16 Retirement Mistakes You Will Regret Forever

16 Retirement Mistakes You Will Regret Forever

From saving too little to taking withdrawals from your retirement account too early, there are plenty of ways that current and future retirees can sabotage their golden years.

By Bob Niedt Contributions by Kathryn Pomroy, Alexandra Twin Last updated October 7, 2026 In Features

As more and more baby boomers and Gen Xers anticipate a happy retirement, thoughts turn from worry over the workday slog to concerns about how to bankroll their golden years. How prepared are you? How much money do you need to retire? The 2026 Planning & Progress Study by Northwestern Mutual says that number is $1.46 million.

Do you know the ins and outs of your pension (if you're lucky enough to have one)? How about your 401(k), IRA, and other retirement accounts that make up your nest egg? Do you have a good handle on when to claim Social Security benefits? These are just some of the questions to contemplate as retirement approaches.

Long before you punch out for the last time, make sure you're making the right choices now.

To help, we've compiled a list of the 16 biggest retirement planning mistakes you'll regret forever and how to avoid making them. Take a look to see if any sound familiar.

1. Relocating On A Whim

The lure of warmer climates has long been the siren call of many approaching retirement. So, you're cooking up a plan to retire in Florida, or maybe you're considering relocating to one of the many places near the beach.

Our advice: Test the waters and visit your destination before you make a permanent move.

Too many folks have trudged off willy-nilly to what they thought was a dream destination, only to find that it's more akin to a nightmare. The pace of life is too slow, everyone is a stranger, and endless rounds of golf and walks on the beach can quickly grow tiresome.

Well before your retirement date, spend extended vacation time at your chosen destination to get a feel for the people and the lifestyle.

This is especially true if you're thinking about retiring abroad, where new languages, laws and customs can overwhelm even the hardiest retirees.

You can also check out some of our helpful articles to learn more about things you should know before retiring in Florida, retiring in Arizona, or retiring in the Carolinas. And, as these areas are getting more popular, you can also read about some of the challenges (and costs) that might hit your wallet.

Along with that, before you buy a new home, either on the coast or inland, make sure you understand if your new house will flood in a storm. Flood insurance is expensive, if it's offered at all.

Once you do make the plunge, consider renting before buying. A couple I know circled Savannah, Georgia, for their permanent retirement nest. But wisely, as it turned out, they decided to lease an apartment downtown for a year before building or buying a new home in the suburbs. Good thing, too.

It turns out the Deep South didn't suit their Philadelphia get-it-done-now temperament. They instead joined the ranks of "halfback retirees" — people who head to the Deep South, find they don't like it, and move halfway back toward their former home up north.

2. Falling For Too-Good-To-Be-True Offers

Hard work, careful planning and many decades of working and building wealth are the keys to reducing stress for a secure retirement. There are no shortcuts. Yet, Americans lose hundreds of millions of dollars a year to get-rich-quick and other scams, according to the FTC, as elder fraud runs rampant. My parents constantly receive calls from scammers trying to persuade them to hand over their hard-earned retirement savings.

Credit card fraud was the most common type of identity theft in 2025 and is expected to reach $43 billion worldwide this year, according to Merchant Cost Consultant. Add in the 150 million Americans who will be victims of credit card fraud this year and the fact that every 14 seconds a person in the US falls victim to identity theft, it's enough to make your blood curdle.

State Attorney General offices and the FTC offer tips for spotting too-good-to-be-true offers. Telltale signs include guarantees of spectacular profits in a short time frame without risk; requests to wire money or pay a fee before you can receive a prize; or unnecessary demands to provide bank account and credit card numbers, Social Security numbers, or other sensitive financial information. Oh, and those pesky phone calls for donations to the police or fire department could also be a scam.

Be wary of — in fact, run away from — anyone pressuring you to make an immediate decision or discouraging you from getting advice from an impartial third party. If they want your money, they can mail you an envelope.

What do you do if you suspect a scam? The FTC advises searching for the company or product name, along with "review," "complaint," or "scam," on Google or another search engine. You can also check with your local consumer protection office or your state attorney general to see if it has fielded any complaints. If it has, add yours to the list. Be sure to file a complaint with the FTC, too.

3. Planning To Work Indefinitely

The 2026 reports from both Transamerica Life and Money: Retirement Security in the USA (PDF) and Employers, Workers, and the New World of Work confirm that 44% of workers expect to retire after age 65 or not retire at all — with Baby Boomers remaining among the most likely to work longer.

But that plan could backfire.

Consider this: Fidelity’s 2026 State of Retirement Planning survey showed that more than six in ten Americans (61%) plan to continue working in some capacity as they transition into retirement, with many phasing into retirement via part-time work, consulting, gig work or side hustles indefinitely.

Or, you could be forced to stop working and retire early for any number of reasons. Health-related issues — either your own or those of a loved one — are a major factor. Employer-related issues such as downsizing, layoffs, and buyouts are also a factor.

Failing to keep skills up to date is another reason older workers struggle to get hired. The actionable advice regarding this: Assume the worst, and save early and often.

Per the Transamerica survey, almost four in 10 workers expect to retire at age 70-plus, while 23% do not plan to retire at all, citing financial and healthy-aging reasons for doing so.

Although working past retirement age may be necessary, it could be a mistake you regret down the road.

4. Putting Off Saving For Retirement

In Northwestern Mutual’s 2026 Planning & Progress Study, nearly one in four Americans (23%) who have retirement savings say they have one year or less of their current income saved for retirement. For Gen Xers, many of whom are approaching retirement, one-third have 3x or less of their current annual income saved.

What is even more concerning is that while significant differences exist across generations, about 1 in 5 of each believe they will never be financially independent.

The truth is, while many retirees understand they should save for retirement, many have no idea how much money they will need to retire comfortably.

"Many people do not start to aggressively save for retirement until they reach their 40s or 50s," says Ajay Kaisth, a certified financial planner with KAI Advisors in Princeton Junction, N.J. "The good news for these investors is that they may still have enough time to change their savings behavior and achieve their goals, but they will need to take action quickly and be extremely disciplined about their savings."

Here's how much you need to sock away monthly to build a $1 million nest egg by age 65, according to Dutch Point Credit Union. Assuming an annual interest rate of 8%, an annual inflation rate of 2%, and $0 in prior savings, you'd need to save $300 a month if you start at age 25; $700 a month, starting at age 35; $1,700 per month, starting at age 45; and $3,000 each month, starting at age 50.

Uncle Sam offers incentives to procrastinators. Once you turn 50, you can start making catch-up contributions to your retirement accounts. In 2026, older savers can contribute an extra $8,000 to a 401(k) (up from $7,500 last year) on top of the standard $24,500, up from $23,500 in 2025.

In addition, people aged 60 to 63 can make “super” catch-up contributions of up to $11,250 in eligible workplace retirement plans on top of the standard limit and any regular age-50+ catch-up.

For IRAs (Traditional or Roth), the catch-up amount for those age 50 and older is $1,100, on top of the standard contribution limit of $7,500 (for a total of $8,600).

5. Claiming Social Security Too Early

You're entitled to start taking Social Security benefits at 62, but you might want to wait if you can financially. Most financial planners recommend holding off at least until your full retirement age (FRA) — 67 for anyone born after 1959 — before tapping Social Security. Waiting until 70 can be even better.

Let's say your full retirement age, the point at which you would receive 100% of your benefit amount, is 67. If you claim Social Security at 62, your monthly check will be reduced by 30% for the rest of your life.

But if you hold off, you'll get an 8% boost in benefits each year between ages 67 and 70 thanks to delayed retirement credits. There are no additional retirement credits after you turn 70. Claiming strategies can differ for couples, widows and divorced spouses, so weigh your options and consult a professional if you need help.

"If you can live off your portfolio for a few years to delay claiming, do so," says Natalie Colley, a financial analyst at Francis Financial in New York City. "Where else will you get guaranteed returns of 8% from the market?" Alternatively, stay on the job longer, if feasible, or start a side gig to help bridge the financial gap. There are plenty of interesting ways to earn extra cash these days.

6. Borrowing From Your 401(K)

Taking a loan from your 401(k) retirement savings account can be tempting. After all, it's your money. As long as your plan sponsor permits borrowing, you'll usually have five years to pay it back with interest.

But short of an emergency, tapping your 401(k) is a bad idea. It's one of the eight worst 401(k) mistakes you can make that could tank your retirement.

According to Meghan Murphy, VP, Commercial Strategy at Fidelity Investments, you're likely to reduce or suspend new contributions during the period you're repaying the loan.

That means you're short-changing your retirement account for months or even years and sacrificing employer matches — free money. You're also missing out on the investment growth from the missed contributions and the cash that was borrowed.

”As you think about loans from retirement plans, the first thing we say is, is there anywhere else you might be able to borrow from?” says Murphy. “We think through the importance of having an emergency fund.

But, of course, if that’s not available, is there any other place that you’re able to draw from? Something you might want to think about is: if it’s a medical emergency, do you have a health savings account (HSA) that you might be able to take money from?”

What’s becoming more popular, says Murphy, is employees drawing money from stock plan options through their employer. “If you draw money from there, there’s not necessarily a penalty associated with it or the requirement that you have to make payment on the loan directly through your paycheck.”

Another huge downside to borrowing from your retirement plan is the payback. Usually, loans are paid back to the fund over five years. If you were to leave that employer before the loan is paid off, you’re obligated to pay it back in full within 60 to 90 days, says Murphy, or it becomes a taxable distribution. “And if you’re below the age of 59-1/2, there’s now a 10% tax penalty associated with it.”

Keep in mind, too, that you'll be paying the interest on that 401(k) loan with after-tax dollars, then paying taxes on those funds again when retirement rolls around. And if you leave your job, the loan usually must be paid back in as little as 30 days. Otherwise, it's considered a distribution and taxed as income.

Before borrowing from a 401(k), explore other loan options. College tuition, for instance, can be covered with student loans and PLUS loans for parents. Major home repairs can be financed with a home equity line of credit (HELOC), though that comes with considerable risks, too.

TO READ MORE:  https://www.kiplinger.com/slideshow/retirement/t047-s001-retirement-mistakes-you-will-regret-forever/index.html

Should Paper Checks Be Abolished Like The Penny?

Should Paper Checks Be Abolished Like The Penny?

Good Partner  Tue, September 8, 2026 Jay L. Zagorsky

While Americans are writing fewer checks, they haven't abandoned this means of payment.

Germany is getting rid of paper checks at the end of 2027. Australia is bidding them farewell by 2030. U.S. President Donald Trump followed up his order killing off the penny with an executive order stopping check writing by the federal government.

Should the U.S. follow these other countries and broadly eliminate the ability to write checks?

Years ago, experts predicted that checks would have disappeared by now. However, they are still around, and billions are written each year in the United States.

Why? The quick answer is that businesses love them. And plenty of Americans still use checks for good reasons. But there is more to the story.

I am a business school professor and one of the few academics who advocates for the use of cash. While I have long told everyone about the benefits of paper money, I didn't give paper checks much thought or use them until my mother's recent death. Then I found myself writing checks to the cemetery, funeral home, gravestone engraver and a host of other places. Plus, I started getting refund checks back from her landlord and insurance companies.

These experiences made me look more deeply into this form of payment to understand what was happening.

Fewer checks for bigger bucks

Every three years the U.S. government runs the Federal Reserve Payments Study by asking banks and credit unions for internal information. This survey tracks everything from how often credit cards are used to the number of checks written.

While check usage has sharply declined in the U.S., a significant number – about 9.2 billion in 2024 – are still written, the data shows. The face value of those checks is probably bigger than you'd expect: more than US$24 trillion, not adjusted for inflation. That is almost as large as U.S. gross domestic product of $29 trillion that year.

Not everyone can imagine numbers in billions or trillions, so let's put those figures in more manageable terms.

A little over 150 checks were written per person in 2000. By 2024, the average had plummeted to 27 checks – slightly more than two per month. However, over that time, the amounts typically scribbled or printed on the face of those checks rose.

In 2000, the typical check was worth less than $1,000. By 2024, the average amount had more than doubled to $2,600.

Trends elsewhere are similar. The Bank for International Settlements, which serves as a bank for central banks like the Federal Reserve, has tracked check usage in 25 countries since 2012. Its data shows that in only two other countries is payment by check still commonplace.

And in both of those countries, check usage has fallen more sharply than in the United States.

Chart LINK

TO READ MORE:  https://www.yahoo.com/finance/economy/policy/articles/paper-checks-abolished-penny-225752284.html?action=scout

The Surprising Risk Of Having Too Much Cash

The Surprising Risk Of Having Too Much Cash

September 17, 2026  Fidelity

Investing in stocks and bonds may reduce some types of risk and enhance return potential.

There are many wonderful attributes of cash and short-term investments. Money held in a bank account or in a short-term investment like a money market fund is generally easy to access. The risk of volatility or loss is extremely low—or even nonexistent. Many short-term options, like money-market funds or short-term CDs or Treasurys, even pay interest.

However, holding too much in cash or short-term investments can introduce a different set of risks: the risk that inflation eats away at your money's purchasing power over time, and the risk that your portfolio doesn't grow enough to meet your goals. That's why it's important to understand the role of cash in your portfolio, and check in periodically that the amount you hold is suitable for your goals.

The role of cash and short-term investments in your portfolio

Stocks, bonds, and short-term investments (which some investors may refer to as "cash" or "cash equivalents") are the 3 primary building blocks of a diversified portfolio and each has a role to play in helping you achieve your investing goals.

That’s why it’s good to make sure your portfolio holds enough of all 3 of those types of assets to help you make progress toward your goals—but not too much or too little of any one of them. With that in mind, you may want to consider whether you have more cash and short-term investments than necessary to meet your short-term needs.

The risk of inflation

Keeping your money in cash and short-term investments may seem like a great way to avoid losing it in a stock market downturn. However, holding cash raises your risk of losing money in another way.

Over time, inflation can gradually eat away at the value of your portfolio unless it’s invested in assets that can earn enough to keep up with rising prices. Although inflation is rising more slowly than it did over the past several years, consumer prices are likely to continue to go higher.

Besides cash, what?

Fortunately, you have a variety of ways to seek higher returns, depending on your investing goals, how soon you may need access to your money, and how comfortable you are with the up and down movements of financial markets.

Stocks

Do you want to invest for the future but are still in cash because you're worried that this is not a good time to invest in stocks? Fidelity has researched what a hypothetical investment of $5,000 per year would have returned if it was invested under various stock market conditions.

The study found that even if the money was invested at the "worst" possible time each year—that is, when the market was at its peak—it would have still significantly outperformed the same amount left in cash over the long run.

Chart: LINK

While the difference between investing at the “best” and “worst” time is significant, it's extremely difficult to know when markets have hit their peak or their bottom, except in retrospect. Rather than trying to do the nearly impossible, consider simply investing in stocks on a regular basis. As the chart shows, doing just that with a hypothetical $5,000 from 1990 to 2025 would have delivered a far greater return than keeping it in cash would have.

If you’re ready to stop worrying and start investing, you’ll likely want to learn more about individual stocks, mutual funds, and exchange-traded funds. We can help you decide which approach to investingLog In Required is right for you.

Bonds

If you’ve stayed in cash and short-term investments because you like how your money market fund makes regular interest payments, you may want to learn more about opportunities in bonds. Like money market funds, bonds pay regular interest. However, they may also give you opportunities for capital appreciation and offer higher interest rates than what you could earn on short-term investments.

Depending on your goals and how much you want to invest, you can buy individual bonds, bond mutual funds, or ETFs. All of these can help you reduce the risks posed by holding too much cash.

If bonds sound like what you’re looking for, you’ll likely want to learn more about them before investing.

Keeping your balance

To be sure, adding stocks and bonds to your portfolio doesn’t mean cash has no role to play in your investment strategy. Over time, stocks, bonds, and cash have all taken turns as the best- and worst-performing investments. Because financial markets and the business cycle are always in motion, it’s good to make sure your portfolio holds enough of all 3 of those types of assets to help you make progress toward your goals.

Fidelity offers a wide variety of research tools to help you reduce the risks posed by holding too much cash. We also can help you create a plan to manage risk in your portfolio and can even help manage that portfolio by looking at your timeline, goals, and feelings about risk to create a mix of investments that’s right for you.

TO READ MORE: https://www.fidelity.com/learning-center/trading-investing/how-much-cash-should-you-hold

6 Common Excuses for Not Saving Money

6 Common Excuses for Not Saving Money   By Tara Struyk

Have you ever settled on a new exercise program, only to get a bad cold a few days in and happily throw yourself on the couch, relieved to have a handy excuse? Excuses must be human nature; I know I usually make them when I'm facing something that’s new, that's hard, or that I just don’t enjoy. And I’ve certainly made excuses when it comes to money.

In the years that I’ve been writing about personal finance and investing, I’ve also heard my fair share of excuses, mostly from readers who don’t agree with my advice. The problem is, unlike good financial habits, excuses are easy to come by, even though most of them just don’t stand up to reason. Check out some of the ones I’ve heard most frequently so far.

  Excuse: “I don’t make enough to save money.”

This may be true for some people, especially in this economy, but not having any money left at the end of the month doesn’t necessarily mean you can’t afford to save.

After all, most people spend money on a number of unnecessary things each month, such as restaurant meals, impulse buys, and cable TV. Finding some money for saving doesn’t have to mean voluntarily living in a dark, unheated room without any entertainment or luxuries, but if you’ve declared your budget too tight to put money aside before even looking for ways to reduce your spending, you’re making an excuse.

Excuse: “Interest rates are too low to bother with.”

Interest rates are at an all-time low right now, and that does make putting money into a savings account a little, well, disheartening. However, it’s likely that many of our grandparents — and certainly our great-grandparents — may have gone years without using a bank at all. Now that banks provide a safe place to park your cash, they pay interest in return for holding your money.

 Interest is a great way to grow your savings, but even if you get almost nothing, at least you have some cash when you need it. Plus, if you’re able to put enough away, you can always look into investments with the potential for higher returns, such as stocks and mutual funds.

Excuse: “I have too much debt to put money into savings.”

If you have a lot of debt, it’s important to focus some serious effort into getting rid of it. But that doesn't mean that every bit of money you can spare should go straight to your creditors. In fact, it’s more important than ever to save when you’re in debt because it can help you avoid digging yourself in deeper.

If you don't at least have a small emergency fund, you'll be forced to pull out your credit card when unexpected expenses — such as a car repair — inevitably arise.

Excuse: “I’ll catch up later when my salary is higher.”

In my experience, quite a number of people actually follow through on devoting money to savings when their salary increases. The problem is, if you wait too long, the time value of money can make it impossible to catch up. Consider this — if you start putting $1,000 a year into a mutual fund with a 15% average return when you’re 25 years old, you will have more than $340,000 in the bank when you turn 55.

Start 10 years later, and you’ll have to save three times as much per year to even come close to $340,000 — and you’ll still fall short by about $25,000.

The bottom line is that if you start saving earlier, you won't have to work nearly as hard as if you put it off.

Excuse: “I won’t be able to save enough to make a difference.”

This is one excuse that often comes up when saving for retirement. With many experts citing figures like a $1 million retirement fund, it’s easy to be discouraged. What many people forget, however, is that even a little bit of extra money can make a difference in your standard of living during retirement.

 If you retire today, you’ll get about $1,100 per month from Social Security. Depending on where you live, that’ll probably allow you to get by, but you won’t be taking any holiday cruises. But what if you were able to save $100,000 for retirement?

 It’s a small sum compared to $1 million, but it could mean an extra $500 per month in income during retirement. That’s enough to make life a lot more comfortable. The best part is, it only takes savings of about $1,000 per year, or $83 per month (assuming you save for 35 years at 5% interest) to arrive at that sum.

There’s an old proverb that says that if you don’t want to do something, one excuse is as good as another. When it comes to making changes to how we handle our money, most excuses arise from a desire to avoid rocking the boat, even when a financial shakeup is often just what we need.

Excuses, therefore, act as a mental escape route, allowing us to avoid tackling our finances, rather than facing them head on. And there’s no good excuse for that.

TO READ MORE: http://www.wisebread.com/6-common-excuses-for-not-saving-money?wbref=readmore-2

What Should I Do With Cash Sitting In My Bank Account?

What Should I Do With Cash Sitting In My Bank Account?

Published Sep 23, 2026   Sergei Klebnikov

Idle cash refers to money that is not invested, not needed for daily expenses and not reserved for future purchases. When cash sits uninvested and earns little yield, it loses purchasing power over time, especially during periods of inflation and rising costs.  But putting idle cash to work doesn’t necessarily mean seeking the highest available yield.

The first step is understanding the role that cash plays in your financial life. Some dollars may need to remain immediately accessible for everyday expenses or unexpected needs. Others may be earmarked for a future purchase, tax payment or other known expense. And some cash may not have a near-term use at all.

Once you’ve identified what the money is for, you can consider the appropriate balance of accessibility, stability and return potential – along with factors such as risk, taxes, fees and withdrawal restrictions.

A useful starting point is to think about your cash as part of a broader liquidity bucket – the money you want available to support your lifestyle, provide a financial cushion, fund upcoming purchases or obligations, and preserve flexibility for opportunities that may arise. Once you’ve sized those needs, you can more clearly identify cash that may be available for longer-term investing.

Why leaving cash sitting in a bank account can be a problem

Keeping money in a bank account can often feel like a conservative choice when it comes to covering bills, managing day-to-day spending and keeping an emergency cushion. Having accessible funds for these purposes makes sense; the issue, though, is what happens when “extra” cash sits in a low-yield account for long stretches of time. Even if your balance doesn’t change, inflation can reduce what that money can buy over time (purchasing power).

But remember, “fixing” the problem of idle cash isn’t just about chasing the highest rates. Higher yield usually comes with trade-offs. Depending on the option, those trade-offs could be less convenience (extra steps to move money), more rules (limits on withdrawals or penalties for early access) or more price fluctuations. Different options offer different trade-offs with regard to accessibility, stability and return potential – which is why the right choice starts with understanding when and why you’ll need the money. Footnote 1 Opens overlay

“The conversation shouldn’t start with, ‘Where can I get the highest yield?’ It should start with, ‘What do I want or need this money to do for me?’ Once you understand the purpose and timing of your cash, you can make a much more thoughtful decision about where it belongs,” said Angelena Mascilli, Managing Director and Head of Wealth Management Banking.

There isn’t one universal best place to put cash. The better approach is to match the money – and where you store it – to your goals and timeline: Cash you may need soon typically calls for prioritizing accessibility, while cash you won’t need for a while may give you a chance to seek a higher yield, so long as you’re comfortable with the associated rules and risks.

Start by sizing your liquidity needs

Before deciding where to put your cash, start by determining how much liquidity you actually need. Rather than treating all of your cash as one pool, consider the different jobs you may need it to perform.

For example, your liquidity needs may include:

• Operating cash flow: Money needed to cover regular day-to-day spending.

• A financial safety net: Additional accessible funds that can help you manage unexpected expenses or simply provide greater peace of mind.

• Known upcoming needs: Cash earmarked for taxes, a home purchase or renovation, tuition, travel, or another significant expense.

• Opportunistic funds: Money you intentionally keep accessible so you can act when an investment or other opportunity arises.

There’s no universal amount that’s right for each category. Your appropriate liquidity level will depend on your spending, income, upcoming obligations, comfort level and broader financial plan. Once those needs are covered, you can identify whether you have excess cash that may be positioned differently.

Once you’ve identified how much liquidity you need and what each portion is for, time horizon becomes an important consideration in deciding where to hold it. Cash you may need on short notice generally calls for greater accessibility and stability, while cash with a more predictable or longer time horizon may offer additional flexibility.

• Day-to-day (0–9 months): For cash you may need on short notice, prioritize accessibility and stability. This is money you need to be able to access quickly for near-term spending.

• Reserve (9–18 months): For cash that you have the time and risk tolerance to invest. This money should still be available relatively easily, but you can also afford to direct it to more long-term options.

• Strategic (18 months and beyond): For cash not needed in the short term, where you have greater flexibility in how it is positioned, depending on your goals and time horizon. Given the longer time horizon, you may be able to seek higher potential yields.

Day-to-day cash: Prioritizing accessibility and stability

For cash you expect to use in the near future, the priority is generally to keep it stable and readily accessible. Money market funds (MMFs) can be useful for day-to-day cash because they often offer higher liquidity with lower risk, not to mention generate income through interest (unlike a traditional savings account).

High-yield savings accounts (HYSAs) and bank money market deposit accounts are among the other options that may be appropriate for these needs. A key feature of both HYSAs and bank money market deposit accounts is that their rate can change over time. Annual percentage yields (APYs) may move up or down based on broader interest rate conditions or at the discretion of the financial institution. That makes it important to consider an account’s accessibility and overall features – not just its current rate.

These are also deposit accounts, which may come with Federal Deposit Insurance Corporation (FDIC) insurance (for banks) or National Credit Union Administration (NCUA) insurance (for credit unions), up to applicable limits and subject to eligibility. You may still want to confirm what is covered and how your balances are held, especially if you keep cash across multiple accounts. Footnote 2 Opens overlay

When evaluating where to hold cash you may need soon, consider factors beyond the headline rate, including:

• Transfer speed: Understand how quickly you can access or move your money when you need it.

• Withdrawal/transaction limits: Look for any restrictions that could affect flexibility when in a pinch.

• Fees: Check for monthly maintenance fees and any charges for transfers or excess transactions.

• Minimums: Make sure you can meet any opening deposit or minimum balance requirements needed to earn the advertised yield rate.

• APY: Consider the current rate and whether it is likely to move frequently.

• Customer support: Consider factors like customer service hours, mobile app quality and how easy it is to set up transfers.

Reserve Cash: Cds And T-Bills (How Laddering Can Keep Money Accessible)

Once you’ve identified cash that you’re unlikely to need immediately, you can begin considering solutions that may trade some day-to-day access for potentially higher yield. Depending on your time horizon and liquidity needs, certificates of deposit (CDs) and Treasury bills (T-bills) may enter the picture because they are built around defined time frames.

TO READ MORE: https://www.chase.com/personal/investments/learning-and-insights/article/what-should-i-do-with-cash-in-bank-account

How To Make Strategic Cash Bucketing Work For You

How To Make Strategic Cash Bucketing Work For You

Last Edited Sep 16, 2026|  Angelena Mascilli

  Cash bucketing – or categorizing your funds based on specific expenses or goals – can help you organize your financial life.

  Cash and other liquid assets may be the ideal place for buckets of money that you may need to access soon to cover expenses or capitalize on new investment opportunities.

  Financial products like high-yield savings accounts can help you maximize the return on your cash buckets without losing your ability to tap into the funds when you need them.

Cash bucketing is a personal finance strategy where you allocate your income into separate “buckets” or categories, each dedicated to a specific expense or savings goal. Instead of having one large pool of money, you break your spending down into segments, which helps you prioritize your financial goals and avoid overspending. 

The primary purpose of cash bucketing is to create clarity and control over your finances. It forces you to think about how much money you need for different aspects of your life so you can ensure you aren’t over-allocating funds in one area while underfunding others. 

One key part of the bucketing approach is ensuring that you have enough money set aside in cash or other liquid assets that you can access quickly when needed. In addition to covering your expenses – from everyday needs to larger discretionary purchases – your cash “buckets” can be an important resource to draw from when new investment opportunities arise. 

Let’s look at how smart bucketing decisions can help you make the most of your strategic cash. 

Bucketing Basics 

To get started with the cash bucketing method, take a close look at your income and expenses. Start by listing your fixed monthly costs, such as your rent or mortgage, utilities, debt payments and transportation costs. Next, list variable expenses, like groceries, entertainment and dining out. Then, consider longer-term savings goals, such as retirement, an emergency fund or future vacations. 

While the breakdown of your buckets will inevitably vary based on your personal situation, one key consideration is your time horizon. The optimal account or investment vehicle for each of your buckets depends largely on when you will – or might – need to access the funds. 

If you’re planning for goals far in the future – like looking ahead to retirement during the early stages of your career or preparing for college expenses while your children are young – you’ll likely want to bucket the corresponding funds in long-term investments with a chance of growing over time. This often means sacrificing liquidity, or the ability to withdraw your money on short notice. 

On the other hand, buckets that you may need to tap into relatively soon, like the funds you need to cover everyday expenses or emergencies, are better kept in more liquid assets like cash and cash equivalents. These assets typically provide lower returns but offer you peace of mind in knowing that your money will be there for you whenever necessary.

Making The Most Of Your Cash Position 

Fortunately, keeping your money in liquid assets does not require stashing a wad of cash under your mattress. There are plenty of ways to ensure that the financial buckets you may need to draw on in the near term continue working for you. 

Optimizing the allocation of your opportunistic cash could mean seeking out high-yielding financial instruments. Depending on your liquidity requirements, you might choose to shop around for a high-yield savings account that pays an attractive rate but still allows you flexibility to withdraw your money as needed. 

For funds you can commit to leaving untouched over a specific time frame, you might opt for a certificate of deposit (CD) account. These products often provide higher yields than traditional savings accounts, and CDs let you lock in these attractive returns for a specific time frame. But beware that you could be on the hook for an early withdrawal penalty if you take money out before the end of your CD term. Footnote 1 Opens overlay  

Money market accounts are another option for allocating your cash buckets. These accounts also generally offer higher returns than typical savings accounts, and they may allow you to write checks or make purchases using a debit card. 

Money market funds, on the other hand – which are different from money market accounts – are a type of mutual fund that can offer short-term investing returns and pose lower risk than other vehicles. They come in three main forms: government, municipal and prime. 

T-bills – or Treasury bonds – are another option when designating your cash buckets. T-bills are short-term securities backed by the U.S. Department of Treasury. Given their backing, they are considered a safe investment with potential for yield depending on the current environment. 

All these aforementioned account types – excluding money market funds and T-bills – are secured by federal deposit insurance, protecting up to $250,000 worth of your funds, even if the institution where you hold your account fails or experiences a significant adverse incident. Footnote 2 Opens overlay  

TO READ MORE:  https://www.chase.com/personal/investments/learning-and-insights/article/how-to-make-strategic-cash-bucketing-work-for-you

3 Savings Moves To Make Post-Fed Rate Hike

3 Savings Moves To Make Post-Fed Rate Hike

By Matt Richardson  September 17, 2026 CBS News MoneyWatch: Managing Your Money

With interest rates rising again, savers will want to take certain steps now to take advantage.

Savers on Thursday woke up to a new financial climate marked by the first interest rate hike from the Federal Reserve in more than three years. Now at a range between 3.75% and 4.00%, a new, higher federal funds rate is expected to lead to even higher rates for savers than they've already been accustomed to in recent years. And while that change will look different based on the account type and the bank in question, savers are undoubtedly now entering a more profitable period, especially if the Fed proceeds with another interest rate hike when it meets again in October.

Taking advantage of new, better interest-earning opportunities will take a bit of a strategic approach from savers, however. While there are always costly mistakes worth avoiding, making the right, proactive moves now could be the difference between earning a standard rate on your money or one that's exponentially higher. And these moves should happen relatively quickly, both to boost your savings as much as possible and to cut losses you may already be enduring with other account types. Below, we'll break down three specific savings moves to make now, post-Fed rate hike.

To position yourself for savings success as quickly as possible, consider making these three moves right now:

Move the money you need to maintain access to into a high-yield savings account

Traditional savings accounts should have been closed already, but if you haven't yet done so, consider acting now. With an average interest rate of just 0.38% currently, you're essentially losing money by not shifting your funds into an alternative account type. Move the money you need to maintain access to, then, into a high-yield savings account instead. These accounts operate the same way a traditional account does, albeit with significantly more interest earnings to be had. 

And you won't have to worry about making withdrawals, deposits or paying any fees the way you would with a certificate of deposit (CD) account with a fixed rate. With a variable rate structure, too, they're well-positioned to take advantage of a rising interest rate environment if the Fed continues to hike rates. Consider shopping around for high-yield savings accounts online, then, and move the money you need to keep flexible into the most profitable option you can find right away.

Use CDs, but in a more cautious way than usual

Technically, CDs have slightly higher rates than high-yield savings accounts do. And they're fixed, adding a layer of protection that the variable-rate high-yield account can't offer. Because your money will be locked in the account at that fixed rate level, however, your interest-earning potential will be limited. 

This doesn't mean that CD accounts aren't still worth opening (they are), but it does mean that savers should use them in a more cautious way than usual, especially compared to the climate in which interest rates were consistently declining in 2024 and 2025. So open a CD account, but don't deposit more than you can afford to part with, and don't lock it into a term that you can't easily see through to the maturity date.

Explore alternative accounts that can help you take advantage of a higher rate climate

CDs and high-yield savings accounts may be ubiquitous, but they're not the only accounts that will help you take advantage of a higher interest rate climate. A money market account functions as a savings account that you can write checks from and, right now, interest rates on the account are averaging only slightly below those tied to high-yield savings accounts. 

So, if you want to earn a high rate while streamlining your banking needs, this could be the right account for you now. High-yield checking accounts, meanwhile, should also be considered as they can allow you to earn a competitive rate on the money you already have sitting idle waiting for the next bill to be paid. Earning some extra interest there, too, won't hurt.

The bottom line

A rising interest rate environment isn't great news for borrowers, but it does have a silver lining for savers who position themselves appropriately now. By moving the money you need access to into a high-yield savings account, closing the traditional account (if you still have one), using CDs in a more cautious way, and exploring alternative account types that you may not have thought about previously, you can do just that. Consider the use, too, of online marketplaces that list all of the relevant account information you'll need in one spot and don't discount the benefits of speaking with banks directly as they can often outline accounts and approaches that may align with your unique financial circumstances.

Edited by Angelica Leicht

TO READ MORE: https://www.cbsnews.com/news/savings-moves-to-make-post-september-2026-fed-rate-hike/

Sometimes This Time Really Is Different

 Sometimes This Time Really Is Different

Notes From the Field By James Hickman (Simon Black / Sovereign Man) September 21, 2026

Some time in the middle of the second century AD, on the shores of the extremely picturesque Lake Iznik in modern-day Turkey at the site of the ancient city of Nicaea, a boy named Cassius Dio was born into a locally prominent family.  His father was a Roman politician, his mother was Greek, and young Cassius Dio grew up in a bilingual household speaking Greek and Latin at a time when the Roman Empire was at its absolute peak.

pic

There was widespread peace and prosperity— so much so that the emperor at the time, Antoninus Pius, spent his entire 20+ year reign without ever coming within 500 miles of a Roman legion.

His was the most peaceful reign the empire ever had. The imperial government busied itself with foreign trade missions, including to Han China; and with perfecting the delivery of clean drinking water across the empire— a feat that wouldn't be repeated until 1804.

In short, the Romans had a 19th century standard of living as far back as the 2nd century AD, and this is the environment of wealth and abundance in which young Cassius Dio grew up.

But by the time he was an adult and had followed in his father's footsteps to become a politician, things had changed.

In the decades between his childhood and adulthood, Rome had taken a turn for the worse. The empire had seen multiple wars, plague, barbarian incursions, and assassinations of several emperors.

At one point the Praetorian Guard had even auctioned off the empire to the highest bidder.

But Cassius Dio knew his history, and he knew that Rome had seen tough times before. There had been the civil war between Julius Caesar and Pompey, the depravity of Caligula, and the insanity of Nero. Yet Rome always came back better and stronger than ever.

So Cassius Dio assumed at first that this time would be no different. Rome was in the midst of difficult times by the 190s and early 200s, but it would recover stronger than ever, just as it had in the past.

It was only later in life, after watching things go from bad to worse that he realized this time actually was different. Rome was not coming back.

And it was at this point that he wrote, rather bitterly in his histories of the empire, "Our history now descends from a kingdom of gold to one of iron and rust."

This is how we opened our Plan B conference this past weekend in Panama City, Panama— with a historical tale. We told the story of Cassius Dio and explained that, yes, dominant superpowers often go through tough times, and they often recover.

France under Louis XIV went through multiple peasant rebellions and a civil war, yet it recovered and maintained its status as a superpower.

The US went through World Wars and financial crises, and also maintained its status as the dominant superpower.

But sometimes superpowers reach a point where this time really is different. Nothing is certain, and recovery is still possible. But it makes perfect sense to prepare for challenging times ahead.

If the US dollar, for example, loses its status as the global reserve currency, there will absolutely be consequences, and the impact will be widely felt. Ditto for the rising US national debt.

The rest of our event focused ways to mitigate those consequences.

We had attendees and speakers from all over the world, which was quite refreshing. We even had the mayor of Panama City open the event, welcoming our guests at dinner on Thursday night, and come again to our farewell dinner on Saturday night.

It was really nice to see someone of influence in government who was bending over backwards to support anything and everything that our members needed.

My friend and partner Peter Schiff was also on stage with me, and he told the audience where he sees serious cracks in the bond market. This has major implications for the US dollar, the prospect for inflation, and the general future of the United States.

Peter and I both agree that not all is lost. I presented some very simple ideas for the US to get back on track, none of which are remotely controversial.

Bottom line, with the prospect of continued productivity growth from AI, robotics, small modular nuclear reactors, and cheap energy, combined with some modicum of fiscal responsibility, the US can still be OK.

But, at least at the moment, there does not seem to be any interest in Congress to rein in spending and stop the explosion of the national debt.

And this is why having a Plan B is so important. It would be completely foolish to believe that a $40 trillion national debt, the looming insolvency of Social Security, $2 trillion annual deficits, and an annual interest bill that mops up 25% of tax revenue will all be consequence-free.

That's why we presented so many options from around the world. We had speakers presenting about second citizenship programs, foreign residency, global real estate, tax planning, multiple options for gold storage, as well as some discussion about tokenization and crypto.

We even had bankers from a well-capitalized private bank opening accounts for people on the spot.

This is important stuff. A good Plan B is like an insurance policy— you don't wait until your house burns down, you get sensible coverage in advance to mitigate specific risks.

The whole point of a Plan B is to be in a position of strength regardless of what happens, or doesn't happen, next. It’s not complicated, but it takes some sensible and deliberate planning.

For more than 15 years we've been providing some of the best research in the world on these topics.

Every month it covers second citizenships, foreign residency, foreign banking, and legal tax strategies, with boots-on-the-ground reports from more than 120 countries and a Rolodex of vetted service providers for when you decide to take action.

To your freedom,  James Hickman    Co-Founder, Schiff Sovereign LLC

https://www.schiffsovereign.com/trends/sometimes-this-time-really-is-different-155905/?inf_contact_key=d2d988006a29aea8c44d87562ce89899e6abc7ef250881a26a820a137a2e774a

5 Steps To Master Your Money

5 Steps To Master Your Money

Simple strategies to help fund your future.

Fidelity Viewpoints

Key takeaways

• Define clear goals and make a plan to help guide your financial decisions.

• Set up automatic transfers to help boost your savings and keep you on track.

• Build up your emergency savings to cover unexpected essential expenses

Taking control of your finances isn’t just about cutting down on expenses and increasing your savings. It’s also about opening yourself up to more options. With the right financial foundation, you have more freedom to make choices, take risks, and move forward with confidence.

Whether you're just starting out, navigating a life change, or planning for retirement, these 5 key steps can help you stay on track for your goals—on your terms.

1. Make a plan

Creating a financial plan starts with naming your goals. If you haven’t identified your goals and set up steps to help you achieve them, then you won’t have a plan to return to if you start to go off track.

There’s no one-size-fits-all approach to planning, but the great thing is a plan can grow and flex with you as your needs change. In your 20s, your goal may be paying off student loans and starting to save.

In your 30s and 40s, saving for a home or boosting retirement contributions might take center stage. Nearing retirement? It may be time to shift from saving to thinking about creating a plan to turn your savings into an income stream.

Planning can feel overwhelming at the start, but naming a goal can help the path become clearer. Breaking down big goals into bite-sized steps can make them feel more achievable. To help with this, consider asking yourself:

• What’s the goal? Examples include paying down debt, saving for short-term goals like a wedding or a down payment, and saving for retirement.

• What’s your savings number? How much money do you need to meet your goal?

• What’s your timeline? Knowing when you’ll need the money can help you come up with a savings schedule.

• How will you achieve it? Consider allocating a certain amount of each paycheck toward the goal.

Not sure whether to prioritize paying down debt or saving and investing for another goal? Find balance with our step-by-step guide.

2. Boost your savings

Once your goals are defined and your plan is set in motion, it’s time to supercharge your savings. Automation can be a game-changer. Consider your workplace retirement plan: Contributions are deducted before your paycheck hits your account, making it one of the most effective automated savings tools.

You can apply this principle to other goals too. By setting up automatic transfers to savings or debt repayment accounts, you “pay yourself first” and reduce the temptation to spend that money elsewhere. This strategy also helps you stay consistent, even when the market fluctuates or life gets busy.

Investing is another way to help your money work harder for you. Strategic investing, aligned with your goals and timeline, can potentially help you reach milestones faster than parking those savings in cash.

There are options for every type of investor including hands-off accounts, where an investment manager chooses and manages your investments for you and hands-on accounts, where you choose and manage your own investments. You can set up recurring investments and take advantage of automation for your investment accounts too.

Ready to learn more? Take a quick quiz to figure out which account might be right for you.

3. Diversify your assets

Diversification is an important part of smart investing. It means spreading your money across different investment types, which can help you manage risk according to your goals. Whether you're conservative or aggressive in your approach, choosing the right investment mix—also known as asset allocation—is key

CHART: https://www.fidelity.com/learning-center/personal-finance/master-your-money

t’s possible that you could have a very different asset allocation for a goal that is a few years away compared to one that is still decades away. As an example, someone saving for a short-term goal might choose a more conservative mix, while longer-term goals like retirement may benefit from a more aggressive strategy.

Everyone’s situation is their own, and we all have our preferences. You want to balance risk and reward in a way that feels good for your timeline and comfort level.

If you’re looking to do more, another strategy to consider is asset location, which is a way to help you manage the tax liability of building your wealth. This where you place investments in accounts that offer the most tax advantages. Asset location can be complicated, but a financial professional can help you figure out if it’s worth exploring.

4. Have a pivot plan

Life can be unpredictable. Whether it’s a job loss, inheritance, divorce, or early retirement, having a plan for curve balls helps you stay resilient. Planning for change doesn’t mean expecting the worst—it means being ready for anything.

It can be easier to do this if you take the time to imagine and plan for the pivots life could bring: the good, the not-so-good, and everything in between.

CHART: https://www.fidelity.com/learning-center/personal-finance/master-your-money

You can plan for different scenarios by asking yourself how you might feel if one of these pivots happened. How prepared would you feel if you lost your job? Or if you received an inheritance you weren’t expecting? Then you’ll want to come up with a savings number that will help you feel more comfortable no matter what happens.

Start by building emergency savings with 3–6 months (or more, depending on what helps you feel secure) of essential expenses in an account that is liquid and easily accessible, such as a high-yield savings account. Then, consider additional savings for specific scenarios.

If you’re thinking about turning a side hustle into a full-time gig, what amount of cushion would help make taking that leap more comfortable?

Insurance and estate planning are also part of a solid pivot strategy. Reviewing your coverage and updating your documents can help to ensure you’re protected no matter what life throws your way.

TO READ MORE: https://www.fidelity.com/learning-center/personal-finance/master-your-money

Debt management: How To Avoid Common, But Costly, Money Mistakes

Debt management: How To Avoid Common, But Costly, Money Mistakes

May 27, 2026    Malena de la Fuente  and Aaron Goodman

Americans are carrying more debt than ever before. Total household balances now approach $19 trillion, reflecting a steady increase over the past decade.1  In 2025, millennials in their mid-30s held roughly twice as much nonhousing debt—including student loans, auto loans, and credit card debt—as baby boomers did at a similar age.2

As debt burdens have grown, so too has the importance of making the right repayment decisions. Managing debt involves meaningful trade-offs. Even decisions that feel financially responsible—such as paying down a mortgage faster or holding excess cash beyond emergency savings—can sometimes lead to higher overall costs or lower long-term wealth.3 An important but often overlooked insight is that debt repayment is just another form of savings.

Vanguard researchers explored the problems that can arise when investors fail to coordinate borrowing and savings decisions. Their research paper, Balancing Saving and Debt Paydown: Money Mistakes to Avoid (de la Fuente et al., 2026), presents the results. Here are two common mistakes and some practical ways investors can address them:

Mistake #1: Paying down high-interest debt too slowly

The researchers found that 35% of all Vanguard investors carry revolving credit card debt and the average balance carried is about $4,100. With the average credit card interest rate of 21%, that balance costs more than $800 a year in interest.4

Yet 57% of investors with credit card debt could pay it off by redirecting dollars that are earning lower returns. Specifically, 67% of investors with brokerage accounts have cash in their accounts that could pay off some or all of their credit card debt, while 60% of 401(k) investors contribute above their company match limit in their retirement plan.

Additionally, 30% of all investors with credit card debt make extra payments on other lower-interest debts, like mortgages or auto loans.

“The typical investor could pay off credit card debt in less than 18 months if they reallocated this extra cash toward credit card payments,” said Malena de la Fuente, Vanguard investment strategy analyst and lead author of the paper.

Many investors carry revolving credit card debt despite having cash available

CHART: https://corporate.vanguard.com/content/corporatesite/us/en/corp/articles/how-to-avoid-common-but-costly-money-mistakes.html

 Mistake #2: Paying down low-interest debt too quickly

While some investors pay down credit card debt too slowly, others speed up paying down lower-interest debt by prepaying loans.

Within Vanguard-administered 401(k) plans, roughly 50% of employees with mortgage, auto, or student debt make extra payments (payments made in addition to the minimum monthly payment) at least once per year.

At the same time, 30% of these prepayers are leaving employer-match dollars on the table—costing them almost $1,100 a year in missed 401(k) contributions.

Secured debt like auto loans and mortgages usually have single-digit interest rates, while employers often match 401(k) contributions at 50 or 100 cents on the dollar.

This means that—when considered as an investment—matched retirement contributions have a much higher rate of return than extra loan payments.

“Riskless returns of 50%–100% are hard to come by in financial markets,” said Aaron Goodman, Vanguard senior investment strategist and one of the paper’s coauthors. “That makes earning the full 401(k) match a priority before prepaying low-interest debt.” 

Prepaying debt can come at the cost of the full 401(k) match  

TO READ MORE:

CHART:  https://corporate.vanguard.com/content/corporatesite/us/en/corp/articles/how-to-avoid-common-but-costly-money-mistakes.html

9 Ways Retirement Will Be Different in 2026

9 Ways Retirement Will Be Different in 2026

By Cameron Huddleston and Deirdre Shesgreen,  AARP

How changes to Social Security, Medicare, 401(k) contributions and more will affect your finances

Retirement may seem like the most stable period of your life, with no work demands, no kids to cart around and lots of free time. But this dynamic new chapter comes with its own twists and turns. Your lifestyle, expectations and finances continue to change. And in 2026, big shifts are coming — from Social Security payments and Medicare expenses to how you save and spend.

Even if retirement is still a few years away, these changes could affect how you prepare to leave the 9-to-5. Here are nine things affecting retirees’ financial well-being that will be different in the coming year. 

More Ways to Benefit

1. Social Security gets COLA boost

Social Security recipients get a 2.8 percent benefit bump in January, when the annual cost-of-living adjustment (COLA) kicks in. The average monthly retirement payment is set to increase by an estimated $56, from $2,015 to $2,071, according to the Social Security Administration (SSA), and the average survivor benefit for a widowed spouse will rise by $52, from $1,867 to $1,919. ​

The 2026 COLA reflects changes in prices for a set of consumer goods and services from the third quarter of 2024 to the third quarter of 2025, as measured by a federal price index. Inflation ticked up over that time, resulting in a slightly higher increase compared with 2025’s 2.5 percent COLA.

People collecting retirement, family, survivor or Social Security Disability Insurance (SSDI) benefits will see the COLA boost in their January payments. Those receiving Supplemental Security Income (SSI) — a benefit  for people with very limited income and assets who are 65 and older, blind or have a disability that is administered by the SSA — will get their first inflation-adjusted payment on Dec. 31.

The COLA’s impact on beneficiaries’ purchasing power will depend largely on inflation trends in 2026. If inflation cools, the 2.8 percent benefit increase could provide retirees with a modest financial cushion. But if prices continue to climb, the COLA may leave beneficiaries struggling to manage their expenses.

2. Medicare premiums up nearly 10%

One cost that will put a dent in the COLA: Medicare premiums. The base rate for Medicare Part B, which covers doctor visits and other outpatient care, is going up by 9.7 percent in 2026, from $185 to $202.90 a month.

Most Medicare enrollees’ premiums are deducted directly from their Social Security payments, so the Part B increase effectively reduces their COLA by $17.90 a month. Premiums are higher for what Medicare considers high earners — in 2026, those are beneficiaries with incomes above $109,000 for individual taxpayers and $218,000 for couples filing jointly.

The annual deductible for Part B is also rising, from $257 in 2025 to $283 in 2026.

People with Medicare Advantage (MA) coverage or Medicare Part D prescription drug plans may see varying costs, as these plans are provided by private insurers. According to Medicare estimates, the average monthly premium for an MA plan will decline by $2.40 a month, from $16.40 in 2025 to $14.00 in 2026.

The average premium for a stand-alone Part D prescription plan is projected to be $34.50 next year, a reduction of $3.81 from 2025. The cap on annual out-of-pocket costs for prescriptions under both Part D policies and drug coverage in MA plans will increase from $2,000 to $2,100.

3. Retirement plan contribution caps rise

The IRS sets annual limits on the amount you can put into an individual retirement account (IRA) or workplace retirement plan, with multiple tiers.

For IRAs, the standard contribution cap for the 2026 tax year is $7,500, up from $7,000 in 2025. The maximum catch-up contribution for savers age 50 and older is going up from $1,000 to $1,100, meaning older adults can sock away up to $8,600 in an IRA in 2026. (You can still make a contribution that counts for 2025 tax purposes — the deadline is April 15, 2026.)

If you have a job-based retirement account, such as a 401(k), 403(b) or Thrift Savings Plan, the 2026 contribution limit for workers age 49 and younger is $24,500, $1,000 more than the 2025 cap. For workplace plans, there are two catch-up levels:

• Workers ages 50 to 59 and 64-plus have a catch-up cap of $8,000 in 2026 (up from $7,500 in 2025), for a maximum contribution of $32,500.

• The so-called “super catch-up” limit for workers ages 60 to 63 is $11,250 (the same as in 2025), for a total contribution cap of $35,750.

4. Standard tax deduction going up

The IRS increases the standard deduction most years to account for inflation, and this year, Congress juiced it a bit more as part of the “One Big Beautiful Bill” (OBBB) enacted in July. That’s especially meaningful for Americans age 65 and over, who have a bigger standard deduction than younger taxpayers do.

Here are the regular standard deductions for 2025 tax returns (the ones you must file by April 15, 2026):

• Married couple filing jointly: $31,500 (up from $29,200 in the 2024 tax year)

• Single or married filing separately: $15,750 (up from $14,600)

• Head of household: $23,625 (up from $21,900)

And here are the standard deductions for taxpayers age 65-plus:

• Married filing jointly (if one or both spouses are 65-plus): $34,700 (up from $32,300 in 2024)

• Single or married filing separately: $17,750 (up from $16,550)

• Head of household: $25,625 (up from $23,850)

5. Many retirees get a new tax break

Along with the higher standard deduction, the OBBB included a brand-new tax break of up to $6,000 for people age 65 and older that could reduce or fully offset taxes on Social Security income for millions of Americans.

The provision, which AARP supported including in the OBBB, applies to people who are at least 65 at the end of 2025. Qualifying individual taxpayers with a modified adjusted gross income (MAGI) of up to $75,000, and spouses filing jointly with a combined MAGI of up to $150,000, can deduct up to $6,000 each from their taxable income.

The deduction is reduced at higher income levels, up to $175,000 for single filers and $250,000 for couples. Above those thresholds, you are not eligible. It is also temporary — under the OBBB, it is scheduled to sunset after the 2028 tax year.

6. Full retirement age changes

Under a law Congress passed in 1983, full retirement age (FRA) for Social Security — the age at which you become eligible to claim 100 percent of the retirement benefit calculated from your lifetime earnings — has been going up incrementally from 65 to 67, based on year of birth. That drawn-out change is nearly complete. 

FRA will settle at 67 for people born in 1960 and after, but for those born in 1959, it’s 66 and 10 months. You’ll reach it in 2026 if you were born from March 2, 1959, through Jan. 1, 1960.

To Read More:   https://www.aarp.org/money/retirement/biggest-changes-2026/

12 Key Habits for Achieving Financial Freedom

12 Key Habits for Achieving Financial Freedom

Set yourself on the path to saving with these habits

By   Matt Danielsson   Updated March 06, 2026

Key Takeaways

• Set financial goals and create a plan to achieve them.

• Make and stick to a budget covering all financial needs.

• Pay off credit cards monthly and minimize debt.

• Automate savings with an emergency fund and retirement contributions.

• U.S. consumers can request a free annual credit report from major agencies.

Financial freedom means having enough savings, investments, and cash on hand to afford the lifestyle you want for yourself and your family. It also means budgeting to grow a nest egg, allowing you to retire or pursue your dreams. These 12 habits can put you on the right path.

1. Establish Clear Financial Goals

Individuals have different financial goals. Outline your objectives and get specific about amounts and deadlines. Determine your short and long-term lifestyles, how much you need to reach your milestones, and at what age you will be. Count backward from your deadline and establish financial mileposts.

2. Create a Practical Budget

Create a monthly household budget to ensure bills are paid and savings are on track. Maintaining a budget is a routine that reinforces your goals and helps squash the temptation to splurge.

3. Reduce Credit Card Debt

Credit cards and other high-interest consumer loans are toxic to wealth-building. Make it a point to pay off the full balance each month. Student loans, mortgages, and similar loans typically have much lower interest rates, and paying these lower-interest loans on time will build good credit.

4. Automate Your Savings

Pay yourself first. Ideally, emergency and retirement money should come from your account the day you receive your paycheck. You can also choose an automatic deposit into an emergency fund, which can be tapped for unexpected expenses.

Enroll in your workplace retirement plan and capture any employer matching benefit. Tax-advantaged retirement accounts have rules that make it difficult to get your hands on your cash should you suddenly need it, so that account should not be your emergency fund.

5. Begin Your Investment Journey

The magic of compound interest helps you grow your money exponentially. An online brokerage account makes it easy for individuals to learn how to invest, create a manageable portfolio, and make weekly or monthly contributions.

Tip

See Investopedia's choices for Best Online Brokers for Beginners.

6. Monitor and Improve Your Credit Score

Your credit score helps determine the interest rate offered to you when buying a new car or refinancing a home. It also impacts the amount you pay for essentials like car or life insurance premiums. Maintain your payment schedules and check your credit score often to ensure your good habits are paying off.

Important

Consumers in the U.S. are eligible to request a free copy of their credit report annually from the three reporting companies, Equifax, Experian, and TransUnion, at AnnualCreditReport.com.1 

7. Master Negotiation Techniques

Many Americans hesitate to negotiate for goods and services. However, small businesses, in particular, may be open to negotiation. Buying in bulk or positioning yourself as a repeat customer provides discounts at larger chain stores.

8. Continue to Educate Yourself Financially

Review relevant changes in tax law to ensure that all adjustments and deductions are maximized each year. Keep up with financial news and developments in the stock market, and do not hesitate to adjust your investment portfolio accordingly.

9. Properly Maintain Your Assets

According to J.P. Morgan, house prices were expected to increase by 3% in 2025.2 Maintaining real estate will help safeguard or even increase its value. Taking good care of other items like cars and lawnmowers helps them last longer and saves money in the long run.

To Read More:  https://www.investopedia.com/articles/personal-finance/112015/these-10-habits-will-help-you-reach-financial-freedom.asp

The Seven Deadly Sins Of Personal Finance

The Seven Deadly Sins Of Personal Finance
By J.D. Roth —03 June 2019
 
I've been reading and writing about personal finance for more than thirteen years. In that time, I've consumed a lot of books about money. Lately, I've found that it's fun to revisit old favorites.
 
Recently, for instance, I've been re-reading Brett Wilder's The Quiet Millionaire [my review]. It's different than most personal finance books. It's targeted at those who are farther along their financial journeys rather than at those just starting out. Still, there are bits and pieces in The Quiet Millionaire that are applicable to everyone.

Ten years ago, I wrote that I particularly like Wilder's list of the seven enemies to financial success (which is my phrase, not his). I still like them. He writes:
 
If you want to become and stay the quiet millionaire, you must plan and manage your financial way of life…You must be proactive in order to obtain the financial life you want. By doing this, you will overcome the seven major obstacles to financial success.
 
Wilder is saying that we know there are certain common barriers to wealth. These obstacles arise for everyone. Because of this, it's possible to plan in advance to cope with them. First, however, we have to be able to name these enemies so that we can prepare the proper weapons to fight them.
 
The Seven Enemies of Financial Success
According to Wilder, the seven enemies of financial success are:
 
Lack of discipline. Without discipline, it's difficult to build wealth. In fact, it's impossible to get rich — slowly or otherwise — if you spend more than you earn. The math just doesn't work. Wilder also warns against compulsive spending, and he urges readers to track where their money is going.
 
Materialism. Stuff will not enrich your life. It's so very easy to find yourself “keeping up with the Joneses”, succumbing to lifestyle inflation. But materialism breeds discontent. Instead, Wilder says, focus on intellectual and spiritual pursuits to obtain fulfillment.’
 
Debt. Not all debt is bad, of course. A reasonable mortgage on a sensible home is fine. But consumer debt — or a bad mortgage on a big house — is an enemy to financial success. In fact, bad debt may be the biggest enemy to financial success.
 
Taxes. It's our responsibility to pay the taxes we owe, but we're under no obligation to pay more than that. “It is not unpatriotic to reduce paying your taxes,” Wilder writes. We should instead actively work to keep our tax burden as low as possible.
 
Inflation. Inflation is wealth's silent enemy. It will not destroy you all at once. But it's always there, nibbling at the corners of your life, consuming a little cash every year. It's impossible to keep inflation completely at bay, but you can learn to mitigate its effects.
 
Investment mistakes. Poorly structured investment portfolios can be a killer. This enemy is fought through education, through an understanding of diversification and asset allocation, by taking the emotion out of investing.
 
Emergencies. The final enemy to financial success is the unexpected: unemployment, death, illness, and legal complications. Without a plan for emergencies, you leave yourself at the mercy of the fickle fates. Carry adequate insurance and maintain an emergency fund!

I've fought all of these enemies at one time or another. I still fight some from time to time. I feel like I have a good handle on investment mistakes and saving for emergencies, but my tax bill this year was onerous due to my own poor planning. And, of course, I've always struggled with discipline.
 
The Seven Deadly Sins and the Last Four Things
The Seven Deadly Sins (and the Last Four Things) by Hieronymus Bosch
 
The Seven Deadly Sins of Personal Finance
 
Wilder's seven enemies to financial success always reminds me of Catholicism's traditional list of seven deadly sins. This catalog of transgressions has a long, complicated (and intersting) history. Today, the seven deadly sins are considered to be:
 
Vanity (or Pride). An inflated belief in your own abilities.
 
Envy. The desire to have what others have.
 
Gluttony. Consuming more than you need, especially with regards to food and drink.
 
Lust. A passion or longing for bodily pleasure.
 
Wrath (or Anger). The tendency toward indignation and the desire for vengeance. Hatred toward others.
 
Greed. The desire for material wealth or gain.
 
Sloth. The avoidance of work. Laziness. A failure to act or make use of your talents. 

What would happen if we combined Wilder's idea — seven enemies to financial success — with this list of seven deadly sins? If we were to make a list of seven deadly financial sins, what would those be? Off the top of my head, these seem like good candidates:
 
Sloth. The avoidance of work. Laziness. A failure to act or make use of your talents. Procrastination. Expecting others to solve your problems.
 
Envy. The desire to have what others have. Comparing yourself to others. Keeping up with the Joneses.
 
Gluttony. Consuming more than you need. Succumbing to lifestyle inflation, the endless desire to have more. Never being satisfied with what you already have. The inability to defer gratification. Impatience.
 
Aimlessness. A failure to plan for the future. A lack of purpose or direction. Failing to track your progress is also a form of aimlessness.
 
Improvidence. A lack of prudence or care in managing your resources. Spending mindlessly. Wasting what you already have. Not taking care of your possessions. Replacing the things you own before they need to be replaced.
 
Myopia. Making decisions without considering greater implications. Focusing on small, easy steps that make no real difference (clipping coupons, maybe) while ignoring the big things that destroy your financial future (paying too much for housing, for instance).
 
Ignorance. A lack of financial education. Putting blind faith in outside advisors — or the news. Failing to do your own research.
 
Although this list is spontaneous, I like it. These really do feel like seven barriers that prevent people from succeeding with money. But I'm sure it's possible to come up with other (possibly more grievous) sins.
 
What do you think? If you were to list the seven deadly sins of personal finance, what would you include? And why?
 
https://www.getrichslowly.org/