restaurant prices, according to Consumer Price Index data.

You can still occasionally enjoy dining out, while spending a lot less, if you're strategic about it. Try the following tips to spend less at restaurants. I'll start with some time-honored classics, then get into some lesser-known hacks.

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1. You won't order drinks. Regardless of whether they're alcoholic or non-alcoholic, drinks will always be far cheaper to buy at a store or make yourself.

2. You won't pay a tip. And even if you do, the nominal amount you give to a host or hostess will be far less than the percentage-based tip you pay a waiter or waitress.

Let's look at an example (without tax, for simplicity's sake):

You and your spouse commonly frequent a local restaurant and usually run up a bill of about $120. This includes a 20% tip ($20) and about $15 worth of drinks. If you order the same meal as a takeout order (sans the drinks, which will virtually always be cheaper to make), you'll spend $85 instead.

Obviously, there are some downsides to eating takeout instead of going out, such as losing out on atmosphere. But it's workable in some situations—for instance, if you're looking for romantic ambience, you can do that at home with a few candles and lower lighting; or if you want to enjoy patio weather, you could make your takeout order a picnic instead.

Some people view alcoholic drinks as an important part of the dining experience, however.

If you don't drink often but occasionally treat yourself to a cocktail at restaurants, scope out local happy hours for drink specials instead. You can typically get much lower prices on beer, wine, and single-mixers (hard alcohol plus one ingredient, such as juice or pop).

Happy hours often extend the savings past drinks, too. Many bars and restaurants will also offer discounted appetizers. Getting an affordable appetizer could mean you eat less of your main meal and have more leftovers later. Or, even better, you could make a meal out of discounted appetizers.

Related: 10 Senior Discounts for Restaurants + Grocery Stores

Senior discounts and military discounts are among the most popular, though many restaurants will also offer discounts for teachers, public safety workers, and/or students. And if you're an AARP member, our long list of AARP discounts includes just a few of the many restaurants that offer deals for members.

Establishments aren't required to offer any of these group discounts; they choose to do so. So you shouldn't be shy about inquiring about any price reductions you might be eligible for. 

Restaurants (and other businesses with group-specific discounts) often provide those discounts on specific days of the week, or specific times of each day. For instance, teacher discounts might only be available on Tuesday, or a bar might have a daily 11 p.m. happy hour for first responders. Also, sometimes, rather than a straight-line discount, a restaurant might have a special, lower-priced menu.

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

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Why? Because signing up for memberships at restaurants can often save you a lot of money.

You might need to opt in to receive emails or download an app. From there, you might get free items on your birthday, accumulate points for free items or discounts, or receive a variety of other perks.

If you don't want your inbox flooded with restaurant emails, you should consider creating an email address dedicated to these types of communications. Then, when you're choosing where to eat out, you could check just that email to see which places have recently offered up coupons or other deals. Similarly, if too many dining apps are clogging up your phone screen, create a folder to hold all of them, leaving them out of sight until you need one.

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Aside from holidays, you may want to switch some of your "date nights" to "date days." Lunch prices tend to be more affordable and can always be followed up by a fun activity. Whenever possible, go out on weekdays instead of the weekend; some restaurants will have daily specials during slower weekdays.

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

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That's a waste of both food and money.

American restaurants have notoriously large portion sizes, so it's likely you at least occasionally don't finish your meal. If you take home your leftovers and make a second meal out of them, that makes dining out far more cost-efficient, effectively halving the price of two meals you've eaten that week. Consider this example of two people going out for a Tex-Mex meal:

--Person A refuses to box up leftovers. She skips free bread or chips to avoid filling up before her meal comes. She spends $25 on one meal (dinner).

--Person B is happy to box up leftovers. She eats free chips and salsa. She only eats some of her meal, and has the rest for lunch the next day. She spends $25 on two meals (dinner and lunch).

If you hate eating the same thing the very next day, you can always wait an extra day or two, as long as you properly store your food. You can also repurpose your leftovers—for instance, if you have leftover nachos, top them with eggs the next morning and make huevos rancheros. Leftover meats and vegetables can be added to soups. Be creative!

Related: 13 Best Apps That Give You Money for Signing Up [Free Money]

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When the holiday season approaches, some restaurants will offer gift cards for less than their retail cost. (For example, a restaurant might sell a $100 gift card for $90.) This is a restaurant's way of getting a cut of Americans' holiday shopping money.

The restaurants with these deals often post them on social media or in email newsletters. But don't be afraid to simply call your favorite spot during the holiday season and ask if they have a gift card promotion going on.

Another option? Purchase restaurant gift cards from Costco, which frequently sells sets for less than their retail value. For instance, as I write this, Costco has an online deal where it's selling two $50 Outback Steakhouse eGift cards ($100) for only $79.99. So when you use those gift cards, you're effectively eating at Outback at a 20% discount.

Related: 10 of the Highest-Rated Kirkland Signature Products You Don't Want to Miss

Dining receipts occasionally have surveys, and answering questions about your experience could earn you discounts or even free food. Chick-fil-A, for example, sometimes offers a free sandwich to patrons who complete a short customer service survey. Within the app, you can see if a survey is available by clicking the For You icon. 

Other dining establishments do this as well, so always give your receipt a cursory glance just to see whether it's carrying a freebie.

Related: How Much Does Financial Advice Cost?

Don't use promotions like these as an excuse to eat out more—that defeats the purpose. Instead, use them as an opportunity to spend less at places you already frequent. One click is an easy ask for a discount. So check your credit card dining offers (and other promotions) regularly and add any you know you're going to use.

Related: 75 Cryptocurrency Statistics Show Crypto’s Gone Mainstream

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You might also learn that a gratuity charge has already been added, whether that's because you came with a large group or because that's the restaurant's new policy for everyone. Whatever the reason, catching that could prevent you from tipping much more than you originally intended.

Some people even take a photo of their completed receipt to ensure it matches their bank statements later.

Related: 31 Millennial Spending Habits & Income Statistics to Know

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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.

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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Let's go over some of the common pros and cons of letting your child move back into your home after they graduate.

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Many graduates don't yet have a job lined up and need time to fill out applications and find work. Even those lucky enough to start work right after graduation might not be able to afford their own place in some cities with a high cost of living.

A young adult might also be saddled with student loan debt, have an upcoming wedding, or need to save money for a house down payment.

In many scenarios, the savings from living at home and paying no rent (or a discounted rent) can be extremely useful at this age.

Some parents compromise by having their adult children pay rent—but below market rates. Even if parents only receive a couple hundred dollars a month, that's more than they received from their kids before, and it can provide critical wiggle room in a household budget.

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For example, not all parents of college graduates are empty nesters. For those with minors still at home, free childcare—from a trusted, beloved brother or sister—in exchange for free housing can be an excellent arrangement for both parties.

And if you're a parent who had children later in life, it could be useful to have children around to help with physically taxing projects. Some people's children might be able to help run errands, do chores, provide tech support, even offer up tax advice, and otherwise help with many other aspects of daily life.

Related: When Should You Claim Social Security?

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You surely hope your child will find a long-term job—but that job might be in another city, state, or even country. So if, before that happens, they can live at home, you can spend a little more time together.

This isn't to say you should treat them like a minor and control their schedules. But merely having them within your household creates more chances to spend time with them—allowing them to get to know the adult version of their children better.

Related: Should Retirees Move? 10 Considerations

The graduate doesn't yet have a job lined up in their field. They move into an apartment with numerous roommates, and they work a job in fast food to pay the bills. Should they have to move out, they're responsible for finding a new roommate, or maybe they'll face a punitive penalty for breaking the lease early. Suddenly, moving—even for a good job—becomes that much harder.

Now, let's say your child is working overtime at a job outside their chosen field so they can afford accommodations and other expenses, they'll have little time to apply for employment within their career field. That could also make it trickier to show up for interviews, and they might have to turn down low-paying (but high-value) internships.

Some time at home can provide your child more flexibility to start off on the right foot once it's time to actually move out for good.

Related: Here's the Average Amount of Money Baby Boomers Have Saved for Retirement

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Should the young adult have to tell their parents when they are going out to the bar to meet up with some old friends, or should they be able to come and go as they please? Is it appropriate to bring strangers back into the parents' house without prior permission? What other house rules should apply?

College graduates need to maintain a social life, and that might conflict with parents' comfort levels. Families can't go back to the exact same dynamic they had when the children were minors. So these questions must be discussed before anyone moves back home to determine whether anything that might come up would be a dealbreaker.

Related: How Much to Save for Your Kid's College [3 Tax-Smart Options]

But utilities aren't free. Food sure isn't free, either.

If parents are paying for hourlong showers and enough groceries to feed a football team, household expenses could actually rise significantly. And some people might not be able to foot those larger bills.

Related: 10 Home Improvement Investments That Don't Pay Off

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Also, some of these young adults might experience a dip in motivation due to depression. The graduate might feel as if they're failing or regressing. They might be discouraged as they pay down student debt and struggle to save for a home.

While parents might think their child is just being lazy, excessive sleep and seemingly less ambition might be signs of a bigger problem.

Either way, the real or perceived lack of motivation can cause immense stress on the household.

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But you must mutually agree on ground rules beforehand.

A parent and a child might not have the same speed in mind for moving back out, so set expectations ahead of time. Will it last a few months? A few years?

Determine whether the graduate is expected to pay any rent or utilities, and if so, how much. Whether you charge your child will largely depend on your financial situation; if an increase in utilities makes your budget uncomfortably tight, or you're already living paycheck to paycheck, it's perfectly reasonable to ask for some level of rent, utility and/or grocery contributions. (What specific level that is boils down to your unique situation.) Parents with plenty of budget might have their child pay rent to keep them motivated to move out—but then gift back the money when their kid has found an appropriate place to live.

Both you and your child must have an honest conversation—one where you're not shy about discussing all the logistics with your child. And ultimately, both parent and child must come to an arrangement both parties feel is fair.

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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.

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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I doubt you've seen anyone crying out these popular pieces of bear-market advice of late. Yes, the market has been pretty volatile so far in 2026, but the stock market hasn't even approached a correction, let alone a bear market.

But it's safe to assume you've read these and other pieces of bear-market advice several times over the past few years, likely in between checks to see how far your 401(k) or brokerage account has fallen during steep market drops. I say that because I've written these exact pieces of advice for years at multiple media outlets, and I've watched the likes of CNBC and MarketWatch do the same for even longer. There's simply not a lot of new wisdom as it pertains to dealing with your stocks circling the drain.

But I can also tell you that we often do a poor job of explaining the nuances behind these and other tips. We also sometimes fail to point out how this advice may work for some people while not even being applicable for others.

Here are seven common bear-market tips, with much closer scrutiny as to how helpful it really is, including what each piece of advice tends to overlook, and where exceptions might come into play.

--Correction: This is a technical term that refers to a drop of 10% or more from a high.

--Bear market: This is a technical term that refers to a drop of 20% or more from a high.

--Crash: This is a general term that refers to a rapid and steep drop in prices. There is no specific threshold.

As I write this, we're nowhere close to meeting the criteria for any of these terms, and that's good news. So instead, we're just going to talk about what a bear market could look like in 2026.

The S&P 500's last high was 6,978.6, made on Jan. 27, 2026.

For the U.S. to fall back into a bear market, the S&P 500 needs to close at least 20% down from that level. Thus, we would fall into a bear market if a.) the S&P 500 fell to 5,582.88 or below. If the index plumbed those levels before eclipsing the previous high of 6,978.6, we would say that the official start of the bear market was Jan. 27, 2026.

Everyone generally agrees on that part of the bear market definition. They also agree that the end of a bear market (and the start of a bull market) is when prices hit their lowest point. 

Where they tend to disagree is when the end of a bear market is confirmed. Some would say it's confirmed once the investment has risen 20% off the bear-market low. However, we follow the view that a bear market ends once the investment rebounds all the way past its previous peak. 

So, let's say we do fall into a bear market and the low point occurs on June 1, 2026. We wouldn't be able to confirm that end date for the bear market until the S&P 500 closed back above 6,978.6. At that point, the bear market will have officially ended on June 1, and the new bull market will have officially started on June 1.

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But over a decade of reviewing reader comments and having long discussions with friends and colleagues, I've become increasingly aware that good advice is often repeated in situations where it doesn't actually apply. 

And that's largely our fault. We in the financial media present generalized advice because we're talking to an audience of many thousands of people, and we can't personalize that advice for every last person. But in doing so, we sometimes exclude too much detail, and too much context, and make sweeping recommendations that just don't speak to large swaths of people.

My hope here, then, is to try to make these little pearls of wisdom speak to a few more people today than they did yesterday.

-- Is it helpful advice? Yes, if you have the resources. And that's a big if.

I have joined the rest of the financial media in saying "buy the dip" just about any time the market is down by a significant amount. And every time I've sent it, I've meant it—it's earnest advice.

But it raises a fair retaliatory question: "Buy the dip … with what?"

The general wisdom is to always have a little cash set aside in your portfolio to buy a big dip. But many Americans don't have that much cash to work with in the first place, so they tend to fully invest whatever they can contribute, as soon as they contribute it. That's part of what made the 2020 and 2022 bear markets exceptional: Individual investors have had a lot more gunpowder with which they could participate.

During COVID, millions of Americans received stimulus checks that they didn't necessarily need at the moment, and many of those Americans plowed that money into the stock market. We know that because 2020 and 2021 both saw record-breaking levels of brokerage signups.

Related: Should You Tap Into Retirement Savings After a Layoff?

So in 2020, individual investors were buying the dip with "found" money, leading to a lightning-fast recovery of five months. By 2022, stimulus checks had stopped going out, but Americans' savings were still a lot healthier than they are today—and even then, the recovery took longer than a year that time around.

Today? Years of high inflation forced Americans to dig into their savings, leaving little (if any) cash on the bench to put to work, and we're now mired in a slow-growing economy with a wobbly job market. That means the only way some investors could "buy the dip" is to take out debt (no!) or sell some of their current holdings to buy other assets. 

Yes, you should absolutely review your portfolio to weed out weak holdings and buy what you believe in … but you should do that no matter what the S&P 500 is doing. And during a bear market, that's not money coming off the sidelines. You're selling the dip to buy the dip.

So, yes, if you do happen to keep, say, 5% of your portfolio in cash for a rainy day, well, it's pouring, so have at it! But a lot of people reading this can't buy the dip. That's just the truth.

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-- Is it helpful advice? Yes, but it's often confused with "Don't sell at all."

Again, I've absolutely said this, and I've absolutely meant it. You shouldn't sell in a bear market because you're scared and don't know what to do.

But that doesn't mean you shouldn't ever sell during a bear market. In fact, there are two very good reasons to do so:

1. As mentioned above, you've reviewed your positions and decided that, in this changing financial landscape, your money could be better invested buying "dips" in other stocks, bonds, what have you.

2. You need to pay for your kid's college education from a 529, or you need to withdraw retirement income from a 401(k), individual retirement account (IRA), or other plan.

Indeed, the second part is what makes bear markets so difficult for some investors even if stocks eventually snap back.

If you don't need to sell, you probably shouldn't. A gaggle of studies show that individual investors who try to market-time bear and bull markets largely fail—that they would be better off just buying and holding.

But if you have to pay for your child's tuition, you have extremely little flexibility. You can't tell your kid to wait until the next bull market before they go to college. Thus, chances are you have to draw down that 529. And if you've already watched 20% of the value erode, you might ask yourself whether you can afford to lose any more value. That's a legitimate question, and one that would be poorly answered by any general advice I could throw out here. That's a specific question meant for a financial advisor.

Same goes for retirement. If you're living largely off your 401(k), you still have to withdraw money to live. And as our look at withdrawal strategies shows, bear markets (especially early on in retirement) can have dramatic consequences depending on timing and your particular withdrawal plan. Whether you should adjust your plan based on a bear market is again a question for your financial advisor.

And if you're taking required minimum distributions (RMDs), you don't even have a choice. You must withdraw a specified minimum amount.

Related: What Is FIRE? A Beginner's Guide to the Early Retirement Movement

-- Is it helpful advice? Yes!

During a bull market, your stock performance will almost certainly outpace your bonds, which means if you're trying to keep to, say, a 65%/35% stock/bond mix, at some point you'll have to sell some stocks and buy some bonds.

During a bear market, your stock performance will almost certainly lag your bonds, which means if you're trying to keep that same 65%/35% mix, you'll have to rebalance your portfolio in the opposite way: you'll sell some bonds and buy more stocks.

You could argue that, depending on when in a bear market you do your rebalancing, you might be selling bonds that will continue to go up while buying stocks that might continue to go down. 

But none of us actually know what's going to happen next. And again, market timing typically doesn't work out for us normies. So unless your financial advisor says otherwise, it's best to just stick with the plan.

Related: 8 Best Wealth + Net Worth Tracker Apps [View All Your Assets]

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-- Is it helpful advice? Yes, but it's not particularly helpful in the middle of a bear market.

First up: This is one of the vaguest pieces of advice that we in the financial media dole out. It's true, but it's also a lot more complicated than we make it seem. Should you diversify your portfolio? Sure. How should you diversify your portfolio? Well, that depends on a lot of things. When are you going to retire? How much do you need to retire? Do you grind your teeth anytime you see a loss of more than 1% in the market? Again, how exactly you—you there, reading this!—should diversify is a financial advisor question.

Related: 7 Low- and Minimum-Volatility ETFs for Peace of Mind

But more to the point of this story: Should you diversify your portfolio during a bear market?

I guess "better late than never," but portfolio diversification is really meant to limit bear-market losses before they happen, not while they're happening. 

If the market is down 20% but all of your money was plowed into one stock that's down 50%, sure, it's still smart to diversify what capital you have left, but a lot of damage has already been done. 

And on the off chance that all your money was plowed into a stock that's up 50% in a bear market? Sure, you should probably count your lucky stars and diversify. But if you're up 50% in a bear market, it's going to be a lot more difficult for me to convince you to stop doing something (maximum single-stock risk) that worked so well for you.

Related: 14 Best Investing Research & Stock Analysis Websites

-- Is it helpful advice? Generally yes, but don't buy defense blindly.

While all of us could probably do a lot of good just leaving our accounts alone during a bear market, not everyone does. 

Some people want to be buy-and-hold-forever investors but just can't help but tinker. If you're just doing it at the periphery to feel a sense of control, that's OK! And if you simply aren't a buy-and-hold-forever investor, but you like to buy and sell and trade and rinse and repeat, that's OK too, as long as you can financially handle the risk!

If that's the case, a variety of defensive assets have proven to historically outperform the market. In fact, I've written about several of them in my look at bear-market ETFs, and they worked wonders during the 2025 near-bear market.

But you can't just buy indiscriminately. Every bear market is different—and the nature of the bear market can result in, say, utilities or staples actually underperforming, or typically cyclical sectors like financials and industrials outperforming. One of the best examples is energy, which has been gutted across numerous downturns throughout history but actually took off like a rocket in 2022 thanks to the particular circumstances of that specific bear market.

Related: 6 Best Money Market Funds [Protect Your Savings]

-- Is it helpful advice? Generally yes, but your financial circumstances might dictate otherwise.

Dollar-cost averaging (DCA) is a generally sound investment strategy. In short, if you regularly put the same amount of dollars to work buying investments, you'll end up buying more when they're low, and buying less when they're high. It's a set-it-and-forget-it plan that not only ensures your money gets invested, but actually works in your favor from a valuation standpoint. Two enthusiastic thumbs up!

However, bear markets rarely exist in a bubble. They usually occur amid some sort of economic tumult, such as a recession or depression … and among other things, that can mean job losses. If you think you're at risk of being laid off (and especially if you're not confident in the size of your emergency fund), one of the ways to financially prepare is to stop contributing to your brokerage and retirement accounts and stuff the cash away instead.

So, in the event that you're worried about your near-term situation, you might actually consider downshifting or stopping your dollar-cost averaging, if only temporarily.

Related: 11 Best Vanguard Funds for the Everyday Investor

-- Is it helpful advice? Yes. 

In fact, you should take it even further: Don't open your brokerage account or 401(k) every day period.

Exceptions apply! If you're a day trader, I promise you'll do terribly if you start ignoring all your positions for a few days!

But the average buy-and-hold investor simply doesn't need to look at their account balance every day. It causes you to overanalyze both your overall direction and your individual holdings. And while you should be discerning about how your money is invested, you shouldn't tempt yourself into constantly tinkering with it.

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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.

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.

Also, do you want to stay up-to-date on our latest content?

1. Follow us by clicking the [+ Follow] button above,

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Unfortunately, saving enough for retirement isn’t always that easy. There are too many variables to simply say “put the maximum amount in your 401(k)” and be done with it. For some people, maxing out a 401(k) probably shouldn’t even be their top savings priority. And what should you do if you've already reached the contribution limit but want to invest more?

It’s often difficult to know how and when to max out your 401(k) plan. The information below provides some helpful guidance for workers who are contributing significant amounts to their 401(k). We also recommend steps you can take to utilize a wide variety of retirement savings options in addition to your 401(k). Dig in and see what works for you and helps you meet your retirement goals.

As a general rule, experts suggest replacing 80% of your current income with retirement savings. So, for example, if your current annual income is $100,000, save enough to have at least $80,000 per year in retirement.

To reach this goal, saving at least 15% of your income every year is a good rule of thumb. Of course, you’ll need to adjust the 15% goal to account for your age and any special personal circumstances. For instance, someone who starts investing in their early 20s can set aside a lower percentage than a worker who doesn't start saving until later in life.

If you’re not sure how much you should save for retirement and you want an expert to weigh in, you can always discuss your needs with a qualified financial advisor.

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Another benefit of 401(k) plans is that they are tax-advantaged accounts. A traditional 401(k) account is funded with “pre-tax” income and the earnings grow on a tax-deferred basis. As a result, money put into the account isn’t included in your taxable income, and you don't pay taxes on it until you withdraw it from the account. Traditional 401(k) plans are great if you expect to be in a lower federal tax bracket when you retire, because you’ll pay tax at a lower rate.

With a Roth 401(k), money is put in your account on an “after-tax” basis, so contributions are included in your taxable income. But money in a Roth 401(k) grows tax-free, so you don’t pay any tax when you take money out of the account in retirement.

Contribution Limits

If you’re thinking about maxing out your 401(k), the annual contribution limit for most people is $23,500 for the 2025 tax year (up from $23,000 in 2024).

If you're between the ages of 50 and 59, or 64 years or older, you can put in an additional $7,500 in “catch-up” contributions for a total amount of $31,000 ($30,500 in 2024). And starting with the 2025 tax year, if you're between 60 and 63 years of age, you can make a "super catch-up" contribution of up to $11,250, for a combined $34,750.

Those are combined limits for all your 401(k) contributions. So, if you have two jobs and a 401(k) plan at both companies, you can’t put in more than $23,500 ($31,000 if you’re eligible for catch-up contributions, $34,750 if you're eligible for super catch-up contributions) in total for the year.

If you have a traditional 401(k) and a Roth 401(k), the combined total also applies to the two different types of 401(k) accounts.

Early Withdrawal Penalty

You might also be hit with a 10% early withdrawal penalty if you withdraw money from a 401(k) account before age 59½ (although there are exceptions). With a traditional 401(k), the penalty applies to all early withdrawals. With a Roth 401(k), the penalty only applies to earnings withdrawn before you turn 59½. Contributions to a Roth 401(k) can be taken out at any time without paying tax or the 10% penalty.

Related: Best Rollover IRAs + Providers [Where to Roll Over a 401(k)]

You also might want more investment options than what’s typically available with a 401(k) plan—usually a limited number of mutual funds (including target-date funds) and, in rare cases, perhaps a few exchange-traded funds (ETFs). With some of the other types of accounts, you can invest in individual stocks, bonds, real estate, and more.

Some of the other retirement savings options available include a traditional or Roth individual retirement account (IRA), health savings account (HSA), or taxable brokerage account.

However, you want to properly utilize these other accounts along with your 401(k) to maximize their effectiveness. We recommend that you contribute to your 401(k) and other retirement accounts in the following order.

Related: Retirement Saver’s Tax Credit: What Is It, How Much, Who’s Eligible + More

Related: How to Get Free Money Now [Ways to Earn Money]

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An HSA offers numerous tax benefits. First, your contributions are tax deductible, even if you don't itemize. Employer contributions, if you have an account through work, are excluded from gross income.

HSA funds also grow tax-free. Any withdrawals used to pay qualified medical expenses are tax-free as well.

Before you turn 65 years old, any funds withdrawn from an HSA and used for anything other than qualified medical expenses are taxed. Plus, the IRS imposes a 20% penalty. After age 65, if the money isn't used for medical expenses, it will be subject to tax, but no penalty is charged.

Contribution limits

You can contribute up to $4,300 to an HSA for the 2025 tax year if you have health insurance coverage for yourself. If you have family coverage, the maximum contribution is $8,550 ($4,150 and $8,300 for 2024, respectively). People who are at least 55 years old can contribute an additional $1,000 in catch-up contributions.

Related: How to Use Your HSA for Retirement

Fidelity offers two options for HSA accounts: the Fidelity HSA or the Fidelity Go HSA.

The self-directed Fidelity HSA is best for people who prefer to handle their own investments. With this account, you can invest in stocks, bonds, mutual funds, and ETFs. You can even buy fractional shares of stock. You’ll also benefit from commission-free trades, minimal fees, and no account minimums. This HSA account also comes with a debit card that you can use for qualifying healthcare expenses.

People seeking a managed account could opt for the Fidelity Go HSA instead. Funds in a Fidelity Go account are invested in Fidelity Flex mutual funds, which feature no management fees and often no fund expenses.

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Related: How to Invest Money: 5 Steps to Start Investing w/Little Money

IRAs also offer ample investment options. With a 401(k) plan, you typically only get to choose between a few mutual funds—if you even get a choice. However, with an IRA, you can invest in a variety of mutual funds, ETFs, individual stocks, and much more.

Traditional IRA vs. Roth IRA

The main difference between a traditional IRA and a Roth IRA is when you pay taxes. Both are tax-advantaged retirement accounts, but in different ways.

Traditional IRA contributions are fully tax deductible for people who don't have a workplace retirement plan. Your earnings also grow on a tax-deferred basis. When you take money out of the account during retirement, you pay ordinary income tax on the withdrawals.

In comparison, there’s no tax break for Roth IRA contributions. However, money in the account grows tax-free, and you don't owe taxes when you withdraw money in retirement.

It’s sometimes good to have both types of accounts. That way, you have both taxable and tax-free withdrawal options during retirement.

On the other hand, if you want to focus on just one type of IRA, base your decision on how your current income compares to your expected retirement income. Generally, if you expect to have a lower income in retirement, a traditional IRA might be the better choice. If you expect a higher income later in life, a Roth IRA might be a better option. That way, you’ll be paying tax when your federal tax rate is lowest.

Related: Best Rollover IRA Accounts [Where to Rollover a 401(k)]

Contribution limits

For 2025, you can contribute up to $7,000 in total to all your IRAs, the same as in 2024. People 50 or older can contribute $1,000 more in catch-up contributions, for a total of $8,000. However, you can’t contribute more than your earned income for the year.

There are also special income limits for people with a Roth IRA. To max out the account, your modified adjusted gross income (AGI) must be under $150,000 for single filers or under $236,000 for married people filing a joint tax return ($146,000 and $230,000 in 2024, respectively). The maximum contribution limit for a Roth IRA is gradually reduced to zero if your modified AGI is between $150,000 and $165,000 for single filers or $236,000 to $246,000 for joint filers ($146,000 and $161,000 for single filers or $230,000 to $240,000 for joint filers in 2024).

You can contribute to a traditional IRA regardless of your annual income, but there are income limits for tax-deductible contributions if you (or your spouse) is eligible for a workplace retirement plan (e.g., a 401(k) plan).

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As a tax-advantaged account, it's preferred over other accounts that don't provide a tax break.

Related: Best 401(k) Alternatives [If You Can’t Get One Through Work]

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There are no contribution limits with brokerage accounts, either. So, you can stuff as much money in these accounts as you want.

Furthermore, investments in these accounts are highly liquid, so you can quickly get money when you need it. There are no early withdrawal penalties, either. So, you can sell your investments at any time if you need extra money before retirement. Plus, depending on the investments you choose, you can also generate passive income.

The downside to brokerage accounts is that they come with limited tax advantages. There are no tax breaks when you fund them, and earnings are taxed. You pay lower capital gains tax rates when you sell assets in the account that you’ve held for over a year, and you might be able to deduct losses, but otherwise these accounts don’t offer the same tax breaks as the retirement accounts discussed above.

Related: Best Investments for Taxable Accounts

If you want to live a lavish lifestyle in retirement, then you need to save more when you’re young. You might also want to put more money in Roth accounts, so that your tax burden is lower in retirement.

On the other hand, if you want to live large while you're young and cut back when you retire, you might lean toward traditional 401(k) plans and IRAs so you’re cutting your tax bill now and deferring taxes until retirement when your tax rate might be lower.

Either way, you still need to save something 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.

Also, don’t forget that some of your Social Security benefits might be taxed. However, there are ways to lower or avoid taxes on Social Security benefits.

Keep in mind that your retirement plan is contingent on many factors, such as whether the market will perform as expected, inflation will rise at a standard rate, you’ll develop an illness or become disabled, and more. To account for unforeseeable changes to your future, save as much as is realistic for your financial situation.

Of course, investing also involves risk. However, buying and holding low-cost, diversified investments over long periods of time is a proven strategy to build wealth. You can also consult with a wealth management professional or financial advisor who operates under the fiduciary standard to minimize your risk.

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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.

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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If that sounds like you, understand that it's perfectly normal—and there is something you can do about it.

Retirement can be a thrilling phase of your life, but it can also be stressful for any number of reasons. After all, by the time you retire, your working years almost certainly will have taken up the majority of your life. And after that much time, it can be difficult to simply flip a switch into a new way of life, even if that new way of life should in theory be much less demanding.

If you're feeling nervous as you prepare for your post-career years, let us help you take a few emotional bricks off your shoulders. Read on as we outline several steps you can take to ensure a smoother transition, turning that retirement anxiety into retirement excitement.

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Here are a number of tips you can follow to anxiety-proof your looming retirement.

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No judgment here. Considering how much of our time our careers take up, our identities often become intertwined with our professions. But as a result, some retirees find they lose their sense of purpose once they put their job in the rear-view mirror. And it's true for virtually all vocations—some associate this feeling with doctors and teachers, but it can be just as true for office workers and mechanics.

There's no quick antidote for this feeling, but you need to realize that who you are as a person is more than what you do for work.

In retirement, you'll want to prioritize detangling your sense of self from your career and focus on other aspects of your identity. If you're a grandparent, babysit your grandchildren more; it can make you feel connected and useful. The same goes if you volunteer for a charity you care about and find purpose by committing yourself to a cause.

But perhaps more importantly, consider the idea that you don't need to have a purpose. You're allowed to simply just "be" in retirement, too. Retirement is a time in which you can lose yourself in the things you might have enjoyed more fully had you not been working five days a week.

Easing into retirement has its pros and cons. Doing so might delay plans you have to move. It's possible your current employer won't be open to the idea of taking you from full-time to part-time. But many people find that the advantages of phasing into retirement—including maintaining relationships, providing some free time, and the additional financial flexibility—outweigh the drawbacks.

It's not the right path for everyone, but it's absolutely worth considering if you're feeling retirement anxiety.

Related: Retired But Too Young for Medicare? Health Insurance for Early Retirees

One of the greatest considerations is your finances. If you live in a high-cost-of-living area, downsizing your home can make your retirement more affordable. That can also be a helpful decision if you think you have way more space than you need; those who frequently travel in retirement may find they don't need much to come home to in between excursions. Also, moving can help you lower your tax burden; some states don't tax retirement income at all.

This is a social decision, too. You might want to relocate closer to your family, or move into an age-qualified community where you can socialize with other active, older adults.

Even the weather matters. Do you love the peace a snowfall brings? You'll probably be a lot more anxious about retiring to Texas than you would be settling down in Minnesota. Want to sip sangria in the sunshine all year long? You're probably better off in Palm Beach than (either) Portland. 

No matter where you decide to live as a retiree, make sure to carefully weigh all of your options.

Related: Downsizing in Retirement? 10 Tips to Follow

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Rather than just holding off until you financially need your Social Security benefits, you can build a clearer retirement picture by deciding ahead of time when you want to start collecting your checks.

When should you take Social Security? As our guide explains, the decision depends on multiple factors, including your current finances, other retirement income sources, expected longevity, and whether you plan to collect spousal benefits. 

This isn't a guessing game. Social Security's website, SSA.gov, can show you approximately how much Social Security you'll receive at different retirement ages.

Importantly, whatever you plan now isn't concrete until you start collecting—if you decide you want to push back your Social Security start date, you can. (And there are even methods for voluntarily suspending benefits once you've already started collecting.) So a rough plan can give you peace of mind without locking you into a decision.

Related: Social Security Timing: 7 Questions to Pinpoint Your Perfect Starting Age

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Few thoughts can make a person more anxious than the idea of being elderly and penniless. Fortunately, having a retirement withdrawal strategy in place can ensure you withdraw enough to get by without crippling your future ability to finance your post-career years.

One of the most well-known strategies is the 4% rule, which has you withdraw up to 4% of your savings during your first year as a retiree and then take the dollar amount, adjusted by inflation, in subsequent years. However, you shouldn't assume that strategy will work for you (indeed, some say the 4% rule is outdated), so look at a variety of strategies first (or better still, talk to a financial advisor, who can really help you flesh out your options).

Once you have a carefully chosen plan in place, you can retire with more confidence that your money will last.

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Work on ensuring your relationships with coworkers will continue even after you've left the workplace. Build new bonds through clubs or senior centers. See your family more often. 

Even interactions with animals can combat loneliness. Consider having a pet during retirement to feel less isolated, which, in addition to keeping you social can keep you physically active.

Related: Financial Caregiving: How to Manage a Loved One's Finances

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Uncertainty breeds anxiety, so it's vital that you begin learning how Medicare works. The more you know, the better you can prepare. Among the things we recommend brushing up on are:

-- The different types of Medicare coverage

-- Whether you also qualify for Medicaid

-- Medicare's enrollment periods

-- What "Original Medicare" does and doesn't cover (Original Medicare is Parts A and B)

Once you know the ins and outs of Medicare, you'll have more insight into how much you should set aside for health care costs in retirement. You'll also be better prepared to understand whether you should pursue long-term care (LTC) insurance and/or other supplemental insurance.

Related: Medicare FAQs: Your Questions Answered

When pre-retirees were asked what they were looking forward to the most in retirement, the top answer among those polled for the 2024 MassMutual Retirement Happiness Study was travel.

So, do yourself a favor and start thinking about (and even planning out) where you might go once you retire.

In addition to keeping life interesting, a recent study published in the Journal of Travel Research states that travel can slow down the signs of aging. Even the idea of aging is stressful, so if travel really can slow it, the additional comfort is yet one more reason to book a flight.

By the way: Don't assume every trip needs to be a month-long journey abroad. Domestic travel, or even travel within your state, can be fun too.

And keep in mind that, no matter where you go, travel can be more expensive for seniors in certain ways. So budget with a close eye on your evolving preferences as a traveler.

Related: How to Invest for (And in) Retirement: Strategies + Investment Options

This doesn't have to be an expensive endeavor. Nearly every state has at least one tuition-free state university program for seniors, and the few that don't have deep senior discounts and tuition programs for older adults. The minimum age for free tuition is state dependent, but they all land within the range of 55 to 65. 

If formal education isn't a good fit for you, learning on your own is a perfectly acceptable option. Per a recent AARP survey, 75% of respondents said they learn best by reading on their own. Consider taking advantage of your local library and borrowing books that interest you; they often have large-print copies available for those who struggle with tiny print. You can also learn through podcasts, language-learning apps, even educational YouTube videos. 

The more you stretch your brain, the less anxious you'll likely be. 

Related: You May Want to Skip These Popular Retirement Rules

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Fortunately, working with a financial advisor is a simple way to alleviate these fears. Per the aforementioned 2025 Northwestern Mutual Planning & Progress study, 75% of respondents with a financial advisor described their finances as "strong," while only 44% of respondents without an advisor said the same.

Don't worry about whether you're making the wrong financial choices—offload those choices (and the associated stress) to a professional instead. This should generally help reduce the guesswork in your retirement planning and replace it with careful, customized calculations.

Talking to an advisor can increase the chances you'll check off everything on your retirement planning to-do list. And that can be an enormous emotional and psychological weight off your shoulders.

Related: How to Choose a Financial Advisor

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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.

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.

Also, do you want to stay up-to-date on our latest content?

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Baby Boomers grew up when television was still considered a new technology. Gen Z entered a world that already had high-speed internet, and social media, and the ability to watch TV on your phone. Baby Boomers are known for prioritizing work above all else, and remaining loyal to their employers through thick and thin. Gen Zers won't think twice about leaving companies that are misaligned with their values, and they're much more concerned about having an even work/life balance.

How they save for retirement is awfully divergent, too. Much of this simply has to do with where they are in the investment journey—most Boomers are either near or already in retirement, while Gen Z has several decades to go. But at least a few of their investment preferences might surprise you.

Which generation feels more confident in their investing skills? Who believes collectibles are a risky investment? Read on for the answers to these questions and more. Let's take a peek at how Baby Boomers and Gen Z differ in the investment realm.

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The information and analysis contained within this article appears for your consideration, but it does not constitute individualized financial advice. Always act at your own discretion.

When it comes to investing, Baby Boomers and Gen Zers often have different belief, preferences, and practices.

Here is a wide sampling of how these generations differ when it comes to saving for retirement.

The average age for Baby Boomers? 34!

This is the result of a long-term trend that has seen each subsequent generation investing younger and younger in life—the average starting age of a Gen X investor was 31, and it was 24 for Millennials.

Why the difference? You could point at any number of things. 

For instance, the older the generation, the more likely they were to have jobs with built-in pensions, reducing their need to invest independently. Today? Few jobs with pensions exist; instead, workers increasingly save through 401(k) or other workplace plans, not to mention individual retirement accounts (IRAs) and other personal savings vehicles.

You could also cite awareness of the importance of having enough retirement savings—young people have more access to information about investing and finances than ever before, and along with that is a steady drumbeat of articles about how many people in other generations haven't saved enough. 

Also helping is more access to investing accounts. Adults didn't have nearly the accessible options they have today; heck, even teens have access to specialized brokerage accounts nowadays.

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According to YouGov's US Investment Trends Report 2025, about 42% of Gen Z investors own cryptocurrency, compared to just 8% of "Baby Boomers+" (which YouGov defines as age 60 and above).

This isn't because of a difference in how risky the asset is; around 84% of Gen Z investors and 89% of Baby Boomer investors agree that crypto is a risky investment. That said, because Boomers are near or in retirement and thus need more stability in their portfolios, they're far more risk-adverse, and thus less likely to accept crypto's inherently deep potential downside.

Related: What Are the Average Retirement Savings By Age?

Let's say you just started investing, and you have $200 in your account. You want to buy a share of stock in the fictional firm Riley Holdings (RHLD), which trades at $500 per share.

Historically, the only answer to this problem would be to save up $300 more. However, fractional-share brokerages allow you to buy pieces of stock—sometimes for as little as $10, $5, even $1. 

The obvious takeaway here is that low-dollar investors are more able than ever to get started in the stocks they want to own, when they want to own them. And they do: In Schwab's Modern Wealth survey, nearly half (48%) of Gen Z respondents said they currently owned fractional shares, which is roughly twice the adoption rate of Boomer respondents (25%).

Related: 8 Best Micro-Investing Apps [Start Saving With Less]

Here are the average contribution rates for Gen Z:

-- Lowest one-third of earners: 4.1%

-- Middle one-third of earners: 3.7%

-- Highest one-third of earners: 4.5%

Comparatively, Baby Boomers have the following average contribution rates:

-- Lowest one-third of earners: 6.5%

-- Middle one-third of earners: 7.2%

-- Highest one-third of earners: 8.6%

There's not much mystery here. Contribution rates tend to grow as age and income do. 50 years down the line, Gen Z will likely have higher contribution rates than they do today—and they'll likely be much higher than the youngest generation.

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.

Related: Super Catch-Up Contributions: Who Gets Them + How They Can Boost Your 401(k)

More than half of Gen Z investors (52%) use short-term trading, per Schwab Modern Wealth Survey data. Meanwhile, only 20% of Baby Boomers do the same.

Again, this should be expected—younger investors generally have a much higher risk tolerance than older investors, which makes them more prone to more aggressive behavior like short-term trading.

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

The majority of surveyed Baby Boomer+ investors (53%) view collectibles as a risky investment, according to YouGov's US Investment Trends Report. By comparison, just 38% of Gen Z investors see these as risky assets.

This is a difference in perception, not behavior, making it a little more difficult to ascertain the "why." But it could be a difference in education about the risks of collectibles, or familiarity with the asset class.

Related: How to Invest for (And in) Retirement: Strategies + Investment Options

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You generally can't invest directly in an index—instead you have to either replicate the index yourself (extremely difficult) or purchase an index fund (easy), which aims to own either all or a representative sample of the stocks in an index in similar proportions to how they are in the index.

Direct indexing is something of a personalized way of index investing. It involves attempting to own the individual securities that form an index, but with exceptions that are in some way expected to benefit you. For instance, you might own the S&P 500, but exclude consumer staples stocks to give your overall investment a greater weight in growth-oriented companies. Or you might work for Nvidia (NVDA) and own a ton of its stock, so you purchase all of the stocks in the Nasdaq-100 but exclude NVDA because you don't need additional weight in that stock.

This strategy is a way to personalize your portfolio, plus it offers significant tax benefits. However, it's also a complicated process—one that's best left to professionals.

Some 44% of Gen Zers use direct indexing, while only 23% of Baby Boomers do. 

Direct indexing is a relatively newer strategy with roots going back to the 1970s, but that truly didn't begin to go mainstream until the past 10 or 15 years. So it's unsurprising that older generations haven't adopted direct indexing at nearly the rate of younger generations.

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-- Low confidence: 30%

-- Confidence: 42%

-- High confidence: 28%

Baby Boomer+ investors asked the same question responded as follows:

-- Low confidence: 52%

-- Confidence: 28%

-- High confidence: 20%

We could go in two very different directions on this. On the one hand, Gen Z could be more confident because younger people are more likely not to "know what they don't know." 

On the flip side, DIY investing has only become more prominent and easier with technology over the years—and as mentioned above, Gen Z started investing at a much younger age. So it could be that Gen Z actually is better-versed in DIY investing, and their confidence is warranted.

Also, considering the different levels of confidence in managing one's own investments, it isn't surprising that a higher percentage of Baby Boomers (51%) are working with a financial advisor than Gen Z investors (31%). 

Related: You May Want to Skip These Popular Retirement Rules

Perhaps unsurprisingly (given everything we've revealed already), members of Gen Z are far more likely to use robo-advisors than Baby Boomers. In Schwab's Modern Wealth Survey, 40% of Gen Z respondents said they use robo-advisors versus a thin 11% of Boomers.

Related: 9 Best Robo-Advisors for Investing Money Automatically

YouGov posed the question, "How important is it for you, when deciding to purchase from a bank or financial institution, that they integrate ESG (Environmental, Social, and Governance) into their business decisions?" 

In response, 66% of Gen Z investors said it was important and 23% said it was somewhat important, for a total of 89% assigning some level of importance to ESG. However, a mere 26% of Baby Boomers+ said it was important, while 19% said it was somewhat important—a total of just 45%.

Again, no surprises here: These responses reflect well-known generational differences concerning the importance of environmental stewardship, social justice, and other related concepts.

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Around 41% of Gen Z investors use thematic investing, according to Schwab's survey. That compares to a 9% sliver of Baby Boomers.

The likeliest explanation here is a combination of two factors:

1. While thematic investing has technically existed for nearly 80 years, it has really only exploded in popularity alongside the massive growth in ETFs of the past couple decades. So while it really only came to the fore when many Boomers began saving, thematic investing was well-established by the time most Gen Zers were getting started.
2. The most popular thematic funds heavily skew toward high growth; thus, many thematic investments might be far more appropriate for younger, risk-hungrier Gen Zers than they would be for Baby Boomers.

Related: How Does Medigap Work? Our Guide to Medicare Supplemental Insurance

In its Modern Wealth Survey, Schwab posed the question, "Have you ever considered financial information or advice from any of the following sources?" Baby Boomers' responses were as follows:

-- Financial Professional/Institution: 64%

-- Friends and Family: 46%

-- Social Media/Internet: 19%

In contrast, Gen Z's results were as follows:

-- Financial Professional/Institution: 50%

-- Friends and Family: 70%

-- Social Media/Internet: 72%

Despite what Gen Z's response about social media and the internet might indicate, they (as well as most Americans) aren't relying on social influencers.

Overall, 76% of respondents explicitly said they don't follow influencers for financial information. Boomers were an expectedly high 92%, but even a majority (58%) of Gen Z said they weren't looking to influencers for advice.

Related: 6 Times When You Should Hire a Financial Advisor

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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.

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.

Also, do you want to stay up-to-date on our latest content?

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That's because one of Charles Schwab's other noteworthy products—mutual funds—can be held in most individual retirement accounts (IRAs), no matter where you invest.

Schwab is among the largest providers of mutual funds, giving it the prerequisite scale to charge low fees on those products, indexed and actively managed alike. Better still, most of Schwab's funds are cheap on a nominal basis, requiring just one dollar when you initially invest. However, to get the most out of some Schwab funds, you'll want to hold them in an individual retirement account (IRA) or another tax-advantaged account, where you can benefit from their sound strategies without having to worry about the IRS holding out its hand from year to year.

Ready to meet these Schwab mutual funds? Read on. I'll look at some of the best Schwab retirement funds for IRAs, across the risk spectrum, with each product representing a different long-term investing objective. These funds are best held in an IRA because of the tax consequences, which means they're also appropriate for other tax-advantaged accounts such as 401(k)s and health savings accounts (HSAs). 

Editor's Note: Tabular data presented in this article is up-to-date as of April 14, 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.

-- Diversification: A robust retirement portfolio should hold various asset classes. It's recommended that most people diversify across at least stocks and bonds, though sometimes alternative asset classes (such as real estate or commodities) are appropriate, too. Diversifying your retirement portfolio across these asset classes can help defray your risk and smooth your returns. There's also diversification within each fund. Some products hold dozens of stocks while others hold thousands. Some funds invest heavily in their biggest stocks while others spread their assets out more evenly. Always consider how diversified a fund really is, as well as whether that level of diversification suits your needs.

-- Costs. Every dollar spent on fees and expenses is a dollar no longer available to grow and compound over time, so keeping expenses cut to the bone is vital. Good news there: The best Schwab retirement funds will generally have some of the lowest fees and expenses in the business.

-- Taxes. A taxable account, like a standard brokerage account, is better suited to take advantage of certain tax-advantaged investments, such as municipal bonds. For tax-advantaged accounts, such as IRAs, some of the best investments include bond funds and actively managed stock funds. (I'll explain why when we get to those funds.)

-- Interest and dividend income. Stocks can regularly experience nasty corrections and bear markets, but a good income fund can provide for your living expenses without forcing you to sell at an inopportune time.

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ETFs typically beat both mutual funds and CEFs on fees, sometimes by a considerable margin. But there are a few reasons to consider Schwab mutual funds in an IRA:

-- They're cheap, for one. Schwab mutual funds typically offer very low fees—in many cases lower than even many ETFs with a similar strategy.

-- Schwab has some of the lowest initial investment minimums in the industry; you can spend as little as $1 to get started.

-- Also, some of Schwab's mutual funds are actively managed, which as I mentioned above is more efficiently held within an IRA. And you very well might prefer to have a human manager overseeing certain strategies rather than buy a fund that simply follows an index.

The biggest difference between an IRA and a brokerage account is their tax treatment. You're taxed on capital gains, dividends, interest income, and other gains year-in and year-out in a brokerage account. But, generally speaking, the only taxes you'll ever need to worry about with an IRA is income tax on your withdrawals in retirement.

On that count: Some Schwab mutual funds have more significant tax consequences than others. Some produce a significant amount of interest income, while others trade heavily and, as a result, make short-term capital gains distributions—both of which are taxed at ordinary income rates. In a taxable account, these would be taxable events that you'd pay for each year. But money stashed in tax-advantaged accounts like an IRA grows tax-free, so you get all of the performance of these funds without the year-to-year tax hits.

Here's an example: An investor wanting to mimic the S&P 500 Index (an index made up of 500 large, U.S.-listed companies) would generally have a hard time buying and managing a portfolio of 500 individual stocks, especially in the exact proportions of the S&P 500 Index. Another example: An investor wanting a diversified bond portfolio might have a hard time building one when individual bond issues can have minimum purchase sizes of thousands (or tens of thousands!) of dollars.

Equity funds or bond funds will generally be a far more practical solution.

To invest in a mutual fund, you'll need to open an account with the fund sponsor or open an investment account with a broker that has a selling agreement in place with the fund sponsor. As a general rule, most large, popular mutual funds will be available at most brokers, so if you open any traditional investment account (like a brokerage or IRA), you'll have access to most of the mutual funds you'd ever want to invest in.

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

The firm is the largest publicly traded investment services firm with more than $12 trillion in client assets. Schwab 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.

On the product side, Schwab features more than 100 funds—it's known for its active products and seasoned management teams, but it's also one of the largest providers of indexed mutual funds. Moreover, Schwab's products feature no load or transaction fees, and below-industry-average annual expenses. 

In short: Schwab's best mutual funds for retirement are generally going to be among your top options period, and they generally won't make a dent in your wallet.

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.

-- 0-23: Conservative

-- 24-47: Moderate

-- 48-78: Aggressive

-- 79-99: Very aggressive

-- 100+: Extreme

These scores are a general gauge of risk compared to all other investments. For example, a bond fund with a score of 20 might be considered a conservative strategy overall, but it could simultaneously be riskier than a number of other bond funds.

With all that out of the way, let's dig into some of the best Schwab retirement funds you can consider holding in an IRA.

Related: Best Schwab Funds to Hold in an HSA

-- Management: Active

-- Assets under management: $41.2 billion

-- SEC yield: 3.4%*

-- Expense ratio: 0.34%**, or $3.40 per year for every $1,000 invested

-- Morningstar Portfolio Risk Score: N/A

I'll go ahead and start with one of the lowest-risk investments you can stuff into an IRA (or just about any investing account, really).

Money market funds are mutual funds that invest in very short-term investments, such as cash, U.S. Treasury or agency securities with extremely short-term to maturity, commercial paper, or floating-rate securities. While there can be credit risk to the extent the fund owns securities not guaranteed by the government, losses in money market funds are extremely rare.

They're also unique among mutual funds in that they specifically target a net asset value of $1 per share. Any earnings that cause the net asset value to go higher than $1 get distributed as dividends. This means that, unless you reinvest your dividends, the value of your money market mutual fund will not grow over time. You're really just collecting yield.

Related: 8 Best-in-Class Bond Funds to Buy

And among money market funds, few are going to be safer than the Schwab U.S. Treasury Money Fund Investor Shares (SNSXX), which owns a portfolio of Treasury securities backed by the full faith and credit of the U.S. government. That's it. No corporate or agency securities. No repo agreements or derivatives. This is as safe as money market funds get. (Don't mind the lack of a Morningstar Portfolio Risk Score—they're not awarded to money market funds.)

The weighted average maturity of SNSXX's holdings is just 49 days, meaning you have virtually no interest-rate risk. And yet, you're still receiving a very competitive yield of well more than 3% as I write this.

I mentioned that money market funds' prices are generally insulated from outside forces, but their yield are very sensitive to Federal Reserve policy moves. Before 2022, money market funds offered virtually nothing in yield. That changed in 2022 when the Fed launched an aggressive string of rate hikes; rates have come down across the past couple of years, but Schwab U.S. Treasury Money Fund remains a legitimate income fund with a yield well north of 3%. But if you require a certain level of income, you'll want to keep a close eye on the Fed.

Related: 9 Best Vanguard Retirement Funds [Start Saving in 2026]

Until then, low risk and a competitive yield make SNSXX one of the very best Schwab retirement funds period, though it's best off in an HSA or other tax-advantaged account. That's because money market funds are effectively bond funds, with interest income the predominant source of returns. Interest income is taxed as ordinary income—if you’re in the 37% federal tax bracket, then you’re losing 37% of your bond interest to taxes—making bond funds (and money market funds) extremely tax-inefficient.

* 7-day SEC yield reflects the annualized daily income distributions made over the previous seven days. This is a standard measure for money market funds.

** 0.35% gross expense ratio is reduced with a 1-basis-point fee waiver for as long as Charles Schwab Investment Management serves as adviser to the fund. (A basis point is one one-hundredth of a percentage point.) The agreement can only be amended or terminated with approval of the fund's board of trustees.

Related: The 16 Best ETFs to Buy for a Prosperous 2026

-- Management: Index

-- Assets under management: $8.0 billion

-- SEC yield: 4.3%

-- Expense ratio: 0.04%, or 40¢ per year for every $1,000 invested

-- Morningstar Portfolio Risk Score: 16 (Conservative)

If you're willing to take on a little more risk for a little more potential reward, you could move up from a short-term bond to something with more intermediate-term maturities.

The Schwab U.S. Aggregate Bond Index Fund (SWAGX), for instance, is a diversified option that covers a wide swath of the bond market. SWAGX, which holds a whopping 11,500 debt issues, is categorized by Morningstar as an "Intermediate Core Bond" fund, which very broadly means two things:

1. It invests primarily in investment-grade U.S. fixed-income issues, and

2. Its duration (a measure of interest-rate sensitivity) usually ranges between 75% and 125% of the three-year average of the Morningstar Cor Bond Index's effective duration.

Don't worry. I'll explain.

Related: The 12 Best Vanguard ETFs for 2026 [Build a Low-Cost Portfolio]

To the first part: Every bond that SWAGX currently holds enjoys an "investment-grade" rating, which basically means the credit ratings agencies believe the bond's issuer has a low risk of default. These bonds are considered relatively safer than (but as a result yield less than) similarly dated below-investment-grade securities, aka high-yield bonds, aka junk. Currently, the largest portion of assets (45%) is invested in U.S. government and agency bonds, while another half of assets is split evenly between mortgage-backed securities (MBSes) and corporate bonds. The rest is peppered across other government-related bonds, municipal bonds, and other debt.

To the second? Intermediate-term bonds are those with remaining maturities of between three and 10 years; that makes up the majority (55%) of SWAGX's holdings. Another quarter of assets are invested in short-term bonds (three years or below), and the remainder is invested in long-term bonds (10 years or more). That, combined with credit quality, educates the fund's duration, which currently sits at 5.8 years. While the actual calculation is much more complex, this basically implies that for every 1-percentage-point increase in interest rates, Schwab U.S. Aggregate Bond Index Fund would decline by 5.8% in the short term, and vice versa.

It's a moderate amount of risk. This means SWAGX definitely has more room for price appreciation (and losses) than any money market fund, but you can still expect less volatility than you'd get out of a stock fund. Meanwhile, you're getting almost a percentage point more in yield than the aforementioned SNSXX.

And like SNSXX, the lion's share of returns will come from interest income, so this Schwab fund is best held in an IRA or another tax-advantaged account.

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-- Management: Active

-- Assets under management: $743.0 million

-- Dividend yield: 2.0%

-- Expense ratio: 0.51%*, or $5.10 per year for every $1,000 invested

-- Morningstar Portfolio Risk Score: 40 (Moderate)

We'll climb the risk ladder a little by moving on to balanced funds, aka allocation funds, aka portfolios in a can.

Whatever you choose to call them, products like Schwab Balanced Fund (SWOBX) are designed to give you exposure to the two primary asset classes—stocks and bonds—in a single holding. More specifically, SWOBX is a "moderate" allocation fund that provides a roughly 60/40 blend of equity and debt (the latter of which also includes a small percentage in cash).

While allocation funds are often built with individual stocks and bonds, SWOBX managers Zifan Tang and Patrick Kwok have constructed their portfolio with a small collection of other Schwab mutual funds. Roughly half of the fund's assets are currently invested in U.S. equities; another 10% is allocated to international stocks. 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 anything else SWAGX owns.

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

Allocation funds like Schwab Balanced are an ultra-simple way to get stock and bond coverage in the click of a button. In fact, if you really wanted it to, SWOBX 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, and instead makes sense as part of a more broadly diversified holdings set.

From a tax standpoint, we want to consider two factors: turnover and income. Schwab Balanced Fund's turnover (how much a fund buys and sell holdings) is actually pretty restrained, at around 10%. Why does this matter? High turnover can generate significant capital gains, which are distributed to shareholders each year ... and those distributions are taxable. From that perspective, SWOBX is fairly tax-efficient. However, like the aforementioned bond funds, Schwab Balanced generates a decent amount of interest income from the debt portfolio, so an IRA or other tax-advantaged account would still make a fitting home.

* 0.53% gross expense ratio is reduced with a 2-basis-point fee waiver for as long as Charles Schwab Investment Management serves as adviser to the fund. The agreement can only be amended or terminated with approval of the fund's board of trustees.

Related: 9 Best Fidelity Index Funds to Buy for 2026

-- 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

-- Morningstar Portfolio Risk Score: 26-67 (Moderate-Aggressive)

Target-date funds are similar to allocation funds, but they take an extra step that makes them extremely useful for long-term buy-and-holders.

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.

Related: Beginner's Guide to Fidelity Target-Date Funds

An allocation fund will generally keep the same blend of stocks and bonds for as long as the fund exists. However, target-date funds (also called life-cycle funds) are a type of allocation 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.).

Given the hyper-specific focus on retirement, target-date funds tend to be a mainstay of 401(k) plans. But they're also at home in other retirement accounts, such as IRAs.

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, both of Schwab's target-date fund series are 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: Kwok and Tang, mentioned before as managers of SWOBX.

* 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: Beginner's Guide to Vanguard Target-Date Funds

-- Management: Active

-- Assets under management: $286.5 million

-- Dividend yield: 3.4%

-- Expense ratio: 0.72%, or $7.20 per year for every $1,000 invested

-- Morningstar Portfolio Risk Score: 76 (Aggressive)

Real estate has been a preferred asset class since the dawn of human civilization. And today, real estate investment trusts (REITs) offer the potential for both high yield and respectable capital gains.

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 REITs' tax incentive, the real estate sector tends to be among the highest-yielding, and thus a perennial favorite among income investors.

Related: Tax-Loss Harvesting: How Investors Can Cut Their Tax Bill

The problem? A large percentage of the total return comes from taxable dividends, which makes REITs very tax-inefficient. What's more, REIT dividends are generally not classified as "qualified dividends." Qualified dividends are taxed at the long-term capital gains rate (0%, 15% or 20% depending on your tax bracket). Non-qualified dividends are taxed as ordinary income, like bond interest, 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 such as an IRA rather than a taxable brokerage account.

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. Approximately 55% of the fund is invested in American REITs, with the rest scattered across Europe, Asia, Australia, and Canada. The portfolio has minimal exposure to the office sector, which has been affected by work-from-home policies, and is most heavily allocated to diversified, retail, and industrial properties.

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

This is a growth-focused real estate fund that focuses on total return, including both capital gains and income. But its 3%-plus current yield is mighty competitive in a world in which the S&P 500 yields barely above 1%.

Another reason to consider SWASX is its high 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%, which means it could distribute a lot of short-term capital gains. Between that and the aforementioned non-qualified dividends, and you're looking at a lot of taxable returns.

Fortunately, you can avoid immediate tax consequences by holding Schwab Global Real Estate in a tax-deferred account like an IRA.

Related: The 7 Best Mutual Funds for Beginners

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-- Management: Active

-- Assets under management: $2.1 billion

-- Dividend yield: N/A

-- Expense ratio: 0.73%, or $7.30 per year for every $1,000 invested

-- Morningstar Portfolio Risk Score: 85 (Very aggressive)

An old Wall Street maxim says "you never go broke taking a profit." 

There is a lot of wisdom in that quote. 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.

Related: IRA Contribution Limits for 2026

Take, for example, the Schwab Select Large Cap Growth Fund (LGILX), which is sub-advised by American Century Investment Management and JPMorgan Investment Management. Being a growth fund, LGILX is extremely heavy in technology and tech-adjacent stocks; it includes Nvidia (NVDA), Google parent Alphabet (GOOGL), Apple (AAPL), and Microsoft (MSFT), as well as most of the rest of the large-cap growth stocks you would expect to see.

Smart management has resulted in outperformance of LGILX's category average across most meaningful time frames. However, this high performance occasionally comes at the cost of a lot of active trading. The most recent turnover reading is 26%, but I've seen it much higher (above 60%). And regardless of the turnover figure from one year to the next, Schwab Select Large Cap Growth has a history of making sizable capital-gains distributions in most years.

In a standard brokerage account, that represents a large potential tax liability. Thus, LGILX is exactly the kind of actively managed fund best held in a retirement account like an IRA. The tax deferral neutralizes the negative impacts of active trading, allowing us to enjoy the full benefits of the trading gains.

Related: 6 Best Money Market Funds [Protect Your Savings in 2026]

-- Management: Active

-- Assets under management: $685.0 million

-- Dividend yield: 0.1%

-- Expense ratio: 1.09%, or $10.90 per year for every $1,000 invested

-- Morningstar Portfolio Risk Score: 87 (Very aggressive)

As I mentioned before, actively managed funds will almost always have significantly higher turnover than passive index funds, meaning they potentially create more taxable capital gains. 

This phenomenon can be especially pronounced 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. This often results in a lot of changes to a portfolio's holdings.

Related: 5 Best Stock Recommendation Services [Stock Tips + Picks]

In other words: If actively managed funds in general are best held in a tax-deferred account, this is even truer for actively managed small-cap funds.

Case in point, check out Schwab Small Cap Equity Fund (SWSCX), managed by Wei Li, Iain Clayton, and Holly Emerson. Their 340-stock portfolio has a turnover of 108%, effectively meaning that each year, on average, the entire portfolio turns over (and then a little more on top). Capital-gains distributions have historically been meaningful in size.

Small-cap stocks showed some energy in 2025's second half and have outperformed their large-cap peers in 2026, too. But zooming out to the past few years, they've lagged while the market has been dominated by the "Magnificent Seven" mega-cap stocks. Still, 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, it actually presents pretty average-level risk among small-cap blend funds.

Related: Best Schwab Funds to Hold in an HSA

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.

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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.

Related: 7 Best Fidelity Retirement Funds to Hold in an IRA

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.

Related: The 9 Best ETFs for Beginners

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 7 Best Mutual Funds for Beginners

Like traditional index mutual funds, an ETF will hold a basket of stocks, bonds and other securities. These can be broad and benchmarked 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.

However, unlike mutual funds, ETFs trade on major exchanges—such as the New York Stock Exchange or Nasdaq—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.

The need to buy shares can be problematic when dollar-cost averaging. As an example, let's say you have exactly $100 to invest, but the shares of the ETF trade for $65. You can only buy one share, and you're stuck with $35 in cash uninvested.

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

But ETFs have their own advantages. For one, they have intraday liquidity—that is, 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.

Like we said, many investors use "ETF" and "index fund" interchangeably. That's because most exchange-traded funds are index funds—but not all. Some are actively managed.

As is the case with Schwab mutual index funds, Schwab ETFs—most of which are indexed—tend to have some of the lowest costs in the business in terms of fees and expenses.

Related: 8 Best Schwab Index Funds for Thrifty Investors

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.

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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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.

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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But that doesn't mean you should hold on to every financial document you're given.

There's a massive difference between a tidy drawer of vital records and a pile of boxes stuffed with coffee receipts and credit card offers. It's not just the room they take up—it's their utility, and in some cases, their potential to harm you should someone else grab those documents.

Read on as I discuss which financial documents you should keep, and which ones should go straight into your paper shredder.

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Importantly, this is a list for individuals—specifically, W-2 employees. If you own a business or are a 1099 worker, there's additional documentation you might need to save.

Lastly, while you should save these documents for years, sometimes even decades, when it does come time to get rid of them … they should go right in the shredder, too. Don't just throw them out.

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The statute of limitations for assessment of tax you owe is typically three years from the date you filed the return; returns filed early are usually treated as filed on the due date. So just in case you're audited, you'll want to keep your returns for a minimum of three years, to be safe. (State-level guidance will vary, so you'll want to look up your state's statute of limitations.)

However, that statute of limitations is extended to six years from the filing date if you don't report income that you should have reported, and …

--It's more than 25% of the gross income listed on your return; or

--It's attributable to foreign financial assets and is more than $5,000.

If you think either is applicable, you'll want to keep those tax returns for at least six years.

There are a couple other timelines to be aware of. For one, the period of limitations for refund claims is seven years from when the return was due if you file a claim for "an overpayment resulting from a bad debt deduction or a loss from worthwhile securities." And if you've paid taxes to a foreign government, you might be entitled to a credit or deduction on your U.S. federal tax return. Because you have up to 10 years to claim the Foreign Tax Credit, you'll want to keep your documents for at least that long.

Lastly, there's no period of limitations for tax assessments if you file a fraudulent return or don't file a return at all, so if you have any pertinent documents, you'll want to keep them indefinitely. (But the best advice I can give you here is to file yearly, and do so truthfully.)

Related: Should Retirees Move? 10 Considerations

In fact, not only do you want to keep these documents, but you'll also want to have copies in at least two places in case one gets lost or destroyed. For instance, you might keep one copy at home with other financial records and keep another in a safe deposit box, with a financial advisor, or in the care of a trusted loved one.

These records should be kept indefinitely.

Related: What to Do Before Your Spouse Passes Away

Like with your life insurance policy, these documents are so essential that you should keep extra copies, with the originals kept in either a safe deposit box or in a fireproof safe. Backup copies should be kept with an executor or adult relative you trust.

These documents should also be kept indefinitely.

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

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.

For example, if your lender forgot to file a satisfaction of mortgage with the local recording office after you paid off your loan, it could prevent a dispute if you later sell your home. In the unfortunate circumstance of a foreclosure or a challenge to the title, mortgage documents can show your ownership. If you sell your home, you'll also want these forms to calculate your capital gains tax liability.

Some of the mortgage forms you likely want to hold on to include:

--Purchase agreement

--Deed

--Closing documents

--Seller's disclosures

--Home inspection report

--Property survey

--Home warranty

You'll also want to have both physical and digital copies of these documents. And you should hold on to them for at least seven years after you sell or otherwise exit the mortgage, largely for tax purposes.

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Some of the documents you likely want to keep include the official plan documents, benefit statements, and any notices from the plan. Having a copy of these records is useful if there are errors in the plan's records or if they are lost. These documents are also useful to your beneficiaries if you pass away.

These documents should be held indefinitely.

Related: 8 Best Wealth + Net Worth Tracker Apps [View All Your Assets]

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Not necessarily. In fact, it might not be safe at all.

If others get hold of your financial information, you could become a victim of financial fraud. So a general rule of thumb is to only keep the financial documents you only need and shred the rest.

Plus, keeping every piece of financially sensitive information can make it more challenging to find the documents you actually need. Not to mention, having all of that paper piling up can become overwhelming; there's a certain peace to becoming more financially minimalistic. And in some cases, these documents can be reprinted again from an online portal, eliminating the need to keep physical copies around when you don't need them.

With all of that said, here are the types of financial documents you should shred sooner rather than later.

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But they also include your transaction details, and while that might not seem like an issue, scammers can use those details to get a sense of your purchasing habits.

You should keep credit card statements for no longer than 60 days. The only exception to this rule is if you'll need to include a credit card statement in your tax return for any reason.

Also note that many banks' credit card portals include the ability to print prior statements if you need physical versions of those documents.

Related: Is It Better to Pay With Cash or a Credit Card? The Answer: It Depends

Well, unless you plan to accept one of those offers, you can shred them right away. If you don't, someone could try to commit fraud by applying for a credit card in your name.

You're typically not responsible for debt accumulated on an account that was fraudulently opened in your name. However, that act of identity theft could negatively impact your credit score, and it can be a hassle to contact credit agencies to get everything sorted out. 

And you generally don't even need those mailers to apply for a card—you can do so online.

Related: Does Your Credit Score Matter in Retirement?

Insurance documents are chock full of personal and financial information that scammers would love to get their hands on. Additionally, all of those health, home, and car documents can add up to a lot of unnecessary paper clutter.

Related: Elderly Scams: Beware These 15 Schemes Targeting Seniors

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There are few reasons you would need utility statements from a long time ago, so it's typically best to shred these so scammers don't glean information from them. You'll always want to check your most recent statement against your monthly bank statement first—after that, you can shred it right away. (But like with credit card statements, you should keep utility statements for longer if you'll need them for tax filing purposes.)

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

Assuming the ATM gave you the proper amount of money and the transaction matches your bank statement, you don't need to hold on to those slips of paper. That means, at most, you should keep these for a few weeks—and that's if you have to wait for a paper bank statement to arrive.

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

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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.

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.

Also, do you want to stay up-to-date on our latest content?

1. Follow us by clicking the [+ Follow] button above,

2. Subscribe to Retire With Riley, our free weekly retirement planning newsletter, and

3. Give the article a Thumbs Up on the top-left side of the screen.

4. And lastly, if you think this information would benefit your friends and family, don't hesitate to share it with them!

Now take that dynamic and turn the dial up to 11. That's retirement planning.

A retirement plan has to get you not through a single day of frivolity, but through years (and even decades) of your life. It's a high-stakes affair, but it's achievable and oh-so rewarding—if you give it time, put in some effort, and dodge a few common tripwires.

Today, I'm going to help you with that latter obstacle. Read on as I run down some of the most common retirement planning mistakes. Knowing where these potholes sit will help you avoid them now and in the future. The goal here is to make you feel more confident in the plan you eventually craft … and flexible enough to make any necessary adjustments.

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You don't want to be a part of any of those groups.

Below, I'll outline a group of pretty common retirement mistakes that you can (and should) evade. While everyone's retirement plan is unique to their own situation, these are errors any person could commit if they're not mindful as they develop their retirement plan.

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The estimated average Social Security retirement benefit as of January 2024 was $1,907, according to the Social Security Administration. But that doesn't mean that's the amount you'll get. The three main factors that can affect the amount of one's retirement Social Security payments include:

-- How many years you worked jobs that pay into Social Security

-- Your earnings history 

-- The age you first start claiming your benefit

When calculating your benefit, the SSA considers your 35 highest-earning years (adjusted for inflation). If you worked fewer than 35 years in jobs where you pay Social Security taxes, each year below that threshold will be considered a zero in calculating the average. For this reason, it's beneficial to work for at least 35 years—in some cases, it even makes sense to delay Social Security if doing so would significantly benefit your earnings history.

Anyone who takes Social Security before their full retirement age gets a permanently reduced amount. Specifically, your benefits will be reduced by 5/9ths of 1% for each month before normal retirement age, up to 36 months. If you retire even earlier than 36 months before full retirement age, the benefit reduction changes after the first 36 months, to 5/12ths of 1% for each month, up to the maximum early retirement amount of 60 months. 

However, if you wait to retire sometime after full retirement age, you actually receive delayed retirement credits, calculated at different rates depending on when you were born, though the additional benefits stop at age 70. For those born in 1943 or later, your monthly rate of increase is 2/3rds of 1%, good for an 8% rate of increase across a full 12 months. (But you still must be insured under Social Security at your full retirement age.)

So, waiting until age 70 could meaningfully boost your Social Security benefits. That said, in some situations (such as a short life expectancy or a glut of personal savings), it makes sense for a person to start collecting at their full retirement age or even earlier.

Related: How Much Should I Save Each Month?

However, some people take this advice too far and become too risk averse as they approach and enter retirement.

It's possible that your retirement savings will need to last 10, 15, 20 years, maybe even longer in retirement. Which means you'll still need some growth to keep your nest egg from expiring early. A portfolio too invested in bonds, for instance, will be relatively safe and produce some income, but it might not produce enough growth to offset your withdrawals, causing your nest egg to run dry too early. Injecting some level of stock exposure is one way to prevent this.

What's the proper balance? Like with many things investing, your ideal allocation will depend on your financial situation, age, goals, and risk tolerance.

Related: How to Maximize Social Security Spousal Benefits

That's as good a guideline as any to use in your estimations, but remember two important things:

1. Past performance doesn't guarantee future returns.

2. That's an average—actual stock market fluctuates from one year to the next.

If you assume an overly optimistic market return in your calculations, you could end up more than just disappointed—you could end up broke.

You also have to worry about the "sequence of returns" effect. Remember: Every year, you'll be withdrawing from your retirement account, so that will act as a performance drag through thick and thin. If you assume an average 10% return, but you also assume you'll get those 10% returns each and every year, that model will churn out pretty smooth withdrawal scenarios.

But they might be unrealistic. What happens if your portfolio does see an average 10% return across 20 years of retirement, but in your first few years of retirement, the market tanks? Your withdrawals will compound the losses, putting your retirement at a much lower starting point once the gains take hold, and your withdrawal scenarios could be torn to shreds—putting you at risk of outliving your savings.

(Want to see what we mean? Check out our look at retirement withdrawal strategies, which assume these kinds of "lumpy" returns.)

Related: Don't Believe These 17 Social Security Myths

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A retirement account (or retirement plan) is generally any tax-advantaged investment account that can help you grow your funds for use after you stop working. But relying on these accounts completely poses a depletion risk, particularly if the market isn't performing well. Once the money is completely gone, it isn't easily replenished.

For this reason, you'll want to consider whether you can accumulate additional income streams as part of your retirement plan. Fortunately, most people reading this will have some amount of Social Security benefits to lean on. In addition, you might have annuities, a pension, part-time work, rental income, or other income-generating assets.

If you don't have much in the way of additional income, you might need to delay your retirement or accept a lower baseline withdrawal to ensure your funds don't run out early.

Related: Is Your Retirement on Track? Here Are the Average 401(k) Balances By Age

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We have a fuller look at budgeting in retirement, but in short:

Start by considering your various retirement expenses. Some of your most costly retirement costs may be housing, food, travel, and health-related expenses. You'll also need to pay for utilities, transportation, entertainment, and more. 

The numbers allotted for each category will vary by person, so you need to sit down and make the necessary calculations or have a financial advisor help you do so. Forgetting about or underestimating expenses can put you at risk of depleting your retirement savings too quickly.

Next, figure out your retirement income streams. In Schroders' 2024 U.S. Retirement Survey, 88% of non-retired Americans said they are at least slightly concerned about not knowing how to best generate retirement income. Per the survey, besides Social Security, the top income sources non-retired Americans anticipate drawing upon include:

-- Cash savings (60%)

-- Workplace 401k, 403b, or 457 plan (48%)

-- Spouse's workplace 401k, 403b, or 457 plan (37%)

-- Investment income (36%)

-- Spouse's pension plan (27%)

And again, on the theme of moderation: While it's best to err on the side of caution when it comes to retirement planning, you also don't want to vastly underestimate how much income you'll be receiving. Doing so could result in you withdrawing far less than you actually need, leading to undue stress and an unnecessarily spartan retirement.

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One of the most touted examples is the 4% rule. 

The 4% rule suggests people withdraw 4% from their accounts during their first year of retirement. Each of the following years, you adjust that amount for inflation. It's a good rule of thumb that has been prescribed for decades.

But one of the most common retirement mistakes is assuming that you should stick to a strategy and never budge. Not so! Indeed, William Bengen, who created the 4% rule in 1994, revisited it in recent years and determined that 4.5% might be a more advisable number given high inflation of late.

And importantly: Even if the general rule might work for you, your situation might require a higher or lower starting percentage.

In addition to withdrawal strategies that determine how much you take, there are other tactics that focus on budget optimization and tax optimization. 

For instance, some retirees focus on an account sequencing strategy that minimizes taxes. This method has people first draw from taxable accounts, then tax-deferred ones, then finally tax-free accounts. 

There's also the bucket method, which is meant to protect the money you need soon while letting other money (that you won't need for a while) increase in value. Other retirees use the bucket method, where money is invested differently depending on when that money will need to be withdrawn. The goal of this method is to protect the money you need soon while letting other investments increase in value.

Related: Should Retirees Move? 10 Considerations

Inflation decreases the spending power of your dollar over time. Consider the effect it has had in just a few short years: If you bought an item for $1,000 in 2019, thanks to inflation, that same item would cost $1,191.84.

America's inflation rate tends to vary significantly by year, and the past few years have been particularly wild:

-- 2019: 2.3%

-- 2020: 1.4%

-- 2021: 7.0%

-- 2022: 6.5%

-- 2023: 3.4%

In other words: Predictions for future rates might not be accurate. So as you account for inflation, it's best to err a bit on the side of caution and assume a slightly higher-than-predicted average rate.

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

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But retiring too young has its drawbacks.

To start, as I mentioned above, people who take Social Security benefits before they reach full retirement age have a permanent benefit reduction. 

Compounding the problem? You'll also have less time to build a hearty emergency fund and retirement nest egg.

Also, it's possible that you'll underestimate your own potential longevity. Rather than look at average life expectancies, which include people who die in childhood and early adulthood, you might instead consider the Period Life Table. This table, created by actuaries from the Social Security Administration, shows one's expected remaining years of life at different ages. For instance, a 64-year-old female is estimated to live about 20.5 more years. If you're that age and your retirement savings are unlikely to last that long, an early retirement might not be in the cards.

Retirement isn't a purely financial decision, either—it's a mental and emotional one. In a 2022 T. Rowe Price survey, 45% of respondents who were working in retirement said they are doing so for the social and emotional benefits. That's only slightly less than people who said they were doing it for financial reasons (48%). Work gives some people a sense of purpose that they struggle to find elsewhere in retirement.

Related: Retired But Too Young for Medicare? Health Insurance for Early Retirees

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You might have a low life expectancy or health issues that will keep you from enjoying retirement later in life. 

Or you might have more money stashed away in a retirement account than others could even dream of, but still fear it isn't enough. But as the saying goes, "You can't take it with you." If you wait too long to retire, you might not benefit from the fruits of your labor.

Plus, a retirement plan where you expect to work into very old age might be unrealistic. Your body might refuse to continue doing physical work. Or you might be unwilling to keep up with current technology or workflows. 

And even if you are 100% mentally and physically capable of doing a job, you might fall victim to ageism in the workforce. In a 2023 Society for Human Resource Management survey of U.S. workers, nearly one-third of respondents said they felt they were treated unfairly because of their age at some point during their career. Of those workers, nearly three-fourths (72%) said it made them feel like quitting.

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

Your retirement plan has to be customized for you.

Many people work with a financial advisor to help them avoid common retirement planning mistakes. According to the 2023 Herbers & Company Service Market Growth Study, retirement planning is the second most-wanted service that consumers with more than $250,000 in household assets want from a financial advisor. (Only tax planning was more in demand.) 

Consider having a financial professional help you develop a plan that is tailored to your resources and needs.

Related: The Best Retirement Plans for 2024 + 2025 [Workplace + Individual]

But you can't solve your retirement with an 11th-hour cram session.

The earlier you plan for retirement, the better. A retirement plan you create in your 20s or 30s will likely change, but that's fine! Having a plan that you tweak and refine over time is far better than not having a plan at all.

As soon as you have a sense of how much money you might need and how you'll save up that much, you have a guidepost to help you determine whether you're "on track." You might need to increase how much you're saving, or find that you're saving too aggressively but ignoring the present. Either way, you're correcting problems before it's too late.

Again, there are few bigger retirement mistakes than not having a plan in place.

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

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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.

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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Some people love their jobs; others don't. But it's probably fair to assume that, if given the choice and financial flexibility, most people would prefer to spend their free time pursuing their interests rather than clocking in 40 hours a week.

But retirement costs money—lots of it. Which means people generally can't retire early without sufficient earnings during their career years and some careful planning. In fact, even though early retirement is, as the name suggests, "early," it's a form of delayed gratification for those who have to sacrifice what they want for years, even decades, to call it quits earlier than they otherwise could afford.

Today, we'll talk about what the FIRE movement is, how it works, and how to determine whether it's a realistic goal for you.

The information and analysis contained within this article appears for your consideration, but it does not constitute individualized financial advice. Always act at your own discretion.

This isn't about setting aside a few extra dollars each month. This is about stripping your budget down to the basics and investing aggressively.

As a broad for-instance: A person investing "normally" for retirement might set aside 10% or 15% of their income each month. Someone practicing FIRE might set aside 50%.

Once a worker reaches their FIRE number (more on this later), they either ease into retirement or fully retire. 

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The difficult part is in the execution. It's simply not financially feasible for some; and even among those with the resources to make it work, some might struggle to muster the discipline necessary to pull it off.

Many FIRE members go by the "Rule of 25," which suggests you save 25 times your annual expenses. For instance, a person who spends $70,000 per year would have a FIRE number of $1.75 million ($70,000 x 25 = $1.75 million).

Many FIRE retirees typically plan to implement the 4% rule for retirement withdrawals (or a variant of it). The 4% rule dictates that you withdraw up to 4% of your savings in your first year of retirement; then in each subsequent year, you withdraw the previous dollar amount, adjusted upward/downward for inflation/deflation.

It's worth noting that some people believe the 4% rule is outdated—and that includes the rule's creator, who has since made some adjustments to the withdrawal level.

Consider consulting a professional to determine what FIRE number makes sense for you.

Related: How Much to Save for Retirement by Age Group [Get on Track]

There's a long list of expenses many people can cut from their budgets, but generally speaking, people typically start by cutting down (or zeroing out entirely) their discretionary expenditures. 

After that, they see how they can negotiate down or otherwise reduce their more necessary spending—for instance, people look for lower-cost internet/phone providers, find ways to cut back on energy usage in their home, and try to be more cost-conscious when it comes to grocery shopping.

Once you've slashed costs to the point where you could reach your FIRE number, look at your budget and ask yourself, "Can I live with this?" If you've cut to the point where you're, say, making risky insurance and health care decisions, you might want to reconsider. Or you simply might admit to yourself that you need more creature comforts than what the budget provides for.

Also, a reminder that the adjustment to your budget will need to incorporate your efforts to …

As I mentioned before, many FIRE followers try to save 50% or more of their income. The figure you need to hit your FIRE number might be lower, but there's a good chance that it's more than what you currently sock away.

Here's an example of how drastic the change might need to be, and how it could affect your take-home income. 

Tom, age 30 and single, makes $80,000 a year after taxes. He currently contributes an aggressive 10% of his income ($8,000) to a 401(k). His employer matches a maximum of 3%, for total annual savings of $11,000. He currently budgets around annual take-home income of $72,000 ($80,000 - $8,000 in savings contributions). Remember: The $3,000 employer contribution is free.

However, Tom must save $40,000 per year to reach his FIRE number on time. That means he must save an additional $29,000 annually.

First off, Tom has to do that within the confines of annual contribution limits. For instance, the 401(k) contribution limit for 2026 is $24,500. So, let's say he maxes out his 401(k). Even with the employer contribution, he still needs $12,500 more. Well, the IRA contribution limit for 2026 is $7,500. That brings him down to $5,000.

If he had a health savings account (HSA) through work, that's another $4,400 he could sock away in a tax-advantaged account. So he'd only have to find a home for the remaining $600. If not, he's looking to stash $5,000. Either way, there aren't many tax shelters left—he'd likely have to put that money into a taxable brokerage account (if he wanted it to grow at a pace similar to his retirement accounts), which means he'd face annual tax consequences on things like capital gains and dividend income.

Related: How to Invest for (And in) Retirement: Strategies + Investment Options

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For instance: Were you planning to put all non-retirement-account savings in a high-yield savings account or certificates of deposit (CDs)? Well, as tax-inefficient as a traditional brokerage account might be, it's also going to provide you with a lot more growth and, in theory, get you to your FIRE number even more quickly.

Within your retirement accounts, how are you planning to be invested? If you're 30 and your portfolio is, say, 50% stocks and 50% bonds, you're much more conservatively invested than many advisers would say you should be. Again, merely stepping up to the recommended level of portfolio aggression for someone your age might be enough to get you over the hump (or get to your FIRE number even more quickly).

In short: Optimizing your investments can make a big difference in whether you can achieve a FIRE retirement.

Related: How to Invest for (And in) Retirement: Strategies + Investment Options

Tom is going from $72,000 in take-home income to just $43,000 ($80,000 - $37,000 in savings contributions). So he's not just cutting expenditures—he's doing so from a much lower income ceiling.

If you face a similarly austere situation, you might need/want to find ways to increase your income.

Easier said than done, of course, but it's not impossible either. The three traditional ways of going about it are:

--More aggressively seeking out a raise/promotion from your current employer.

--Change jobs to upgrade your pay.

--Start a side hustle to earn additional cash.

If you're still not close to being able to make your FIRE number from here, it's very likely that a FIRE retirement isn't in the cards. It's nothing to be ashamed of. 

In fact, now that you've done the work of seeing what you can cut and how you can earn more, you might find that between some more doable budget cuts, somewhat higher retirement contributions and a small side gig, you could still set yourself up to retire earlier than the average American—even if it's not as early as you originally imagined. That's still progress!

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Quite a few people who opt for a FIRE journey are self-starting DIYers. So their first instinct might be to open up an Excel sheet, grab a calculator, and get to planning.

But remember: Financial advisors are generally trained in not just doing all the calculations necessary to determine when someone can retire when and how they want, but also in looking around corners to determine what hurdles might pop up along the way.

Financial advisors not only can help out creating a personalized plan from the start, but they can also help you along the way, plotting out investment strategies, tax planning, budgeting, and risk management. You might want assistance in, say, health care planning, Social Security timing, and the best ways to diversify your income. And when you're near retirement, you'll need a retirement account withdrawal strategy in place. 

A financial advisor can help you with all of the above and more.

Related: How to Choose a Financial Advisor

The "barista" name evokes the popular choice of working as a barista because it offers part-time hours and is often considered more enjoyable than someone's previous career. It's also because some major coffee chains offer health care to employees with part-time hours.

But obviously, while the name points to coffeeshops, it applies to any kind of part-time work.

Related: Retired But Too Young for Medicare? Health Insurance for Early Retirees

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Related: How Much Social Security Will I Receive?

Related: 10 Common Financial Mistakes That New Retirees Make

Plus, you're also dropping the commute; the average one-way travel time to work in 2024 was more than 27 minutes, per the U.S. Census Bureau, which means the average round-trip travel is about 55 minutes per day. That's four-and-a-half hours per week you're gaining back, too.

All told, people are getting 45 to 50 hours back by retiring.

Retiring early can also reduce stress and anxiety. If you plan to move during retirement, you can change locations earlier. This may allow you to start enjoying better weather, spending more time with family, or saving money if you downsize your home.

Related: Are You Saving Enough for Retirement?

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It's also possible that as you near retirement, something changes that drastically alters your math and pushes your timeline further back. You could find retirement boring and miss the routine of employment; and re-entering the workforce can be challenging after you retire.

And lastly, because no one knows what their lifespan will be, you might never be rewarded for all the sacrifices you make to retire early.

Related: 7 Expenses That May Be Missing From Your Retirement Budget

The average retirement age for men in 2024 was 64.6 years old, according to the Center for Retirement Research at Boston College. That's three years older than the average in 1994. The average retirement age for women was 62.6 years old, and that age has been steadily rising over time, too.

Your ability to retire early depends largely on your salary, capacity to live far below your means, and aggressiveness of your investments. If you're serious about becoming part of the FIRE movement, you should discuss your goals with a financial advisor. 

Related: 5 Things Retirees Can Do With Their Cars

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That’s where these retirement withdrawal strategies come in.

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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On the upside, food inflation is technically slowing. According to the Bureau of Labor Statistics, food prices in November 2022 spiked 10.6% year-over-year … but in November 2023, food prices had risen by “just” 2.9% in a year’s time. Fortunately, those gains appear to have softened a great deal with at-home food prices rising just 1.6% in the twelve months leading up to November 2024 over the preceding 12-month period. On the downside, that’s a larger grocery bill yet again, but the rate of growth has practically flat-lined. Still, since that hasn't turned negative, prices are still elevated and you're likely looking for ways to lower what you spend on food.

Consumers need to do something, and that something can’t be “eat less.” That means as food prices continue to climb, people need to utilize every way possible to save money at the grocery checkout line.

What can you do to fight back against higher food prices without emptying your cart? Let me share with you several commonsense tips on how to save money on groceries.

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If you’re in the latter category, you’re a lot less likely to fall victim to impulse purchases.

Trust me: If you wander into Trader Joe’s without a plan, something will spark your interest and magically float into your basket. And that’s one way to artificially inflate your grocery bill.

Writing a list (and actually sticking to it) will shelter your grocery budget from spur-of-the-moment buys. Plus, you won’t forget any items and waste gas making multiple shopping trips!

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To start with, curbside pickup also helps to reduce impulse buys—after all, if you’re not roaming the store, you can’t grab anything that isn’t on your list. Also, buying groceries through an app or website makes it simple to compare prices and target only items that are on sale. Lastly, shopping online does the number-crunching for you, which could help you stay within your budget.

While grocery delivery is even more convenient, it might not help you save money. You usually have to pay a fee, and you should tip the driver, if you have your groceries delivered. Conversely, some grocery stores allow for free pickup, while others only charge a nominal fee.

Related: 31 Millennial Spending Habits & Income Statistics to Know

Different types of products can be cheaper at different grocers (and other stores). As a for-instance, hygiene products are often cheaper at stores like Target and Walmart than they are at grocery stores. So if that’s the case for your local stores, make the occasional journey elsewhere to stock up on different products.

Use this tip cautiously, though, because what you save on product prices, you could end up losing in gas costs.

Related: 10 Senior Discounts for Restaurants + Grocery Stores

But you should also compare a product’s prices against competing products … and even its own prices!

Per the former: If you’re not a brand loyalist, you can save a lot by buying a competitor’s version of a product, or even the store-brand version. We’re not necessarily telling you to replace Coca-Cola with Pepsi, but you probably won’t find much difference past price between, say, two brands of salt or two brands of pepper.

Per the latter: Especially if you buy certain products frequently, you should keep tabs of what that product costs over the course of time. If you keep track of chicken breasts and see that they typically cost $3.00 per pound, then you notice a price reduction to $2.50 per pound, you can jump on the opportunity to save.

Young and the Invested Tip: Don’t just keep track of price, either! Some goods’ prices might stay the same, but the producer will simply shrink the goods’ size—a phenomenon called “shrinkflation.” So make sure you’re also paying attention to package size so you know you’re getting the best deals.

Related: How to Achieve Financial Minimalist to Reduce Stress

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It’s extremely common to purchase food with a plan in mind, then let that food migrate to the back of your pantry shelves or refrigerator. Being more conscious about using up whatever you have on hand will 1.) ensure you use food before it expires and is wasted, and 2.) keep you from accidentally purchasing items you already have.

Both of these things will in turn save you money on your next shopping trip.

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

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You can get some bulk items from regular grocery stores. However, many people prefer to buy in bulk from a wholesale club, such as Costco or Sam’s Club. These stores typically require you to be a member, which involves an annual fee, so if you rarely buy in bulk, the savings might not exceed the membership fee. But frequent bulk buyers can more than make up for the fee—and enjoy savings on other goods and services, from gas to tire replacements to vision care.

Be smart about bulk, though—not every item should be bought in super-sized quantities. Specifically, don’t buy anything in bulk that can easily spoil or expire unless you know you can use all of the product before the expiration date.

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And if you do get a craving for out-of-season produce, consider buying the frozen version. (And even better, the next time your favorite frozen fruit or veggies are on sale, stock up so you’re ready for the offseason.) As long as there are no added sugars or other ingredients added, frozen produce maintains its nutritional value. It can even be more nutritious than “fresh” food that was shipped from far away and left on store shelves for a long time.

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Indeed, rather than put together a grocery list and hope what they’re buying is on sale, many savvy grocery shoppers actually plan their meals around sale-priced items. Is there a boffo sale on steak? Stock up and make a few fresh meals from it, and freeze the rest to be used when steak isn’t on sale. Have a coupon for raspberries? Well, apple pie can wait a couple of weeks.

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

The best coupon app for you depends on where you make most of your grocery purchases. For instance, if you frequently shop at Target, getting Target Circle might make sense. And if you love Whole Foods (and a host of other stores, for that matter), you might want to consider downloading Capital One Shopping.

The Capital One Shopping app applies the best available deals at checkout, potentially giving you some jaw-dropping prices. Plus, the service offers rewards you can redeem for free gift cards. Users can also put items on a watchlist, and the app will notify them when the item goes on sale (or if the price otherwise drops).

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

Grocery stores usually have a consistent sales schedule. So if you pay close enough attention, you might notice that far more items are on sale on specific days of the week, or that certain special deals only occur on certain days.

Pay attention to these calendar-specific discounting trends. Saving more money could be as simple as changing your weekly grocery run from Sunday to Wednesday.

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

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And it can also save you money on groceries.

To start, you make many of the same type of meal at once, so you’re using the same set of ingredients. Depending on how many meals you’re making, you may be able to get ingredients in bulk. Plus, knowing you have food that just needs to be heated up can help you avoid the temptation of getting fast food at the end of a long day.

According to the USDA, freezing keeps food safe almost indefinitely. Being safe doesn’t mean it stays the same quality, though, so make sure to look up how long various meals will stay tasty.

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

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Utilize other protein sources, such as beans, Greek yogurt, lentils, tofu, peanuts, and more. If you’re mainly reducing your red meat intake, this money-saving strategy could also improve your cardiovascular health. And you never know—you just might find some new favorite meals.

Related: 12 Bank and Credit Card Fees We Hate Paying

There is some time and labor involved in gardening, but many people find the savings worth it. Plus, it’s very possible that what you grow is more flavorful than what’s available at the grocery store.

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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.

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.

Also, do you want to stay up-to-date on our latest content?

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And among the ways you'll do that is by making some strategic upgrades—leveling up what you own, your surroundings … even yourself.

Which upgrades will serve you best? Read on as I discuss a number of life improvements that can make you safer, more comfortable, and better connected during retirement. 

The following ideas aren't so much about treating yourself as they are about increasing your everyday quality of life. The right upgrades will make you happier, more relaxed, and could even end up saving you money in the long run.

Prioritize the following upgrades in retirement.

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Consider the University of Michigan National Poll on Healthy Aging, a nationally representative survey of Americans aged 50 to 80 years old. According to its 2024 poll, one-third (33.4%) said they felt isolated from others and a lack of companionship in the past year. 

Respondents were more likely to say they lacked companionship and felt isolated if they were female, between the ages of 50 to 64, made less than $60,000 per year, or had poor or fair health.

Communication devices, such as smartphones and tablets, can help seniors stay connected with loved ones. Phone calls, video chats, texting, and social media allow them to stay in touch with people without always needing to go somewhere or have someone come to them. 

In retirement, don't scrimp on devices that make you feel social and connected.

Strategic home renovations before you retire, or in early retirement, can make you safer and more comfortable. Some of the renovations you may want to consider include (but aren't limited to):

-- Installing grab bars outside of showers, baths, or toilets

-- Switching to induction cooktops

-- Replacing flooring to be softer and less slippery

-- Installing ramps

-- Installing touchless water faucets

You might not need all of these features now, but it's best to make changes in preparation, rather than waiting until your old layout feels hazardous. Renovations can be expensive, but it's worth splurging for safety.

Related: 10 Home Improvement Investments That Don't Pay Off

For example, you might upgrade your Sam's Club membership to the higher tier that includes free select same-day or next-day delivery. Delivery services are especially useful if you have mobility issues or lack transportation options.  Or you might get a membership to a local gym, such as the YMCA or Anytime Fitness. It's important to maintain strength and endurance as you age. Gyms can also be social environments. 

Don't assume you can't afford the services you seek. Many companies offer discounted memberships and subscriptions for seniors. No, I'm not just referring to AARP discounts (though those can be useful too). 

Related: 12 Free Things for Seniors to Do

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Not all retirees require these systems, but if you have health issues or are often home alone, they might be worth it. Alert systems offer peace of mind not just for you, but also for your loved ones.

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A person turning 65 today has a nearly 70% chance of requiring some type of long-term care services before they pass away, according to LongTermCare.gov. Around 20% will need it for over five years, and the average length is three years during one's lifetime. Unfortunately, LTC is expensive. In 2024, the median annual outlay for an in-home health aide was $77,792, a Genworth/CareScout survey says. For a private room in a skilled nursing facility, it was $127,750. Multiply those numbers by three to five years, and you're looking at a substantial sum.

Despite the high chance of needing long-term care and the massive price tag that comes with it, only 3% to 4% of people in the United States age 50 and older pay for a long-term care policy, per LIMRA data. If you're retired, you might want to purchase (or upgrade) your current LTC insurance or consider a hybrid insurance policy or annuity with an LTC element.

Related: Health Care Costs in Retirement [Amounts + Types to Expect]

A few useful vehicle adaptations you might consider at some point:

-- Adjustable brake and accelerator pedals 

-- Tilt and telescoping steering wheel

-- Larger dashboard controls

-- Automatic tailgate closer

-- Automatic side door openers

-- Rain sensor for windshield wipers

-- Lane departure warning

Depending on your situation and how many of these and other features you need, you may either make these upgrades piecemeal or simply upgrade your entire vehicle to something with these features. 

Related: 7 Car Maintenance Tasks That Save You Money

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Don't let embarrassment get in the way of a high quality of life. Hearing aids not only improve your ability to listen to everything around you (which in and of itself is important for your relationships, safety, and personal enjoyment), but they may also reduce cognitive decline and depression.

Some people put off hearing aids because they dread the expense. But that's increasingly a worry of the past, too. As of Oct. 17, 2022, the FDA established a new category of over-the-counter (OTC) hearing aids for adults with perceived mild to moderate hearing loss. According to Audiologists.org, prescription hearing aids cost between $1,000 to $3,000 per ear (so $2,000 to $6,000 per pair), while OTC aids cost between $300 to $2,000 per pair.

Over-the-counter hearing-improvement is becoming extremely commonplace, to the point where Apple's AirPods Pro 3 have a software-enabled hearing-aid feature (and a hearing test) you can access while using newer iPhones, iPads, and Macs.

It's easier than ever to get audio aids; retirees with impairments should take advantage of them.

Related: 14 Ways Retirees Can Reduce Their Medicare Expenses

Despite its benefits, many older adults fail to travel for a number of reasons.

In some ways, travel is more expensive for seniors. But if you plan ahead, budget, and make use of senior discounts, this is still a worthwhile activity during retirement and one you may want to splurge on a bit.

And even older adults who could afford to travel put it off or don't do it because they view it as too tiring and/or uncomfortable. Fortunately, there are many ways seniors can upgrade their travel experiences to make it more enjoyable overall.

Older adults can contact train stations or airports to ask about assistance options. For example, some airports have an electric cart service that can transport passengers to their gates. This is an excellent option if you struggle to walk far distances or get lost in crowded areas. Booking direct flights, while typically more costly, can be less draining than having one or more layovers. Seniors might also want to upgrade to a hotel with more amenities or special accommodations, such as one with valet services. 

Related: You May Want to Skip These Popular Retirement Rules

One type of home security to consider is automatic door locks. Electronic locks are far more challenging to pick or break, so they work as an excellent deterrent to criminals. They also ensure you won't forget to lock your door; and if you assign unique entry codes, it's easy to keep track of anyone who's coming or going.

Another option is security cameras or video doorbells. These are useful both when you're home and when you're away. Cameras can both prevent crimes and catch criminals after the fact. Just make sure to choose a camera or smart video doorbell carefully—some are more secure than others, and they might require a monthly plan.

Related: Elderly Scams: Beware These 15 Schemes Targeting Seniors

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Importantly: You don't just need assistance in making sure you have enough money to make it through your retirement—you also need to develop a plan for what you want to do with leftover money and assets when you pass away. That could be as simple as an estate plan that names a few individuals or charities, or as far-reaching as a dynasty trust to administer wealth assets for multiple generations.

Related: How to Choose a Financial Advisor

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.

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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When you were younger, you might have been fine with making a long drive to your favorite shop, and you might have been willing to pay top dollar for your favorite snacks. As a senior, however, you might prefer the convenience of grocery delivery and be more budget conscious. Vibes might become less important; pharmacy services could become a must.

In other words: When you reach your golden years, if you haven't thought much about it, you should probably re-evaluate which grocery store chain is best for your needs. And I can help.

So, what is the best grocery chain for seniors? Read on as I compare three of the best-known grocers: Walmart, Sam's Club, and Costco. I'll evaluate all three across a variety of factors that are important to seniors. My hope is that this review will help you make the best decision for your grocery destination.

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Today, I'm going to discuss the following factors you may want to consider:

--Membership price

--Delivery services

--Pharmacy services

--Number of locations

--Selection

--Mobility vehicles

--Value for cost

For you personally, some of these factors may be more important than others. Your chosen grocery store should fit your needs. 

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First, though, we're going to focus on just the cost of getting in the door, as the value in those membership costs will come into play as we look at other categories.

--Walmart: No cost. Any adult can walk into Walmart and start shopping. A membership isn't required. However, some choose to enroll in Walmart+ for special perks and that costs $98/year.

--Sam's Club: $50/yr. (Club); $110/yr. (Plus). A Sam's Club membership costs $50 annually for the Club tier or $110 for Plus. However, Sam's Club offers senior discounts for new members: a 60% cut on Club's price (so down to $20 per year) and a $50 discount on Plus (so, $60 per year).

--Costco: $65/yr. (Gold Star); $130/yr. (Executive). Costco's $65 and $130 annual costs for Gold Star and Executive memberships, respectively, are the same regardless of your age—the chain doesn't offer senior discounts.

The winner? If you don't care about membership perks, it's hard to beat walking into Walmart for free. But if you're open to the idea of a membership model, Sam's Club is the most affordable regardless of your age, but it's a particularly good deal for seniors.

Related: Seniors Can Save More With These 10 Discounted Memberships + Subscriptions

--Walmart: Walmart grocery delivery without a membership requires you to pay a $9.95 delivery fee. A Walmart+ membership offers free, same-day delivery on grocery orders of at least $35.

--Sam's Club: Sam's Club delivery costs differ by plan. Club members pay $12 per same-day or next-day delivery. Plus members' costs vary by order size; they get free same- or next-day delivery for orders of at least $50 (pre-tax), but they have to pay $8 for orders under $50. Both tiers provide Express delivery (within a few hours) for an extra $8.

--Costco: Costco members in eligible ZIP codes can get same-day grocery delivery for free for orders of at least $35. The same-day delivery is powered through Instacart, but you don't need a separate Instacart membership. Want to stock up on non-perishable groceries? Costco offers 2-day delivery; no delivery fee is charged on orders of $75 or more.

The winner? These days, a $35 minimum isn't hard to foot, so both Walmart and Costco will usually beat out Sam's Club for same-day grocery delivery.

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

Walmart: Without a membership, you can have prescriptions delivered for $9.95 per delivery. Walmart+ members enjoy free prescription delivery as soon as the same day with no order minimum. Also, Walmart in-store pharmacies administer a variety of vaccines.

Sam's Club: Members can access some top-notch pharmacy perks. For starters, all members pay $10 or less on more than 600 generics, and discounted prices on brand-name medications at both Sam's Club pharmacies as well as 62,000 other participating locations. Plus members enjoy $0 prescriptions on up to 10 generic drugs: amlodipine, donepezil, escitalopram oxallate, finastride, lisinopril, metformin, montelukast, pioglitazone, sertraline, and Vitamin D. Plus-tier members also get additional savings on pet prescriptions.

Costco: Costco offers a range of immunizations and helps you refill and manage your prescriptions. You can pick up your prescriptions at an Rx locker, get them delivered through Instacart, or have them delivered by mail. Members have exclusive access to $29 virtual doctor appointments for new prescriptions or refills with Sesame. Have pets? You can also use Costco's Member Pet Prescription program to save on cat and dog prescriptions and have them delivered to their homes. 

The winner? Sam's Club and Costco outshine Walmart when it comes to your pharmacy needs.

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

--Walmart: Individual Walmart stores have roughly 140,000 SKUs on a given day.

--Sam's Club: It's estimated to carry between 6,000 and 7,000 products.

--Costco: This warehouse club has the fewest options at only around 4,000 SKUs.

The winner? Walmart, by a landslide—if you covet the widest selection.

But I'd be remiss not to point out that Sam's Club and Costco are able to offer better prices explicitly because they feature fewer brands. And Costco specifically curates its offerings and only sells products it believes are of high quality. It also offers highly rated Kirkland Signature products that many consumers consider to be better than the name-brand counterparts. So if you're looking for the best selection, Costco gets the nod.

Related: Consumers Should Avoid These 10 Products at Walmart

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--Walmart: The store chain has electric scooters for customers to use; they're located near store entrances.

--Sam's Club: Sam's, which is owned by Walmart, similarly offers motorized shopping carts, though some also have manual wheelchairs.

--Costco: Costco has mobility scooters located in front of the warehouse. They're free to use for anyone with mobility issues.

The winner? I'm happy to say this is a three-way tie.

Related: 10 Highly Rated Member's Mark Products to Add to Your Shopping List

--Walmart: It's a household name that most people in the world recognize, though in the U.S. specifically, it boasts a massive 4,600 locations.

--Sam's Club: Walmart's warehouse chain has just 600 locations.

--Costco: The chain's American locations total north of 620 as I write this.

The winner? Walmart, which blows away both Sam's Club and Costco.

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--Walmart: The store received the highest value score of 42 and was therefore ranked No. 1 for value.

--Sam's Club: It ranked No. 5 on the list with a value score of 25.

--Costco: This chain sat right in between Walmart and Sam's Club, with a value score of 35.1 and the No. 3 overall ranking.

The winner? While you might disagree, Walmart is considered the best value among all grocers, while Costco was the best among the warehousers.

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

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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.

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.

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There are a few financial perks, too. Eventually, you can start collecting Social Security, make penalty-free withdrawals from your retirement accounts … and, over time, pick up a few tax benefits.

Some tax perks begin as young age 50, though some don't kick in until you've reached your 70s. Regardless, you've worked hard for decades, so you deserve to start reaping some of the rewards once you get older.

Read on as we highlight several tax breaks that are specifically for older adults.

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The age you become eligible for each of these tax benefits ranges from age 50 to 70 ½, so the older you are, the more money you could potentially save.

There is no reason to miss out on these benefits if you qualify.

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The additional standard deduction for the 2026 tax year is $1,650 (up from $1,600 in 2025) per qualifying individual for married couples filing jointly, married taxpayers filing separately, and surviving spouses; that figure is $2,050 (up from $2,000 in 2025) for single and head-of-household filers.

Also, if you are age 65 or older and blind, your additional standard deduction is doubled. Thus, your additional standard deduction for the 2026 tax year would be $3,300 (up from $3,200 for 2025) per qualifying individual if your status is married filing jointly, married filing separately, or surviving spouse; and $4,100 (up from $4,000 for 2025) if you filed as single or head of household.

Related: Should You File Taxes Early? 9 Benefits of Filing Early

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 between the 2025 and 2028 tax years.

Related: When and How to Adjust Your Tax Withholding

The same isn't always the case at the state level. In fact, 42 states do not tax Social Security benefits, and the needle is pointed in the right direction. That 42 includes two states—Kansas, Missouri, and Nebraska—that halted Social Security taxes in 2024, and one—West Virginia—that phased out its tax over a couple of years before eliminating it altogether in 2026.

So, if you're planning a move in retirement, make sure to consult this list of states that tax Social Security benefits before you finalize your decision. While taxation of your Social Security benefits shouldn't necessarily be the sole deciding factor, if you're torn between two or more states as different retirement landing spots, this might help you lean one way or the other.

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Fortunately, individuals ages 60 and older can get free tax counseling and filing assistance through the Tax Counseling for the Elderly (TCE) grant program.

Qualified volunteers, who have taken and passed tax law training that meets or exceeds IRS standards, provide "efficient and quality tax assistance" year-round. They also provide tax return preparation assistance during the normal federal filing period (Jan. 1 through April 15) each year.

As an added layer of caution, every return prepared by TCE volunteers undergoes a quality review before it's filed.

Related: How to Get Your Tax Refund Fast

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-- 401(k) (excluding a SIMPLE 401(k))

-- 403(b)

-- SARSEP

-- Governmental 457(b)

The 2026 contribution limit for employees with a 401(k) or equivalent account is $24,500, up from $23,500 in 2025. The catch-up contribution amount for 2026 is an additional $8,000 for those ages 50 to 59 or 64 and older, for a total of $32,500. Meanwhile, those ages 60 to 63 enjoy a "super catch-up contribution limit" of $11,250 more, good for a total contribution cap of $35,750 in 2026.

Retirement plans can substantially grow your money over time, so in general, the closer you can get to maxing out one of these plans, the better.

Related: Is Your Retirement on Track? Here Are the Average 401(k) Balances By Age

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IRAs have a number of limitations. The straight-line 2026 IRA contribution limit is $7,500 (up from $7,000 in 2025), but individuals age 50 and older may make an additional $1,100 in IRA catch-up contributions, for a total of $8,600. Importantly, IRA contribution limits apply toward all IRAs you might have—in other words, you can't contribute $7,500 to each of five different IRAs and/or Roth IRAs, but you can contribute $7,500 across all five IRAs and/or Roth IRAs.

However, people also may only contribute up to their taxable income in a given year, so if you make less than the straight-line contribution limit (say, $5,000), you can only contribute up to what you made.

Also, if you have a Roth IRA, your income may also limit your ability to contribute.

You can contribute to a Roth IRA, up to the straight-line 2026 IRA contribution limit, if you are:

-- Single, head of household, or married filing separately (but you didn't live with your spouse at any time in 2026) with MAGI of less than $153,000 (up from $150,000 in 2025)

-- Married filing jointly or qualifying surviving spouse with MAGI of less than $242,000 (up from $236,000 in 2025)

You can only make a partial contribution to a Roth IRA if you are:

-- Single, head of household, or married filing separately (but you didn't live with your spouse at any time in 2026) with MAGI of at least $153,000 but less than $168,000 (at least $150,000 but less than $165,000 for 2025)

-- Married filing jointly or a qualifying surviving spouse with MAGI of at least $242,000 but less than $252,000 (at least $236,000 but less than $246,000 for 2025)

-- Married filing separately with MAGI of less than $10,000

You can't contribute to a Roth IRA if you are:

-- Single, head of household, or married filing separately (but you didn't live with your spouse at any time in 2026) with MAGI of $168,000 or more ($165,000 or more for 2025)

-- Married filing jointly or a qualifying surviving spouse with MAGI of $252,000 or more ($246,000 or more for 2025)

-- Married filing separately with MAGI of $10,000 or more

You can get more detail in our article on IRA contribution limits.

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HSAs have a lower contribution limit than a 401(k) or IRA. For 2026, the limit is $4,400 for individuals (up from $4,300 in 2025) and $8,750 for family coverage (up from $8,550 in 2025).

The age when you become eligible for HSA catch-up contributions is different as well. Individuals can contribute an additional $1,000 annually in 2025 and 2026, but beginning at age 55, not age 50 like with 401(k)s and IRAs.

Remember: Only people enrolled in eligible high-deductible health plans (HDHPs) can contribute to these accounts.

Related: The 10 Best Fidelity Funds to Own

If you are age 70½ or older, you can make a qualified charitable distribution (QCD)—also known as IRA charitable distribution or IRA charitable rollover—from your IRA to a charity, then exclude that amount from your gross income. The QCD limit for 2026 is $111,000 for individuals (up from $108,000 in 2025), or $111,000 for each spouse up to $222,000 for a married couple (up from $216,000 in 2025).

This break may help donors avoid reaching a higher income bracket, which in turn may prevent the phase-out of different tax deductions, such as personal exemption and itemized deductions. 

QCDs have another advantage.

People with individual retirement accounts (IRAs) typically must take required minimum distributions (RMDs) beginning at age 72 (or 73 if you reach age 72 after Dec. 31, 2022). These RMDs increase an individual's total taxable income. However, once you reach age 72 (or 73), QCDs can count against your RMDs for the year.

Just note that QCDs must be made directly from the IRA, whether that's electronically, directly to the charity, or by check payable to the charity. Also, donations can be made only to certain qualified charitable organizations, which are defined in the tax code.

Related: Charitable Tax Deduction: What to Know Before Donating

You can thank the residents of Augusta, Georgia, in the 1970s for this tax quirk.

Nicknamed "The Augusta Rule" on account of the people who own and rent out their homes near the Augusta National Golf Club during the annual Master's Golf Tournament that's held there, this special income exclusion lets you exclude any rental income that comes from renting your residence for two weeks or less. (However, be aware that if you use the rule to exclude income, you will not be able to deduct any associated rental property expenses.)

So, if you have short-term rental demand for your residence and a desire to have guests pay to use it, you might be able to tap into this tax loophole.

Technically, anyone can use this "rule." However, older adults are more likely to both have a home as well as flexibility around when they're able to temporarily leave the home and rent it out.

Related: Retired But Too Young for Medicare? Health Insurance for Early Retirees

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But, of course, under either scenario you need to have a good feel for where you are right now. For that purpose, check out the federal tax brackets and rates that will apply for your next federal tax return.

That’s where these retirement withdrawal strategies come in.

Also, do you want to stay up-to-date on our latest content?

1. Follow us by clicking the [+ Follow] button above,

2. Subscribe to Retire With Riley, our free weekly retirement planning newsletter, and

3. Give the article a Thumbs Up on the top-left side of the screen.

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A savings account, for many, represents a major step up from the piggy bank. It's better at keeping your money safe. It allows you to withdraw money without breaking out a hammer. It usually provides interest. And they almost always come with a high level of insurance that ensures you'll get your funds back even if the bank goes under.

But for all the praises I have to sing about savings accounts, they're not the end-all be-all solution to your cash-storing needs.

Today, I'm going to talk to you about several substitutes to the basic savings account. While savings accounts are nice, you can sometimes do better—whether that's, say, earning a higher interest rate on your deposits, or enjoying features that give you more ready access to your money.

You don't have to ditch your savings account completely to enjoy the benefits of these other options, either. Many people hold their cash in multiple accounts—a savings account, and one or more of the accounts to be discussed.

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Depending on whether your savings account is through a bank or a credit union, each depositor is typically given up to $250,000 in Federal Deposit Insurance Corporation (FDIC) insurance or National Credit Union Administration (NCUA) insurance.

However, the interest rates for traditional savings accounts are much lower than many other types of accounts. And what interest rates they do pay are variable, often changing when benchmark interest rates do. Often, savings account interest rates don't even keep up with inflation.

So if your goal is not just to keep your money safe, but actually allow it to grow (or at least keep pace with inflation), a savings account might not be the best choice.

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Related: 7 Best High-Dividend ETFs for Income-Minded Investors

The main pro of the money market account is that it offers a higher interest rate than your average savings account. Past that, however, they have a few drawbacks.

For one, while they are liquid, they tend to be less liquid than savings accounts. Users can conduct a limited number of transactions per month, which usually includes check-writing privileges and/or a debit card. The Federal Reserve used to cap withdrawals at six per month. That requirement—once mandated by Regulation D—is now gone, and many banks allow more transactions, but some banks and credit unions have kept the six-withdrawal limit.

Some money market accounts also charge monthly maintenance fees, and some also have minimum balance requirements. Lastly, while money market accounts typically earn higher interest rates than savings accounts, many other cash alternatives earn better rates.

Pros

-- Offers interest

-- Allows some monthly transactions (often six)

-- Some accounts come with a debit card

Cons

-- Some accounts (not all) have high minimum balance requirements

-- Interest rates are variable

-- Some accounts (not all) have monthly maintenance fees

Related: The 8 Best Dividend ETFs [Get Income + Diversify]

But money market account yields are typically higher than your traditional savings account. So if you can meet any minimum balance requirements a money market account requires and choose one without monthly fees, this type of account can usually earn you more money.

Who should consider a money market account?

You should consider these accounts if you are looking for a flexible, interest-bearing account to store an emergency fund or other savings you want to keep liquid.

Related: The Best Money Market Account Alternatives

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You can't withdraw your money from a CD unless you're willing to pay an early withdrawal penalty. So, this is a relatively illiquid investment, but the tradeoff is you can earn much higher interest rates compared to conventional bank savings accounts.

A CD can be a good place to store money for a specific future expense that's well down the road, such as a house down payment or a new car.

Pros

-- Fixed interest rates

-- Higher interest rates than a traditional savings account

Cons

-- Illiquidity

-- Rates still not as competitive as other options

Related: The 10 Best Vanguard ETFs for 2025 [Build a Low-Cost Portfolio]

Who should consider CDs?

Anyone looking for a safe, interest-bearing financial vehicle to hold their money should consider a certificate of deposit. Some people choose to create a CD ladder to take advantage of the higher interest rates, while reducing the illiquidity problem.

A CD ladder means they have several CDs that mature at varying dates, so they are never too far away from having a CD mature. As this keeps a portion of your money close to being accessible at any time, some people use CD ladders as an emergency fund.

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

Similar to money market accounts and some traditional savings accounts, HYSA holders usually can only make a limited number of transactions per month. A high-yield savings account typically has lower fees than money market accounts, but it usually doesn't include a checkbook.

Pros

-- Higher interest rates

-- Easy to open with online banks

Cons

-- Interest rates are variable

-- Sometimes have high minimum deposits

Related: The 7 Best Fidelity Index Funds for Beginners

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A high-yield savings account might have more withdrawal restrictions than a traditional savings account, but an HYSA will also earn you a much higher yield.

Who should consider high-yield savings accounts?

A high-yield savings account is another popular place to store money in case of an emergency. These are useful accounts for short- and long-term savings goals. 

Related: The 7 Best Vanguard Index Funds for Beginners

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There are government money market funds, municipal money market funds, and prime money market funds. These funds are a good low-risk, low-return investment.

Pros

-- Can provide a steady income

-- Highly liquid

Cons

-- Not insured by the FDIC

-- Often requires modest annual fees

-- May not keep up with inflation or even lose money

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Who should consider money market funds?

These accounts are low-risk investments, making them a good alternative for investors who want to earn more on cash sitting idle in a brokerage account.

Many brokerage accounts will actually sweep idle cash into their money market funds so you're still earning interest even if you don't have all of your funds invested.

Related: 5 Best Vanguard Retirement Funds [Start Saving More, for Less]

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If you want to buy a savings bond, under 99.99% of cases, you'll need to go to the U.S. government's TreasuryDirect website. Both you and the recipient will need a TreasuryDirect account; a child's parent or adult custodian can set one up for them. You can then gift the child (or anyone) an electronic savings bond if you know the person's full name, Social Security number or Taxpayer Identification Number, and TreasuryDirect account number. Just note that you have to hold a bond in your account for five business days before you can gift it to someone.

And yes, electronic savings bonds are now the gold standard. With one exception, which we'll get to here in a moment, you can no longer buy paper savings bonds.

You have two options when buying a savings bond for a baby, kids, or even adults: Series EE savings bonds, and Series I savings bonds.

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In other words, if you hold a Series EE savings bond for at least the next 20 years, the bond will either earn enough in interest to double its initial value, or the federal government will make a one-time adjustment to the price (adding money) to honor its guarantee.

But remember: The Series EE savings bond will accumulate interest for up to 30 years. If your child doesn't immediately need the money after 20 years, they could benefit from waiting even longer.

You must spend at least $25 when buying Series EE bonds. Above that, you can spend any amount down to the penny. (Example: You could buy $152.57 worth of EE bonds.)

Like with EE bonds, Series I savings bonds require a minimum $25 purchase, but you can select any amount over that down to the penny. But while Series I bonds also accumulate interest over 30 years, there is no 20-year value guarantee like with EE bonds.

Series I also includes the lone exception to the paper-bonds rule. Specifically, you can use your IRS tax refund to buy Series I paper savings bonds, and you can do so in five denominations: $50, $100, $200, $500, and $1,000. While paper bonds are a rarity, financial institutions still allow you to redeem them.

Pros

-- Safe investment

-- Grows your money over time

Cons

-- No interest paid until maturity

-- Extremely illiquid

Related: 5 Best Fidelity Retirement Funds [Low-Cost + Long-Term]

Who should consider savings bonds?

Savings bonds are great ways to help young people save, so I always think of them as an ideal financial gift for babies, kids, and grandchildren.

Related: 9 Monthly Dividend Stocks for Frequent, Regular Income

-- 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 (also the minimum purchase amount) up to a value of $10 million. You can typically purchase these through the U.S. government's Treasury Direct 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 usually 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.

Like savings bonds, Treasury bills do not pay interest until maturity. Unlike savings bonds, you can hold Treasuries in a brokerage account—and you can sell them there, too, making them far more liquid than savings bonds.

Treasuries are among 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. This can make them a good choice for investors looking for reliable, tax-advantaged income.

Pros

-- Very secure investment

-- Has tax advantages

Cons

-- Lower rate of return than alternatives

-- No interest paid until maturity

Related: 5 Best Schwab Retirement Funds [High Quality, Low Costs]

Who should consider Treasury bills?

Treasury bills are a good fit for people who seek an extremely secure investment that provides a higher interest rate than a savings account.

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These accounts typically have high interest rates but also let you access your money at any time. Specific features vary by account. Fidelity's Cash Management Account is currently one of the best options. It offers a high annual percentage yield, has no account fees or minimums, and reimburses ATM fees globally.

Pros

-- Combines features of checking and savings accounts

-- Possibly higher interest rates than traditional banks

Cons

-- Possibly no physical locations to visit

-- Other products might have better interest rates

Related: Best Target Date Funds: Vanguard vs. Schwab vs. Fidelity

Who should consider cash management accounts?

People seeking an alternative to traditional bank accounts should consider a cash management account. These are an excellent choice if you're tech-savvy and don't necessarily have a need for physical bank locations.

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

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With an investment account, you can buy various assets, which can then grow your money by appreciating in value, paying dividends, or both.

Compared to the other savings account alternatives in this piece, the investments in these accounts have the highest possible risk, but also the highest possible financial rewards.

Pros

-- No guarantee of returns

-- Some accounts and investments charge fees

Cons

-- Substantial possible returns

-- Some investments can provide a high steady income

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Who should consider investment accounts?

People who seek high returns from long-term investments should consider opening an investment account. However, depending on the type of investments you plan to hold, you might need a healthy risk tolerance.

Related: Best Vanguard Retirement Funds for an IRA

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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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It's also infuriatingly complex in some respects.

According to the 2024 KFF Survey of Consumer Experiences, 37% of respondents said it was either "somewhat difficult" or "very difficult" to understand at least one of five aspects of their Medicare coverage. That's at least better than employer-sponsored insurance (54%) or Medicaid (46%), but it's still a high percentage that shows many Americans don't know Medicare inside and out.

Today, I'm going to clear up some of your Medicare confusion. I've compiled a list of some of the most frequently asked questions (FAQs) about Medicare, and (more importantly) answers to those questions. The better you understand this vital social program, the easier it should be to make educated decisions regarding it.

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To help you get some clarity, read on. I'll discuss some of the most popular Medicare questions to help you better understand the ins and outs of this health care program.

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-- Part A focuses on the more urgent and critical aspects of health care, such as inpatient hospitals, hospice centers, inpatient rehab, and more. 

-- Part B delivers coverage for other health care products and services that Part A doesn't cover, such as outpatient hospital visits, physicians' services, some home health services, and durable medical equipment. 

-- Part C is Medicare provided by private insurers. Part C offers what's covered under Parts A and B, as well as the prescription drug care offered under Part D.

-- Part D is also a private-insurance option that covers the costs of self-administered prescription drugs.

Part A is premium-free for roughly 99% of Americans, and you are typically auto-enrolled in the program. The other Medicare Parts usually require a premium, though there are programs that can help you with the cost.

These plans cover different health care needs that fill in each other's gaps. Part A focuses on the more urgent and critical aspects of health care, while Part B covers preventative and medically necessary services and supplies.

Medicare users can typically choose to have Part A, or Part A and Part B. In rare circumstances—namely, you qualify for Part A, but must pay a premium—you can have Part B but not Part A.

Related: Best Vanguard Funds to Hold in an HSA

It's also the most recent. Part C was established in 1985 by the Tax Equity and Fiscal Responsibility Act (TEFRA), which was passed three years earlier. The act authorized Medicare to contract with private risk-based health plans.

It wasn't until the Balanced Budget Act of 1997 (BBA) that Part C was officially designated as "Part C." It also was named Medicare+Choice (M+C). The Medicare Prescription Drug, Improvement, and Modernization Act of 2003 (MMA)—which also was responsible for the creation of Part D—eliminated the M+C moniker in favor of Medicare Advantage.

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Related: Retired But Too Young for Medicare? Health Insurance for Early Retirees

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Effectively, once you and your drug plan collectively spent a certain amount on covered drugs, you would enter a coverage gap, or the “hole” of the donut, in which the plan was limited on what it could pay out. You would only exit that gap once you hit a certain out-of-pocket limit and progressed to catastrophic coverage, where you would pay nothing for covered drugs for the rest of the year.

However, the donut hole was eliminated at the start of 2025.

Part D enrollees now have three "periods." In the deductible period, they pay full price on covered prescription drugs up to a deductible, which is $615 in 2016. Once they hit the deductible, enrollees reach the "initial coverage period," in which they'll typically pay coinsurance of 25% of total drug costs up to a $2,100 out-of-pocket cap. Once they reach that gap, enrollees will reach the "catastrophic coverage period," in which they pay $0 for covered drugs. (The cap will change each year based on the growth rate in per capita Part D costs.)

Related: What Is Social Security 'COLA'?

-- A disability, and have been receiving Social Security Disability benefits for 24 months)

-- End-stage renal disease (ESRD)

-- Amyotrophic lateral sclerosis (ALS, aka Lou Gehrig's disease)

Eligibility is largely based on your work history. For a much more complete picture of these eligibility requirements, check out our primer, "What is Medicare?"

Some people are automatically signed up for Medicare, while others need to take action to sign up.

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The money is held in two trust fund accounts held by the U.S. Treasury. This money cannot be allocated to expenses other than Medicare. 

Related: Best Schwab Funds to Hold in an HSA

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In this situation, you should be eligible for a Special Enrollment Period. That means you can re-enroll for Original Medicare and quickly regain coverage. 

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-- Opt out of your workplace plan and just use Medicare.

-- Drop Medicare Part B and/or D and just use the workplace plan.

-- Use both Medicare and your employer's group plan. 

If you use both Medicare and your employer's plan, each type of coverage is referred to as the payer. The primary payer would contribute up to the limits of its coverage before sending the remaining balance to the secondary payer. Any time the secondary payer won't pay for the rest of the balance, you might be responsible for it. (Note: If your workplace plan is the secondary payer, you might need to sign up for Part B before they will pay.)

However, if your employer has fewer than 20 employees, you usually need to enroll in Medicare during your Initial Enrollment Period. If you get coverage through a spouse's plan, you'll need to check the employer's rules to learn if they must enroll at age 65 or can delay enrollment. 

For Medicare that a person receives for a disability, Medicare.gov states: "You can keep your disability for as long as you're medically disabled. If you return to work, you won't have to pay your Part A premium for the first 8½ years. After that, you might be able to buy Part A coverage and pay a monthly premium. If you can't afford the Part A premium, you may be able to get help from your state."

Related: How to Invest HSA Funds [Level Up Your Retirement Savings]

--Part A: Most Americans get premium-free Medicare Part A. Those who have to pay for Part A premiums will either pay $311 or $615 per month, depending on their circumstances. Also, people who don't enroll in Part A when they first become eligible might have to pay a penalty. 

--Part B: In 2026, the standard premium is $202.90 per month. However, if your income exceeds certain thresholds, you could pay more. (I'll address this in detail below.) Premium costs max out at $689.90 per month for individuals who make at least $500,000.

--Part C: Medicare Advantage premiums vary depending on one's chosen plan. Based on Centers for Medicare data, the projected 2026 average premium will be $14.

--Part D: Part D premiums vary depending on one's chosen plan. However, if your income exceeds certain thresholds, you could pay more, as mentioned above. CMS projects the 2026 average total monthly premium for prescription drug coverage will be $34.50.

That said, a higher income might affect your Medicare Part B and Part D premiums. 

For most people, the government covers 75% of the Part B premium, and the beneficiary pays the remaining 25%. However, above certain earnings thresholds, an income-related monthly adjustment amount (IRMAA) kicks in—depending on your IRMAA, you could be responsible for as much as 85%. (Note: IRMAA is based on income listed on your tax return from two years prior.)

Part D coverage also factors in IRMAA. With Part D, this is an additional amount you pay on top of your plan's premium. For instance, for 2026, someone with 2024 MAGI of more than $109,000 up to $137,000 would have to pay an additional $14.50 per month on top of their monthly premium.

Fortunately, income-based adjustments are rare. Currently, only 8% of Part B enrollees and 8% of Part D enrollees are subject to IRMAA. 

Related: Best Fidelity Funds to Hold in an HSA

If you're incarcerated for longer and convicted of a crime, your benefits will stop. You can get them reinstated after you're released. However, if you are collecting Medicare for a disability and are under age 65, you need to have your Social Security Disability Insurance reinstated before your Medicare coverage can start again.

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Some Part C plans do cover routine dental services. Otherwise, you will have to purchase a separate dental plan.

Related: The Social Security Child's Benefit: How Retirees' Children Can Sometimes collect Social Security

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In some situations, however, Part B will cover an eye exam. For instance, you may receive a covered exam for diabetes-related vision issues. 

Some services related to chronic eye conditions are also partially covered with the policyholder paying 20% of the Medicare-approved amount. 

Often, Medicare Advantage plans cover annual vision exams and offer an allowance for prescription eyewear. But again, if your Part C does not provide this kind of coverage, you'll have to find a private plan.

Some Medicare Advantage plans provide hearing-related coverage, and most cover hearing aids.

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

It's recommended to stop contributing to your HSA up to six months before applying to Medicare or in the month prior to your 65th birthday (whichever is closest) to avoid the possibility of tax penalties. Why up to six months? Because Part A coverage is backdated by six months, up to the first month you're eligible for Medicare.

Example: If you turn 65 on Feb. 15, the earliest your coverage can start (based on when you enroll) is Feb. 1. If you don't apply until, say, March 15, benefits would still be backdated to Feb. 1. In either case, you would want to make your final HSA contribution in January to avoid penalties. However, if you turn 65 on Feb. 15 but don't enroll until Dec. 15, then benefits would be backdated to June 1. Thus, you could continue contributing to your HSA until May.

(A reminder: If your birthday is on the 1st of the month, Medicare benefits will begin in the month prior to your birth month. You'll need to factor this in as you determine when to stop making HSA contributions.)

If you already have an HSA, you can still use it to make tax- and penalty-free withdrawals for qualified medical expenses at any age, and penalty-free withdrawals for any purpose once you reach age 65.

Your retirement Medicare Initial Enrollment Period (IEP) lasts for seven months. It begins three months before you turn 65 and ends three months after you turn 65. 

However, if your birthday lands on the first of the month, your seven months are a bit different—in that situation, your IEP starts four months before you turn 65 and ends two months after the month you turn 65. (For example, if your birthday is July 1, your IEP would span March to September.)

Premium-free Part A coverage starts on the first of the month in which you turn 65. Part B and premium Part A coverage begins on the first of the month you turn 65 if you sign up before the month in which you turn 65, or the following month if you sign up during the month you turn 65 or the three months afterward.

If you miss your Initial Enrollment Period, you would have to wait to sign up during one of two other enrollment periods:

-- General Enrollment Period (GEP): Jan. 1 to March 31 every year. Coverage begins the month after you sign up.

-- Special Enrollment Period (SEP): An enrollment period triggered by any number of events, including (but not limited to) dropping out of an employer plan, losing Medicaid coverage, and being released from incarceration. Period length and the start of coverage varies depending on your special event.

If you miss your IEP and sign up during a GEP, you often will have to pay a late enrollment penalty, which impacts your monthly premiums. This is a temporary penalty for Part A, but typically a lifetime penalty for Parts B and D. You typically won’t have to pay a penalty if you enroll for Medicare during a Special Enrollment Period.

Disability Medicare works differently. 

Once a person applies for Social Security and is deemed disabled, there is a five-month waiting period before they begin receiving Social Security Disability benefits.

After 24 months of receiving Social Security Disability benefits, a person is automatically enrolled in Medicare. 

(Note: People with ALS can receive Medicare automatically once they start receiving disability benefits, no 24-month waiting period required. People with ESRD can also have the 24-month waiting period waived, but when their coverage begins depends on their circumstances.)

Related: How Much Should I Save Each Month?

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You can find physicians, hospitals, and other care facilities that accept Medicare through Medicare.gov's Care Compare tool. It includes filters and maps to help you find providers wherever you need them. It allows you to search for doctors who have performed specific types of procedures. And it provides other resources to help make choosing a health care provider simpler.

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To start, Medicare is federal health insurance, while Medicaid is a joint federal and state program. 

Medicare is for adults age 65 and individuals with certain disabilities or conditions, while Medicaid is for people with limited income and resources. 

Another big difference between these programs is what people pay. Medicare users typically pay some of their own costs through expenses like premiums, deductibles, and coinsurance. Usually, people with Medicaid don't have to pay for covered medical expenses, though they might have a small copay for some services or items. 

Also, it's possible to be "dually eligible" for both Medicare and Medicaid.

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

Importantly, if you decline Medicare, you might lose your Social Security or Railroad Retirement Board benefits. Also, if you initially opt out of Medicare coverage and later decide to enroll, you might have to pay a penalty.

Related: Is Your Retirement on Track? Here Are the Average 401(k) Balances By Age

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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.

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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And I'll emphasize the word "managed."

Many of the most familiar names in the investment fund world have built their reputations on the back of inexpensive index funds, providing cheap core and satellite products for a relative song. Nothing wrong with that.

But T. Rowe stands out from the pack because of its continued commitment to human-centric investing. Indeed, the vast majority of T. Rowe Price's mutual funds continue to be hand-picked by human managers and research teams, just as they have been for nearly a century.

Today, I'd like to talk about some of T. Rowe Price's best mutual funds, and most—but not all!—are of the actively managed variety. The products on this recently updated list, which includes a newly added fund, check off several core positions, so there should be something of interest for most investors.

Editor's Note: Tabular data shown in this article is up-to-date as of March 24, 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.

That growth has come largely on the back of stellar managers—stars like former T. Rowe Price Health Sciences head Kris Jenner and current T. Rowe Price Capital Appreciation Manager David Giroux. But it's also worth noting that while T. Rowe isn't really known for skinflint fees, its expenses tend to be quite competitive, helping to attract investor money, too.

A few stats help tell the tale:

-- More than 80% of T. Rowe Price funds charge expenses lower than the average price of comparable active funds in their Morningstar category.

-- T. Rowe Price mutual funds with a minimum 10-year track record beat comparable passive peer funds 67% of the time (measured in 10-year periods over the past 20 years), which is better than the average across all active managers and across the five largest active managers.

-- 94% of T. Rowe retirement funds with a minimum 10-year track record beat their Lipper average for the period.

Put simply: T. Rowe offers productive, cost-effective investment products across numerous core and satellite strategies. And it does so while keeping human managers front and center.

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I start virtually every review of investment funds by booting up Morningstar Investor and running a quality screen I customize for each article. Here, I began by singling out T. Rowe funds that have earned a Morningstar Medalist rating of Gold or Silver. Whereas Morningstar's Star ratings are based upon past performance data, 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."

A Medalist rating doesn't mean Morningstar is necessarily bullish on the underlying asset class or categorization. It's merely an expression of confidence in the fund compared to its peers. Screening for Gold- and Silver-rated funds helps to find high-quality products across a number of categories.

Unlike some of the other big-name fund providers, T. Rowe Price hasn't made a name for itself by pushing fees to the floor. So I've limited the list to T. Rowe mutual funds with costs that are at least considered average within their category, if not below average.

From the remaining universe of several dozen funds, I selected a range of products that address various core portfolio goals, have good-to-great track records, and are generally accessible to most investors (reasonable investment minimums, can be bought in most accounts).

Note: Mutual funds selected for 2026 all had Gold or Silver Medalist ratings as of January 2026. Funds will remain on the list throughout 2026 as long as they maintain a minimum of Bronze. Funds that fall below that threshold will be replaced.

-- Assets under management: $35.3 billion

-- Dividend yield: 1.0%

-- Expense ratio: 0.19%, or $1.90 per year for every $1,000 invested

-- Morningstar Medalist Rating: Silver

I realize I set this list up with a lot of pomp about actively managed funds. I say that so you know I'm fully aware I'm starting this list with an index fund.

While T. Rowe Price's managers are generally excellent, when it comes to large-cap stocks*, it's tough to beat the S&P 500. Human managers in the "large blend" space (funds, like S&P 500 products, that hold large-cap growth stocks and value stocks) have historically struggled to consistently eclipse the index. Indeed, S&P Dow Jones Indices data, which now includes full-year 2025 performances, shows that only 14% of large-cap funds were able to outdo the S&P 500 over the trailing 10-year period. That number steps down to 10% over the trailing 15 years.

"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."

Listen. Warren Buffett himself has said on multiple occasions that most investors most of the time should simply invest in an S&P 500 index fund and be done with it. He's smarter than I am. So I say "follow his advice," which you can do with the T. Rowe Price Equity Index 500 (PREIX).

Related: 11 Best Vanguard Funds for the Everyday Investor

PREIX holds 500 of America's largest companies. But it doesn't do so evenly. Like many indexes, the S&P 500 is what's called "market-cap weighted," which means the larger the company, the more weight the stock has in the index (and thus the more impact it has on returns). Thus, right now, PREIX dedicates the largest portions of its assets to companies like Nvidia (NVDA), Apple (AAPL), and Alphabet (GOOGL) whose market caps are measured in trillions of dollars.

Financial experts frequently suggest using an S&P 500 fund as the core of your portfolio given its exposure to hundreds of larger, more financially stable companies across all sectors—from tech to health care to real estate. Because of this diversity of holdings, the S&P 500 not only provides access to the growth of the American economy, but a modest level of dividend income, too. PREIX's yield might not seem like much right now. However, reinvested over time, the S&P 500's dividends make up roughly 35% to 50% of the index's returns over the very long term (depending on the time period and study you're looking at).

Turnover—how much the fund tends to buy and sell holdings—is extremely low, too, because only a handful of stocks enter or leave the index in any given year. As a result, PREIX typically makes little to no capital gains distributions (which are taxable) at the end of each year, making it a very tax-efficient investment for taxable brokerage accounts.

One weakness we can't ignore: Its expenses. At 0.19%, Equity Index 500 is much more expensive than not just S&P 500 ETFs, but other S&P 500 mutual funds. Indeed, I'll note that while PREIX earns a Silver Morningstar Medalist rating, less expensive S&P 500 funds from other providers garner Gold ratings. However, it's still a dominant strategy that's worth examining if you invest solely in T. Rowe Price funds.

* 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: 15 Dividend Kings for Royally Resilient Income

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-- Assets under management: $22.6 billion