The retailer has taken big steps over the last couple of years to revamp its fashion selection and bring in more premium brands in a bid to get wealthy shoppers to shop at Walmart.

Walmart is an especially great place to shop for all the little ones in your life. From the top trending toys for toddlers and kids to the most coveted brands for teens and tweens, you'll find plenty of great gift ideas for the grandkids at Walmart. You can head directly to Walmart's holiday gift shop now to browse some of their bestselling gifts of the season.

Not sure where to start? Keep scrolling for some of the most popular Christmas gifts for kids of all ages in 2025. Between Walmart's low prices and wide selection of trending gifts, you'll easily outcompete Santa Claus himself this year.

The best Christmas gifts for toddlers at Walmart

If you're trying to keep your holiday gift budget under control this year while still making your grandkids feel as special as they are, here are some of the biggest toy trends of 2025 available at Walmart.

• For the future chef: Melissa & Doug Flip & Fry Grill Play Set with Water WOW!® Color Reveal Play Food, $35
• A toddler's first pet: Pets Alive Polly the Magic Bird Electronic Girls Robotic Toy, $30
• For the gearhead-to-be: Monster Jam Smash & Bash Grave Digger Remote Control Vehicle, $45, Save 29%
• Share the classics with the next generation: Dr. Seuss's Christmas 3-Book Boxed Set, $25

Walmart's most popular gifts for kids

For kids roughly 6 and up, nostalgia is big this year. From rebooted Tamagotchis and Pokémon trading cards to the Furby and Rubik's cube, the most popular toys for kids this year are a blast from the recent past.

• For the kid who's "gotta catch 'em all:" Pokemon Trading Card Game Mega Evolutions Booster Bundle, $49. Save 11%
• A Furby that DJs and teaches yoga: DJ Furby Rainbow Electronic Plush Toy, $56. Save 20%
• The brain teaser that never gets old: Rubik's Cube, Pulse Cube, $19
• For the future coding genius: GiiKER Super Decoder, 600-Level Code-Breaking Puzzle for 1-2 Players, $50. Save 33%
• For the budding artist: Art 101 Glow and Neon Drawing and Painting Art Set, 61 Pieces, $25. Save 11%

The best Walmart Christmas gifts for preteens

Want to maintain your title of "best grandparent ever" this year? Pick up any of these gifts for your preteen grandkids and you're sure to win the title again.

• For the trendsetter: Stanley Quencher Flowstate, 40 oz., $25. Save 44%
• The gift your gamer grandkid is dreaming about: PlayStation Portal Remote Player, $179. Save 10%
• For the kid who never has enough Labubus: Pop Mart The Monsters (Labubu) Big Into Energy Vinyl Plush Blind Box V3, $33. Save 11%
• A fun way to capture memories: Fujifilm Instax Mini SE Instant Camera with Bonus 10 Pack Mini Film, $55. Save 25%

The best Christmas gifts for teens at Walmart

Shopping for teens can be tricky. But if you stick with one of these popular gift ideas, you're sure to squeeze a smile out of even the angstiest of teens.

• For the music lover: Apple AirPods 4, $85. Save 34%
• A popular tech gift for 78% off: Holy Stone 4K EIS Drone with UHD Camera, $130. Save 78%
• For the cozy gamer: Better Homes & Gardens Grey Bubble Faux Fur Ultra Soft Luxury Oversize Throw Blanket, $24
• Because snail slime is self-care now (really): COSRX Advanced Snail Hydrogel Eye Patch (60 Patches), $28
• For the fashion club captain: OPI Holiday 2025 Mini Nail Polish Set, 4-Pack, $20

Related content

• Amazon Haul Gift Guide: Under-$20 Gifts That Keep Your Holiday Budget in Tact
• 5 Best Financial Gifts for Grandkids
• 9 Gifts for the Golf Fanatic in Your Life, Chosen By a Golf Fanatic
• How Much Should You Spend on Holiday Gifts This Season

Lounge access has also become more common. Many of the top travel credit cards include it as a perk, and certain tickets or elite statuses also offer entry. If you’re flying this holiday season, you might find yourself using a lounge for the first time.

Before you step inside, it helps to know what to expect. Understanding how lounges are typically set up and how travelers use them can help you make the most of the experience and enjoy the amenities without any surprises.

Don’t grab the first seat you see

Every lounge is a bit different, so when you enter, take the time to get a sense of the layout and walk the space to see the available seating. Many lounges include sections designed for different activities, like working or dining.

Choose a seat that matches your needs. If you want to relax or get some work done, seek out a quiet area or a work zone. Planning to enjoy a meal? A seat in the lounge’s dining space will be the best choice.

Keep in mind that lounges can reach capacity during peak travel times. Seats aren’t assigned, but entry may be paused if the lounge is full. You also can’t pre-book or reserve specific chairs or couches. Some lounges do offer bookable conference rooms, but these typically require an additional fee and are separate from general seating.

Don’t treat the buffet like an all-you-can-eat smorgasbord

Many airport lounges feature a buffet complete with a selection of hot food items, saving you the expense of costly food purchases from other airport restaurants or vendors.

Though the food in the lounge is free, avoid piling your plate or taking more than you can eat, since it’s inconsiderate. Additionally, don’t take food to go, since most lounges prefer you enjoy the food within the space, rather than taking it with you.

Resist the temptation to overeat and, if alcohol is available, consume it in moderation. Overeating or drinking too much before a flight can leave you feeling uncomfortable on board.

It’s also worth noting that airline staff, including gate agents and flight attendants, are required to identify and deny boarding to anyone who appears intoxicated, even if the drinks were consumed in the lounge. Keeping an eye on your intake helps you enjoy the amenities without putting your travel plans at risk.

Remember to clean up your space and throw away any cups, plates or other trash before you leave.

Don’t spread out or take more space than you need

Space in airport lounges is limited, so keep your belongings consolidated. Don’t use extra seats as storage, which leaves them unavailable for other travelers to use. It’s also a good idea to keep your luggage out of walkways or aisles, where it can create tripping hazards.

It’s important to be particularly mindful of seat hoarding when the lounge is busy. Lounges can fill up, so remember you’re sharing this space with others and keep your belongings within your space.

Avoid fully unpacking bags or spreading out more than necessary; you’ll only have to repack before takeoff, and keeping things tidy makes it easier for everyone to move around comfortably.

Don’t be a noisy neighbor

Be considerate of others as you use the lounge, too. Use headphones for videos or calls and avoid using speakerphone or having loud conversations.

Avoid grooming, changing clothes or other overly personal tasks while you’re in the shared space. Instead, head to the bathroom for those needs. It’s also good airport lounge etiquette to keep your shoes on while you’re in the lounge.

If you’re traveling with kids, keep a close eye on them to make sure they’re not disturbing other travelers. Some lounges have a kids’ play area or room, and if your kids use this space, stay with them to supervise them. If the lounge doesn’t have a designated space for kids, then keep your kids nearby and don’t permit them to run through the lounge or jump on furniture.

Don’t fall asleep or venture too far from your gate

Many lounges work to create a quiet, relaxing space, so they often don’t make boarding announcements. You’re responsible for making sure you don’t miss your flight, so keep a close eye on the clock or set an alarm for when it’s time to head back out to the terminal.

Avoid napping while you’re in the lounge, since it can increase your chances of missing your flight. If there isn’t much time left before your flight boards, avoid visiting a lounge where you might not hear important announcements.

Think ahead — know your access rules and timing

Before you arrive at the airport, confirm your lounge access rules. There are many ways to access a lounge, whether as a credit card perk, access through a business or first-class ticket or even access as a frequent flyer. Read the details and rules about lounge use, including any guest allowances and time limits on how long you can stay in the lounge.

With these travel tips, you can enjoy an airport lounge and take some of the stress out of traveling. Just remember to budget enough time to enjoy the lounge without cutting into your boarding window, ensuring you’re still on time for your flight.

Related Content

• How to Get Access to Airport Lounges
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• 7 Travel Credit Cards With No Foreign Transaction Fees

Question: I’ve got $10,000 from my year-end bonus, and I want to keep it safe but still earn something. Is a CD or a money market account the smarter move?

Answer: It’s a natural question to ask right now. With your bonus in hand and interest rates slipping after the Fed’s rate cuts this year, deciding where to put that $10,000 can feel surprisingly tricky.

Certificates of deposit (CDs) and money market accounts (MMAs) remain two of the safest, most popular options. Both offer FDIC/NCUA insurance, both earn interest and both protect principal. But the best choice for your $10,000 depends heavily on two things: timeline and liquidity.

Let’s break down how these accounts work today, including updated earning tables, so you can choose the smarter home for your year-end bonus.

What’s the main difference between a CD and a money market account right now?

The main difference between a CD and a money market account right now is rate certainty versus rate flexibility. A CD locks in a guaranteed APY for a set term (anywhere from three months to several years). No matter what the Fed does next month or next quarter, your rate won’t change. That predictability is valuable in a declining-rate environment like the one we’re entering.

A money market account, however, has a variable rate. APYs can adjust up or down depending on market conditions and bank pricing decisions. For savers who want liquidity and the ability to move funds anytime, MMAs offer more flexibility.

How do liquidity and access differ?

CDs restrict access while money market accounts don’t. With a CD, withdrawing before maturity typically triggers an early-withdrawal penalty. That makes CDs better for money you know you won’t need for a set amount of time.

Money market accounts allow withdrawals and transfers as needed. While some banks impose monthly transaction limits, you can generally access your cash penalty-free, making MMAs ideal for near-term goals or emergency-adjacent savings.

Are both options equally safe?

Yes, as long as you stay within insured limits. Both CDs and MMAs are insured up to $250,000 per depositor, per institution, through the FDIC (banks) or NCUA (credit unions).

In terms of safety, they’re essentially identical.

How much a $10,000 CD earns at today's best rates

CD rates have drifted down slightly following recent Fed action. But some terms like one-year CDs remain competitive.

Earnings assume interest is compounded annually.

The biggest advantage here is the certainty: once you lock in a CD, the rate is yours regardless of economic shifts. If the Fed cuts again, as many expect, today’s 12-month yields may look unusually attractive compared with what banks offer three or six months from now. For savers wanting predictability, that’s a major benefit.

How much a $10,000 money market account earns right now

Money market accounts remain competitive even as rates cool, with many high-yield MMAs still offering around 4.25% APY. Because the rate is variable, earnings calculations below assume monthly compounding and no changes to APY over the period.

What stands out is the combination of liquidity and competitive returns. While a money market account can’t guarantee the rate won’t slip, it gives you significantly more flexibility.

Many banks also offer these accounts with low monthly fees, making them accessible for everyday savers. For short-term horizons, especially under nine months, today’s best MMAs earn slightly more than comparable CDs.

Use the tool below to quickly explore and compare some of today's top savings account offers:

CD vs. money market account returns compared

Below is how the two products compare head-to-head across common savings timelines:

Across most terms, the money market account slightly outperforms the CD, with the largest edge appearing over longer periods as compounding works in its favor.

The notable exception is the one-year CD, which is currently offering elevated rates that many analysts expect won’t last. If you’re attracted to locking in one of the last remaining CD terms with a “4-handle,” this is the window.

When a CD makes more sense

A CD is most effective when you value rate protection and you’re confident you won’t need to touch the money. For people with a fixed savings goal like an insurance premium due next year, a future home improvement project, tuition savings or wedding costs, a CD gives you exact, predictable earnings without requiring active management. CDs also make sense right before a rate-cut cycle.

Locking in a higher APY shields you from the declines we often see in variable-rate products after the Fed shifts its policy stance. If you’re someone who finds peace of mind in structured savings and guaranteed outcomes, a CD delivers clarity at a time when interest rates are in flux.

When a money market account makes more sense

A money market account is the better choice when liquidity or flexibility is your priority. This is ideal for savers who want their bonus accessible at any moment whether for emergency expenses, a home repair, a flight deal you can’t pass up or simply because you prefer not to lock up your cash.

While MMAs don’t guarantee the rate won’t drift lower, they still tend to retain strong competitiveness, especially in the online banking sector where promotional APYs remain plentiful.

If your timeline is short or uncertain, or if you’re looking for a place to keep cash while evaluating potential investment opportunities, an MMA lets you earn a solid return without sacrificing access.

How to decide between the two

The simplest way to choose is by assessing your timeline and your liquidity needs. If you know with certainty that you won’t need the money for at least 12 months, a CD may offer a slightly higher return with rate protection. If you’re unsure about your plans or may need access at any point, the money market account is the safer, more flexible pick.

You should also consider how sensitive you are to rate changes. If locking in a guaranteed APY brings peace of mind, that’s a strong argument for a CD. If you’re comfortable with the variability and you prefer being able to move money freely, an MMA offers the better balance of return and accessibility.

Final takeaway

If you’ve received a $10,000 year-end bonus, you’re entering 2026 with options. Both CDs and money market accounts are safe, federally insured, and deliver attractive yields compared with traditional savings accounts.

In today’s environment, the money market account typically comes out ahead for most time frames thanks to its liquidity and strong APYs, while the one-year CD remains a standout for its combination of guaranteed yield and rate certainty.

The right choice ultimately comes down to how soon you’ll need the money, how much flexibility you want, and whether locking in a rate before the Fed’s next move aligns with your financial strategy.

Related Content:

• Why a 5-Year CD is Your Best Bet After the Fed Meeting
• Best One-Year CD Rates
• Money Market Account vs High-Yield Savings Account

With an FSA, employees can make payroll deposits into their accounts to build a cushion to pay insurance deductibles or pay for qualifying medical expenses, or other items not covered by insurance.

Deposits are made with pre-tax dollars, before any federal or state income taxes, Social Security taxes, or Medicare taxes are withheld from your paycheck. That means your FSA deposits are not included in your taxable income. In other words, it’s essentially “tax-free.”

Want to know more? Read on.

What’s an FSA and what’s so great about it?

FSAs are employer-sponsored savings accounts that allow employees to set aside money from their paychecks, before taxes, to pay for healthcare and health-related dependent care expenses.

This tax-free money establishes a revolving, self-replenishing fund from which an employee can pay insurance deductibles, copays, and other qualified medical expenses.

Qualifying FSA expenses include, but are not limited to:

• Prescription medications and most over-the-counter medications (like cough remedies)
• Medical equipment and supplies, like monitoring devices (e.g., CPAPs), canes, hearing aids, first aid, and emergency care
• Denture and orthodontic care, like adhesives, retainers, and dental treatments like fillings and crowns
• Prescription eyeglasses and contact lenses, including over-the-counter contact lens care and maintenance supplies.

FSA downsides to watch out for

Having access to tax-free money to pay healthcare bills can be great, but it’s a good practice to keep tabs on how much you’re putting into your account.

As mentioned, the IRS has announced higher contribution limits for next year (2026): $3,400, up from $3,300 in 2025.

But if you contribute more than the FSA threshold to your account ($3,400 for 2026), your deposits lose their tax advantage and will be taxed as wages at your applicable income tax rate.

The fact that FSA deposits are made through your employer’s payroll system can act as a brake of sorts on the amounts you’re contributing.

Another reason to monitor your FSA balance is that if you don’t spend all the money in your FSA by your health plan’s year-end, the balance will be forfeited to your employer. That’s pretty harsh.

• Employers may allow employees a grace period after the plan year’s end to spend the funds, or allow the employee to roll over a certain amount (up to $680 for 2026) to the following plan year.
• But an employer isn’t required to provide that relief.
• And if an employee leaves the company, the money in their FSA account stays with the employer. That's because under IRS rules, the account belongs to the employer, not the employee.

In either case, it’s in your best interest to exhaust all your FSA account funds before the plan year ends or before you leave the company.

Is an FSA right for me?

It depends. Employers may elect to offer FSAs to employees in addition to their standard benefits package, but it’s not a requirement. In addition, only employers can sponsor FSAs, so if you’re self-employed, you’re out of luck. (There are alternatives for you, but they’re governed by different rules.)

However, FSAs can be good for people with ongoing routine medical expenses — prescription and non-prescription drugs, glasses, contact lenses, and products for their maintenance, denture and orthodontic care products, and other dental treatments.

Dependent care FSA limit 2026

Employees with child or adult dependents who require care so the employee can work can open a dependent care FSA in addition to a healthcare FSA (these are separate accounts under IRS rules).

And some good news: The dependent care FSA limit is significantly increasing for 2026.

For 2026, the maximum dependent care tax-free contribution is $7,500, up from $5,000 in 2025. Eligible expenses include:

• Childcare (day care, pre- and after-school care)
• Summer camps (not overnight)
• Babysitters or nannies (work-related)
• Adult day care for a dependent parent or spouse

Not FSA-eligible? Consider an HSA

Under IRS rules, FSAs can only be sponsored by employers as part of an employee’s health benefits package, and in fact, the account belongs to the employer. So, individuals who aren’t employed are ineligible for an FSA.

But the self-employed and others aren’t left in the cold when it comes to a tax-advantaged savings account. They can open a health savings account (HSA), with all the tax benefits of an FSA and more, provided they meet a key requirement: they must be enrolled in a qualifying high-deductible health plan (HDHP).

However, HSAs come with their own contribution limits and pros and cons. For more information, see Kiplinger’s report: An HSA Sounds Great for Taxes: Here’s Why It Might Not Be Right for You.

Read More

• What Medical Expenses Are Deductible?
• Hidden Costs and Tax Benefits of Health Savings Accounts
• Child Tax Credit: How Much Is It for 2025 and 2026?

"I got hurt on the job — in my first few minutes, actually — and can't find a lawyer anywhere to take my case." That was how my conversation began with 17-year-old "Beau," who was calling from Charleston, S.C.

"Well, Beau, what kind of job do you have, and how were you injured?"

"Mr. Beaver, you will figure it out sooner or later, so I might as well be upfront. This was to be a weekend job as a porch pirate, working for a guy who runs a crew. A box I picked up exploded, spraying pink glitter everywhere — like what would happen in a gender reveal — and then a loud alarm sounded.

"In my hurry to get away, I tripped over a sprinkler head on the front lawn, fell and fractured my right wrist.

"I want to file a workers' compensation claim and also sue the homeowner who rigged this booby-trapped package, but when I try to speak with an attorney, everyone laughs at me."

I thought, "Yeah, I would, too!" But why would a porch pirate, also known as a thief, from the South be calling me?

Morally satisfying, entertaining videos

We've all seen — on the news and other websites — videos of a porch pirate swiping a package and walking away with a look of great satisfaction on their face, and then BOOM! The package explodes, covering the thief in brightly colored powdered dye or glitter. Next, we hear the creep swearing loudly.

There are hundreds of these videos that are morally satisfying, especially to anyone who has been the victim of a porch pirate.

Unfortunately, many are AI-generated, but everyone I've spoken to enjoys watching the instant karma that's delivered.

Now, going into business as a porch pirate requires only two things: a vehicle and being morally bankrupt. But what if you don't have reliable transportation that enables a quick getaway and still have dreams of financial independence through theft?

You go to work for someone who has both.

As Beau explained, "I met a guy who hires people to steal packages. The process was very smooth, very professional." This is how Beau described it:

The "employer" had one vehicle follow actual delivery drivers and report the addresses where parcels were delivered.

Wearing high-visibility safety vests, Beau and his cohorts were driven to those addresses, where they placed a business card for a tree trimming company on the porch near the recently delivered package, took a photo of it to make the process appear legit, then they would grab the package and leave. (The boss wanted a photo to keep all the Beaus from ripping him off.)

Not only did Beau share a photo of this event, he had an actual video — from walking up to the porch to when he fell.

"This was my first house," he said. "I was nervous, and instead of selecting the photo option on my phone, I accidentally pushed the button for video." (He also mistakenly picked up a package that had already been sitting on the porch, not the one that had just been delivered.)

He played it for me. I almost fell out of my chair, laughing.

Why was this South Carolina teen reaching out to a lawyer in California?

Beau explained that he did not tell his father what "the job" was, only that he fell and needed to speak with an attorney.

"My dad reads your Kiplinger column, and you interviewed a lawyer there some time ago, so we thought you might be able to put us in touch with someone."

Even if I could, I would not.

Could a homeowner actually be held liable in this case?

Every law student in America can tell you about the 1971 Iowa Supreme Court case Katko v. Briney.

The Brineys owned an unoccupied farmhouse that had been repeatedly vandalized and burglarized. They set up a loaded shotgun trap in a bedroom, set to fire when the door was opened, aimed to hit an intruder in the legs. No warning signs were posted.

Katko broke into the house to steal antique bottles and jars and was severely injured when he triggered the trap.

After pleading guilty, he sued the Brineys for actual and punitive damages and was awarded $30,000. The Brineys had to sell much of their farm to satisfy the judgment.

I remember to this day the outrage of students in Professor Ogren's torts class at Loyola Law School in Los Angeles. How could any lawyer help to reward this thief? How could a state Supreme Court validate the judgment?

This case is still precedent for the proposition that courts do not approve of potentially deadly booby traps, placing human safety over the value of property.

The law generally permits the use of deadly force only when a person is present and faces an imminent threat of death or serious bodily harm. Booby traps, by definition, operate when the owner is likely not present, removing the possibility of a human judgment call on the necessity of force.

Clearly, our genius Beau tripped over a sprinkler head — which was not part of the booby trap — and the glitter did not cause injury. Juries and judges would think, "The kid got what he deserved" — and that is why no lawyer playing with a full deck would take his case.

Has any homeowner been prosecuted or sued for an exploding "bait" package of glitter or dye? I could find no cases, anywhere, over the past several years.

That said, it isn't recommended that you booby-trap your packages.

My advice to Beau

I thanked Beau for his call, telling him that he was far luckier than he realized.

"You were about to embark on a path that could lead to state prison. Think of the fractured wrist as the luckiest break of your life. Get an education, or a trade, steer clear of creeps who dangle quick-money schemes before your eyes. Also, tell your family the truth and about our conversation."

He promised to do so. I think he will.

Dennis Beaver practices law in Bakersfield, Calif., and welcomes comments and questions from readers, which may be faxed to (661) 323-7993, or e-mailed to Lagombeaver1@gmail.com. And be sure to visit dennisbeaver.com.

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

As a financial professional, you build your business on trust. Clients seek guidance on their most important life decisions, and that relationship is founded on more than just numbers. It's about connection.

What if you could deepen that connection, expand your reach and strengthen your team while making a tangible difference in your community?

Strategic community engagement offers a powerful way to do that. It's about aligning your firm's values with meaningful action.

The benefits go far beyond a simple tax deduction. When done right, giving back can boost brand recognition, drive referrals and foster a company culture that top talent wants to be a part of.

Let's explore how real advisers are turning community spirit into business growth.

Build your brand by building your community

In a crowded marketplace, a strong brand helps you stand out. Community involvement is an authentic way to show your firm's values.

Instead of just telling people about your causes, demonstrate them through action, creating a reputation that marketing dollars can't buy.

Just ask Rob Russell of Russell Total Wealth and Wellness. His Dayton, Ohio, firm decided to move beyond sporadic donations and focus its philanthropic efforts on four core pillars:

• Supporting military veterans and first responders
• Mentoring local youth
• Improving community health care
• Boosting Dayton's business reputation

By becoming a lead sponsor for such organizations as Big Brothers Big Sisters, the Russell name became highly visible at local events.

This strategic approach didn't just feel good; it helped elevate the firm's profile and showed the community who they were.

Turn authentic connections into client relationships

Many advisers find their best clients through referrals, which are built on trust. Community engagement is a natural way to build that trust on a wider scale.

When potential clients see you and your team volunteering or passionately supporting a local cause, they see you as more than just an adviser. They see you as a neighbor.

This is exactly what the team at Russell Total Wealth and Wellness experienced. The firm's deep community involvement led to referrals, including a client who likely would have never attended a traditional seminar. These clients were drawn to the firm's genuine commitment to the community.

David Brooks of Retire SMART found a similar path to connection, with a different method. His calls strategy involves re-engaging past prospects with timely, relevant information.

By reaching out with a thoughtful message tied to current events, he turns a cold lead into a warm conversation.

This approach, focused on personal connections, helped bring in a substantial number of assets in a single year. It proves that focusing on people first pays off.

Strengthen your culture and engage your team

A strong company culture is essential for attracting and retaining great employees. People want to work for a company with a purpose beyond the bottom line.

Involving your team in community initiatives can increase morale, foster teamwork and create a shared sense of pride.

Chad Slagle of Slagle Financial saw his employees become more engaged — and more grateful to work for a company with heart — by shifting to a service-oriented mission. Spurred to action by the death of a local police officer who left behind a wife and daughter, Chad founded Teaming Up for Good, his firm's philanthropic wing.

The initiative, which supports first responders, the military and children, gave his team a powerful cause to rally around. It transformed their workplace into a community of people making a difference together.

Create a legacy of lasting impact

While the business benefits are clear, the most profound outcome of community engagement is the positive change you create. By addressing local needs, you can help build a legacy that lasts.

Slagle's support for the Tyler Timmins Memorial Foundation, created in honor of the fallen officer, shows how a firm can help heal and strengthen its community in a time of need.

Similarly, Josh Bradley of Capital City Financial Partners hosted educational events with FBI agents to teach clients about elder fraud and cybersecurity. By providing this vital service, his firm became a trusted advocate for its community's most vulnerable members.

Actionable steps to get started

Ready to harness the power of giving? Here's how you can start:

Define your mission. Identify causes that align with your firm's values and resonate with your team. What are you passionate about?

Plan with purpose. Start small. You don't need a massive budget to make a difference. Choose one or two initiatives, and do them well.

Involve your team. Ask your employees what causes they value. Giving them a voice will increase buy-in and engagement.

Partner for impact: Collaborate with local nonprofits or community organizations. They have the expertise and infrastructure to help you make a real impact.

Share your story. Let your clients and community know what you're doing. Share updates in your newsletter, on social media or at client events. This inspires others and reinforces your brand's commitment.

Ultimately, integrating community engagement into your business model is a win-win. You'll build a stronger business, a more engaged team and a better community. It's a powerful reminder that doing good truly is good for business.

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

With a home equity line of credit, or HELOC, you can use your home’s equity to cover costs like renovations, education or emergency expenses. With Americans collectively holding about $17.3 trillion in home equity, a level not seen in decades, many homeowners now have more borrowing power than they realize.

A HELOC’s flexibility is appealing, but your monthly payment can shift based on your credit, loan terms and interest rate. Understanding how those factors work is key before tapping your equity.

Here’s what a $50,000 HELOC may cost each month and how to decide if this type of financing fits your needs.

What affects your HELOC payment?

Many factors affect your HELOC payment, so it’s important to consider your specific situation and how these factors will impact your rates:

• Credit score: If you have a high credit score, you’re more likely to qualify for a lower HELOC interest rate. If your credit score is lower, though, you’ll probably have a higher interest rate. Keep in mind that even if you have a HELOC already, if your credit score drops during the loan term, your lender might increase your interest rate because they consider you a higher-risk borrower.
• HELOC term: Your HELOC term will affect your rates, too. Shorter terms usually carry lower interest rates, and longer terms will typically have higher interest rates. Most HELOCs consist of a draw period ranging from five to 10 years, during which you make interest-only payments. The repayment period can last 10 to 20 years, and during that period, you’ll be repaying the principal and interest, meaning your payments will increase.
• Loan-to-value ratio: Your loan-to-value ratio compares the amount of your loan to your home’s appraised value. The lower this ratio is, the less risky lenders consider you to be, meaning you’re likely to get a lower interest rate. According to First Merchants Bank, you’ll need a loan-to-value ratio of 90% or lower to qualify for a HELOC. For the best interest rates, your loan-to-value ratio should be 80% or less.
• Prime interest rate: Your HELOC interest rates are based on the prime rate, which is affected by the Federal Reserve’s actions. According to the Wall Street Journal, the average HELOC interest rate as of November 11 is 7.82%.
• Lender margins: In addition to the prime rate, each lender can add their own margins to determine your final interest rate. Lender margins can be negative or positive, and they vary from lender to lender. As a result, it’s best to shop around and compare quotes from multiple lenders before taking out a HELOC.
• Variable rate adjustments: Most HELOCs have a variable interest rate, so your interest rate can change throughout the term of your loan. As the prime rate fluctuates, your interest rate could increase or decrease, too.
• Rate cap: Many lenders implement an interest rate cap to protect you if interest rates decrease dramatically. Often, that cap is around 18%, but that can vary depending on your lender.

How much a $50,000 HELOC costs per month

Here’s an example of what a $50,000 HELOC could cost based on current rates and typical loan terms. The United Nations Federal Credit Union HELOC payment calculator makes this easy.

If you have excellent credit and a low loan-to-value ratio, you might qualify for an interest rate around 7.82%. With a 10-year draw period followed by a 20-year repayment period, your payments would begin as interest-only and later shift to principal and interest.

The table below outlines how those payments break down:

Note: These payments don’t account for potential changes from a variable interest rate. Your actual monthly cost may increase or decrease over time.

HELOC vs. home equity loan: What’s the difference in monthly cost?

Like a HELOC, a home equity loan lets you borrow against your home’s equity, but the structure is different. A HELOC gives you flexibility to borrow only what you need during the draw period, while a home equity loan provides a single lump sum upfront.

Home equity loans also come with fixed interest rates, which means your monthly payment stays the same throughout the life of the loan. That predictability creates a very different cost profile compared with a HELOC’s variable rate and interest-only draw period.

Because of those differences, your monthly cost on a home equity loan may be more stable, while a HELOC’s payment may rise or fall over time.

Use the tool below to explore some of today's top home equity offers, powered by Bankrate:

Pros and cons of borrowing $50,000 from your home equity

There are several pros and cons to taking out a $50,000 HELOC. Its biggest advantage is flexibility. During the draw period, you can borrow, repay and borrow again up to your credit limit. For example, if your limit is $50,000, you could borrow the full amount, repay $15,000 and then borrow that $15,000 again whenever you need it.

This revolving structure makes a HELOC useful when you’re unsure how much you’ll ultimately need, such as when funding education costs or paying for a home upgrade or renovation.

During the draw period, another advantage of a HELOC is that your required payment typically covers only the interest, not the principal. You can choose to pay down the principal during this time, but the option to make interest-only payments keeps your initial costs lower. That trade-off does mean your principal and interest payments will be higher once the repayment period begins.

There are downsides to consider, too. Most HELOCs have variable interest rates, which can rise or fall throughout the loan term. Because your rate isn’t fixed, your monthly payment can change, and you’ll need to be prepared for potential fluctuations as the prime rate moves.

A HELOC also uses your home as collateral. If you’re unable to make the required payments, you could put your home at risk. It’s important to weigh that possibility carefully and make sure you’re comfortable with the long-term commitment.

When a $50,000 HELOC makes sense

A $50,000 HELOC can make sense in several situations. It’s often used for home improvements, particularly if the renovation is likely to increase your property’s value. It can also provide quick access to funds for large or unexpected expenses, such as medical bills, education costs or business startup needs.

A HELOC may also work as a debt consolidation tool. If you’re carrying multiple high-interest debts and qualify for a lower HELOC rate, you could use the line to pay those balances off and replace them with a single monthly payment. Just be mindful that HELOCs have variable interest rates and longer repayment periods, which could result in higher overall costs if rates rise.

As with any borrowing decision, it’s important to consider how predictable your expenses are and whether the flexibility of a HELOC aligns with your financial situation.

Tips before applying for a HELOC

If you decide a HELOC is right for you, it’s important to carefully shop around. Interest rates and rate caps can vary from lender to lender, so get multiple offers and compare them. Make sure that you understand all of the terms of the loan, and if you’re not clear on something, ask for more information.

A HELOC may be helpful in certain situations, but it’s not the right choice for everyone or every scenario. Consider the long-term affordability of this type of loan and make sure that you’re comfortable with the risks before you take out a HELOC.

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Welcome to Kiplinger's My First $1 Million series, in which we hear from people who have made $1 million. They're sharing how they did it and what they're doing with it. This time, we hear from a self-employed trader who lives in San Francisco. He and his wife are from Austin, Texas, but call both places home.

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

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

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

THE BASICS

How did you make your first $1 million?

That's a tricky one. It might have come about the same time from two different sources. Real estate and RSUs (restricted stock units). At an early age, my wife and I began investing in residential rental properties in the Austin area. We built up a portfolio of five single-family homes.

The equity in that portfolio probably reached a million about the time my wife got a honey of an RSU package from a firm in San Francisco that was worth more than $1 million.

(So we made our first million) probably around 2019.

What are you doing with the money?

As the Austin real estate market overheated, we began selling properties and rolling the proceeds into another market with no state income tax but much lower property taxes.

We turned a portfolio of five houses into 10 houses with significantly lower property tax bills for a similar amount of rent.

The RSUs continued to grow in value, which allowed us to build a very nice house. They also provided the capital I needed to change gears and move out of my corporate finance/accounting career and into full-time trading, which now provides me with more income than any job I ever had.

And if increased income isn't enough for you, let me tell you that having no boss and no meetings and whatever schedule I choose is hard to put a price tag on.

It also allows me to volunteer more at church and help others with financial education.

A significant portion of our income goes to charity, but that has nothing to do with making a million. It has always been that way and always will be that way.

THE FUN STUFF

Did you do anything to celebrate?

No. We weren't even aware of it in all honesty. $1 million used to mean something. For us, it is just a small part of a much bigger plan and expected outcome.

Does anyone know you're a millionaire?

I can't think of anyone. We want to be known for our generosity and how much we give away and not by how much we have.

What is the best part of making $1 million?

It's the hardest million to make. You always hear that the first million is the hardest. It is absolutely true. The next millions come quicker.

The best part of making $1 million is that it proves you have what it takes to make the next however millions. There is a reason so many people will never make a million. It's hard, and it takes discipline.

Did your life change?

It didn't change our life all that much. We drive a nicer car and have nicer things, but we still live significantly below our means because we have more goals to accomplish.

You don't hit a certain dollar milestone and then just change things up. It's why so many lottery winners or superstar athletes go broke. They stayed true to who they were before the money came, just like my wife and I stay true to our principles after the money came.

Any plans to retire early?

My wife will probably retire by 55. I love being a trader and can do it anywhere as long as a market is open and at any age. It is now the annuity stream I've always sought.

I'll probably cut loose all the real estate and add the capital to my trading account. The returns are way higher than real estate. Real estate has gotten out of control on the cost side of the equation.

LOOKING BACK

Anything you would do differently?

That's hard to answer because we always assume that if we change something, it will make things better today. I like who I am today. Who I am today is a product of all the lessons learned from the past.

If I changed something and didn't learn a particular lesson, I might be worse off today.

Those tools I added to my toolbelt from those lessons equip me to do even better going forward, so no, thanks, I wouldn't change a thing.

Did you work with a financial adviser?

No. I've always had a knack for making my money work for me. I realized early on that it wasn't enough to just make money. I had to get multiple streams of income working for me, thus investing in real estate. My tenants were buying me appreciating assets.

Early on, I settled on an investment strategy based on a simple premise that I could not know how long I'd live, and I did not want to ever worry about running out of money.

I decided on a three-pronged approach:

• Personal savings via retirement accounts
• A perpetual annuity stream through rental properties
• Social Security

Social Security was deemed the least-reliable of the three and would be treated as a bonus (which is pretty terrible since it is something we've funded all our lives and should be able to count on it, but we have terrible politicians who expect us to do finances correctly while they bankrupt our country).

We have diligently saved in our retirement accounts and are in the process of paying off mortgages on rental properties.

Did anyone help you early on?

My dad taught me to be cost-conscious and pay my bills. That stuck with me. That, combined with this inner drive to maximize everything I get my hands on, turned into financial success.

LOOKING AHEAD

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

Stop watching the highlights of the world on social media. It paralyzes you. It fills you full of anxiety and FOMO.

Making a million is not rocket science. It's not instantaneous, and it's not sexy. It's wanting more, being willing to do what it takes to get more and having the discipline to control your spending along the way.

My wife and I made sacrifices in the past so we could have what we have today. Delayed gratification and investment in ourselves.

Stop believing everyone is smarter and better than you and that you'll never make it because you're not good enough. Bet on yourself and make it happen!

Do you have an estate plan?

Not yet. My CPA diligently pesters me about this, and I need to stop dragging my feet. My wife and I did not come from money and did not receive any inheritances.

Now that we have something, we want to make sure it passes as easily and tax-friendly as possible.

What do you wish you'd known …

When you first started saving? That it takes a long time, but if you keep at it, then results will come.

When you first started investing? Be patient. Zoom out on your chart and look at the years and stop sweating what is happening on the daily timeframe.

Real wealth doesn't come from buying something at the beginning of the week for $100 and selling it at the end of the week for $105. That's how I make money weekly in trading.

Real wealth comes from buying something for $100 and selling it in 20 years for $100,000. Patience, patience, patience.

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

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For many people, charitable giving feels like something to focus on later in life, after retirement, when there's more time to reflect and plan.

But from a financial standpoint, the most powerful time to give is often while you're still earning.

That may sound counterintuitive. After all, retirement is when you finally have clarity about what you can afford to give away.

But the truth is, charitable gifts made during your peak earning years can have a bigger financial impact — both for you and for the organizations you support.

1. Tax advantages today, generosity in the future

Here's an example to better illustrate: Deductions are most valuable when your income, and therefore your tax bracket, is at its highest. A $10,000 donation can feel very different depending on when it's made.

If you're in the 35% tax bracket, that gift could save you $3,500 in taxes. Make the same contribution after you've retired and dropped into a 22% bracket, and the tax savings fall to $2,200.

The charitable impact is the same, but the benefit to you is nearly 60% greater during your earning years.

That doesn't mean you have to give away a large sum all at once. One of the best tools for bridging today's tax advantages with tomorrow's generosity is a donor-advised fund (DAF).

These funds allow you to make a sizable, tax-deductible contribution in a high-income year, but decide later how and when to distribute the money to the charities you care about.

It's like setting aside cash in your "charitable account." You lock in the deduction now, but retain the flexibility to give gradually, even long after you've retired.

This approach can be especially useful if you're expecting a one-time jump in income, such as selling a business, receiving a bonus or exercising stock options.

You can offset some of that taxable income by funding a donor-advised account in the same year.

2. High interest rates can work in your favor

Today's higher interest rate environment has also made certain charitable strategies more appealing than they've been in years. Vehicles like charitable remainder trusts or charitable gift annuities can provide reliable income streams for you or your loved ones while ultimately benefiting the causes you support.

With rates up, those income streams are often higher, a welcome development for anyone seeking both generosity and financial security.

3. You'll make an impact now

The bigger picture here is that giving shouldn't be an afterthought or something reserved for the end of your career.

It can be a living, active part of your financial plan, and a way to align your wealth with your values while you're still building both.

The key is understanding what you need to support your lifestyle and what constitutes excess net worth that could be put to work for others.

When giving is integrated into your broader plan, it not only helps you make the most of your resources but also adds purpose to your financial life.

You don't have to wait for retirement to make an impact. You can start now. Often, that's when your generosity goes the farthest.

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

If you've ever delayed or avoided checking on your finances because you're afraid of what you'll find, you aren't alone.

A new survey conducted by Wealth Enhancement in partnership with Wakefield Research found that nearly half (44%) of U.S. adults have purposely avoided checking a financial account in the past year due to stress or fear — and younger generations, specifically Gen Z, are particularly susceptible to this.

Psychologists refer to this phenomenon as an avoidant response. When your finances are a source of stress and anxiety, it can often feel better in the moment to avoid them rather than face them head-on.

But avoiding a problem rarely makes it go away; it can lead to even greater setbacks. In the case of personal finances, this can result in a deeper financial hole, leading to increased stress. This perfectly normal stress response can escalate into a cycle that's difficult to break.

For most people, money is emotional

The latest research underscores the notion that money is inherently emotional. Most people (59%, according to the survey), report experiencing difficult emotions, such as anxiety (45%) or frustration (40%).

For many, these negative emotions and stress trace back to very real and rational fears. Daily living expenses and housing costs are two of the biggest financial stressors, and more than half of U.S. adults identify with them — 55% and 42% respectively.

Other common stressors include medical expenses (26%), credit card debt (26%) and retirement planning (18%).

However, money doesn't bring up negative emotions for everyone. Many people also report feeling hope (49%) or pride (22%) when they think about their financial situation.

As challenging as it can be to deal with our emotions around money, the first important step is to confront them and to identify when beliefs are driving them.

Even small changes in your beliefs around money (and your aptitude with it) can help you gain confidence and take action to positively affect your financial situation.

Talking about money helps more than you think

One of the best ways to approach money fears is to discuss them with people you trust.

More than half of those surveyed report being somewhat or very comfortable talking about financial stress. Most often, people turn to a family member (49%), a significant other (38%) and friends (37%) to discuss their financial worries.

Meeting with a financial adviser can also help individuals feel more confident and empowered in their financial lives.

However, this option remains largely untapped; only about one-third of survey respondents said they had met with a financial adviser in the past year. Of those who did, 88% reported feeling less stress afterward.

An adviser can help to give a clear picture of where an individual stands and help take those initial steps that we might not be ready to do on our own. Accountability and regular check-ins can also help us make progress in improving our financial situation.

Turning financial fear into action

Financial stress can take a toll, but avoiding the problem isn't the answer. Even small, manageable changes can improve your situation over time.

Start with something very small, such as reviewing your budget once a week, setting up a regular money conversation with your spouse or seeking the assistance of a professional.

Not only will this give you more awareness of what's going on with your finances, but minor shifts can be empowering.

Survey respondents reported that changes in their financial habits, such as more careful budgeting, keeping an emergency fund, saving for big purchases and cutting back on impulse purchases, would help reduce stress.

But often, turning intention into action is a big step on its own.

Change isn't immediate, and it isn't linear. It's normal for change to take time and sometimes feel a little uncomfortable at first.

Being consistent can help these changes become part of a normal routine and make a tangible impact on our finances with time.

It's also possible to face financial setbacks along the way. Don't let obstacles hinder progress in improving your financial situation. The goal is persistence, not perfection.

Finally, turn those small, short-term changes into regular habits. Make it a point to monitor them regularly.

Revisiting your financial plan — especially one you've crafted with the help of a financial adviser — during times of financial stress can alleviate negative emotions and help you focus on what you can control: Your next step in pursuing your financial goals.

This article is for general information only and not intended to provide specific advice or recommendations for any individual.

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

Many people choose to make philanthropy a priority in retirement, using their resources to bless others and fund a charitable legacy.

Years of hard work and saving provide them with an opportunity to give back in a meaningful way.

But here's the challenge: Without a proactive tax plan, retirees often pay far more to the IRS than they have to, which can limit the amount that reaches the causes they care about most.

Being more intentional about the timing and structure of your charitable contributions can allow you to minimize your tax liability and maximize the impact of your gifts.

Here are four practical strategies that can help make your giving more tax-efficient.

1. Turn your RMD into a tax-free gift

Once you turn 73, you must make required minimum distributions (RMDs) every year from your tax-deferred accounts. These withdrawals are taxed as ordinary income, and they can easily nudge you into a higher tax bracket.

That could trigger a tax on up to 85% of your Social Security benefits and potentially raise the cost of your Medicare premiums.

For those who are charitably inclined, a qualified charitable donation (QCD) can be one of the simplest solutions. If you're 70½ or older, QCDs allow you to make tax-free donations directly from your IRA to a qualified charity.

The donation can satisfy all or a portion of your RMD and isn't reported as taxable income on your tax return. Your charity receives the full distribution, and the IRS gets nothing.

You can make a QCD from any tax-deferred IRA account, such as a traditional IRA, inherited IRA, or a SIMPLE IRA or SEP IRA that you're no longer contributing to. (You cannot use a 401(k) or similar workplace plan.)

In 2025, you can donate up to $108,000, and if you're married, each spouse can donate up to his or her individual annual limit. Just be sure the QCD goes directly from your custodian to the charity. The IRS says the funds can't touch your bank account.

2. Give appreciated stock, not cash

If you own stocks, mutual funds or exchange-traded funds (ETFs) that you've held for more than a year, you may find it makes sense to donate those investments directly to your church or a charity instead of selling them and giving cash.

Here's why: When you sell securities that have appreciated in value over time, the gains are subject to capital gains taxes. Depending on where you live, you also could owe state taxes on the gain.

But if you donate those investments directly to a qualified charity, you won't pay capital gains tax. Instead, you'll get a tax deduction for the full fair market value of the securities at the time of the transfer (if you itemize).

The tax deduction limit is up to 30% of your adjusted gross income, but you can carry over any excess for up to five years.

Meanwhile, the charity can sell the positions and pay zero taxes on the capital gains. If your church or nonprofit doesn't have a brokerage account, many custodians or local community foundations can help facilitate the transfer.

3. Name a charity as a beneficiary of your IRA or 401(k)

If you have more money saved in your 401(k) or traditional IRA than you expect to spend in retirement, you may be planning to designate your child or another loved one as the account's beneficiary when you pass.

But for many people, leaving the account to a favorite charity, or charities, can be a more tax-efficient option.

That's because when a qualified charitable organization receives a distribution from a traditional IRA, it doesn't have to pay income tax on the funds. This is a notable advantage compared to a child or other non-spousal beneficiary, who would have to pay ordinary income tax each year on any withdrawals from the account.

In most cases, family members are now required to take distributions from pretax accounts within 10 years, which could push your beneficiary into a higher tax bracket (especially if they're in their peak earning years).

In other words, leaving $200,000 to a specific charity through a traditional IRA would provide the charity with $200,000 to use.

But if that $200,000 IRA were to go to a non-spousal beneficiary, the taxes owed would likely eat up a good-sized chunk of that generous gift.

Your loved ones would probably be happier to receive a tax-free life insurance payout, a Roth IRA or another tax-smart option.

4. Make a difference with a donor-advised fund

Donor-advised funds (DAFs) have gained popularity since the Tax Cuts and Jobs Act (TCJA) changed the rules for writing off charitable contributions starting in 2018.

With a DAF, you can bundle or "bunch" several years' worth of donations into one large contribution (in cash or assets) to meet the TCJA threshold for itemizing charitable deductions in that year.

Instead of going directly to a charity in one lump sum, your donation is then invested by the DAF's sponsoring organization. And once it's invested, the donation can continue to grow tax-free until it is paid out, also tax-free, to qualifying causes over time.

Though you'll no longer have a legal right to the money in the DAF, you will have "advisory" privileges, which means you can help plan when and to whom you wish to make grants.

A DAF is relatively easy and inexpensive to set up — and it's a tax-smart way to follow through on your gifting goals.

Faithful giving, wise stewardship

I don't know many people who would say that getting a tax deduction is their top motivation for charitable giving. For most folks, it's more about their value system or part of their faith journey.

Still, tax efficiency can be an important consideration for many donors. The right strategy can help you be a better steward and allow you to give cheerfully, knowing you're making the maximum impact with your money.

An experienced financial adviser can walk you through the pros and cons — and the sometimes complex IRS rules — for these and other gifting options. Don't hesitate to ask for help so you can find the best fit for your family's giving goals.

Kim Franke-Folstad contributed to this article.

The appearances in Kiplinger were obtained through a PR program. The columnist received assistance from a public relations firm in preparing this piece for submission to Kiplinger.com. Kiplinger was not compensated in any way.

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

Every December, people do the same rituals: They check their credit card rewards, swear they're finally going to tidy up the garage and promise they'll eat fewer cookies in January (not to mention resolve to go to the gym and get those rock-hard abs). Oh, and lose weight — maybe that goes without saying.

But there's one year-end task that matters a lot more than resolutions you probably won't keep for long, and it should take less time than you think: review your insurance.

If that sounds boring, consider this: Insurance is the thing you buy hoping you'll never need it. So if you do end up needing it, you want to be very sure it still fits your life — not the life you had three, five or 10 years ago. As you know, change is inevitable.

Let's walk through the year-end insurance check. It's simple, it's mostly free, and it can save you from nasty surprises and unnecessary heartache.

Do a quick 'life change' scan

Before you open a policy, take two minutes to ask yourself: "What changed this year?"

Common changes that should trigger a review:

• You bought or sold a car, RV, boat or e-bike
• You remodeled, added solar, built an ADU (accessory dwelling unit) or upgraded the kitchen or bathroom(s)
• You started working from home full time or launched a side business
• A child started driving, moved out or moved back in (check gray hairs)
• You got married, divorced or combined households
• You traveled more, rented out your home or made it available for renting via Airbnb or a similar service
• You adopted a dog (especially certain breeds) or added a pool/trampoline

Insurance follows risk. If your risk changed, your coverage needs to as well.

Homeowners: Confirm your coverage actually matches the rebuild cost

Most homeowners assume their dwelling limit (called Coverage A) is "whatever online searches show my house is worth." That's not how it works. Not even close.

Online sites such as Zillow show what they consider to be your home's market value. Insurance is about rebuild cost. In many areas, especially where labor and materials have spiked, such as after a large disaster, rebuild costs will be way higher than what you or anyone ever thought they would or could be.

Think of Coverage A like the foundation of your policy. If it's wrong, everything built on top of it is shaky.

Homeowners: Look hard at your deductibles

Deductibles, especially when listed separately for wind, hail or wildfire, are where you take on more risk yourself.

Two things to review:

• Your standard deductible or percentage
• Any separate percentage deductibles for other types of events

A 2% wildfire deductible on a $1 million dwelling limit is $20,000 out of pocket before the policy pays a dime. Many people don't realize that until it's too late.

If a claim happens tomorrow, could you comfortably write that check?

If not, fix it now, not during a disaster.

Homeowners: Spot the silent gaps

Policies age. So do your assumptions. Here are common year-end blind spots:

Ordinance or law coverage. If you rebuild after a loss, code upgrades can be expensive. Without enough ordinance and law coverage, you pay that yourself.

Loss of use limits. If rents jumped in your area, your additional living expense limit may be too low.

Water backup/sump pump/sewer overflow coverage. These are often add-ons. If your neighborhood floods during heavy rain, check whether you actually have this.

Coverage for jewelry, art, collectibles, firearms, wine, musical instruments. Sublimits are small. If you own expensive items, schedule them.

Your policy is full of "yes, but only up to…" statements. Find those and make sure you understand them.

Auto owners: Confirm that liability fits your current assets

Liability is the part of auto insurance that protects you when you hurt somebody else. It's also the part where most people are underinsured.

A rule of thumb: Your liability limit should at least match your net worth. If you have more to lose now than when you bought the policy, update it. You've worked hard — now protect the assets you've accumulated.

Auto liability is cheap relative to what it protects. This is not the place to pinch pennies.

Auto owners: Update usage and drivers

Insurers base your premium on who drives and how much.

Umbrella insurance: Consider this

Umbrella insurance is the extra layer above home and auto liability. It's one of the best bargains in insurance, but only if the underlying policies are set correctly.

If umbrella insurance is the roof, home and auto liability are the walls. Don't leave gaps between them.

The final step: Document everything and put it on the calendar

A review that lives in your head is a review that disappears by February.

What you can do:

• Write down what you checked and what changed
• Save current declarations pages in one folder
• Set a reminder for next December
• Email your agent a short list of updates or questions

Insurance isn't a set-it-and-forget-it prospect. It's set-it-and-review-it-regularly.

Want to learn more about insurance? Visit icgs.org.

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

This proposed deduction would be in addition to the standard deduction, which most taxpayers currently claim.

The proposal comes on the heels of a massive 2025 Trump/GOP tax and spending bill that offers taxpayers several new deductions for car loan interest, overtime pay and tip income.

However, Hawley's proposal, which would have to clear significant political hurdles to advance in Congress, wouldn’t replace the Affordable Care Act (ACA) premium tax credits.

Those credits, which help millions of Americans afford health care premiums, have been at the heart of debate on Capitol Hill since the government shutdown.

Will there be significant changes to health care tax breaks in 2026?

No taxes on health care?

In a release about the bill, Hawley points out that “nearly 41 percent of adults in the United States have some form of debt stemming from medical expenses. In the last year alone, a recent Gallup report found that 31 million Americans borrowed money to pay for health care.”

To address that, Hawley’s bill would expand the existing medical expense deduction, which currently is available only to taxpayers who itemize and only for expenses above 7.5% of adjusted gross income.

His plan would move that deduction “above the line,” so that any taxpayer could claim up to $25,000 per person in out‑of‑pocket medical spending, including premiums they pay directly for coverage.​

The proposal, announced in early December, is framed as “no taxes on healthcare,” echoing recent GOP slogans such as “no tax on tips” and “no tax on overtime.”

What about ACA tax credits?

ACA premium tax credits lower marketplace premiums up front based on income and plan cost, and enhanced subsidies created by pandemic‑era legislation are set to expire at the end of 2025 unless Congress acts.

• Hawley’s bill doesn’t extend those ACA subsidies and doesn’t create a new ACA‑style credit.
• Instead, his proposal offers a separate federal tax deduction that would come into play at filing time, not at the time you purchase a health care plan.​

Because deductions reduce taxable income rather than premiums directly, they generally deliver less relief than a dollar‑for‑dollar subsidy, particularly for lower‑income households with little tax liability.

If enhanced ACA credits lapse, many marketplace enrollees could see substantial premium increases in 2026, regardless of Hawley’s idea. Nonitemizers would still likely be left weighing higher monthly bills against a possible year‑end tax break

Who might benefit?

Generally speaking, an above‑the‑line health deduction would skew toward taxpayers with enough income and out‑of‑pocket costs to fully use it. Think middle‑ and upper‑middle‑income households buying their own coverage without employer help.

Lower‑income consumers who currently rely on ACA subsidies, Medicaid, or employer plans with modest worker premiums might see little or no direct gain from a health care tax deduction such as Hawley’s. That's because they often don't pay enough income tax to fully benefit from a large deduction.

And ... a tax deduction wouldn't prevent coverage loss for people who can't afford the higher gross premiums that will come if enhanced ACA credits expire.​

Health care premiums: Bottom line

Key mechanics of the Hawley plan remain vague, including a major fiscal issue: How the government would offset the revenue loss from such a significant, broadly available health care tax deduction.

For now, the long and short of it is that Hawley’s bill is just a proposal.

Senate Democrats, meanwhile, continue to push for an extension of ACA subsidies rather than a deduction‑based alternative.

The health care tax debate rages on.

Read More

• What's in Trump's 2025 Tax Overhaul Bill?
• ACA Tax Credits and the Government Shutdown
• Most Overlooked Tax Deductions and Credits
• Premium Tax Credit: Are You Eligible?

Homeowners today are sitting on a historic amount of real estate wealth. Americans collectively hold about $17.3 trillion in home equity, a level not seen in decades.

At the same time, borrowing costs tied to that equity have begun to ease. Many home-equity loans, home-equity lines of credit (HELOCs) and cash-out refinances have recently dipped below 8%, after peaking much higher during the rate-hike cycle.

With 2026 approaching, a year that could bring both lower interest rates and tax-law changes, many homeowners are weighing their options. Should they tap their equity now, or wait in hopes of better savings later? Here is how to think about the trade-offs.

When borrowing now makes sense

Pulling equity out before the year ends can be a smart move in several scenarios, especially if you’re using funds strategically. Here are a few reasons when tapping your home’s equity might make sense.

You’re planning a renovation or essential home project.

If your roof, HVAC system or major appliances are nearing the end of their lifespans, tapping equity can be far more affordable than turning to high-interest credit cards or personal loans. Even slightly lower home-equity rates can translate into substantial long-term savings on large projects.

You’re consolidating high-interest debt.

Credit card APRs regularly sit above 20%, so even a home-equity loan in the 7% range can slash interest costs. For disciplined borrowers who won’t fall back into high-interest balances, tapping equity can serve as a true reset for their budget.

You want flexibility and expect rates to fall.

A variable-rate HELOC lets you borrow only what you need when you need it, and you’ll only pay interest on the amount drawn. If market rates continue to decline into the new year, your HELOC payments could adjust downward accordingly.

You’re confident in long-term home value and stable cash flow.

If your income is steady and your local housing market remains resilient, borrowing today might offer a healthy balance of affordability and liquidity without adding unnecessary financial strain.

Why waiting could be smarter and what’s at stake

Patience can pay off, especially if rate forecasts hold. Here are a few reasons you might want to wait before tapping your home’s equity.

Additional rate cuts might lower borrowing costs.

Some analysts expect the Fed to continue trimming rates into 2026. If that plays out, fixed-rate home-equity loans and even cash-out refinances could become cheaper next year. Shaving even half a percentage point off a large loan can save thousands over time.

Fixed-rate borrowers stand to gain the most by waiting.

Unlike HELOCs, which can adjust downward as rates fall, fixed-rate loans require you to lock in a rate at closing. If you’re planning a major home improvement project next year, delaying could give you more room to secure a better deal.

But waiting isn’t without risk, since your home’s value or local market conditions could shift. In some markets, tighter lending standards or shifts in demand could make equity borrowing more restrictive over time. Unexpected expenses can also come up. If a sudden repair or financial emergency hits, you might be forced to borrow during a less favorable window.

Waiting can save you money, but only if market conditions move in your favor and your financial needs stay predictable.

If you haven't taken out a home equity loan or HELOC yet, use our home equity tool below, powered by Bankrate, to compare rates you can get today:

Common mistakes homeowners make when tapping equity and how to avoid them

One of the biggest mistakes homeowners make when borrowing against their home is using the funds for non-essential or short-lived expenses such as vacations, gifts or lifestyle upgrades. While tempting in the moment, these uses don’t build long-term value and often leave borrowers with years of additional debt.

Another common misstep is assuming HELOC rates will continue to fall. Variable-rate credit lines can be helpful for flexibility, but they’re also unpredictable. If rates rise again, monthly payments can climb quickly.

Homeowners also frequently borrow more than they truly need, simply because lenders approve larger credit limits. Taking the maximum available amount can put unnecessary pressure on your budget and increase overall risk.

To avoid these pitfalls, focus equity borrowing on essential financial goals like necessary home improvements or consolidating high-interest debt, choose the loan structure that aligns with your risk tolerance, and borrow only what’s needed to meet your objective.

Practical advice for homeowners evaluating their options

If you’re weighing whether to pull equity now or wait until 2026, take these steps to make a sound decision:

1. Calculate your current equity (realistically)

Review your latest mortgage balance and compare it with recent comparable sales in your area. Don’t rely solely on automated valuation tools, since they can be overly optimistic.

2. Clarify your purpose

Equity borrowing makes the most sense when it strengthens your financial health: Increasing home value or lowering interest costs. If the purpose is discretionary, it’s better to pause.

3. Shop aggressively for a lender

Rates, closing costs and terms vary widely. Don’t automatically default to your current mortgage provider. A difference of even 0.25% can significantly affect long-term cost. It pays to shop around for a mortgage lender, since each lender might offer different rates, fee structures and support.

4. Choose the right loan structure for your personality and goals

A HELOC works well for gradual projects or flexible cash needs because you can draw funds as you go.
A home-equity loan suits borrowers who want predictable monthly payments and a fixed repayment timeline.

5. Run the numbers before committing

Estimate monthly payments, total interest costs and the potential tax benefits. Under current IRS rules, interest on home-equity debt is tax-deductible only when the funds are used for qualifying home improvements. That’s worth factoring into your calculations.

Tapping your home equity before 2026 can be a strategic way to unlock lower-cost financing, but only if the timing aligns with your broader financial goals. Borrowing now offers certainty and flexibility, especially for homeowners facing immediate needs or high-interest debt.

Waiting, meanwhile, might yield better rates, but also carries risks tied to home prices, market conditions and unforeseen expenses.

The right move depends on your financial stability, long-term plans and comfort with rate fluctuations. Approach the decision carefully, run the numbers, and choose the option that delivers the best balance of cost, stability and opportunity for your household.

Related Content:

• What Home Equity Is and Why It's a Valuable Long-Term Investment
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If you were to type into a search engine, "Should I talk about politics with my financial adviser?" you would find a long list of articles by advisers, and for advisers, about how best to avoid politics when discussing financial plans with clients.

I vehemently disagree with the notion that political conversations between financial advisers and clients should be sidestepped.

In fact, I would go so far as to say it is impossible for an adviser to fulfill their fiduciary duty — a legal obligation to act in your best interest — without fully knowing you as a whole person, including your political orientation.

A sound financial plan should be shaped by who you are, what you care about and the kind of world you want your money to help build. So, yes, you should get political with your adviser.

Here are three reasons why it's so important for you to do so.

1. Financial planning is deeply personal

Money isn't just about the numbers. And your financial plan isn't a spreadsheet — it's a reflection of your life: your goals, your fears, your family and your sense of purpose.

Everyone deserves the opportunity to show up as their full selves in all aspects of their lives — and that includes meetings with your financial adviser.

If your adviser brushes off this conversation, it is a red flag. You deserve a space where you can speak openly about what matters to you; whether that's climate change, income inequality, reproductive rights or local community investment.

An adviser who invites those conversations will help you create a financial strategy that feels authentic and aligned, instead of one that leaves you second-guessing whether you're compromising your values for returns.

2. Every dollar we spend has a political impact

Whether we like it or not, money is political. Every dollar you earn, invest, donate or spend influences the economy, industries and political policies in ways that either reflect your values or contradict them.

These choices aren't just abstract. They have real-world consequences for the communities we live in and the planet we want to have around for future generations.

A thoughtful financial adviser should help you understand not just where your money is going — specifically, what companies you're investing in — but also what type of direct impact those companies are having on people and the planet.

Here are some prompts you can use to initiate these conversations:

• What specific industries am I invested in, and how do they derive their profits?
• How do the companies I'm invested in stack up in terms of environmental, social, and governance (ESG) metrics, and what sources of data are you using to determine that?
• How do the companies I'm invested in contribute or detract from the United Nations' Sustainable Development Goals (SDGs)?

3. Sacrificing financial returns for ethical alignment is an outdated misconception

Some financial professionals still believe that investing in a way that prioritizes a client's values by excluding certain industries, or using ESG metrics, means sacrificing returns. That is simply not true.

In fact, companies focused on addressing the world's most urgent challenges by prioritizing people, planet and integrity are better positioned to benefit from rising consumer demand as climate change, geopolitical instability, population growth and resource scarcity intensify.

Furthermore, according to a 2025 report by Morgan Stanley, nearly 80% of global investors stated they are likely to choose a financial adviser based on sustainable investment offerings.

This reflects a broader shift toward aligning financial goals with personal values, proving that impact investing is not just a trend, but a lasting shift in how people view wealth.

A skilled, values-aligned adviser can help you invest in companies whose businesses yield both profit and purpose. It's not about choosing between doing well and doing good. It's about doing both.

Finding the right fit

It is completely appropriate to ask your financial adviser if your investments are aligned with specific values that are important to you.

If you get pushback or are sidestepped by phrases like, "You should ignore politics completely when investing," or "I can put you in an ESG mutual fund," with no further discussion about how those funds align specifically with certain issues or themes, you may want to consider whether this adviser is the right fit for you.

Do not be discouraged. There are financial advisers who are not only open to these conversations but who see them as essential to good financial planning.

You can start your search at valuesadviser.org, a directory of professionals who understand that your portfolio reflects your principles and vision for the future.

Money is powerful. When you bring your whole self — your values, your politics and your purpose — to the conversation, you give that power direction. And a good financial adviser should be right there with you, helping to turn that direction into a plan that truly fits who you are.

At the end of the day, sharing your political views with your financial adviser isn't risky. It's responsible.

Related Content

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• What Is ESG Investing and Is It Right for You?
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This article was written by and presents the views of our contributing adviser, not the Kiplinger editorial staff. You can check adviser records with the SEC or with FINRA.

When Americans move abroad, their financial lives become significantly more complex. From navigating foreign tax systems to understanding how U.S. retirement accounts are treated overseas, the stakes rise even as the margin for error narrows.

That's why choosing the right cross-border financial planner is so important. High-earning and high-net-worth U.S. taxpayers must find someone who understands the full scope of cross-border financial planning and is committed to a long-term relationship.

A brief review: Types of financial planners

When we talk about different "types" of financial planners, they can be differentiated across three spectrums:

For Americans living in the U.S., these distinctions help guide their choice of professional financial planning service. But for those moving abroad, the meaning of these categories takes on new importance.

Why cross-border planning changes everything

Let's say you're working with a U.S.-based investment manager who doesn't offer planning services. That might work fine while you're stateside; many people feel more comfortable steering their own financial planning ship and personally checking that their compass is pointing due north.

But moving abroad without the support of cross-border expertise to guide the revision and implementation of your financial planning framework can lead to costly mistakes.

Take France, for example. It's often considered one of the "easier" Western European countries for Americans to retire to, thanks to a favorable tax treaty and a relatively straightforward long-stay visitor visa.

But even there, there are common tripwires. One of the most overlooked is the cotisation subsidiaire maladie, more commonly known as the PUMa tax.

The PUMa tax was introduced to help fund France's universal health care system and applies to residents who receive significant passive income, such as dividends, rental income or investment gains, but have little or no earned income.
Here's how it works:

• If your earned income is below 20% of the French social security threshold (PASS), which is €9,273.60 in 2024 (the most recent tax year), and
• Your passive income exceeds 50% of the PASS, or €23,184 in 2024, then
• You may be subject to a 6.5% tax on the portion of your passive income above that threshold.

This tax does not apply if you receive replacement income such as pensions, disability payments or unemployment benefits.

It also doesn't apply if your spouse or civil partnership (PACS) partner earns above the threshold or receives qualifying replacement income.

The formula used to calculate the tax is nuanced, adjusting the rate based on how much earned income you have.

For example, Jean and Marie, both U.S. citizens, move to France and become French tax residents. They draw no earned income in France (well below the €9,273 threshold for 2024) and instead live off €120,000 of U.S. investment dividends.

Because their passive income easily exceeds the €23,184 "50% of PASS" threshold for 2024 and their earned income is minimal, they could face about €6,375 in tax (6.5% of the amount above €23,184) — a surprise many couples who retire abroad don't budget for.

This example illustrates a broader point: Even in jurisdictions considered expat-friendly, the financial landscape requires U.S. financial planners to have a certain familiarity with the local system in order to offer the highest-quality service.

Without a planner who understands both U.S. and local systems, you may be exposed to unexpected liabilities that at best are vaguely annoying, but at worst could derail your retirement plans.

The value of holistic financial planning for expats

When you take a holistic approach to cross-border financial planning, you're able to integrate the following when building a cross-border financial plan:

• Thoughtful relationship-building time in the initial meetings
• Tax planning across jurisdictions, i.e., cross-border tax planning
• Visa and immigration considerations
• Estate planning under foreign laws
• Currency and banking logistics
• Retirement account treatment abroad

A holistic approach ultimately allows the planner to structure the client's portfolio in a way that avoids triggering unexpected taxes or compliance issues.

And, depending on where your cross-border planner is based, they may be equipped to help you navigate the cultural and bureaucratic differences that come with living in another country.

Common pitfalls

1. Continuing with a U.S.-based planner without cross-border experience

Americans understandably want to maintain their existing financial planning relationships when they move abroad.

But, as Arielle Tucker, CFP® and founder of Connected Financial Planning, notes, "Unless your planner has experience with cross-border clients, and ideally specializes in your destination country, they may not be equipped to serve you effectively."

2. Working with EU advisory firms

On the other hand, some expats choose to work with a foreign firm, thinking that working with a local firm in their adopted country is a logical or even savvy financial move. However, this can present challenges.

"Foreign firms typically have higher fees and transaction costs than the U.S., and foreign mutual funds and ETFs are considered PFICs (Passive Foreign Investment Companies for American investors," says Ricardo Jesus, financial adviser at Liberty Atlantic Advisors (also an Adviser Intel contributor).

"This causes additional reporting and tax complications. Plus, client service expectations differ radically between the U.S. and Europe. As an example, execution timelines are often much slower."

Final thoughts

Candidly, moving abroad can feel like you've turned your life upside down and changed the operating language. So, it's completely understandable to seek familiarity among the chaos.

But, speaking as someone who has moved to different countries nearly half a dozen times, I can attest that prioritizing familiarity can come at the expense of long-term stability, particularly when we're talking about financial planning.

Moving abroad is a major life change, and your financial plan needs to reflect that. That said, it doesn't need to be an overwhelmingly frightening change.

Working with a cross-border planner or firm that takes a holistic approach outsources the challenging task of finding the optimal financial through-line in your life abroad, allowing you to be fully present in the new day-to-day of living your life abroad.

Related Content

• I'm a Cross-Border Financial Adviser: 5 Things I Wish Americans Knew About Taxes Before Moving to Portugal
• How to Manage Retirement Savings When Living Abroad
• Where to Retire: Living in the Dominican Republic
• Want to Move to Portugal? What to Consider Financially
• The Pros and Cons of Retiring Abroad

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

Recent tax legislation, including the One Big Beautiful Bill Act (OBBBA), has made the process of figuring out deductions and other tax breaks much more complex.

You are also contending with a lofty stock market that is looking increasingly risky, a looming surge in health care costs and nonstop economic developments.

That all makes it especially important to take a clear-eyed look at your financial picture before the clock runs out on 2025 to ensure you’ve taken full advantage of money-saving opportunities, avoided potential tax land mines and put yourself in the best position for 2026.

Consider, for example, the potential impact of the OBBBA. Signed into law in July, the legislation’s many provisions include a more generous standard deduction, a bonus deduction for older taxpayers and other valuable tax breaks.

But some of these deductions have income limits, so you may need to take steps before the end of the year to make sure you don’t run afoul of them and lose the potential write-off.

The OBBBA also ends some other deductions, so you’ll need to move fast to claim them.

Rising health care costs may pose one of the biggest challenges you’ll face in 2026, so the stakes are higher than usual for choosing coverage during this year’s open-enrollment season.

Many Affordable Care Act enrollees could see huge increases in their premiums following the scheduled expiration of a subsidy for marketplace plans at year-end. Lawmakers have yet to pass legislation that extends the subsidies.

Premiums and out-of-pocket costs will also climb for those relying on employer and Medicare coverage, with some plans changing benefits and others closing down.

Those are just a few of the developments that will require your attention and planning before December 31.

“There are a lot more moving pieces to consider, as well as new opportunities you don’t want to miss,” says Marguerita Cheng, a certified financial planner in Gaithersburg, Md.

Here are the steps financial advisers suggest you take now.

YOUR INVESTMENTS

It has been a volatile year for stocks, with a tariff-induced spring swoon followed by a series of record highs that have left the S&P 500 index up nearly 15% for the year so far. (Returns are through September 30 unless otherwise noted.) That head-spinning action suggests a reset is in order before 2025 ends to reduce risk and taxes on gains.

Fix your mix by rebalancing

Chances are good that your portfolio is seriously stock-heavy, following not only this year’s big jump in equities but also outsize gains over the past three years, with the S&P 500 returning an annualized 24.9%.

Meanwhile, bonds have lagged, up an average 4.9% a year over the same period. “If you started out with a 60-40 stock-bond asset mix, and you haven’t rebalanced for a few years, you may have a 75-25 mix now,” says William Bernstein, co-founder of an investment firm and author of The Four Pillars of Investing.

If you’re inadvertently invested more aggressively than you intended, restore balance by shifting some money from high-flying stock funds to fixed-income investments that have underperformed — something you can do in tax-sheltered accounts such as 401(k)s and IRAs without incurring taxes on big gains.

While you’re at it, further reduce risk by making sure you’re also adequately diversified between U.S. stocks and international markets, which, after years of lagging, are having a resurgence.

Over time, a well-diversified portfolio will dampen risk, smooth your returns and ensure you’re exposed to whatever corner of the market is working at any point in time.

Take some gains in taxable accounts

Depending on your income, you might also consider selling some winning investments in taxable accounts.

“With the market hitting new highs, it makes sense to harvest those gains, especially if you qualify for a low capital gains rate,” says Jay Abolofia, a CFP in Waltham, Mass.

In 2025, the long-term capital gains tax rate is 0% for married couples filing jointly with annual taxable income up to $96,700 ($48,350 for singles). You will pay 15% if your joint income is $96,701 to $600,050 ($48,351 to $533,400 for singles); beyond those thresholds, the long-term capital gains rate is 20%.

Use losses to offset gains

Sure, it’s tough, but not impossible, to find clunkers in this market — shares of CarMax, UnitedHealth or Victoria’s Secret, anyone?

If you have a few dogs in your portfolio, you can sell them and use those losses to offset gains and lower your tax bill.

If you have more losses than gains, you can deduct up to $3,000 of excess losses to offset ordinary income. Losses above that amount can be carried forward to future years.

Beware of fund tax bombs

Don’t defeat your efforts to trim your 2025 tax bill by investing at the wrong time, says Abolofia. That could happen if you put money in a fund prior to its ex-dividend date, which is when funds pay out dividends and capital gains that have built up during the year. (Those dates are often announced in November and December.)

If that happens, you’ll pay taxes on gains you didn’t receive.

Before investing, call the fund company or check its website to get the date of year-end distributions so that you can time your purchase accordingly.

A few funds may make hefty distributions, perhaps 10% or more, if they’re taking gains after a market run-up.

YOUR RETIREMENT ACCOUNTS

New opportunities to ratchet up savings in your 401(k) require quick action to take full advantage before the end of the year.

Meanwhile, the complicated rules that require some people to make mandatory withdrawals from certain retirement accounts by December 31 have gotten even trickier to navigate, courtesy of the OBBBA.

Save to the max

This year saw the introduction of a super catch-up contribution for retirement savers who are between the ages of 60 and 63, under a provision of the SECURE 2.0 Act. If you’re in this age group, you can stash an additional $11,250 in your 401(k), for a total allowable contribution of $34,750 in 2025; by contrast, the regular catch-up contribution for everyone else 50 and older is $7,500, for a total of $31,000.

Employers aren’t required to offer this souped-up option, though, and some who plan to may not roll it out until 2026.

“Be sure to check with your benefits department if you’re in that age window,” says Rob Austin, head of thought leadership at benefits firm Alight Solutions.

No matter your age, if you aren’t already maxing out contributions to your employer’s 401(k), 403(b) or 457(b) plan, there’s still time to ramp up before the December 31 deadline.

In addition to bolstering your financial security in retirement, money you stash in pretax plans now will trim your taxable income, reducing your 2025 tax bill and possibly helping you qualify for tax breaks under the OBBBA.

The contribution limit this year if you’re younger than 50 is $23,500, up from $23,000 last year.

Manage RMDs carefully

Although the rules for taking required minimum distributions (RMDs) have not changed for 2025, those withdrawals can have unintended consequences, especially if you’re just getting started or might qualify for valuable new tax breaks that have income limits.

For first-timers — anyone who turned 73 this year — the deadline for taking your first RMD for 2025 is April 1 of next year, vs December 31 for everyone else subject to them. But you will then need to take another distribution by the end of 2026.

To avoid the double hit next year, consider taking that first RMD before December 31, 2025. Otherwise, says Henry Grzes, lead manager of tax practice and ethics at the American Institute of Certified Public Accountants (AICPA), a trade group, “depending on your income, the double withdrawals could push you into a higher tax bracket for the year and make you ineligible for some of the new OBBBA tax deductions.”

If you’re already taking RMDs, be sure to make this year’s withdrawal by December 31. If you don’t, you will pay a penalty of 25% of the amount you should have taken out. (If you correct the problem within two years, the penalty may drop to 10%.)

If the distribution will push you into a higher tax bracket or raise your income above the limits for certain OBBBA tax breaks and you don’t need the money, consider making a qualified charitable distribution from your IRA.

QCDs fulfill your RMD requirement, and while not deductible, the amount you donate will be excluded from your taxable income, possibly keeping you within the limits for income-based breaks, such as the new deduction for older taxpayers.

Make withdrawals from inherited IRAs

If you inherited an IRA after 2019 from your mom, grandpa or cousin, you may now be on a tighter schedule to withdraw money from the account than you realize.

Under the 2019 SECURE Act, IRAs inherited after 2020 from anyone other than your spouse must generally be depleted within 10 years of the original account owner’s death. (Before the SECURE Act, you could stretch withdrawals over your own life expectancy.)

If the owner was required to take RMDs at the time of their death, however, you must generally make annual withdrawals over 10 years based on your life expectancy.

Many people who inherited IRAs after the SECURE Act passed delayed taking RMDs because the IRS waived penalties — 25% of the required withdrawal — while the rules were being finalized. That grace period ended this year.

“You may want to withdraw more than your RMD amount to avoid a big tax bill in year 10, especially if you waited till now,” says Ed Slott, CPA and president of Ed Slott & Co., an IRA distribution firm.

With an inherited Roth IRA, the same RMD and 10-year rules apply, but withdrawals are tax-free, if the account is at least five years old.

YOUR TAXES

To make sure you’re eligible for generous new deductions under the OBBBA, you might need to do some fancy footwork before year-end to bring your income within the necessary thresholds — or just move quickly to take full advantage.

Take steps to qualify for expanded deductions

One of the signature provisions of the OBBBA is the new tax deduction of $6,000 for single taxpayers who are 65 or older, or $12,000 for married filers who both qualify, effective for 2025 through 2028.

That’s on top of the standard deduction, which is $15,750 for singles or $31,500 for married couples filing jointly this year, and an existing deduction for older taxpayers of $1,600 per person.

Added together, older married couples filing jointly could get a total deduction of $46,700 this year. A bonus: You can claim the new tax break whether or not you itemize.

But not all older taxpayers qualify. The new deduction phases out for single filers with a modified adjusted gross income of $75,000, or $150,000 for joint filers. And it disappears once you hit a MAGI of $175,000 for singles or $250,000 for couples.

The expanded state and local tax (SALT) deduction — up to $40,000 for 2025, compared with $10,000 last year — also has an income limit, albeit more generous. The full SALT deduction, which includes state income, property and sales taxes, phases out at a MAGI of more than $500,000 and reverts to $10,000 for anyone making more than $600,000.

Given how big these write-offs are, it can make sense to pursue last-minute strategies to lower your income enough to qualify, says Pam Ladd, senior manager of personal financial planning at the AICPA.

If you’re still working, increasing pretax contributions to retirement plans and health savings accounts (HSAs) can help. Maybe you can postpone a bonus until next year, prepay your deductible first-quarter 2026 property taxes if allowed or, for itemizers planning charitable giving, make a large deductible donation this year.

Also, avoid moves that inadvertently increase your income enough to disqualify you from or reduce the value of these tax breaks.

To the extent that you have discretion, be careful about withdrawals from retirement plans, and carefully weigh the pros and cons of a Roth conversion before moving forward with one (see the next move).

Be cautious with Roth conversions

The rationale for doing a Roth conversion is more complicated this year. With this strategy, you shift money from a traditional IRA funded with pretax income to a Roth funded with after-tax income, which creates a bigger pool of tax-free money for you to enjoy in retirement.

The problem is, by pulling money from the traditional IRA, you may raise your taxable income significantly, disqualifying you for key OBBBA tax breaks.

“Once you get above certain thresholds, you may lose deductions and end up paying a higher amount of taxes,” says Ben Henry-Moreland, a CFP and enrolled agent at Kitces.com.

To keep your income under phase-out thresholds, you could spread out smaller conversions over several years instead of making the switch all at once, says Henry-Moreland.

Or time your conversion to a year when your tax rate is lower, perhaps when you have retired but haven’t yet started taking Social Security benefits or RMDs.

Grab the energy credit while you can

If you move fast, you may be able to claim the Energy Efficient Home Improvement and Residential Clean Energy tax credits, which end on December 31.

They provide a credit of up to 30% of the cost of energy-efficient windows, heat pumps or other improvements, within certain limits. If the fixes are installed and operational by then, you can claim those credits.

Nab a state tax break

Want to set aside money to help pay tuition and other costs for a college-bound child or grandchild and trim your state tax bill at the same time?

Contribute to a 529 savings plan on their behalf before year-end. More than 30 states and Washington, D.C., provide a state tax deduction or credit for 529 plan contributions (usually to your own state’s plan), says Mark Kantrowitz, a college savings expert and author of How to Appeal for More College Financial Aid.

Money saved in these plans grows tax-free, and withdrawals are tax-free if used for qualified expenses. If the account is parent- or student-owned, the impact on federal aid is modest, with only up to 5.64% of its value counted. Grandparent-owned accounts are no longer reported on the federal financial aid form at all.

Make a date with a tax pro

Given how complicated some tax considerations are this year, it may make sense to meet with a tax adviser, such as an enrolled agent (someone who has passed IRS-approved training) or a certified public accountant, before December 31 to help you make the right choices.

Find credentialed pros via the IRS directory of federal return preparers.

YOUR HEALTH CARE

Brace yourself for a sharp rise in costs next year, whether you’re covered by an employer health plan, an Affordable Care Act policy or Medicare. The higher costs make your choices during this fall’s open-enrollment season all the more critical.

Weigh new employer insurance options

Employees are likely to see the biggest jump in what they pay for health insurance in 15 years, as companies face a jump in their own costs of as much as 6.5%, according to Mercer, a benefits consultant.

“You can expect employers to pass along a share of those costs to employees through higher deductibles and out-of-pocket maximums, as well as premium increases,” says Beth Umland, Mercer’s director of employer research for health and benefits.

That means it’s imperative to compare offerings during your employer’s open-enrollment period, including new options that may be more affordable than the plan you’re on now.

More than one-third of employers have introduced new types of coverage or plan to in 2026, Mercer found, often including one option with a lower deductible, or even none.

Some firms will also be offering a “high-performance” plan that has a more limited range of providers with lower deductibles.

“The plan may limit you to one or two hospitals but may still offer high quality,” says Umland.

Explore different tiers for marketplace coverage

If you get health insurance through the Affordable Care Act marketplace, you’re likely to get slammed with especially steep premium hikes during the open-enrollment period that runs from November 1 to December 15 for coverage beginning January 1.

The median proposed increase is 18% for 2026, more than twice last year’s 7% jump, according to KFF, a health-policy research organization.

In the past, many ACA enrollees have qualified for an enhanced tax credit that capped premiums at a certain percentage of income based on a sliding scale, but that credit expires at year-end, barring a last-minute congressional fix.

As a result, some enrollees will see premiums soar more than 100%.

Premiums for bronze plans, the lowest rung of the marketplace’s four-tier coverage system, will likely be more affordable than popular silver plans, though deductibles and co-payments may be higher.

You can get help comparing costs for the tiers of coverage and offerings within tiers from an ACA navigator, who is trained to offer free, unbiased assistance to consumers, via HealthCare.gov or your state marketplace.

Federal funding for this service has been reduced, so get your call in soon to avoid a long wait.

Look into Medicare plan changes as well as costs

Nearly seven out of 10 Medicare beneficiaries don’t compare plan options during open enrollment (October 15 to December 7), a KFF study found. Don’t be one of them, especially this year, with costs for 2026 expected to rise sharply for Part B premiums, some Part D prescription-drug coverage and some Medicare Advantage and medigap plans; plus, several insurers are scaling back plans and benefits or exiting certain markets.

Start with the Medicare.gov Part D plan comparison tool; enter all the medications you take to see the costs charged by plans in your area. If you’re in a Medicare Advantage drug plan, you can use the Medicare.gov Part C tool to compare drug costs and other benefits. For individual guidance in shopping for a Medicare plan, reach out to shiphelp.org.

Appeal your Medicare surcharge

Medicare beneficiaries are often notified late in the year if they will pay a surcharge on their Part B and Part D premiums for the next year’s coverage.

This income-related monthly adjustment amount, or IRMAA, is based on the income you reported two years prior, so your 2024 tax returns will determine what you’ll pay for 2026.

The 2026 IRMAA will kick in if your income is more than $218,000 for married couples filing jointly, and your Part B premiums could range from $284.10 to $689.90 a month, compared with $202.90 without the surcharge, as well as an additional $14.50 to $91 a month on top of your Part D premium.

If you get an IRMAA notice and your income has dropped considerably since 2024 because of a life-changing event — say, you retired or your spouse died — you can appeal to have the surcharge lowered or dropped.

To do so, file Form SSA-44 and provide proof of the change in your income. If you’re successful, your premiums will be adjusted.

Spend down your FSA

About two-thirds of employers require you to use up the funds in your health care flexible spending account by December 31 or forfeit the money. (The rest offer a grace period until March 15 or allow you to roll over a portion to the next year.)

If your company is among them and you have money left in your account, better start spending it now. The accounts allow you to use tax-free money to pay health insurance deductibles, co-pays and a long list of other out-of-pocket health costs, from aspirin to stop-smoking programs (you can find qualifying items at the FSA Store website).

If you’re looking to spend a sizable amount quickly, consider higher-priced items, such as prescription eyeglasses and hearing aids.

SMART STEPS TO TAKE FOR 2026

Once you’ve finished your year-end planning, set yourself up for the new year with these moves.

Adjust your withholding

While you’re at it, recalculate your estimated tax payments, too. The start of the year is always a good time to revisit how much tax is taken out of your paycheck, Social Security benefits or IRA withdrawals, but it’s especially im­portant for 2026, if the OBBBA is likely to change what you owe Uncle Sam — say, if you’ll qualify for the new deduction for older folks or pay high property taxes.

Use the IRS withholding estimator tool to come up with the right amount, then file a new W-4 form with your employer. Retirees can change their Social Security withholding at the SSA website.

Reset your retirement account contributions

Next year, retirement savers can take advantage of increased contribution limits for both regular and catch-up savings for people 50 and older.

But few people actually save that much: Only 14% of participants maxed out their regular contributions last year, and just 16% of eligible savers set aside the maximum allowed for catch-up contributions, according to Vanguard.

A key reason is inertia, as many savers stick with their default contribution rate, often 6% or less.

So dial up your savings in January, which will give you a better shot at maxing out. Or sign up for automatic escalation, offered by two-thirds of 401(k) providers, which will raise your savings rate by, say, 1%, a year until you hit the limit.

Guard against fraud

Consumers lost more than $12.5 billion to fraud in 2024, up 25% from 2023. And fraud losses are likely to keep rising following the recent exposure of Social Security data, which included the personal information of hundreds of millions of Americans, including Social Security numbers, addresses and birth dates.

To protect yourself, put a free credit freeze on your accounts via the three major credit-reporting companies, Equifax, Experian and Trans­Union; use malware protection on your devices; set up alerts about transactions on your financial accounts; and be wary of texts, calls and e-mails asking for account data or sending you links to click.

Find more tips at the nonprofit Identity Theft Resource Center.

MAKE SURE YOUR GENEROSITY PAYS OFF

If you’re donating to your favorite charities during the holidays and hoping for a tax break, too, you’ll want to carefully consider your timing, thanks to new rules established by the OBBBA.

If you’re among the roughly 90% of taxpayers who do not itemize, for instance, you may want to delay your gift until January or later. In 2026, for the first time in years, you won’t have to itemize to get a charitable deduction. The maximum write-off: $1,000 for single taxpayers and $2,000 for married couples who file jointly.

On the other hand, if you itemize, you will get a bigger tax break if you donate this year, before new limits on the amount you can deduct take effect.

Starting in 2026, itemizers will be able to write off only the portion of their contribution that exceeds 0.5% of their adjusted gross income. So, if your AGI is $150,000 and you donate $1,000, you can deduct only $250 next year.

In 2026, there will also be a 35% cap on the total amount of itemized deductions for those in the top tax bracket (income higher than $640,600 for singles or higher than $768,700 for joint filers), which means they will not get a dollar-for-dollar value for their deductions.

“Higher earners may want to bunch up their donations and make them this year to get a bigger deduction,” says Adam Grossman, an investment adviser in Newton, Mass.

Note: This item first appeared in Kiplinger Personal Finance Magazine, a monthly, trustworthy source of advice and guidance. Subscribe to help you make more money and keep more of the money you make here.

Related content

• Seven Practical Steps to Kick Off Your 2026 Financial Planning
• 10 Retirement Tax Plan Moves to Make Before December 31
• Five Things to Consider Now If You Want to Retire in 2026

Editor's note: This is the final article in a three-part series about the three stages of divorce. Part one is I'm a Financial Adviser Who's Been Through Divorce: This is How I Break It Down for Clients. Part two is A Financial Adviser's Guide to Divorce Negotiations: Civil – or Not.

As we enter the final stage of your divorce journey, you can take a deep breath — the hardest part is now in the rearview.

You've gathered all the paperwork, chosen the proper legal path and come to an agreement with your former spouse on custody/support and how to divide assets and debts.

For this last stage — finalization — we take you through the loose ends that you'll need to tie up before closing the book on the divorce and beginning this next, best chapter of your life.

Stage Three: The Finalization

The ink is dry on your divorce decree. You're now single. Congratulations. After popping the cork on your well-deserved glass of champagne, you'll need to tackle some administrative business. Let's get started:

1. Update account ownership and beneficiaries

You and your spouse might have parted ways, but is that reflected in your financial matters? After finalizing your divorce, you should update ownership and beneficiaries on all accounts — including retirement accounts, traditional investment accounts, insurance, estate plans, etc.

If you're now the sole owner of your home, you'll need to update the deed to reflect the change. The same goes for the title to your car. It's also a good idea to change all the passwords to ensure that your finances are private.

Be vigilant: If something happens to you, do you want your former spouse to have control?

2. Implement the settlement

In stage two, you and your spouse determined how to split debts and assets. Now, you'll need to put those plans into action — transferring property, refinancing loans and rolling over retirement funds.

Unfortunately, this division could take time, so stay on top of your financial adviser. If you have workplace retirement accounts or pensions to divide, you'll need to prepare a QDRO (qualified domestic relations order), which is a court order determining how those retirement assets should be split.

This could be a detailed calculation, if pensions are involved, so you might consider hiring an outside party to help, although your attorney or Certified Divorce Financial Analyst can handle, as well.

Once the retirement assets are split, there is a little-known QDRO rule that allows the recipient to take a one-time penalty-free distribution if certain conditions are met (you'll still need to pay taxes, though).

3. Consider insurance options

If you were previously on your spouse's health insurance, you'll need to get your own policy. COBRA is an option, but it is expensive, so you should consider alternatives such as the Affordable Care Act.

Beyond health insurance, think about obtaining other types of insurance, including life insurance, long-term care and disability.

If you can't obtain insurance through your work, talk to an insurance broker you trust.

4. Create a new financial plan

As you begin life as a single person, you'll need to adjust and reassess your financial goals. This is a good time to sit down with a financial adviser to create a budget, develop a plan for retirement and begin building an emergency fund.

Unfortunately, many women tend to be overly conservative with their investments, and they miss out on the gains.

Rest assured, you can be more aggressive without gambling on your future.

Creditworthiness might also be an issue. If you're establishing credit in your own name for the first time, you might need to get creative.

When I was married, I only had joint credit cards. After my divorce, the only card I could qualify for was at Express (the clothing store), so I would buy a couple of items, then quickly pay them off.

This helped me to establish a credit history, and a short time later, I was approved for additional cards.

5. Update estate and legal plans

Is your will/trust updated? Do you need a new power of attorney or health care directive? You'll want to update all your estate and legal documents.

Lastly, life is not stagnant. If something comes up after your divorce decree is finalized, don't be afraid to revisit the agreement. Nothing is set in stone.

If you encounter an unexpected expense for the children, or if you or your former spouse's work situation drastically changes, you can file to have the original agreement amended.

Divorce isn't just an ending. It's a new beginning. Now that your divorce is over and all your accounts and documents are current, it's time to take all that challenge and hardship and turn it into something positive by building a life on your own terms.

I'll be here cheering you on.

Related Content

• You're Divorced, But the Work Isn't Over: A Guide to Five Financial Tasks to Do ASAP
• Considering Divorce? Beware of Retirement Account Breakups
• How Retirement Plans Are Divided in Divorce
• Don't Let Health Care Costs Wreck Your Retirement: Here's How

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

Here's another saying for you: "What begins in California could spread throughout the country."

Today's story will be of special interest to personal injury (PI) lawyers who run settlement mills and plaster billboards near airports, on buses and buy TV ads that proclaim something along the lines of, "Hire me! I get millions of dollars for my clients!"

It will also be of serious interest to anyone thinking about hiring one of these law firms.

Often, attorneys in these ads say, "I care. Call me." But good luck getting them on the phone to talk to you — ever!

State bars across the country apply terms such as "misrepresentation," "dishonest" and "false advertising" to ads that promise direct attorney access ("call me") when clients are able to reach only non-legal staff or automated systems.

These settlement mills routinely deliver cookie-cutter, one-size-fits-no-one, substandard legal representation, not to mention those who engage in fraud.

But now they're being taken on, and their efforts are aimed directly at the lawyers' bottom lines via legislation that should give crooked PI attorneys nightmares.

Uber fights back

Uber has filed civil RICO (Racketeer Influenced and Corrupt Organizations Act) lawsuits in federal courts against several personal injury law firms and affiliated medical providers in California, New York and Florida.

I discussed these suits with a friend of this column, Southern California attorney Shawn Steel, who represents personal injury victims and has taught ethics and jurisprudence courses to doctors-in-training at Cleveland Chiropractic College since 1991.

The basis of Uber's allegations, according to Steel: Uber alleges a conspiracy to artificially increase claim values by creating evidence of injury, staging accidents and fabricating damage. Clients are steered to medical providers who perform or recommend unnecessary procedures to run up treatment bills.

The lawsuit takes the business model of personal injury mills head on. Uber is especially vulnerable to these schemes because it is required by some states to have insurance policies with much higher limits than those of individual drivers — even taxi cabs.

"The more insurance available, the greater the claim value if you've got the medicals," Steel underscores.

However, it must be noted that Uber customers in California and other places that have high insurance limits are the ones bearing the burden of higher insurance premiums because they're charged higher fares.

"Uber is using the RICO statute," Steel notes, "which is aimed at prosecuting organizations engaged in a pattern of racketeering activity, and if successful, this could establish a precedent for corporations to fight back against what they allege — and can prove — is fraudulent activity."

A ballot measure to protect consumers

In October, Uber filed a proposed California ballot initiative, called the Protecting Automobile Accident Victims from Attorney Self-Dealing Act, aimed at protecting consumers from what it claims are predatory practices by some personal injury lawyers.

If this measure gets on the ballot in November 2026 and passes, it will be a tsunami for PI mills and medical providers who have relied on an endless stream of attorney liens on settlements to pay their inflated bills.

There is real, palpable fear of similar initiatives spreading throughout the country, hitting personal injury lawyers in the pocketbook.

Supporting documentation for the ballot initiative notes that it would ensure victims keep at least 75% of a settlement or judgment by restricting arrangements between attorneys and health care providers and eliminating financial incentives for attorneys to inflate medical expenses.

Attorneys would also be prohibited from receiving kickbacks from or paying kickbacks to medical providers who refer their patients.

No more 'I charge what the market will bear'

The initiative would tie recoverable medical expense damages to standardized rates.

Medical costs would be based on Medicare or a national database rather than the actual bills from lien-based providers. This would eliminate situations where accident victims are sent to doctors who are comfortable with charging hugely increased rates because their friend, the attorney, ensures payment with settlement liens.

So, if this initiative passes, excessive medical charges would not be fully recoverable regardless of what providers bill.

Criticism from consumer advocates

As would be expected, personal injury attorneys are gearing up for a huge battle in the media.

Consumer Attorneys of California (COAC) calls the initiative misleading, saying it undermines accident victims' ability to secure strong legal representation. It also argues:

• That the limit on fees discourages attorneys from taking complex cases, leaving victims underrepresented
• That the case is nothing more than a corporate liability shield, not consumer protection

What this means for consumers

Regardless of whether the initiative becomes law, if you need an attorney after being involved in an auto accident, your best way of finding a reputable one is the tried-and-true referral from friends, family or other lawyers.

Read online reviews on sites like Google, Avvo, Martindale-Hubbell and Yelp. Pay more attention to the two- and one-star reviews — the details in the negative reviews are more important for you to know than the glowing praise.

Be sure the lawyer has a local office, not just a phone number. You might want to even go there to make sure it exists.

Most important of all, over the phone or with a paralegal or the law firm's investigator who comes to your home and interviews you about the accident, say, "I expect to deal with and speak to (the name of the attorney) and meet with them in person." Write this on the retainer agreement. Then, if it does not happen, you will have strong grounds to fire that law firm.

If you are dealing with a settlement mill, those requests will be refused.

If anyone gives you any trouble, call me. You can reach me at (661) 323-7911, or send me an e-mail at Lagombeaver1@gmail.com.

Dennis Beaver practices law in Bakersfield, Calif., and welcomes comments and questions from readers, which may be faxed to (661) 323-7993, or e-mailed to Lagombeaver1@gmail.com. And be sure to visit dennisbeaver.com.

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

Whether you are a recent investor in I bonds, have owned them for many years, or are pondering adding them to your investment portfolio, you should be aware of the federal income tax rules.

I bonds have important tax advantages for owners. Interest earned on I bonds is exempt from state and local taxation. Also, owners can defer federal income tax on the accrued interest for up to 30 years.

These rules might seem simple at first. But they're not as straightforward as you think, and they can get complicated pretty quickly.

For example, the tax treatment of I bonds varies depending on who owns the bonds, whether you gift the bonds to someone else, and, in some cases, how the bonds are used. Following are descriptions of how and when I bond interest is taxed under federal law in eight common situations.

Note: For people who own EE bonds, the federal income tax consequences are identical to those of I bonds. So this story is also applicable to you.

1. Taxes when you are the bond owner

I bond buyers have a choice when they acquire the bonds. They can pay federal income tax each year on the interest earned or defer the tax bill to the end. Most people choose the latter. They report the interest income on their Form 1040 for the year the bonds mature (generally, 30 years) or when they're cashed in, whichever comes first.

However, deferring tax on the full amount of accrued interest for up to 30 years may sound like a great idea until you get the tax bill for three decades' worth of interest.

Also, taking the tax hit all at once can push you into a higher federal income tax bracket, making the tax bill even more expensive than it needed to be.

2. How to report and pay taxes when you cash in I Bonds or they mature

If you cashed in I bonds this year, you must report the interest on line 2b of your 2025 Form 1040 and pay tax to the extent you didn't otherwise include the interest income in a prior year. If you received $1,500 or more in interest during the year, you would also have to fill out Schedule B and attach it to your tax return.

If you keep the I bonds through the date they mature, generally 30 years, and you didn’t otherwise include the interest income in a prior year, you will be taxed on all the accrued but previously untaxed interest in the year of maturity, whether or not you cash them in. You would report interest income on your Form 1040 in the same manner as if you cashed in the I bonds.

If you are using the bond proceeds to pay for higher education, some of the interest may be exempt (see "Using I Bonds for Education" below).

3. Tax implications of co-owned I Bonds

For I bonds issued in the name of co-owners, such as a parent and child or grandparent and grandchild, the interest is generally taxable to the co-owner whose funds were used to buy the bonds.

However, that co-owner can choose to defer paying tax on the interest or report it annually. This is true even if the other co-owner redeems the bonds and keeps all the proceeds.

4. Gifting I Bonds: Tax rules when buying bonds for others

Savings bonds make great gifts. But if you buy I bonds for someone else, such as your children, grandchildren or any other person, the interest is reportable by that person, provided the bonds are titled in his or her name. Just like any other holder of I bonds, the recipient can choose to defer paying tax on the interest until the earlier of the year the bonds mature or are cashed in, or he or she can report the interest annually.

5. Gifting I Bonds you own

Gifting an I bond before maturity will accelerate taxation of the interest income. Giving away bonds you already own to someone else doesn't get you off the hook with the federal government for owing money on previously untaxed interest. If the bonds are reissued in the gift recipient's name, you're still taxed on all that interest in the year of the gift.

6. Donating I Bonds to charity

Donating an I bond before it matures to charity while you're alive will also accelerate taxation of the interest income. As with gifts to other people, giving away bonds you already own to your alma mater, favorite museum or other charitable organization doesn't let you avoid the tax on previously untaxed interest. You're still taxed on all that interest in the year the donation is made.

7. Inheriting I Bonds

If you inherit I bonds that haven't yet matured, who is taxed on the accrued interest that went untaxed because the original owner deferred the interest? It depends. The executor of the decedent's estate can choose to include all pre-death interest earned on the bonds on the decedent's final income tax return. If this is done, the beneficiary reports only post-death interest on Form 1040 for the year the bonds mature or are redeemed, whichever comes first.

If the executor doesn't include the interest income on the deceased owner's final federal income tax return, the beneficiary will owe taxes on all pre-death and post-death interest once the bond matures or is redeemed, again whichever is earlier.

8. Using I Bonds for education

One way to avoid paying federal income tax on accrued I bond interest is to cash in the bonds before or on the maturity date and use the proceeds to help pay for college or other higher education expenses for you, your spouse or your dependent. But there are lots of rules and hurdles to jump over to be able to take advantage of this tax perk. For instance:

• You must have purchased the bonds after 1989 when you were at least 24 years old.
• The bonds must be in your name only.
• The bonds must be redeemed to pay for undergraduate, graduate or vocational school tuition and fees for you, your spouse, or your dependent. (Grandparents can't use this tax break to help pay for their grandchild's college tuition unless the grandparent can, on their 1040, claim the grandkid as a dependent.)
• Room and board costs aren't eligible for the exclusion.
• The exclusion is subject to strict income limits. For 2025, it begins to phase out at modified adjusted gross income (modified AGI) of more than $149,250 for joint filers and $99,500 for other filers, and is fully phased out at modified AGI of $179,250 for joint filers and $114,500 for other filers. For 2026, it begins to phase out at modified AGI of more than $152,650 for joint filers and $101,800 for others and is completely phased out at modified AGI of $182,650 for joint filers and $116,800 for other filers.

If the proceeds from all savings bonds cashed in during the year exceed the qualified education expenses paid that year, the amount of interest you can exclude is reduced proportionally.

Use IRS Schedule B and Form 8815 to report and calculate any excluded I bond interest used for education.

Related

• Bond Basics: Investing
• How Are Inherited EE or I Savings Bonds Taxed?
• Types of Income the IRS Doesn't Tax

Whether that move really makes a difference depends on from where you're coming. Even the cheapest city on the list is only paying 8.3% less than the national average on groceries.

If you're moving from San Francisco or another city with the most expensive groceries, the price difference at the store will be more dramatic. But if your current town is close to the national average already, you might hardly notice a change in your monthly spending.

With that in mind, I analyzed the latest grocery pricing data from the Council for Community and Economic Research to find the cities where people pay the least to feed their families.

I then compared those grocery budgets to median household income data from the U.S. Census Bureau's American Community Survey 5-Year Data (2009-2023).

Take a look at which cities are spending the least to keep their fridges stocked.

Cheap groceries aren't always affordable groceries

Six of the 11 cities with the cheapest grocery prices are in Texas, meaning you'll spend less at the store just about anywhere you go in the Lonestar state. But cheap doesn't always mean affordable. With a wide variation in incomes from one Texas town to the next, groceries are a much bigger strain on the budget in some parts of the state than others.

That's because prices alone can't tell you how affordable groceries would be if you moved to one of these cities.

Financial experts typically suggest you keep your grocery budget at 15% or less of your take-home pay. When you factor in median household income, not one of the 11 cities below met that recommendation, despite paying less than the national average to put food on the table.

1. Grand Forks, North Dakota

• 8.3% cheaper than national average
• Median household income: $72,369
• Average monthly grocery spend: $1,143
• Grocery spend to income: 18.95%

Residents of Grand Forks are enjoying the lowest grocery bills in the United States. With a median household income of $72,369, groceries still take up more than 15% of their household income, despite being the cheapest in the country. However, food is more affordable here than it is in most other cities on this list.

2. Waco, Texas

• 7.2% cheaper than national average
• Median household income: $56,548
• Average monthly grocery spend: $1,156
• Grocery spend to income: 24.53%

In Waco, people pay 7.2% less than the national average to eat. But with a dramatically lower median household income compared with Grand Forks, groceries still strain the budget here. The typical household spends 24.53% of its income on food.

3. Minot, North Dakota

• 7% cheaper than national average
• Median household income: $77,431
• Average monthly grocery spend: $1,160
• Grocery spend to income: 17.98%

Minot might only rank third place when looking at the prices on store shelves, but the North Dakota city ranks first among the cities on this list for affordability.

With a median income of $77,431, the typical Minot household spends less than 18% of earnings on groceries. That's still higher than the 15% recommended cap — but it's a lot less strain on the wallet than many other cities on this list.

4. Harlingen, Texas

• 7% cheaper than national average
• Median household income: $41,756
• Average monthly grocery spend: $1,159
• Grocery spend to income: 33.31%

With a median household income of $41,756, Harlingen has the dubious distinction of being the least affordable place to buy groceries, despite having the fourth-lowest prices in the nation. A typical household here will spend more than 33% of their income just to put food on the table.

5. Lawton, Oklahoma

• 6.9% cheaper than national average
• Median household income: $55,506
• Average monthly grocery spend: $1,161
• Grocery spend to income: 25.09%

A typical household in Lawton earns $55,506 per year and spends a little more than 25% of that on groceries. Even with prices averaging about 6.9% below the national average, the lower median income still makes those prices unaffordable compared with areas with higher incomes.

Oklahoma had a 4.5% statewide grocery tax, but eliminated it in 2024, which state lawmakers said could save each family hundreds. However, shoppers can still face sales tax, including local taxes.

6. McAllen, Texas

• 6.9% cheaper than national average
• Median household income: $60,907
• Average monthly grocery spend: $1,160
• Grocery spend to income: 22.85%

McAllen residents pay slightly more than their Harlingen neighbors to the east but are also earning about $19,000 more per year. While they're still technically spending more of their income on groceries than experts recommend, they're not straining their budgets nearly as much as Harlingen residents.

7. San Marcos, Texas

• 6.7% cheaper than national average
• Median household income: $48,091
• Average monthly grocery spend: $1,163
• Grocery spend to income: 29.01%

McAllen's neighbors to the north are in a similar boat as Harlingen. Residents here pay 6.7% below average at the store. But with a median income of $48,091, those low prices still take up more than 29% of the typical household's income.

8. Temple, Texas

• 6.6% cheaper than national average
• Median household income: $71,931
• Average monthly grocery spend: $1,164
• Grocery spend to income: 19.42%

In Temple, residents enjoy grocery prices that are 6.6% cheaper than the rest of the country. With a median household income of $71,931, they also don't have to stretch their budgets thin to keep their families fed.

Of the six Texas cities on this list, Temple ranks first on affordability, with groceries taking up just 19.42% of income.

9. Ardmore, Oklahoma

• 6.5% cheaper than national average
• Median household income: $52,954
• Average monthly grocery spend: $1,166
• Grocery spend to income: 26.43%

Groceries in Ardmore are priced 6.5% below the national average, but the typical household still struggles to afford those lower prices. With a median income of $52,954 and an average monthly spend of $1,166, residents put more than 26% of their earnings toward food.

10. Corpus Christi, Texas

• 6.2% cheaper than national average
• Median household income: $66,967
• Average monthly grocery spend: $1,169
• Grocery spend to income: 20.95%

This coastal city pays 6.2% less than the rest of the United States to put food on table. With a median income of $66,967, groceries aren't exactly cheap, but the typical household here is still faring better than some other towns in Texas.

11. Joplin, Missouri

• 6.1% cheaper than national average
• Median household income: $51,154
• Average monthly grocery spend: $1,171
• Grocery spend to income: 27.47%

Coming in at 11th place, Joplin pays 6.1% below the national average at the grocery store. On average, a typical household here will spend $14,052 per year to keep food in the pantry, which represents more than 27% of that household's income.

One other point to note is that Missouri is one of the 10 states that still taxes groceries, with a 1.225% food sales tax — and cities and counties can also charge their own tax rates. Joplin has a sales tax rate of 3.125%, although some areas of the city have lower rates due to special taxing districts.

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Once that routine is done, though, comes Giving Tuesday, a day dedicated to giving back. This year, Kiplinger Personal Finance Magazine spoke to Asha Curran in New York City, the CEO of GivingTuesday, an independent nonprofit organization that connects nonprofits around the globe.

Hear from Curran about the meaning of Giving Tuesday, its impact and what you can do.

Kiplinger: GivingTuesday has become a global movement. How do you describe what it's about?

AC: GivingTuesday was created in 2012 as a simple idea: A day to encourage people to do good on the Tuesday after Thanksgiving, following the consumption of Black Friday and Cyber Monday.

And that's still at the heart of it, but over the past 13 years, it's grown into a year-round global movement that inspires hundreds of millions of people to give, collaborate and celebrate generosity. We now have official leadership in 111 countries.

Can you talk about the different ways people participate?

Giving­Tuesday celebrates giving in all of its forms, both monetary and non-monetary. So we celebrate acts of giving, in terms of donating goods like clothes, food or school supplies, caring for your community and neighbors, and performing random acts of kindness.

All of those are forms of generosity, and we believe every small act makes a major difference, especially when you think about those acts being collective. If a lot of people are each doing small things for a common goal, that adds up to a tremendous impact.

What are some of the most inspiring or creative ways that you've seen individuals, families or communities take part in GivingTuesday?

I love so much of it, including the creative campaigns that small nonprofits put together and the things that individuals do in their own communities. And I really love our community campaigns, with a small town, a major city or an entire state coming together to celebrate generosity.

We've seen communities organize initiatives to clean up the streets, start community gardens and host community dinners, for example. Organizations, businesses, schools, local governments and families are creating a sense of pride in their communities. It's all very joyful, lighthearted and future-focused.

For someone who might feel that their contribution—whether of time, money or skills — is too small to make a difference, what would you say?

Last year, $3.6 billion was donated on GivingTuesday. Over the course of GivingTuesday's life, over $20 billion has been donated in the U.S. alone. Those are gifts of all sizes from everyday people.

So if you think your $25 or $50 donation isn't going to make a difference, that's absolutely incorrect. It will, and you are a drop in a big ocean created by many, many generous individuals.

People sometimes feel overwhelmed when choosing where and how to give back. How can they move from feeling stuck to taking action?

I would recommend a couple of things. One is to engage in a random act of kindness. Do something nice that you probably wouldn't normally think to do for someone in your community. Make a meal for an elderly neighbor, or write a thank-you letter to a local organization or one of its volunteers or staff members. There are a million small acts you can do that don't require money at all.

My second recommendation is to give in honor of someone else. On GivingTuesday, you'll see people post on social media about donating to all kinds of causes. If one of them particularly moves you, or if a friend or a family member cares a lot about a certain cause, then donate in their honor.

And maybe that opens the door to your future giving, too, as you become more knowledgeable about the causes and issues that affect populations half a world away or in your own backyard.

Note: This item first appeared in Kiplinger Personal Finance Magazine, a monthly, trustworthy source of advice and guidance. Subscribe to help you make more money and keep more of the money you make here.

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Whether you're pleased or disappointed about the resumption of the Federal Reserve's rate-cutting cycle may depend on whether you are primarily a borrower or a saver. Regardless of where you fall on that spectrum, if you're an investor, now is a good time to review your portfolio and make some tweaks to accommodate — and capitalize — on a lower-rate regime.

The quarter-point rate cut from the Fed in September was the first since December 2024. The central bank followed this up with another one in October, and while it's too soon to call the December meeting, more rate cuts are expected in 2026.

Traders were recently betting that by next April, the federal funds rate (the interest rate that banks charge each other for overnight loans) would sink to a target rate of 3.25% to 3.5%, according to CME Group's FedWatch tool. That's a full percentage point lower than the Fed's benchmark rate in early September — two points lower than when the current monetary easing cycle began in September 2024.

The good news for investors is that lower interest rates are largely positive for stocks — even in the second year of a rate-cutting cycle. Dating back to 1990, the S&P 500 Index has gained an average 11% in price in year two of Fed rate cuts, according to Sam Stovall, a market historian and chief investment strategist at research firm CFRA.

Zeroing in on how the market performs following a pause of several months during a rate-cutting cycle, Ryan Detrick, chief market strategist at wealth management firm Carson Group, found that since 1970, the S&P 500 has been higher nearly 91% of the time in the year following the resumption of rate cuts, returning an average 12.9%.

Of course, a lot depends on the health of the economy and whether rate cuts are occurring when a recession is imminent or underway or when the economy remains relatively healthy. Looking at the 45 rate-cutting campaigns going back to 1954, market strategists at Glenmede, another wealth management firm, found that the average S&P 500 gain over the course of the cycle was 13%; with no recession the average gain was 24.2%, and with a recession it was just 6.6%.

"We look at the economy as still on fairly firm footing," says Detrick. Although there are signs of labor-market slowing, there is also evidence of stronger-than-expected retail sales, he notes. "We have an okay economy being led by very strong corporate earnings growth. A Fed rate cut is the cherry on top, and they are likely to cut well into 2026. That's bullish for equities," he says.

Strong stock sectors for Fed rate cuts

Historically, the sectors that have performed best in the second year of rate cuts include real estate, financials, tech, health care and consumer staples, according to CFRA. That might not be the case this time around: Although Stovall currently recommends investors overweight stocks in the financial and tech sectors (as well as communications services), he has an Underweight rating on health care stocks, and he sees real estate and staples shares merely keeping pace with the market.

It's simply too early to shift into sectors traditionally considered more defensive, says Detrick. He still likes large-cap stocks in the financial, tech and industrial sectors, which have been leaders in the current bull market. "We're sticking with the ones who brought us to the dance," he says.

Nonetheless, it's a good time now, especially if you're nervous about the market's highfliers, to make sure you have some exposure to midsize- and small-company stocks, he adds, as well as international fare.

Lower rates may be the catalyst long-suffering small-cap stocks have needed. Indeed, on the heels of the September rate cut, the Russell 2000 Index, a popular small-cap benchmark, hit its first new high since November 2021 — an interval when the S&P 500 set 89 new highs, according to Stovall.

As interest rates drop, "small-cap companies are likely to benefit disproportionately," note the strategists from Glenmede. That's because more than half of small-cap debt is issued at floating rates. "As interest expenses fall," they say, it "should provide a meaningful tailwind to earnings."

Moreover, small firms should see a more sizable benefit from corporate tax relief, while also being less exposed to the impact of tariffs than large companies, according to Glenmede. And despite the recent rally, valuations remain compelling compared with their blue-chip cousins. "Small- and mid-cap stocks could have a very long runway — well into 2026, we think," says Detrick.

A good way to add more exposure to mid- and small-cap stocks is with the iShares Core S&P Mid-Cap ETF (IJH) and the iShares Core S&P Small-Cap ETF (IJR). Both exchange-traded funds are members of the Kiplinger ETF 20, the list of our favorite ETFs. (Prices, returns and other data are as of September 30.)

Step away from cash

You've no doubt noticed that your cash is earning less. But further deterioration in the economy — continued weakness in the job market, say — could send cash yields to the basement. "The imperative to put cash to work is increasing," say strategists in the chief investment office at UBS Financial Services.

For short-term spending needs, stick with the modest yields on certificates of deposit and money market funds, they advise. For expenses that are one to three years away, consider a bond ladder, with IOUs of staggered maturities.

Cash earmarked for needs up to five years out can be invested in intermediate-term government or investment-grade corporate bonds, according to UBS. Baird Aggregate Bond (BAGSX), a longtime member of the Kiplinger 25, the list of our favorite actively managed no-load mutual funds, yields 3.9% and has ranked in the top half of similar funds in seven of the past 10 years.

Or, recommends UBS, consider a multi-sector bond fund, whose managers can pick and choose among a wide array of fixed-income assets.

One to explore is the Pimco Multisector Bond Active ETF (PYLD). The ETF, with a yield of 5.1% and a total return of 7.0% over the past 12 months, had a hefty stake in securitized assets (think pooled mortgage loans and the like) at last report.

Finally, investors looking to replace regular income from cash, and who can tolerate the higher risk of stocks, can seek out dividend payers, such as those found in the Kiplinger Dividend 15, our favorite dividend-paying stocks.

Note: This item first appeared in Kiplinger Personal Finance Magazine, a monthly, trustworthy source of advice and guidance. Subscribe to help you make more money and keep more of the money you make here.

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Steep increases in auto insurance premiums following the COVID-19 pandemic have been a major contributor. Costs for auto repairs have swelled, too, up 15% year over year in August, according to CPI data. Tariffs of 25% on imported car parts are driving up repair costs, as are more-complex repairs for vehicles packed with advanced technology, such as sensors that assist with blind-spot monitoring or warn you when you drift out of your lane. After a crash, fixing damage to these systems can add up to 37.6% to repair costs, according to AAA.

To mitigate ballooning car ownership expenses, try making these moves.

Consider ownership costs when you choose a car

As you decide which model to buy, think beyond the purchase price. Picking a vehicle with solid fuel economy rather than a gas guzzler could save you hundreds of dollars a year. You can select vehicle models and compare their fuel economy and estimated annual fuel costs at the U.S. Department of Energy’s fueleconomy.gov (in the “Find & Compare Cars” section, click on “Compare Side-By-Side”).

Reliability ratings of car brands can help you determine the likelihood of a car needing frequent repairs. In its most recent assessment of vehicle dependability, which tracked problems in the first three years of car ownership, J.D. Power found that Lexus rated highest overall. Among mass-market brands, Buick, Mazda and Toyota topped the rankings.

With online calculators, you can assess a car’s overall ownership costs. The tool from automotive-research site Edmunds estimates a car model’s total five-year costs, including insurance, maintenance, repairs, fuel and other factors. At Kelley Blue Book, a vehicle valuation and research company, offers a tool that lets you do a side-by-side comparison of five-year costs for various models.

Manage the ongoing expenses

If you haven’t compared quotes on auto insurance policies in a while, it’s worth shopping around; you can gather quotes on sites such as Policygenius.com and TheZebra.com. Take advantage of any discounts you qualify for, such as for automatic bill payments or low annual mileage.

Stay on top of routine maintenance, such as oil changes and brake inspections, to help avoid costly repairs down the road. You may spend less at an independent garage or oil-change shop than at the dealership, according to Edmunds (although certain tasks, such as work on sophisticated electronic systems, are best performed at the dealer). Look for coupons or specials that offer discounts on maintenance services.

When you buy gas, use an app such as GasBuddy to check for the lowest prices at stations near you. Some credit cards provide extra rewards on fuel purchases. The Costco Anywhere Visa Card by Citi, available to Costco Wholesale members, offers 5% cash back on gas purchased at Costco and 4% on fuel you buy elsewhere (you’ll earn those rates on a combined $7,000 in annual fuel spending and 1% thereafter).

Note: This item first appeared in Kiplinger Personal Finance Magazine, a monthly, trustworthy source of advice and guidance. Subscribe to help you make more money and keep more of the money you make here.

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

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

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

THE BASICS

How did you make your first $1 million?

I made my first $1 million, at age 39, by:

• Maximizing savings from every paycheck, starting on the very first one
• (Investing in) 401(k) (and getting) company matching funds
• Investing in the stock market (following Kiplinger magazine advice)
• Working hard in pursuit of promotions
• Taking foreign and domestic assignments that colleagues bypassed because they did not want to change their comfortable lifestyle to bump pay
• Never taking any money out from investments
• Living below our means

My wife, a teacher, believed the same way and worked everywhere we went during my domestic and international assignments.

That first million increased several-fold over a 27-year career span, and we were able to retire when I was 53 and she was 54.

What are you doing with the money?

I continued to keep that first million invested in the stock market and to save at an even higher level than before as my career continued to thrive.

THE FUN STUFF

Did you do anything to celebrate?

Nothing. Continued with the same strategy of maximizing savings and living below our means.

Does anyone know you're a millionaire?

No. Only my wife and I know our net worth. There is no need to brag about reaching your goals.

The only thing I do is dish out advice to young people, without ever mentioning my net worth.

However, I always mention the strategy I pursued to be able to retire at 53, and I am sure that they realize that my net worth must be sizable, judging by our lifestyle.

What is the best part of making $1 million?

Seeing the payoff of all the moves one made to reach that goal. It is validation that everything we did throughout our lives was definitely right.

My parents were not wealthy. I was the first and only of my siblings to go to college, which I paid for with scholarships and campus work.

Did your life change?

It made me realize that it was possible to achieve a great goal, made me feel very confident about the future and motivated me to keep going so that $1 million was only the beginning and not the end of a great achievement.

LOOKING BACK

Anything you would do differently?

Absolutely not. The results speak for themselves.

Did you work with a financial adviser?

I did not for most of my career while working. I read financial magazines (Kiplinger was always the main one).

I also got investment tips from Fidelity (where I kept all my holdings and still do) and always maintained a conservative investment strategy:

• 70/30 stocks/bonds in the first 15 years
• 50/50 in the next 10 years
• 30/70 the year before I retired

I started working with a financial adviser only five years before retirement, mostly for tax-related reasons and because I wanted to be able to fully enjoy retirement without worrying about how to invest once my holdings had reached a sizable level.

Did anyone help you early on?

Not exactly. Everything I learned about investing, saving and spending was through reading financial publications, books, attending seminars, etc.

I did fine without getting help, not because I did not want it but because no one ever approached me to offer financial advice.

LOOKING AHEAD

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

Save at least 15% to 20% of your monthly check, starting with the first one. Maximize your 401(k) savings to get the full company matching contribution, if available, and don't even consider taking any money out of your savings until you retire.

Use credit cards sparingly and, if you do, pay off the balance every month. I have never carried a credit card balance. I have always paid whatever the balance is at the end of the month.

Plans for your next $1 million?

I already have enough millions, so my wife and I live a very comfortable life in a golf club community and a 7,000-square-foot home that's fully paid for.

We are spending our money wisely and avoiding extravagant payments, maintaining a budget (as we always did) and fully enjoying the fruits of our labor.

Do you have an estate plan?

Yes, we do. The estate plan includes revocable and irrevocable trusts, wills, powers of attorney and more.

We worked with a great estate lawyer who advised us on what elements we should consider and include. So, after doing my own research, I agreed with the recommendations and finalized the plan.

What do you wish you'd known …

Before you retired? That I should have been less apprehensive about retiring early. There was always the fear of running out of money, even though our financial adviser repeatedly assured us that, despite our conservative investment strategy and zero debt of any kind, our chance of running out of money at age 99 was less than 1%.

So, we were very conservative about spending money during the first five years in retirement, but upon realizing that, despite not having any income, our retirement nest egg continued to grow every year, we relaxed and now spend more, but always in a moderate way.

When you first started saving? That the power of compounding was much better than I thought. I never imagined that I was going to be able to make my first $1 million at age 39 from salary savings and investments alone.

Like everybody else back then, I thought that reaching the $1 million milestone would happen in my 60s and that such an amount was going to be more than enough to live happily ever after. Boy, was I wrong!

Not to sound condescending, but those who still believe that $1 million will be enough are in for a rude awakening.

When you first started investing? I started after I got my very first salary check in a very conservative way. I put my savings in the bank and in money market funds in my 401(k) because I knew very little about the stock market.

However, I wanted to educate myself, so I studied on a night-and-weekend program and got an MBA degree, in addition to my engineering degrees, to be able to feel comfortable about investing in the stock market.

Hence, I did not start investing until about seven years after I started working.

When you first started working with a financial professional? I started working with a firm many years after I had been investing on my own, and by that time, I had already accumulated significantly more than $1 million, so I was very familiar with investing and able to discuss, question and provide detailed feedback to their investment strategy for my portfolio.

That was great because they knew they were working with someone who was more like a partner than a client.

Anything you'd like to add?

The American Dream is more than achievable in spite of all the negative coverage we hear in the press these days. I am proof of it, and I achieved the dream through hard work, good decisions, living below my means and never wavering from reaching milestones, targets and objectives.

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

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We wanted our kids to grow up confident, capable and ready to conquer the world. Instead, we bubble-wrapped them, praised their every burp, then wondered why they graduated college expecting their boss to give them a participation trophy, maybe even nap time.

The American Dream turned into the American Dread

We imposed the concept of the American Dream on our kids, even though it didn't pan out for us.

• Go to college
• Do internships
• Catapult into a job
• Remain loyal
• Work long hours
• Put in your time
• Pay your dues
• Get married
• Have babies
• Retire

… repeat.

Not so fast — the world changed. Education prices skyrocketed, home costs went out of reach, divorce rates hit 50%, and people got laid off. You know the end of the story: The American Dream died.

The overprotection pandemic

Our generation fought hard so our kids wouldn't have to struggle the way we did. But in doing so, we robbed them of resilience.

We filled out their college applications, called their professors and intervened with their managers. We became helicopter parents, then drone parents — silent, hovering.

By the time they entered the workforce, some were shocked to discover that not everyone thought they were amazing.

The first bad performance review felt like a hate crime. The phrase "constructive criticism" triggered calls to HR.

We made 'work' a four-letter word

Remember when a job was something you earned, not something that came with a sign-on bonus and emotional-support snacks? Some parents gave their kids allowances, not for chores, but for existing. We told them to "follow their passion," as if passion alone paid the rent.

No wonder they have existential crises when the espresso machine breaks at work.

PapersOwl found that Gen Zers have responded to their unhappiness in the workplace in interesting ways. One way some 7% of Gen Zers surveyed admitted to was via revenge quitting, which is quitting out of retaliation for being frustrated, upset and unheard.

Another new term is quiet cracking. It's burnout that develops slowly and simmers. Workers are physically there, but mentally, they've checked out.

The message? Gen Z perceives that there are toxic workplaces that they don't want to endure. Did we ill prepare them for what we would call the real world?

White collar vs blue collar: The great hard work divide

Once upon a time, hard work had a universal meaning: show up, give it your best and keep showing up. Today, it depends on which collar you're wearing.

For white-collar workers, hard work has become more about optics than output. It's the performance of productivity — being online, on camera and on the brink of burnout.

The modern corporate warrior measures success in unread emails, color-coded calendars and caffeine intake.

White-collar exhaustion is mental — the slow bleed of PowerPoints, politics and performative passion projects. It's not about sweat; it's about sweating appearances.

For blue-collar workers, hard work still means showing up early, staying late and producing something real: A truck gets loaded, a roof gets repaired, a customer gets served. Their pride comes from tangible results, not virtual visibility.

When blue-collar workers hear a white-collar worker complain about emotional exhaustion from too many Slack messages, it's hard not to roll their eyes. But all is not rosy with blue-collar workers either.

I spoke with Silvija Martincevic, CEO of Deputy, a workforce management platform for hourly work. The platform released a nationwide snapshot of how U.S. shift workers feel and why that matters.

"Our 2025 Shift Pulse Report shows sentiment slipping among shift workers, with 67% of workers indicating they are planning to change jobs in the next six months.

"Flexibility, clear communication and meaningful recognition aren't just nice-to-haves, they're essential to keeping employees engaged and reducing turnover."

Martincevic added, "Disengagement doesn't happen overnight; it builds quietly through burnout, unpredictable schedules and a lack of recognition. Gen Z is simply more vocal about not accepting that status quo."

White becomes blue

There is also an interesting trend that Resume Builder pointed out, that four in 10 Gen Z adults are moving away from white-collar jobs and pursuing blue-collar or skilled trade jobs, such as plumbing, welding or electrical work, including more than a third who hold a bachelor's degree.

They cite the chief motivation for this is to avoid student debt. This also reduces the risk of being replaced by AI.

Martincevic echoed this: "White-collar job insecurity and AI disruption fears are driving Gen Z toward trades and frontline careers, which they believe are safer from these threats.

Tech-savvy and pragmatic, they know AI can design a system, but it's the human touch that still truly matters in frontline blue-collar careers."

FlexJobs noted in its Work Shift Pulse Report that 85% of professionals today have said that their career expectations have shifted since graduation, and 62% are ready to make the shift from white-collar to blue-collar jobs if they're offered better pay and more stability.

The great cultural disconnect

We told our kids to chase balance but forgot to teach boundaries. Maintaining a work ethic became optional. Deadlines became guidelines. Being late was self-care.

Employers now face entry-level hires who expect mentorship, mission statements and mindfulness breaks before noon. The problem isn't laziness — it's that we raised them for a world in which effort was optional and validation was guaranteed.

Reality Check 101

Here's the truth:

• Work is work. It's not always fun. That's why they pay you.
• Failure isn't fatal. It's tuition for life.
• Grit beats genius. Every. Single. Time.
• Respect is earned. Not by demanding it, but by delivering results.

The new collar: The future doesn't care what color your shirt is

Here's the twist no one saw coming: Robots don't care whether your collar is white or blue. They just care if you're useful.

AI doesn't get tired, doesn't call in sick and definitely doesn't ask for a raise. It's already rewriting the rules — automating the physical grind of blue-collar jobs and the repetitive tasks of white-collar work.

The next generation isn't competing against each other anymore; they're competing against efficiency itself.

Yet, this is the best news of all — because what machines still can't do (yet) is care, create or connect. The future of work won't belong to those who can out-code or out-lift the machines, but to those who can out-think, out-adapt and out-human them.

Maybe the next version of hard work isn't about punching a clock or padding a résumé. It's about showing up with curiosity, courage and a willingness to learn — skills that will never go out of style.

If we can teach that to our kids — not entitlement, not exhaustion, but engagement — maybe we'll finally get it right.

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

If you're a high earner or affluent professional, you might feel a profound sense of whiplash. You've done everything right — you maximized your retirement savings, paid down your mortgage and watched your portfolio grow.

Yet, the threat of a "jobpocalypse" can still feel unsettling.

The good news is that this anxiety is a signal to act, not panic. Your goal now isn't just to grow your money; it's to use that wealth to buy yourself optionality — the freedom to choose your next move, negotiate from strength or take the time you need to find the right next opportunity without financial stress.

A key lesson from this new era of job volatility is simple: Liquidity is your ultimate defense, and optionality is the ultimate luxury.

The 18-month rule: Your career gap insurance

For years, standard financial advice suggested keeping three to six months of expenses in an emergency fund. For high earners, that advice is woefully inadequate.

Think about it: Replacing a six-figure salary requires a specialized job search that takes time. Networking, interviews and due diligence can easily stretch beyond a year. That's why you need to upgrade your financial defenses.

The new gold standard for affluent families is the 18-month rule of fixed expenses.

This rule dictates setting aside 18 months of your non-negotiable costs — the expenses that keep the lights on and the family running smoothly.

What goes in your 18-month safety net?

• Housing. Mortgage or rent payments, property taxes, HOA fees
• Debt service. Car payments, student loan minimums, etc.
• Insurance. Health, life, auto and home premiums
• Non-negotiable family costs. Essential groceries, utilities and fixed costs like private tuition or necessary childcare

You should keep this capital in highly liquid, low-risk accounts — think high-yield savings accounts, money market funds or short-term Treasury ETFs.

This money is your career gap insurance, providing you with the peace of mind that you will not have to liquidate growth assets — like your stock portfolio — at a loss just to cover the rent.

Creating the financial eject button

Beyond holding cash, strategic planning requires creating immediate, low-cost access to capital that doesn't force you to sell your investments. We call this the financial eject button.

While we generally advise paying off high-interest consumer debt, not all debt is bad. Low-interest, tax-deductible debt, like your primary mortgage, is often efficient to carry.

However, the real strategic move is setting up a contingent source of liquidity while you are still employed and highly creditworthy.

• Home equity line of credit (HELOC). If you have significant equity in your primary residence, a HELOC offers a flexible line of credit secured by your home. It's inexpensive to establish and costs you money only if you actually draw on it.
• Pledged asset line (PAL). Offered by most brokerages, a PAL allows you to borrow against the value of your non-retirement investment portfolio.

The value of these facilities is simple: They are preapproved, ready to deploy and can provide immediate, non-taxable cash flow if your income stops.

Establishing these resources now ensures that you avoid the worst-case scenario: being forced to sell good, long-term investments into a declining or turbulent market just to cover an unexpected expense.

Your career is an asset: Reinvest in it

Just as you audit your investments, you must audit your career. With artificial intelligence rapidly transforming how work gets done, the durability of even highly compensated specialized roles is questionable.

You must treat your professional standing as a primary wealth-generating asset that requires continuous strategic reinvestment.

Ask yourself: Are your specialized skills complementary to AI or easily replaceable by it?

Make the "résumé refresh" a low-effort, year-round discipline. This means:

• Networking. Make time for one meaningful professional conversation per month.
• Upskilling. Identify new certifications or adjacent skills that make you adaptable.
• Auditing. Periodically update your résumé, even if you're happy in your role.

Finally, remember that the true measure of your wealth is not your net worth, but your well-being. Your financial strength should empower you to trade a small amount of income for a dramatically increased balance and fulfillment.

The true value of your wealth plan is the confidence it grants you to say, "No, thank you" to a toxic environment or an unsustainable work pace.

By adopting the 18-month rule, establishing your financial eject button and continuously investing in your own adaptability, you move beyond merely surviving market changes.

You achieve the financial fortitude necessary to navigate whatever comes next — and do so entirely on your own terms.

Related Content

• Are You a High Earner But Still Broke? Five Fixes for That
• Roth or Traditional? Seven Considerations for High Earners
• Are You a High-Income Earner? Three Unexpected Reasons to Save More Than You Think You Should
• Six Ways High-Income Earners Can Optimize Their Tax Strategy
• Will My Children Inherit Too Much?

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

Right now, you can save up to 77% on NordVPN depending on the plan. That’s a significant cut for a service that’s consistently ranked among the most dependable and user-friendly VPNs available.

Whether you want to protect your data while traveling, access streaming content from other countries or simply beef up your everyday privacy, this offer gives you premium-level protection for much less.

What’s a VPN?

A VPN, short for virtual private network, helps protect your identity and online activity by routing your internet connection through an encrypted tunnel. It masks your IP address, making your device appear as if it’s in another location.

This makes it harder for advertisers, hackers or even your internet provider to track you. It also opens the door to accessing region-locked content, which is why frequent travelers and streaming fans often consider a VPN essential.

VPNs can help prevent risks on public Wi-Fi, shield sensitive information during online shopping or banking and create an extra buffer between you and the many digital threats that exist today.

Save on security with NordVPN

NordVPN is up to 77% off for Black Friday and combines privacy tools, a clean interface and a strong global server network, making it a great choice whether you're at home or on the road. If you want to watch a show that’s only available in another country or maintain access to your usual library while abroad, NordVPN can help.

Beyond location control, NordVPN includes built-in security features. That includes:

• Ad and tracker blocking to cut down on intrusive ads
• Malware protection to help detect harmful downloads
• A password manager for simpler, safer logins
• A global server network for reliable connections
• Fast speeds that work well with streaming in HD or 4K

These tools run quietly in the background, offering protection without slowing you down. For many users, the combination of speed and privacy is the biggest selling point.

Whether you’re looking for safer browsing or more flexibility when watching your favorite shows, this discount delivers strong value for the price. With up to 77% off, it’s one of the strongest VPN offers we’ve seen this Black Friday weekend.

Related content

• 9 Ways You Can Save Money on Streaming Services
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• The Best Christmas Movies on Paramount+ (and How to Watch Them for Less)

From Amazon's best Cyber Monday deals to Target Cyber Monday deals that are worth stocking up on, there are savings to be found today if you do some digging (and comparison shopping).

While some Black Friday deals fall short, these Best Buy Cyber Monday deals are all 50% off or more. So you can get that upgraded TV you've been dreaming of or grab a few tech gifts that your friends or family will love at half the price (or less). But order quick, because many of these deals will be gone tomorrow.

Best Buy Cyber Monday TV deals

• LG - 65" Class B5 Series OLED AI 4K TV, $1,000. Save 50%
• TCL - 65" Class QM6K Series 4K TV, $500. Save 50%
• Hisense - 98" Class QD5 Series QLED 4K TV, $1,000. Save 56%
• Toshiba - 55" Class C350 Series LED 4K TV, $200. Save 50%

Best home security deals at Best Buy

• Blink - Video Doorbell, Battery-Powered, $30. Save 57%
• Lorex - 2K Wi-Fi Smart Lightbulb Camera (2-Pack), $40. Save 50%
• Blink - Outdoor 4, 5-camera system, $120. Save 60%
• SimpliSafe - 9pc Outdoor Home Security System, $225. Save 50%
• Ring - Alarm Security Kit 5-Piece, $100. Save 50%

Best Buy Cyber Monday deals on laptops and tablets

• HP - OmniBook 3 15.6" Full HD Laptop, $400. Save 50%
• Amazon - Fire HD 10 Tablet, $70. Save 50%
• Lenovo - IdeaPad 1 15.6" Full HD Laptop, $250. Save 52%
• Samsung - Galaxy Chromebook Go - 14" LED Laptop, $150. Save 54%
• Amazon - Fire HD 8 Kids Pro Tablet, $65. Save 53%

Our Favorite Cyber Monday headphone deals at Best Buy

• Soundcore - by Anker P20i True Wireless In-Ear Headphones, $20. Save 50%
• JBL - Tune Buds 2, $50. Save 54%
• Sony - WH-1000XM4 Wireless Noise-Cancelling Headphones, $160. Save 54%
• Sennheiser - MOMEMTUM 4 Noise-Cancelling Headphones, $180. Save 60%
• Soundcore - by Anker C40i Open-Ear Cip-On Headphones, $50. Save 58%

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According to a survey from ecommerce marketing company Omnisend, Americans are expected to spend nearly $80 billion on Black Friday today and Cyber Monday.

That's a $20 billion increase from last year. But with tens of thousands of job layoffs, mounting credit card debt and lingering inflation, how are Americans affording this?

At first glance, it may seem like this is a positive boost in consumer confidence, but what's really happening is financial denial and retail therapy.

Pressure to shop proliferates

In today's climate, there's so much pressure to buy. Advertisements are virtually everywhere, and they only get worse during the holiday season when retailers promise big deals and savings.

Add online shopping with near-instant delivery and buy now, pay later options and the budget feels limitless. Especially if you're shopping for young children. But is that material item worth clocking in extra hours at work or taking on more debt than you can afford?

The obvious answer is no, but it's not that simple. During a time when inflation is eroding people's purchasing power, there's a lot of guilt associated with paying full price. Retailers know this, and they sometimes use it to their advantage.

Some may artificially inflate the original price of an item to make it appear as if you're getting a deal. They may even add an expiration date to create urgency.

Under these conditions, you're more likely to buy on impulse under the guise that you're saving money when that may not be the case.

Tools like CamelCamelCamel and Honey allow you to check an item's price history.

It's also a good idea to shop around. If you notice multiple retailers are discounting the same product, the sale is likely legit.

However, if you see an item being advertised for 50% to 75% off for one day only, it may be advantageous to skip it — especially if it's from an unknown brand.

Consider some financial literacy

So why is this important? Holidays can be a stressful time for parents who are trying to provide the best Christmas for their children, and the pressure to get every item on their list can be intense — no matter how much it costs.

But if money is tight this year, breaking the bank to get a material item that may hold your child's attention for a few weeks isn't worth racking up debt for.

In fact, it may be the perfect opportunity to teach your child what this season is all about and the importance of financial literacy.

Now, I'm not suggesting parents should skip the gifts altogether, but consider having an age-appropriate conversation with your children about what's going on.

Explain that prices are higher this year and that you don't have room in the budget to get everything on their wish list.

Focus on thoughtfulness over abundance. Teach your children that gifts are meaningful because of the care and effort that are put into them, not because of the cost or the type of item.

Put together a shared gift plan

Another option is to create a shared gift plan. Sit down with your child and make a list of who they want to get small gifts for, such as siblings, friends or teachers. Give each person on the list a target budget and stick to it. This will help them understand that money is finite.

Depending on their age, you can also encourage them to use their own money to buy the gifts. Help them research where to buy things, compare prices and decide what items are "worth" the money.

By using their own money, your child learns the value of a dollar and that sometimes sacrifices have to be made. It also teaches them that money is earned — if you want something, you have to work for it.

Alternative gift options

As you're preparing for the holidays, remember the reason behind the season. Are you getting gifts simply because it is tradition? Are there other more affordable times throughout the year when you could show that person how much they mean to you?

Perhaps you could take a special trip in the summer or give yourself more time to save money by buying them something for their birthday.

If your budget is tight this season, don't let the pressures of the holidays force you to make choices you cannot afford.

Consider spending quality time with one another by creating memories and experiences, rather than focusing on material items that can easily be replaced or forgotten.

Picking up the phone to call a loved one or sending them a card goes a long way, too. Oftentimes, that's more meaningful and authentic.

There's no shame in going back to the basics this holiday season — the memories and experiences created instead are priceless.

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

High-net-worth donors must contend with stipulations coming into effect on January 1, 2026:

New floor on deductions for itemizers. Philanthropic donations at or below 0.5% of a filer's adjusted gross income will not provide any deductions.

Cap on deductions for top tax bracket. The deduction value of itemized charitable donations will be capped at 35% for filers in the 37% tax bracket (the highest).

New universal charitable deduction for nonitemizers. Tax filers who don't itemize their charitable deductions will be subject to a universal deduction amount — up to $1,000 for single individuals and up to $2,000 for married couples.

This universal deduction does not apply to contributions made to donor-advised funds (DAFs) or private foundations. To receive this new deduction, the gift must be made with cash; donations of appreciated securities will not trigger this new deduction.

Unused deductions are subject to new floors and caps. Charitable deductions that weren't applied to tax returns might still be carried forward to the next year's filing, but any donations carried over into 2026 or later are also subject to the above new floor and caps.

What do these new rules ultimately mean? After the New Year, smaller or routine philanthropic donations might not be able to contribute nearly as much in tax deductions — or will contribute nothing in deductions.

Further, affluent donors who make sizable donations will reap considerably less in tax advantages.

That makes year-end charitable giving and tax planning before 2025 runs out more urgent than ever. For the remainder of the year, taxpayers can consider certain strategic moves that can potentially maximize the tax deductions on charitable gifts made in 2025:

Consolidate multiyear gifts into 2025 filings. Instead of spreading multiyear philanthropic gifts over time, their full amounts should be filed for the 2025 tax year.

That way, the deductions on multiyear gifts won't be affected by the new rules going into effect on January 1.

Prefund multiyear gifts into a donor-advised fund now. Setting up a DAF before 2025 runs out to prefund charitable gifts can also ensure any potential deductions can fall under the 2025 deduction rules.

Keep an eye on adjusted gross income. Since the 0.5% deduction floor is tied to a filer's adjusted gross income, taxpayers need to keep that in mind as they plan charitable gifts going forward.

Business sales and other events which can decrease or increase adjusted gross income will also affect the deduction potential of charitable donations made in years in which that income is either lower or higher.

The window from now through December 31, 2025, grants taxpayers a crucial period for reviewing year-end charitable giving planning ahead of the OBBB's charitable deduction stipulations.

The new rules with regard to deductions will change the potential tax benefit derived from large, ongoing donations to philanthropic causes.

Planning now can help lock in deductions on multiyear gifts under the current calculations, and also potentially optimize deductions on donations made in future tax years.

Related Content

• How Charitable Donations Can Reduce Your Taxes
• 3 Ways High-Income Earners Can Maximize Their Charitable Donations in 2025
• Five Ways to Adapt Your Charitable Giving Strategy in a Changing World: An Expert Guide
• How to Choose the Best Charities to Donate To
• Three Factors Sabotaging Your Long-Term Investment Strategy

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

But as snowbirds know, your home is left behind and has to deal with any harsh winter conditions it encounters.

And if you return home and find damage, you might be in for another surprise: Your provider might not cover it. Because of that, you'll want to address these common insurance gaps before taking off for the winter.

Leaving your home unoccupied

Say you return home after a restful season, only to discover some minor damage from a leaky roof shingle. No worries, you call your home insurance carrier to start a claim, and they ask if someone watched the home while you were away.

How you answer that question can determine whether you're out thousands or just your deductible. Some insurance companies won't cover home damage if the homeowner isn't home for 30 days or more and doesn't assign someone to watch it under the vacancy clause.

This is why it's integral to have someone visit your home regularly while you're away. They can pick up anything that arrived that you might have forgotten, and check to ensure your home is OK.

To see if this applies to your home, contact your insurance carrier. It's also a great time to shop around to see if you're receiving the best deal. Use this Bankrate tool to compare options fast and save money:

Failing to protect your pipes

One area that winter weather impacts the most is your home's pipes. If your insurance carrier determines that your pipes burst due to you turning off your heat or because you failed to insulate them properly, you may be liable for all the damage the leaks wrought.

That is why you'll want to do the following:

• Outside: If you have any garden hoses connected, remove them, drain them and store them somewhere dry. Next, you'll want to shut off any outdoor water valves. You can find these inside your home near the pipe on the wall that goes outside.
• Insulate your pipes: You can buy foam insulation at your local hardware store, cut it to size, wrap it around the pipe and secure it with insulation tape. Doing this will keep the pipes warmer, making them less likely to burst when the temperatures dip.
• Turn off the water supply: On the day you leave, shut off the water supply entirely, unless you have someone planning to housesit for a portion of the trip. To locate the main valve, look for the point where the water pipe enters your house, typically near your water heater, basement or crawl space.
• Lower, don't turn off the heat: Set your thermostat eight to 10 degrees cooler than you normally have it while there. This keeps your home cooler without shutting off the heat entirely, which can make your pipes more susceptible to damage.

Keeping your car stored outside

If there's a vehicle you don't plan to take on your winter journey, you want to ensure it remains in an airtight garage or car capsule before leaving. The reason? Over the winter, critters of all types can find cars and use them as nests to build their families.

As cute as that sounds on the surface, they'll also chew through wires and other critical components to make room for their growing family. When you return, you may encounter lengthy repair times, particularly if you have a luxury, foreign or antique vehicle.

Additionally, some auto insurance carriers are removing animal damage from their comprehensive policies. That means you could be liable for paying for all damages incurred from these furry little critters. And some of these repair bills can be tens of thousands of dollars.

The solution? Contact your current insurance carrier to see if you have protection. And if they don't offer it, you can use this Bankrate tool to shop around for a carrier that does:

The bottom line on insurance gaps for snowbirds

Before you travel south for the winter, know there are some insurance gaps you'll need to address before leaving. Doing this ensures you protect some of your most valuable assets while also preventing you from being liable for any damages that occur while you're gone.

Related content

• A Nasty Surprise Awaits Snowbirds: Thousands in Unexpected Bills
• Reasons Your Home Insurance Costs Are Surging
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Despite many Americans struggling with finances in the midst of lingering inflation and high credit card debt, charitable giving increased 6.3% to $592.5 billion in 2024, according to Giving USA's 2025 Annual Report on Philanthropy.

You shouldn't donate to a charity simply for a tax write-off. Instead, find one that means something to you or your loved ones.

Whether it's a local shelter for homeless people or animals or an organization that's important to you, like Feeding America Wisconsin is important to me, many organizations could use your help.

While there are many ways to give, some strategies can be more impactful than others. By understanding how to maximize your charitable donations, you can make the most of your gifts while staying on budget.

Take advantage of tax benefits

You can save more on taxes if you have the right strategy for donations, which also gives you the ability to donate more. To encourage charitable giving, the IRS offers tax deductions for donations made throughout the year.

However, to claim these deductions, you need the right paperwork and have it filed correctly.

If you're seeking a tax deduction, make sure your donation falls under the IRS's definition of a charitable donation. You can donate to organizations that are registered as tax-exempt, including such places as churches and religious organizations or museums and educational groups.

But be careful — not all nonprofits are tax-exempt, so do your homework before you choose.

If you plan to make donations next year, a few changes that you need to be aware of are coming from the One Big Beautiful Bill (OBBB).

Beginning in 2026, universal deductions are changing for non-itemizers. If you're a single filer, you can deduct up to $1,000 in cash donations, and if you're married, that number goes up to $2,000.

Also starting next year, if you itemize your deductions, you're required to contribute at least 0.5% of your adjusted gross income before claiming any charitable deductions.

If you earn a higher income, the value of your charitable deduction is now capped at 35%, down from 36% in previous years. While this might seem like a slight change, this could significantly impact your donations moving forward.

Consider qualified charitable distributions

If you turned 73 this year, you have until April 2026 to begin taking your required minimum distribution (RMD). A way to meet your annual RMD is by using a qualified charitable distribution (QCD). This allows those age 70½ and older to make donations of up to $100,000 from their IRA.

When you make a distribution from your IRA, those are pre-tax dollars and can be used to meet your annual RMD. This will reduce your adjusted gross income and can go directly to charity without being taxed when you withdraw.

If you're worried you don't have enough extra funds to donate to charity this year, that's okay.

I recommend working with a financial professional. They can help you determine the best ways to maximize your donation while still staying within your budget.

Related Content

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

Others take a little more creativity and patience. Teaching them to give back definitely falls into that second category.

Generosity doesn't happen overnight. Kids learn it by watching, feeling and doing. As parents, we're constantly walking that line between wanting them to appreciate what they have and not turning every lesson into a lecture.

Kiplinger's Adviser Intel, formerly known as Building Wealth, is a curated network of trusted financial professionals who share expert insights on wealth building and preservation. Contributors, including fiduciary financial planners, wealth managers, CEOs and attorneys, provide actionable advice about retirement planning, estate planning, tax strategies and more. Experts are invited to contribute and do not pay to be included, so you can trust their advice is honest and valuable.

Five simple, meaningful strategies can help your kids understand what it means to give back in ways that fit your family's real life.

1. Start with gratitude

In our house, gratitude is something we try to instill in our kids. It isn't some big "sit in a circle and reflect" moment, but more like, "What made you smile today?" or "What was the best part of your day?"

These tiny moments help kids realize how much they already have, whether it be friends, family, food or a home … things we adults sometimes take for granted. When kids start noticing the good, they naturally want to share it.

Studies, such as one by Robert Emmons, a leading expert on gratitude, show that practicing gratitude for five minutes each day can make you 25% happier.

2. Let them take the lead

Kids have big hearts and even bigger opinions. If you've ever tried picking out an outfit for your daughter, you know exactly what I mean. It helps to let them take the lead when it comes to giving.

Maybe your child wants to donate old toys, help animals or collect food for families in need. When the choice is theirs, they feel ownership, and that's when it really starts to click.

I learned this the hard way when I tried to clean out my kids' toys on my own. Let's just say it didn't go well.

But once I gave them the time and space to go through their things and imagine another child playing with those toys, everything changed. It became fun, thoughtful and surprisingly meaningful.

3. Volunteer as a family

Some of my favorite memories come from the things we've done as a family. Look for ways to make giving back a shared experience, such as baking cookies for a school fundraiser, joining a beach cleanup or volunteering at a local shelter or food bank.

Even if everyone grumbles about it at first, those are often the moments that turn into the best stories later.

I've heard families talk about their annual Turkey Trot runs. Every year, everyone complains about waking up early, yet those mornings are the ones they laugh about most.

Looking for expert tips to grow and preserve your wealth? Sign up for Adviser Intel (formerly known as Building Wealth), our free, twice-weekly newsletter.

Kids love feeling like part of a team, and when giving back becomes a family tradition, it stops feeling like something everyone "should" do and becomes something special you want to do. It's one of those things that brings people closer together.

Studies found that 81% of parents who give reported that their children under age 18 also participated in a charitable activity in the past year.

4. Build giving into their allowance

If your kids get an allowance, make generosity part of the plan. Encourage them to budget a portion for saving, a portion for spending and a portion for giving.

For example, if they receive a weekly allowance, have them set aside a few dollars or a small percentage for a cause or organization that matters to them. It's a simple way to teach both financial responsibility and the joy that comes from helping others.

5. Involve kids in philanthropic decision-making

If giving is already part of your family's budget and your kids are a little older, invite them to be part of the process. Let them research and suggest which organizations your family might want to support.

They can explore sites such as Charity Navigator or Charity Watch to learn about different causes and how nonprofits use their funds.

You can make it fun by turning it into a friendly "pitch session," in which each child presents their favorite cause and everyone votes on where the donation goes.

If your family gives regularly, you might also explore opening a donor-advised fund (DAF), a vehicle that allows you to donate cash, appreciated securities and other assets and receive an immediate tax deduction.

The funds can be invested for tax-free growth, and you can direct grants to eligible charities.

For families giving larger amounts, a family foundation can be another great option, offering more structure and long-term involvement. Essentially, you're establishing your own private charitable organization funded with family assets and controlled by your family.

As your kids grow, they can take an active role in managing the fund or foundation.

The heart of it all

Teaching our kids about giving back isn't about big donations or perfect parenting moments. It's about raising kind humans who notice the world around them.

When our kids learn that even the smallest act of kindness matters, whether it be sharing a snack, helping a friend or donating a toy, they begin to see themselves as part of something bigger.

That's what it all comes down to: Helping them see that their actions, no matter how small, can make a real difference in someone's day and in the world around them.

Related Content

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• I'm a Financial Planner and a Parent: Here Are Five Money Habits Every Young Family Should Have

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

It's no longer an esoteric technology that interests only nerds. Now, people use the technology to write, create images, edit videos, analyze data and write code.

As AI continues to impact every industry, the personal finance industry hasn't been left behind. The AI-powered personal finance management market was valued at $1.48 billion in 2024, according to Research and Markets.

Kiplinger's Adviser Intel, formerly known as Building Wealth, is a curated network of trusted financial professionals who share expert insights on wealth building and preservation. Contributors, including fiduciary financial planners, wealth managers, CEOs and attorneys, provide actionable advice about retirement planning, estate planning, tax strategies and more. Experts are invited to contribute and do not pay to be included, so you can trust their advice is honest and valuable.

It's projected to be a $1.63 billion market by the end of 2025, at a compounded annual growth rate (CAGR) of 10.1%, and a $2.37 billion market in 2029, at a CAGR of 9.8%.

From budgeting, saving and investing to robo-advising, financial coaching, credit scoring and debt management, AI continues to shape personal finance management, providing value across the globe.

Let's look at some of the applications of AI in personal finance, the challenges with adopting AI and tips for wise usage of AI.

AI and budgeting

AI-powered tools can help with:

Data aggregation and categorization. AI-powered tools such as Monarch, YNAB, PocketGuard and Mint AI, among others, can pull data from your bank accounts, credit cards and payment history to identify spending patterns and categorize transactions.

Based on this information, you can create a budget to gain better control of your finances. These apps can also use relevant information to suggest areas in which you can modify spending habits to pursue more important goals.

Automated budget creation. AI-powered tools such as Galaxy.ai and Tiller can create a personalized budget based on your income, expenses and financial goals. They'll suggest how you can better allocate your income across expenses to help achieve your goals.

Predictive forecasting. Some budgeting tools (Drivetrain and SuperAGI, among others) can use AI to forecast how your budget will change if your income changes, unexpected expenses arise or you take out a loan.

Anomaly detection. Some AI tools (such as Expenzey and Cleo) can use your past spending habits to flag unusual transactions or overspending in real time. They help prevent fraud and ensure you stay on budget.

Expenses tracking. Budgeting tools allow you to see how close you are to reaching your budget limits. Examples include Mint AI and Cleo.

Bill negotiation. Apps such as PocketGuard can identify bills that might be too high. They'll automatically negotiate with the relevant service providers to lower your expenses.

Automated bill payment. SuperAGI and Mint AI, among others, automate bill payments to a range of providers.

AI and saving

For some, the main point of budgeting is to foster saving.

AI-powered budgeting tools have features that can help. These include:

• Identifying areas to cut expenses. SuperAGI, YNAB, Tiller and PocketGuard
• Paying yourself first by automating savings. PocketGuard, Albert and Oportun
• Identifying and canceling unwanted subscriptions. Rocket Money and Subscription Stopper

AI, investing and financial planning

Some AI tools can suggest how to invest based on your financial goals, time horizon and risk tolerance.

For example, Empower provides investment recommendations based on investment goals and risk tolerance. It also offers retirement planning tools.

Looking for expert tips to grow and preserve your wealth? Sign up for Adviser Intel (formerly known as Building Wealth), our free, twice-weekly newsletter.

Some AI-powered tools provide comprehensive financial planning that goes beyond investment management.

For example, Albert combines AI with human advisers to provide comprehensive money management.

Even robo-advisers such as Acorns and Wealthfront use AI to optimize client portfolios and automate portfolio rebalancing.

AI and financial education

Albert has a feature called Genius in which an AI tool can act as a virtual financial coach.

Large-language models (LLMs) such as ChatGPT, Perplexity and Claude, among others, can also act as a financial coach and provide a comprehensive financial education.

Most of the apps we've discussed are also built in a chatbot style, so you can ask questions and get personalized answers if they have access to your financial information.

AI, credit scoring and debt management

Some financial institutions now use AI for credit scoring. These combine traditional credit data with alternative sources such as utility bills, transaction history, income, work history and other behavioral data to evaluate creditworthiness. Examples include FICO Score XD and Zest AI.

Consumers can use platforms such as Experian Boost and Credit Karma to improve their credit scores. They use AI to analyze multiple data points to provide personalized suggestions.

Navigating the risks of AI in personal finance

Despite the benefits that AI provides, certain risks remain with its usage in general and in personal finance management in particular.

Some of the most important include:

Limits to the possibility of personalization. AI-powered apps don't have the emotional intelligence and human judgment required to offer truly personalized advice.

While it can help with the automation of repetitive tasks and the provision of information, the emotive element makes human financial advisers necessary.

Privacy concerns. To provide more valuable advice, AI-powered apps will require more personal information, including sensitive personal data. Given concerns about cybersecurity, this is a risk.

AI models can be hacked to make the information they provide reflect a particular ideology or the personal views of the attacker.

Factual mistakes. Generative AI can be factually inaccurate in many cases. They sometimes cite sources that don't exist.

What can you do about these risks?

While AI-powered apps can help, they shouldn't be a replacement for human financial advisers.

Instead, advisers should find a way to integrate AI into their activities so they can provide maximum value to their clients.

Other ways to mitigate risks:

Data-protection policies. Before using any AI-powered app, read its data-protection policies. Choose those you're confident have the policies in place to protect you.

Don't ignore reputable blogs. Look for blogs that provide information from financial experts to confirm what AI tells you.

By familiarizing yourself with reputable blogs, you become insulated from false information, because LLMs might not always be objective.

Provide AI with accurate information. The quality of what you get from AI-powered apps is proportional to the quality of the information you provide.

If you're sure a platform can protect your data, provide relevant information to provide better value.

Final thoughts

The opportunities for the use of AI in personal finance are enormous. However, given the risks, it is up to you to use AI-powered apps responsibly.

If you have a human adviser, consult them before making significant financial choices based on AI recommendation.

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

Starting November 25, Hulu subscribers can add HBO Max with Ads for only $2.99 per month for 12 months. Considering the standard HBO Max price is $10.99 per month, this limited-time offer unlocks a full year of TV and blockbuster movies at a fraction of the usual rate.

Whether you’ve been waiting to catch originals, revisit holiday classics or binge this year’s new releases, Hulu’s HBO Max Black Friday deal makes premium streaming more affordable than ever.

Why the HBO Max add-on is a good deal

Hulu’s Black Friday promotion brings the HBO Max with Ads add-on down to $2.99 per month for 12 months, compared with the regular $10.99 monthly price for the Basic with Ads plan. The savings last a full year, and once the promotional period ends, the add-on returns to standard pricing.

The deal runs now through December 1, and once it expires, the add-on returns to standard pricing. If you’ve been thinking about trying HBO Max or expanding your current Hulu lineup, this is one of the most aggressive discounts Hulu offers all year.

Who can add HBO Max to Hulu for $2.99

The deal is open to new and existing Hulu subscribers on eligible plans who don’t currently have the HBO Max add-on. Those on ineligible legacy plans will need to switch to a qualifying plan if they want to redeem the offer.

Once added, subscribers can enjoy HBO Max’s wide catalog of acclaimed originals and premium series, including new titles like IT: Welcome to Derry, The Pitt and recent releases such as The Conjuring: Last Rites.

How to add HBO Max to your Hulu subscription

Adding HBO Max is simple. Log in to your Hulu account, go to “Account,” then choose “Manage Add-Ons.” Select HBO Max (with Ads) and confirm the update.

Hulu will handle billing for both your main subscription and the add-on, making it a seamless upgrade.

To access HBO Max titles, download the HBO Max app, choose “Sign in with a provider,” select Hulu and log in using your Hulu credentials.

You’ll be able to stream select HBO programming directly through Hulu while accessing the full HBO Max library through the app.

There’s no long-term commitment, and you can cancel at any time through your Hulu account.

What you can watch with the HBO Max add-on

HBO Max brings a substantial entertainment library to Hulu, from timeless holiday movies to genre-defining originals. The platform’s mix of series, documentaries and new titles makes it one of the most robust catalogs available.

Whether you're rewatching yearly favorites or introducing holiday classics to someone new, HBO Max offers a wide selection to kick off the season.

Christmas movies on HBO Max:

• A Christmas Story
• A Christmas Story 2
• Dr. Seuss’ How the Grinch Stole Christmas
• Elf
• Four Christmases
• Fred Claus
• Holiday Affair
• Jack Frost
• National Lampoon’s Christmas Vacation
• Scooby Doo: Haunted Holidays
• The Polar Express

What’s new on HBO Max in December

HBO Max adds new titles monthly, including documentaries, comedy specials and a sequel to a beloved cult classic.

Here are a few highlights:

December 4

It’s Never Over, Jeff Buckley — A documentary exploring the life, music and legacy of Jeff Buckley.

December 12

Sarah Squirm: Live + In the Flesh — A stand-up special from “Saturday Night Live” cast member Sarah Sherman.

Spinal Tap II: The End Continues — A follow-up to the iconic mockumentary that reunites the original fictional heavy-metal band.

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This year, Hulu is focusing heavily on premium add-ons like STARZ, delivering deep discounts that let you watch more for less. Whether you’re catching up on dramas or starting your holiday movie marathon, Hulu’s new offer means you can stack major entertainment without the premium price tag.

And if you’ve been waiting for a reason to try STARZ or jump back in for a new season of your favorite series, Hulu’s limited-time STARZ add-on Black Friday deal makes the decision pretty easy.

Why the STARZ add-on is such a strong value

Hulu is offering new and existing subscribers the chance to add STARZ for only $2.99 per month for 12 months, a drop from the regular price of $10.99 per month.

That’s one of the lowest prices you’ll see for the premium channel all year. To get the deal, you’ll first need a Hulu base plan, which starts at $11.99 per month, and then you can add STARZ at the discounted rate.

The clock is ticking, though. Hulu’s Black Friday offer is available now through December 1, and once the discount expires, STARZ returns to its standard pricing.

Who can add STARZ on Hulu for an additional $2.99 during Black Friday

The deal is open to new and existing Hulu subscribers who don’t currently have STARZ, as well as anyone who has been without a STARZ subscription for at least one month. That means a wide swath of viewers can take advantage of the promotional pricing without needing to create a brand-new account.

What you can watch with the STARZ add-on

Why consider STARZ? The add-on unlocks access to an extensive catalog of hit movies and original series. Subscribers can stream everything from action blockbusters to thrillers, all in one place.

Current standouts include titles like Ballerina, Now You See Me, Venom: Let There Be Carnage, Borderlands and more, giving movie fans plenty to binge during the holiday season.

But STARZ is perhaps best known for its original programming. The network is home to major hits like Outlander, Power Book IV: Force, BMF and a growing library of exclusive series that you can’t find on any other streaming service.

Hulu lets you cancel anytime, so you’re not locked into a year-long commitment even though the discount lasts for 12 months. That makes it a low-risk way to test STARZ during the peak entertainment season, when new episodes, holiday specials and fresh movies are released.

When does the Hulu Black Friday savings end

With premium networks continuing to raise prices across the board, Black Friday has become one of the best times of the year to secure lower streaming rates. If you’ve been considering consolidating your streaming apps or trimming back on subscriptions, this offer gives you premium content at a fraction of the regular price.

Whether you’re catching up on your movie-to-watch list, starting a new original series or kicking off your annual holiday movie binge, Hulu’s Black Friday STARZ deal delivers a lot of entertainment for a very small price.

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The popular streaming service just added a bunch of new holiday movies to its roster and dropped a Black Friday streaming deal at the same time.

From now through December 2, you can sign up for either the Paramount+ Essential or Premium plan for just $2.99 per month for two months. That's plenty of time to rewatch all of these Christmas movies while you decide if you want to keep the subscription.

Classic Christmas movies on Paramount+

Share your childhood favorites with the next generation by adding some of these timeless Christmas movies to your marathon list this year:

• Planes, Trains and Automobiles
• Scrooged
• Scrooge (1970)
• All I Want For Christmas
• Home For The Holidays
• The Love Boat: The Christmas Cruise
• Trading Places

Christmas comedies on Paramount+

From feel good family movies to raunchy comedies, these are some of the best Christmas comedies streaming on Paramount+ right now:

• Surviving Christmas
• Happy Christmas
• Santa Stole Our Dog!
• Last Holiday (2006)
• A Fairly Odd Christmas
• Tiny Christmas
• A Clüsterfünke Christmas
• When Christmas Was Young
• Santa Hunters
• Daddy's Home 2
• Twas the Night Before Spongemas
• Friendsgiving

Spooky Christmas movies and festive mysteries to watch on Paramount+

For a change of pace, switch things up by sprinkling a few festive horrors and mysteries into your holiday marathon. Here are some of the spooky picks you'll find on Paramount+:

• Fatman
• Deck the Halls (2011)
• Reindeer Games (2000)
• Dear Santa

How to get a deal on Paramount+

Black Friday is one of the best times of the year to save on streaming. Most major platforms offer some of their best deals during the major shopping event. Paramount+ is no exception. When you sign up before December 2, you can pay just $2.99 per month for the first two months.

That low price applies to both the Paramount+ Essentials plan and Premium plan. If you opt for Premium, you'll not only get no ads but also get access to Showtime content. It’s the perfect excuse to curl up with family, save some cash and enjoy all your streaming favorites.

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Driven by a projected 20% rise in wholesale natural gas prices for 2026, the cost of keeping your home toasty could rise sharply, depending on where you live and the type of fuel you use.

Electricity is expected to lead the price hikes, with double-digit jumps in some parts of the country, followed by more modest increases in the cost of residential natural gas. The price of home heating oil, though still the most expensive way to keep a house warm, is expected to remain flat or even drop in some areas.

“Even with temperatures forecast to mirror last winter, home heating costs are expected to rise about 10% overall, as utilities pass higher fuel costs directly to consumers,” says Mark Wolfe, executive director of the National Energy Assistance Directors Association.

How can you ease the pinch? “The smartest and cheapest thing homeowners can do is focus on efficiency first,” says Laura Bowler, design lead with Ramboll, a sustainable architecture and engineering consulting firm. “Simple steps can make a big impact.”

Here are some to consider.

1. Seal air leaks

Check your windows and doors for leaks that let in cold air and moisture. For the windows, you can use rope caulk (about $6 at your local hardware store) to seal any openings or damage to sealant you find, says Kriss Swint, marketing director with Westlake Royal Building Products in Columbus, Ohio.

For the doors, you can install a door sweep, a type of weather stripping that plugs the opening at the bottom ($10 to $20). Reducing these drafts can cut your energy bill by 5% or more, according to the U.S. Department of Energy (DOE).

2. Unblock vents

Check around your home to make sure your vents aren’t blocked by furniture, which wastes heat and forces your system to work harder. Don’t want to rearrange couches and beds? You can instead connect a small plastic extender or deflector to the vents ($7 to $20), which can steer warm air to the areas of your home that need it most.

3. Use a smart or programmable thermostat

To save on heat while you’re out of the house, consider installing a programmable thermostat, which lets you set an automatic schedule for adjusting the temperature.

Turning down your thermostat by 10% to 15% for eight hours a day can reduce your bill by 10%, according to the DOE. Or spring for a smart thermostat linked to your cell phone that will track your location and daily patterns, then adjust the temperature in your home accordingly. A basic programmable model is about $50; a smart thermostat goes for around $100 to $200.

Below are a few top-rated smart thermostats from Amazon:

4. Insulate the attic

“Roughly 25% of heat loss occurs in the attic,” says Swint. To help prevent that, add more insulation, such as fiberglass, wool, or cotton, between the attic joints to trap heat. “If you’re a DIYer, this project should take a weekend,” says Swint.

'Average cost: $1,500 to $3,500, depending on the size of your attic and the material used.

5. Replace old heating systems

This could be an ideal time to spring for a new furnace or boiler, while some tax credits are still available for energy-efficient upgrades. One such credit, which expires at the end of 2025, can cover 30% of your energy-efficient home upgrades, for a total savings of up to $3,200. You may also qualify for state and local rebates, depending on where you live.

While you’re at it, also consider replacing an old attached garage door, which can be a significant source of heat loss. New versions have more insulation and improved sealing.

A bonus: Sellers recouped nearly double the average $4,513 they paid for a garage door replacement in 2024.

For more-targeted guidance, consider working with a professional home-energy auditor. “An audit will help identify where heat loss is happening and what improvements make the most sense,” Bowler says. For information on finding an auditor, visit energy.gov/energysaver/professional-home-energy-assessments.

Note: This item first appeared in Kiplinger Personal Finance Magazine, a monthly, trustworthy source of advice and guidance. Subscribe to help you make more money and keep more of the money you make here.

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January and February are consistently the cheapest months of the year to fly, thanks to shrinking demand following the holiday surge.

"It flips from one of the most expensive times to one of the cheapest almost overnight—around January 8," says Scott Keyes, founder of Going (formerly Scott's Cheap Flights), a travel company that helps people find and book inexpensive airfare.

And the deals continue well into the first half of March in many places, before spring break trips begin to increase demand again, says Keyes.

Flights aren't the only bargains you'll find. You'll often see lower prices on lodging, rental cars, airport parking, and entertainment and activities, such as skiing or the theater. Plus, you'll encounter fewer crowds, which means shorter waits at airport security, better seating options on flights or trains, and more availability at the best restaurants, hotels, resorts and spas.

Bag the best bargains

To book a flight at the best price, experts typically advise that you start monitoring prices several months in advance, especially for international travel. But for trips from January through early March, you have a bit more flexibility.

Generally, you can find good deals on flights anywhere from one to two months in advance for domestic travel in the early months of the year. And if you book using rewards points or frequent-flier miles, you may score a bargain even closer to your departure date.

For both domestic and international flights, the sweet spot is often three to five weeks before a trip, when you are most likely to need fewer points or miles than you otherwise would for a ticket, maximizing their value, says Keyes.

Whether you're booking with cash or points, follow the 21-day rule. Most airlines have in their policies a requirement that to get the cheapest fare, you have to book at least 21 days before your departure date, says Keyes. On day 20, the lowest fare that was available previously won't be offered, and the new cheapest fare is going to be a bit more expensive.

Being flexible on where you go can save you a lot of money, too. Rather than picking a particular destination and then looking for flights to it, consider sorting out which places come with the cheapest flights from your home airport, then choose your favorite among them.

A great tool for this is Skyscanner.com's "Explore Everywhere" feature. Select your origin airport and either specific dates or flexible dates (with the ability to select entire months at a time) to see the best deals on flights around the world.

You can also use Skyscanner to compare prices for lodging and car rentals on specific dates. Once you have a few destinations in mind, monitor prices with a tool such as Google Flights or Going.com.

But striking a balance between chasing rock-bottom bargains and settling on a destination you're actually going to enjoy can be tricky. If none of the deals are jumping out at you, compile a list of your ideal destinations, then track flights for early 2026 to those places so you can jump on any price drops.

Check out these destinations

Looking for inspiration? Consider these vacation spots, which should see favorable pricing in January and February.

Florida

Whether you're longing to relax on the beach, take in the nightlife or explore the theme parks, Florida has a little something for everyone.

Although tourists are drawn to the Sunshine State year-round, you should see significant price drops for flights, lodging and rental cars in January and February, except during the Martin Luther King, Jr. Day and Presidents' Day holiday weekends.

Early-2026 flights from Dallas to Miami, Boston to Tampa, and New York City to Miami were recently available for as little as $125, $203 and $111 round-trip, respectively, according to travel-booking app Hopper. And you can find flights to other airports around the state at a lower price than typical fares during those early months, too. Lodging for the second weekend in January recently averaged $299 per night in Miami, according to Skyscanner.

For a Florida getaway with European vibes, consider visiting Rosemary Beach, a community along Florida's Gulf coast. Early-2026 stays at The Pearl, an independent boutique hotel, were recently available starting at $517 per night, compared with peak-season rates of as high as $850 per night. The Pearl boasts access to a private beach, a spa, and activities such as golf and kayaking.

Puerto Rico and Aruba

Caribbean locales offer U.S. travelers the perks of a tropical vacation with minimal jet lag and lots of flight options. You may find some solid post-holiday deals on flights to Puerto Rico — where U.S. citizens can travel without a passport — and Aruba.

January and February are part of Aruba's Carnival season, featuring parades and other cultural celebrations. But if you'd prefer to avoid the crowds, you can stay at one of the country's many private resorts.

Flights from New York City to San Juan, Puerto Rico, and Oranjestad, Aruba, were recently available for as little as $220 and $369 round-trip, respectively. The cost to stay at a midrange hotel in San Juan in January starts at about $275 per night, according to Skyscanner. Typical prices per night at midrange hotels in Aruba in January are about $240, according to Google Hotels.

Europe

Late winter is possibly the most underrated season to travel to Europe. Though the weather may be cold in Europe's northern stretches, the crowds are thinner, and the hotels and car rentals cost far less than during the holidays and the summer.

And if it's warm weather you seek, southern European countries, such as Spain and Portugal, offer a milder climate, and they should see the same price dips as many other destinations in the post-holiday travel period. Fares for early 2026 from Los Angeles to Lisbon were recently as low as $487 per round-trip ticket, according to Hopper.

If you plan to visit multiple European countries — or if an Ireland vacation is on your wish list — consider flying in and out of Dublin, using the city as your launch and return point.

Flights to Dublin from major U.S. cities were recently available for as little as $350 round-trip in January and February. Stays in Dublin at a midrange hotel in January start at about $110 per night, according to Skyscanner.

Hawaii

With its striking landscapes and pristine beaches, Hawaii is a popular destination for families traveling from the West Coast during the holiday break. A sharp drop in demand following the turn of the New Year makes Hawaii a consistently reliable travel deal for those who can wait until after the holidays to venture to one of the islands, says Keyes.

Early-2026 flights between Los Angeles and Honolulu were recently available starting at just $276 round-trip. Stays at midrange hotels and resorts average around $200 per night in early 2026; an early-January stay at the ‘Alohilani Resort Waikiki Beach, an upscale resort with ocean views, recently started at $251 per night.

Note: This item first appeared in Kiplinger Personal Finance Magazine, a monthly, trustworthy source of advice and guidance. Subscribe to help you make more money and keep more of the money you make here.

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That's what "Sylvia" and her mother encountered at a home decor chain store that sells bedding, kitchenware and holiday goods.

"After all of our items were rung up, my mom paid in cash, and then the cashier said, 'Would you like to round it up?' Mom said, 'Sure, no worry. There is a shortage of pennies. That's fine. We don't need them.'"

Kiplinger's Adviser Intel, formerly known as Building Wealth, is a curated network of trusted financial professionals who share expert insights on wealth building and preservation. Contributors, including fiduciary financial planners, wealth managers, CEOs and attorneys, provide actionable advice about retirement planning, estate planning, tax strategies and more. Experts are invited to contribute and do not pay to be included, so you can trust their advice is honest and valuable.

"At home, we were reviewing the receipt and saw that the last entry was a 32-cent payment to St. Jude (Children's Research Hospital). Totally unexpected! We had made a charitable donation without realizing it.

"We don't object to the donation, but we feel we were misled because we weren't informed where our money would go and therefore didn't give our consent.

"I think this is something you might look into, Mr. Beaver. How widespread a practice is this?"

They were indeed misled

Sylvia is right. They were misled, and with Sylvia on the line, I confirmed it by speaking with the on-duty manager at the store, asking her, "Do you have a charity campaign for St. Jude?"

"Yes, we do."

"Do your cashiers tell customers that 'rounding up' their total means that their change goes to St. Jude? Or do they just say, 'Would you like to round it up?'"

She refused to answer but insisted that Sylvia tell her who the cashier was. "Give me the register number on the receipt."

I repeated my question, which she still didn't answer. I took her refusal as an admission that, yes, cashiers ask customers if they want to round up their total without letting them know where their money will go.

Of course, who can forget the past few years of constantly being bombarded with "Would you like to give a dollar to XYZ organization?"

But we don't hear that much anymore, because "checkout charity" has been replaced with the "round it up" verbiage.

Perfect example of impulse giving

America is a generous nation. If you look at the Charities Aid Foundation's World Giving Index, the United States ranks near the top of countries whose citizens are among the most generous on the planet.

Now, there is giving when you know where your gift is going and you want to donate, but snookering us to give even a few cents to an unidentified cause is more than not acceptable. It is generally considered illegal to solicit charitable donations without revealing the name of the charity and the purpose for which the funds are being raised.

Both federal and state laws require transparency in charitable solicitations to protect the public from fraud.

And when it happens at the checkout counter, the customer has only seconds to decide.

In any other business or commercial setting, we would say, "Wait a minute, I have some questions."

But when people waiting behind us in line are close enough to hear our conversation with the cashier, the result is pressure — you are being pressured to give your money (i.e., make a buying decision with no time to think it over) to an organization that might not have been identified.

After asking if you'd like to donate, the cashier should say, "And your donation goes to XYZ."

But that's not always so, according to the 2025 Charity Checkout Champions Report by Engage for Good and presented by Adyen, which analyzed 92 point-of-sale (POS) fundraising campaigns that raised over $275 million in 2024. The report found that only 74% of the campaigns clearly identified the benefiting charity.

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I spoke to an executive of one of the North American companies that helps businesses collect donations for charities at checkout. He asked that he and his employer not be identified because the information he shared with me is more frank than his employer would prefer. Once I promised not to share his identity, he was quick to admit:

"We show cashiers how to seize on a customer's psychologically weak moment, when their donation could be going to a group they might not approve of and would never give their money to.

"But impulse giving is huge in the charity business, and so your very presence in the checkout line lends itself to being pressured into making a split-second decision for an altruistic reason.

"Unless full disclosure is made about the recipient of the donation, this is highly unethical, but (businesses get) away with it all the time."

Findings on impulse giving

Fifty-three percent of Americans donate impulsively at the checkout counter, according to a 2024 survey conducted by researchers Lauren Dula of Binghamton University and Ruth Hansen of the University of Wisconsin-Whitewater. They found:

• Impulse giving is often driven by social pressure, emotional appeal and the ease of the transaction.
• The donation request is embedded in a moment of financial exchange, making it feel like a small, convenient act of generosity.
• Many consumers report feeling guilty or obligated when prompted, especially in face-to-face retail settings.
• Younger customers are more likely to give impulsively than older people.

What businesses should do

The executive I spoke with offered these suggestions to help retailers that adopt checkout-charity programs do everything correctly and steer clear of trouble:

1. Name and describe the charitable organization.

• The name and purpose of the charity should be clearly displayed at the checkout
• You should verify that it is recognized by the IRS as a 501(c)(3) nonprofit

2. Provide an explanation for how customers' funds will be used.

• Include administrative or processing fees
• Break down how much goes directly to the cause

3. Ensure funds are given voluntarily and that informed consent is obtained.

• Your workers should make it clear that the donation is optional
• Customers should be told that they can decline
• Your workers should not use language that invokes pressure or guilt

The executive concluded our interview with these cautionary words for retail businesses: "Checkout charity is highly effective, and at the same time, we are hearing more and more objections to the pressure to donate. My fear is this has the potential to backfire one day."

All that said, checkout charity isn't a bad thing when it's done right. According to a Charity Watch blog, checkout donations allow charities, especially smaller ones, to raise significant amounts of money from a much larger pool of donors than they could normally reach. And because the process is part of a transaction that's already being conducted, the fundraising expenses are much lower.

So the bottom line here is that shoppers should make sure that they are aware of what they're donating to before they hand over even a small donation at the checkout. Here's what you can do if you encounter a request to round up your total:

• If the cashier isn't clear about what the money will be used for, ask.
• Don't hesitate to ask further questions about the charity. Maybe it's one you'd be happy to support.
• If you're not interested or feel there isn't enough information available, simply and politely say, "No, thank you" or "Not today."

Dennis Beaver practices law in Bakersfield, Calif., and welcomes comments and questions from readers, which may be faxed to (661) 323-7993, or e-mailed to Lagombeaver1@gmail.com. And be sure to visit dennisbeaver.com.

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

The assumption that "we make too much to qualify for aid" is one of the costliest misconceptions in higher education.

In reality, billions of dollars in scholarships, grants and state workforce incentives are available — many with no income restrictions at all.

Kiplinger's Adviser Intel, formerly known as Building Wealth, is a curated network of trusted financial professionals who share expert insights on wealth building and preservation. Contributors, including fiduciary financial planners, wealth managers, CEOs and attorneys, provide actionable advice about retirement planning, estate planning, tax strategies and more. Experts are invited to contribute and do not pay to be included, so you can trust their advice is honest and valuable.

The families who benefit most aren't the ones who spend hours filling out random scholarship applications, but those who approach funding strategically, much like portfolio management.

Here are four overlooked avenues of "free money":

1. Merit aid as the new recruitment tool

Colleges are increasingly using merit scholarships to attract high-performing students, regardless of their financial need.

At many universities, 22% of all undergraduates receive merit-based aid. Some private institutions and regional universities offer non-need-based aid to half or more of their full-time students as a competitive strategy to attract specific applications.

These institutional awards serve as tuition discounts, some renewable for up to four years.

Families can gain an advantage by building a list of target schools where their student's academic profile (GPA, test scores, extracurriculars) lands in the top 25% of admitted applicants.

Many institutions publish "automatic merit" charts showing thresholds for guaranteed awards.

A strong GPA and solid test performance can translate into five-figure savings per year — making merit a powerful lever even for wealthy households.

2. Skill-based scholarships in high-demand fields

Not all scholarships are based solely on grades or financial need. Many reward skills and interests that align with the future workforce. For example:

Cybersecurity and IT. The CyberCorps Scholarship for Service pays full tuition and a living stipend in exchange for federal service after graduation.

Semiconductors and engineering. Schools like the University at Albany offer scholarships funded under the CHIPS+ Act to train engineers for the microelectronics industry.

Esports and digital media. Over 300 colleges now offer esports scholarships that can stack with academic awards.

These programs focus on ability, not income, and often lead directly to internships or guaranteed job placement.

3. State 'Workforce' and 'Promise' scholarships

Nearly every state now funds "last-dollar" scholarships that cover tuition gaps after other forms of aid have been applied. Many are tied to high-demand fields such as health care, teaching and public safety.

Some examples:

• New York state's Scholarships for Academic Excellence award scholarships of $500 and $1,500 per year to students achieving academic excellence while in high school.
• The Kansas Promise Act Scholarship covers tuition for designated programs like logistics, nursing or cybersecurity if recipients work in-state for two years after graduation.
• The Maryland Workforce Shortage Grant supports majors in education, therapy, social work and other public service areas.
• The New Mexico Opportunity Scholarship covers up to 100% of tuition and required fees at public colleges for eligible residents.

These programs are structured for accountability: In exchange for service or residency commitments, students can graduate debt-free or with minimal debt.

To learn more about available scholarships and grants within your state, visit Edvisors.com to access links to scholarships and grants per state.

4. Employer tuition benefits (for students and professionals)

Employer-funded education is one of the most underused forms of "free money." Some examples:

• The Starbucks College Achievement Plan covers 100% of tuition through Arizona State University's online degree programs.
• Walmart's Live Better U program pays tuition and for books at partner schools nationwide.

Some of these opportunities are also available to dependents or part-time employees.

For professionals pursuing graduate degrees, many companies offer $5,000 to $10,000 annually in tax-advantaged tuition assistance — a benefit that can be paired with scholarships and 529 funds.

Strategic families utilize these employer programs as an asset class — layered on top of merit and grants — to minimize cash flow strain.

Integrating scholarships into a total funding strategy

For high-net-worth households, the real advantage comes from coordination — aligning scholarships, 529 plans, grants and savings into a coherent strategy.

A few high-yield moves:

• File the FAFSA anyway. Many merit and state programs require it, even if you don't qualify for need-based aid.
• Time your 529 withdrawals. If your student secures substantial merit or state aid, you can preserve 529 funds for graduate school or later years.
• Leverage credible planning tools. Resources available on Edvisors.com, where I am the chief marketing officer, help families compare college costs, explore scholarship options and understand how aid packages interact with personal savings.
• Know each college's stacking policy. Some institutions cap total aid at tuition cost; others allow overage for housing or books. Always verify in writing.

This disciplined approach transforms scholarships from a side pursuit into a core component of financial planning.

Quick wins for National Scholarship Month

Audit your college list for automatic merit. Check published grids and note eligibility thresholds.

Target workforce-aligned programs. Identify three scholarships linked to your student's intended major.

Explore employer partnerships. A part-time or summer job with an education benefit can offset thousands in tuition.

File the FAFSA before year-end. It's the single-most-efficient eligibility trigger for all types of aid.

Document your student's "skills profile." Compile achievements — coding contests, leadership roles, athletics — that strengthen competitive awards.

Bonus tips: How to negotiate a merit bump

Time it right. Wait until your student receives multiple admission offers. Colleges often have flexibility during late winter when they're finalizing enrollment numbers.

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Be specific, not emotional. Send a short, professional email to admissions that says something like, "We're grateful for the $12,000 scholarship offer. [Competing university] has offered $15,000. Is there any room for adjustment?"

Most schools will re-evaluate awards if the student fits a high-priority profile.

Confirm renewal terms. Many scholarships require maintaining a minimum GPA or credit load. Always get renewal criteria in writing to avoid surprises later.

The bottom line

"Free money" isn't about luck — it's about alignment.

By blending scholarships, state programs, employer benefits and strategic timing, even affluent families can significantly reduce college costs without sacrificing investment goals or liquidity.

In the end, the smartest move isn't chasing the biggest award — it's treating college funding with the same precision you bring to every other part of your financial life.

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

Many now include donor-advised funds (DAFs), one of the most flexible and tax-efficient charitable planning tools. DAFs allow donors to contribute assets, secure an immediate deduction, invest contributions tax-free and recommend grants over time.

Beyond their simplicity, DAFs offer advisers a powerful toolkit for navigating complex financial situations. They become especially valuable during periods of appreciated asset growth and as part of long-term wealth and estate planning.

Kiplinger's Adviser Intel, formerly known as Building Wealth, is a curated network of trusted financial professionals who share expert insights on wealth building and preservation. Contributors, including fiduciary financial planners, wealth managers, CEOs and attorneys, provide actionable advice about retirement planning, estate planning, tax strategies and more. Experts are invited to contribute and do not pay to be included, so you can trust their advice is honest and valuable.

For advisers, Giving Season provides an ideal opportunity to surface these benefits and help clients approach generosity with intention and tax efficiency.

Below are three tax-smart strategies — plus several year-end considerations — that can help maximize both philanthropic impact and client financial outcomes.

1. Take tax deductions in the years when they matter most

A core benefit of a DAF is the ability to decouple when clients receive a tax deduction from when they ultimately choose the charities they want to support.

This is especially effective for individuals with fluctuating income — such as business owners, executives with equity compensation or anyone realizing a sizable gain from selling a home or business.

In high-income years, clients can "front-load" charitable contributions into a DAF and capture the full deduction immediately, even if they're not ready to commit to specific organizations.

For example, a client might contribute $100,000 in a high-income year but plan to grant only $20,000 right away.

A DAF lets them take the full deduction now, invest the remaining balance tax-free and take time to research charities that align with their values and giving philosophy.

This approach not only smooths charitable planning during complex financial years but also allows clients to make more intentional, well-researched granting decisions — without sacrificing the tax advantages of acting promptly.

2. Reduce capital gains exposure by donating appreciated assets

One of the most powerful ways clients can support charitable causes — and improve tax efficiency — is by donating long-term appreciated assets instead of cash.

By contributing long-term appreciated assets, clients capture the full appreciated value without triggering capital gains and can deduct the asset's fair market value, boosting the overall tax benefit.

Charities often lack the infrastructure to process complex asset gifts efficiently. DAFs, however, are designed to handle appreciated securities and even illiquid assets such as private company stock, cryptocurrency or real estate.

That means advisers can help clients unlock tax savings while giving nonprofits the ultimate benefit of a simple cash grant.

For clients with sizable estates or multigenerational legacy goals, DAFs can also help manage estate tax exposure. Assets contributed to a DAF are removed from the donor's taxable estate, offering a philanthropic tool that doubles as a long-term planning mechanism.

3. Use 'bunching' to maximize deductions under higher standard deduction thresholds

With today's higher standard deduction thresholds, many taxpayers no longer itemize annually. DAFs create an effective workaround through "bunching" — consolidating multiple years of charitable contributions into a single year.

For example, a client might contribute two or three years' worth of donations to their DAF in one tax year, itemize that year to capture a larger deduction and then take the standard deduction in subsequent years while continuing to make grants from the DAF.

For clients on the cusp of itemizing, this approach can generate meaningful tax savings without altering their charitable goals.

Here are some additional year-end DAF strategies advisers should consider:

Align giving with strategic goals, not just year-end deadlines. DAFs also give clients flexibility, whether through recurring grants, setting aside capital for future needs or aligning giving with long-term goals.

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Match contributions to income volatility. For clients with highly variable earnings, DAF contributions can be "dialed up" in high-income years and "dialed down" during leaner ones, smoothing tax exposure while allowing giving to remain consistent.

Incorporate legacy planning. Encouraging clients to discuss the charitable legacy they hope to leave — whether through successor advisers on a DAF or by making the DAF a beneficiary in their estate plan — can deepen relationships and strengthen multigenerational planning conversations.

The bottom line for advisers this Giving Season

As philanthropy becomes a more integral part of wealth planning, advisers have a meaningful opportunity to expand the conversation beyond generosity alone.

One of the often-underappreciated advantages of a DAF is that advisers can continue managing the assets contributed to the account, investing them for potential tax-free growth while maintaining their advisory role. This strengthens the client relationship and ensures charitable dollars can grow before being granted.

Combined with the tax efficiency, flexibility and long-term planning benefits DAFs already provide, this investment management capability positions them as a powerful tool — especially during Giving Season, when clients are looking to make an impact and optimize their year-end financial strategy.

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

All that money being spent over the holidays brings scammers out of the woodwork as they try to steal your cash, your credit card information and other sensitive data. And the techniques fraudsters use are getting more and more sophisticated every year.

As the biggest sales event of the year rolls around, make sure you're taking advantage of legitimate Black Friday deals at Amazon and other retailers, instead of handing your hard-earned money over to a fraudster. To do that, brush up on how some of the most common Black Friday scams work and the red flags to watch for so you don't fall into these traps.

1. Fake Black Friday deals

Your inbox is probably already seeing a steady stream of Black Friday deal announcements and offers from your favorite brands. Scammers will be using all the frenzy and excitement to try to steal your money. Here's how it works:

• You get an email from what looks like a brand you like, offering a can't-miss Black Friday deal.
• You click through the link in the email to shop the deals on that brand's website.
• The website looks identical to the real thing, but it's actually a fake operated by scammers.
• When you go to check out, you often won't have the option to pay by credit card. Instead, it will request a bank transfer or even cryptocurrency payment.

How to avoid this scam

• Check the URL. Instead of "Amazon," you might notice that the URL actually reads "Amaz0n" (with a zero), for example. There will often be something slightly off about it.
• You can also look at the website itself more closely. Does it have a privacy policy? Does the business have a mailing address? Is there an "about us" page?
• Compare the deal to other retailers. If the website is promising the latest Apple AirPods Pro 3 for $100, but no other retailer has a deal lower than $200, that's a red flag.
• If you can't use a credit card, don't make the purchase. When paying with a credit card, you enjoy some built-in fraud protection – including the option to call up your bank and request a charge back if it turns out the deal was a scam. When you transfer cash from your bank, use a payment app like Zelle or pay with crypto, you don't have those same protections.
• Use shopping guides from trusted news outlets, like our guides to Target's best Black Friday deals or our favorite Walmart Black Friday deals. Even if you don't end up buying any of our picks, the links you used to navigate to the site will be legitimate.

2. Fake order confirmations

This one can come via email or text. Scammers will send you what looks like a legitimate order confirmation, but clicking the link will either install malware on your device or take you to a phishing site. Here's how it works:

• You get an order confirmation via email or text.
• If it looks like an order you recently placed, you might mistake it for a legitimate confirmation and use the link inside to track the shipping progress.
• If it looks like something you never ordered, you might click through the link to investigate or cancel the order.
• In a malware attack, clicking the link is all it takes to install the malware on your device, which will then be able to scrape that device for sensitive information like passwords or financial data.
• In a phishing attack, clicking the link takes you to a webpage that asks for your personal information — often under the guise of helping you track (or cancel) the order.

How to avoid this scam

• Check the email address of the sender. Often, the email will be from a public domain (like gmail rather than Amazon). If not, the domain might be either misspelled or contain extra words. For example, Amazon would be Amaz0n (with a zero) or it might be "Amazoncustomerservice.com" instead of just "Amazon.com."
• Look for threats or pressure tactics. A real order confirmation will never threaten you with things like "click here to avoid order cancellation" or "your order will be deleted if you don't confirm your information."
• Keep track of all your holiday purchases, perhaps by writing a list with order numbers, tracking numbers and other key details. If you get a confirmation that looks like it could be real, compare the order number or tracking number against the actual order you think it might be referring to. If they don't match up, report the sender as spam.

3. The gift card scam

You get an email or text claiming a friend or family member sent you a gift card. Like the order confirmation scam, clicking through the link will either take you to a phishing page or immediately install malware on your device.

How to avoid this scam

• If the message includes a friend or family member's name, reach out to that person directly to ask if they did, in fact, send you a gift card. Do not reply to the gift card message or click on any links in the meantime.
• If no name is included, that's suspicious on its own. But, you can confirm by reaching out to all of your friends and family who tend to send you gifts around the holidays to find out if any of them sent a gift card.
• If nobody you know says they've sent you a gift card, report the phone number or email address as spam.

4. Fake shopping apps

Plenty of retailers offer downloadable apps that you can install on your phone. It's actually become one of the more annoying tech intrusions. But it's important to make sure the app you're downloading is actually the one that belongs to that retailer. Otherwise, you could be walking into a scam.

Counterfeit apps can look surprisingly similar to the real deal. The logo and other details might look just like that of the popular retailer it's impersonating. When you download it, you're actually downloading malware or spyware.

In some cases, the app prompts you to log in, browse what look like real deals and even checkout with your financial information. Now, the scammer has your real login credentials and potentially stole other sensitive information from you as well.

How to avoid this scam

• Check the number of downloads and reviews. A popular brand or major platform like Amazon or Walmart will have millions of downloads and a substantial review history on its app. The fake version, on the other hand, might only have a few thousand downloads and even fewer reviews.
• Check the developer's name. The developer of Walmart's app will be Walmart (spelled correctly). A scammer will either use a slightly misspelled version of the brand they're impersonating or a generic name like "Best Shopping Deals."
• Just don't download the app. Sometimes, retailers offer special perks for downloading their apps. There are some Walmart+ perks that you can only use if you have the app, for example. But, if you don't need those specific perks or you've been fine so far without them, just skip the app. At best, it's taking up space on your phone. At worst, it's a counterfeit app stealing your data.

Shop smart this holiday season

The safest way to shop on Black Friday or any time of year is to be cautious. Stick to retailers you know and trust. Navigate to their websites directly rather than by clicking through links you get in emails or texts.

Above all, remember that Black Friday deals can be good — but if a particular deal seems too good to be true, it probably is.

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Saving for retirement is only half the battle; spending what you saved wins the war. But for a surprising number of retirees, letting go of that hard-earned cash is easier said than done.

This pervasive reluctance, according to MasterClass instructor, author and behavioral finance expert Ramit Sethi, is the single greatest mistake people make in retirement.

“They save for decades, then are afraid to spend their money,” Sethi told Kiplinger in an exclusive interview. “If you haven’t built the skill of spending money meaningfully … it’s very possible to spend your entire life simply worrying about money.”

Keep it simple

Sethi holds the belief that people should automate their savings and investments and not restrict their small purchases. Sethi wrote the New York Times best-selling book “I Will Teach You To Be Rich,” which was turned into a Netflix series of the same name.

One thing he consistently emphasizes is that retirees should spend the money they’ve worked so hard to amass; otherwise, what’s the point?

“I’ve talked to retirees with $2 million in the bank who still drive five extra miles to save money on gas. They’re often terrified to spend a dime because they’ve internalized 40 years of restriction,” says Sethi.

“Don’t go out to eat. Don’t take that trip. Save every penny ‘just in case.’ But when is the ‘right time’ to spend? At 90? In a hospital bed?”

The fear is real

Spending money in retirement is a challenge for many retirees who, for decades, worked diligently to accumulate savings to live off when they retired.

Fears of outliving their money can cause some retirees to experience spending paralysis, which is understandable. Thanks to advances in health care and healthier lifestyles, retirement can easily last 30 years.

The good news is that several retirement spending strategies exist to help retirees determine how much to withdraw during their golden years. The 4% rule is a popular one.

The rule calls for withdrawing 4% of your savings in the first year of retirement, then adjusting that withdrawal amount for inflation each subsequent year to ensure the money lasts for 30 years.

There's the bucket rule of spending, in which you spread out your retirement savings across three buckets: short-term, medium-term and long-term needs. The rule helps you remain disciplined and worry less because you know where your money is and how much you have to spend.

Other spending strategies include the "Pay Yourself," "Me-First" and "Permission-to-Spend" rules.

Still won't budge

Despite these rules and many other spending strategies, retirees are still reluctant to spend.

“People think if you just show retirees a 4% withdrawal rate and tell them you’re good, they’ll start spending. That’s not how it works. A chart doesn’t solve an emotional problem,” said Sethi. “You have to work on the psychology of money, and for many, that means unlearning decades of fear-based advice.”

Sethi advises retirees to start small by taking a guilt-free weekend trip. Or if that feels like too much, try his "$100 Challenge."

With the challenge, you spend $100 on something you love. “It can’t be for your kids, grandkids or dogs. It has to be for you, so you build a connection between money and joy. That’s how you start rewiring your mindset,” he says.

Don’t sweat the small stuff

Ultimately, the main challenge for retirees is not a lack of a plan but the fear of spending, and that’s particularly true when it comes to those smaller, everyday purchases.

Sethi said if he had to choose a runner-up retirement mistake, it would be an obsession with the small money decisions rather than the big ones.

“The financial industry has trained people to ask $3 questions, like should I cut back on coffee, instead of $30,000 questions, like should I negotiate my salary, or is my adviser charging me 1% AUM (assets under management), which costs me tens of thousands of dollars,” said Sethi.

But in retirement, it's the $30,000 questions that matter, he said. “Where do I want to live? How much do I want to spend on travel? Should I be working with someone who helps me enjoy my money, not just hoard it?”

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Contributions to these investment accounts grow tax-deferred, and you can withdraw funds tax-free for qualified college expenses, such as tuition, room and board, computers, and books. Most states and Washington, D.C., also offer a tax deduction or credit for residents who contribute to their state's plan.

Over the years, tax-free uses for 529 funds have expanded to include some other educational costs, too, including apprenticeship programs and tuition for kindergarten through 12th-grade schooling. The One Big Beautiful Bill Act, signed into law over the summer, has further extended the ways you can use 529 money, including a wider range of postsecondary educational programs.

What's covered by 529 plans now

Under the new rules, you can now withdraw 529 funds tax-free for tuition, books and other fees associated with qualifying non-degree credential programs, including for plumbing, electrical work, HVAC and welding.

Programs listed under the Workforce Innovation and Opportunity Act generally qualify; you can look up your state's directory of WIOA-eligible programs on CareerOneStop, the U.S. Department of Labor's career, training and job-search website. You can also check for eligible programs in the Web Enabled Approval Management System (WEAMS), maintained by the Department of Veterans Affairs.

Additionally, withdrawals from a 529 are tax-free for certification and licensing expenses and for continuing education required to maintain those licenses. For example, you may use funds to prepare for and take exams required to practice law or become a certified public accountant. Professionals such as teachers, nurses and real estate agents may use 529 money for continuing education to retain their licenses or certification.

If you've been saving money in a 529 for your child, these new rules broaden the options for how they can spend the funds. Or, if you need to take continuing-education courses for your current job or want to learn new skills for a career pivot, you could benefit, too, says Mary Morris, CEO of Commonwealth Savers, Virginia's program for tax-advantaged education savings.

You can change a 529 plan's beneficiary to another member of the family. So if your child doesn't need all the money in their account — say, because their educational expenses were lower than expected — you could switch the beneficiary to yourself and use the funds for your own education.

Note that provisions in the Big Beautiful Bill Act also let families use up to $20,000 per year for elementary and secondary school tuition, course materials, tutoring, fees for standardized tests, and more. Previously, qualified withdrawals of 529 money for K-12 students were limited to tuition, up to $10,000 annually. (The $20,000 limit starts in 2026.)

Not all states have altered their rules to follow the federal government's expanded uses for 529s, so make sure to check your state's policies.

The Roth option for 529s

Keep in mind that thanks to the SECURE 2.0 Act, passed in 2022, there's another way to put leftover 529 money to good use. You can roll over the funds, up to a $35,000 lifetime maximum, into the 529 beneficiary's Roth IRA, tax- and penalty-free.

Rollovers must be within the annual Roth contribution limit, which is $7,000 in 2025 and $7,500 for 2026. The 529 plan must have been maintained for the beneficiary for at least 15 years before you can do the rollover.

Note: This item first appeared in Kiplinger Personal Finance Magazine, a monthly, trustworthy source of advice and guidance. Subscribe to help you make more money and keep more of the money you make here.

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As many parents know, these moments can be fleeting once young adults are out in the world, but when they do occur, they can be a great time to check in on how things are going — including with money.

Whether your child is on break from college, in the midst of job hunting or settling into their first job, the holidays provide an ideal opportunity to have a meaningful conversation with the young adult in your life.

Kiplinger's Adviser Intel, formerly known as Building Wealth, is a curated network of trusted financial professionals who share expert insights on wealth building and preservation. Contributors, including fiduciary financial planners, wealth managers, CEOs and attorneys, provide actionable advice about retirement planning, estate planning, tax strategies and more. Experts are invited to contribute and do not pay to be included, so you can trust their advice is honest and valuable.

As they begin to establish their own financial house, you can play an integral role in guiding them in the right direction, helping them build sound money habits.

But just like any conversation surrounding money, it can feel a bit awkward and tricky to navigate, especially when it's with your own adult child.

So, how can you approach this conversation in a way that feels supportive rather than stressful? It starts with listening.

Start by listening, not teaching

For many young adults who have entered the "real world," a lot of change has occurred in a short time. Maybe they have a new degree, a new apartment or a new job. All of that comes with excitement, but it also brings new stress.

As parents, our instinct is to share advice right away, especially if we've already learned a few lessons the hard way. But the most productive conversations often start with questions, not instructions.

Try asking, "How are you feeling about balancing everything now that you're on your own?" or "What's been harder about living on your own than you expected?" or "What's been the biggest surprise about managing your own money so far?"

Questions like these keep the conversation open and show respect for their independence.

You can offer guidance once they start talking, but the goal is to help them think through decisions, not to make those decisions for them.

When freedom meets cash flow

I often notice something similar between two very different groups of people: new retirees and young adults entering the workforce. Both have more freedom and more control over their time, and both tend to spend more than they expect.

Retirees fill their days with activities that cost money instead of earning it. Young adults suddenly have steady paychecks and fewer restrictions, so they may start spending quickly without realizing how fast it adds up.

Helping them pause and plan before habits form can make a big difference. If they get in the rhythm of setting money aside for certain goals early on, it becomes second nature later.

Rethinking 'needs' and 'wants'

Parents often teach kids to separate needs from wants, but for young adults, that line can feel blurry. Instead, I like to talk about goals: short-term, intermediate and long-term.

Short-term goals are the basics that happen month to month, such as rent, groceries, phone and internet bills, insurance, loan payments and yes, hobbies or entertainment. These are the recurring expenses that make up a budget.

When speaking to the young adult in your life, consider asking simple questions to open the door to this topic. For example, "How did you choose your health insurance at work?"

Many young employees pick the cheapest option because they want to keep more of their paycheck for other things. That might work fine for someone who rarely sees a doctor, but it can be a costly mistake for someone who takes regular medication or needs specialist visits.

Talking through a real example like this helps them see how financial choices connect to daily life.

Intermediate and long-term goals involve saving for the future. That includes building an emergency fund, contributing to a retirement plan and investing beyond the basics.

I often tell younger people that saving should be meaningful but manageable. They should feel the impact of what they're putting away, but not to the point where they're choosing between Netflix and Hulu each month.

If they're worried they aren't saving enough, ask whether their company offers a retirement plan match. That match can help fill a savings gap. You can also talk about how different goals call for different types of investments.

Money set aside for emergencies should stay in cash or a money market fund, while retirement savings can be invested more aggressively for long-term growth.

Keeping the conversation constructive

It's natural for parents to want to protect their kids. But once those kids become adults, the best kind of protection is guidance that builds confidence.

I learned that lesson myself. When I started working, my parents could tell I wasn't taking their advice seriously. They eventually introduced me to their financial adviser, and that conversation changed things for me.

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Talking with someone outside my family helped me see money differently. I didn't feel like I was being told what to do; I felt like I was being treated as an adult who needed to make real decisions.

It also helped me realize that my parents weren't trying to control me. They were trying to give me a head start.

Looking back, it was one of the best gifts they could have given.

Parents can take a similar approach. Offer to review your child's first benefits statement together, share how you handled saving in your early career or connect them with a financial professional you trust. Sometimes hearing the same message from someone else helps it sink in.

Turning a holiday moment into a lifelong lesson

Money conversations don't have to feel heavy or uncomfortable.

The goal isn't to critique their spending or point out mistakes. It's to help them build the confidence to manage their finances on their own and understand how today's choices shape tomorrow's options.

Once you've broken the ice, it gets easier. That first conversation can be the starting point for a more open, ongoing dialogue about money — one that evolves as your child's life does.

From first jobs to marriage to buying a home, there will be new questions and new opportunities to share guidance when they're ready for it.

So, this holiday season, find a quiet moment after dinner or while wrapping gifts and start the conversation. Ask questions, listen carefully and share just enough of your own story to help them see the bigger picture.

The time you spend talking now could be what helps them make smart, steady decisions long after they've headed back to their own lives.

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• Children Can't Afford to Fly the Nest? Here's How to Help

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

Rather than focusing on luxury or one-time donations, many are channeling their resources into lasting, purpose-driven movements that can shape communities for generations.

One powerful example is Alice L. Walton, the richest woman in the world, who recently opened her own medical school and is covering tuition for its first five graduating classes, as reported by Time magazine.

Kiplinger's Adviser Intel, formerly known as Building Wealth, is a curated network of trusted financial professionals who share expert insights on wealth building and preservation. Contributors, including fiduciary financial planners, wealth managers, CEOs and attorneys, provide actionable advice about retirement planning, estate planning, tax strategies and more. Experts are invited to contribute and do not pay to be included, so you can trust their advice is honest and valuable.

Walton's $154 million investment in Bentonville, Arkansas, reimagines medical education by focusing on preventive health, holistic wellness and the principle that doctors must learn to heal themselves before they can heal others.

Her vision exemplifies how today's women of wealth are shifting from traditional philanthropy to creating sustainable systems to fund philanthropic gifts into perpetuity.

A strategic and generous model of giving

This new model of giving is not just generous, it's strategic. It's reshaping how ultra-affluent women think about wealth management and legacy.

To facilitate this movement, many are turning to family offices and multifamily offices to help them transform legacy into meaningful impact.

This CFO-type relationship enables women to focus on enabling significant change rather than managing their daily financial complexities.

Women of wealth today expect far more than traditional portfolio oversight. They seek solutions that align wealth with purpose, impact and legacy.

According to HSBC's 2025 report The Giving Shift, 60% of female respondents said financial giving is extremely or very important, prioritizing causes tied to family, health and community over status or prestige.

This values-based approach underscores how women use wealth to strengthen connections and drive measurable impact.

This evolution extends to how women choose their wealth managers.

A 2024 New York Life survey found that 48% of women feel more understood by a female adviser, up from 29% just five years earlier, and nearly half value collaborative, educational relationships.

They're not seeking transactions; they're seeking strategic partners.

How the family office model delivers

The family office model delivers this by providing detailed and timely financial analysis to address all the complexities of multigenerational wealth — tax, estate and philanthropy.

This clarity provides the time and ability for these women to pursue their passions.

Unlike traditional firms with standardized offerings, family offices are designed to be nimble to the complexity of clients' entire lives.

The timing of this shift is significant, as the Great Wealth Transfer has begun. Bank of America Institute's Women and Wealth report projected that roughly $54 trillion will pass to surviving spouses, 95% of whom are women.

Concurrently, Deloitte's Global Family Office Report provides insight that there are more than 8,000 single-family offices worldwide, up from approximately 6,000 in 2019. That figure is projected to increase by 75% or exceed 10,000 by the end of the decade.

A powerful truth

Together, these trends reveal a powerful truth: The next generation of female-led wealth is redefining stewardship. For women, that stewardship often centers on three main pillars:

• Wealth preservation and growth
• Family mission
• Next-generation education

The first priority is the security and growth of wealth throughout future generations with proper entity structure and risk management. The family's mission channels resources toward philanthropic causes that support family values and beliefs.

Family wealth counseling prepares children and grandchildren not only to inherit wealth, but to continue the stewardship in perpetuity.

Family offices help support these pillars by turning intention into an actionable plan of execution, helping to ensure a successful outcome of the long-term family strategy.

One example includes coordinating a charitable giving strategy with an income tax event in the same year. Within the Great Wealth Transfer, a significant portion of assets will come from qualified retirement plans.

Non-spouse beneficiaries of these plans are required to take mandatory annual distributions and must fully withdraw all assets within 10 years of the original account owner's passing.

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Because these distributions are taxed as ordinary income, working with a family office that understands your entire financial situation is essential. This coordination enables proactive tax bracket management and the use of charitable deductions to offset income, supporting both tax efficiency and the family's broader legacy objectives.

Documentation is critical

Another example is the structure and organization a family office provides when navigating complex, multigenerational strategies — particularly those involving estate exemptions and the transfer of assets to the second and third generations.

Many of these plans evolve over decades, making documentation vital. Tools such as our proprietary Family Legacy Book^® serve as a central record of gifting history, ownership structures and entity relationships.

This living road map ensures that if the matriarch or patriarch passes unexpectedly, the family retains a clear and current financial picture, providing continuity, confidence and peace of mind.

These examples reflect a broader movement among affluent women leveraging wealth with intentionality.

Increasingly, they recognize that family offices don't just preserve capital, they simplify complexity, saving them time and allowing them to focus on what truly matters: health, family purpose, personal passions and family legacy.

Beginning with the end in mind

For women of wealth, the takeaway is clear: Building a lasting legacy begins with the end in mind. Rather than chasing returns, they build the management around meeting their targeted objectives, incorporating investments, trusts, philanthropy and education under one coordinated strategy.

A well-run family office makes this possible, serving as the hub that turns intention into successful outcomes.

Start by defining what you want your wealth to accomplish, whether that's long-term stability, meaningful philanthropy or empowering the next generation with financial confidence. Surround yourself with professionals who listen, educate and collaborate.

True stewardship isn't about managing assets; it's about ensuring your wealth continues to advance family values and the future vision across generations.

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

With gift givers spending more than ever, that pressure is mounting. In 2024, U.S. consumers dropped a record $994 billion on holiday shopping, according to the National Retail Federation, and projections by the Mastercard Economic Institute suggest holiday sales will continue to climb this year, by an estimated 3.6%. Higher-income shoppers, buoyed by a surging stock market, are likely to spend even more.

Shelling out bigger bucks, though, doesn't necessarily yield better gifts for the people you love. The NRF says holiday returns last year were 17% higher than average, suggesting a growing number of presents are missing the mark, putting added pressure on gift givers this year.

"We give gifts because we want to make people happy, give them something they'll enjoy and signal we care about them," says Elanor Williams, an associate professor of marketing at Washington University and a leading gifting researcher. "And therefore we stress about it."

How can you reduce that anxiety and land on gifts the people you care about will love? Science can help.

A growing body of research from behavioral finance experts identifies the kinds of presents that people typically like best and the mental quirks that prevent many people from buying them. Understanding these preferences and the cognitive traps that lead gift givers astray can help ensure your holiday presents not only stand out when they're unwrapped but also stand the test of time.

These are the strategies that leading researchers in the field suggest.

Skip the razzle-dazzle

Have you ever splurged on gifts for your family that made them exclaim in delight upon opening, only to never see the items used or played with again? You may have fallen victim to the smile-seeking hypothesis.

Coined by researchers at the National University of Singapore and the University of Chicago Booth School of Business, the term refers to the tendency of gift givers to focus on eliciting the biggest reaction at the time a present is opened — a big smile or expression of awe — rather than on whether the item will bring your recipient long-term satisfaction when he or she actually uses it in the future.

The researchers ran several experiments to test the hypothesis, including one in which they randomly assigned participants to give or receive one of two similarly priced mug sets as a wedding present: an award-winning ergonomic set or a personalized set with inscriptions of the couple's names and wedding date.

Gift givers favored the more personal mugs and predicted the newlyweds would have a more positive reaction to them when opened and like them more over the long term, too. In reality, the recipients preferred the more useful mugs, both at the moment of unwrapping and for use over time.

"There's so much pageantry that goes along with exchanging gifts, especially at Christmas," says Williams. "It really gets you focused on that moment where you're going to hand that gift over and see what the person says when they open it."

What to do instead? Rather than try to wow loved ones when you give them a holiday gift, focus on whether your kids, grandkids and dear Uncle Bill really need the item and will use it and like it in the days and weeks to come.

Research shows, says Cindy Chan, an associate professor of marketing at the University of Toronto, that recipients are often just as happy, if not happier, to open practical gifts as they are showstoppers, valuing a seemingly boring gift more because they get more use out of it.

"For my parents and their stockings one Christmas, I just threw in some kitchen utensils," Chan says. "I noticed that their kitchen tongs were really annoying, that their ladle was starting to crack. They use them every day, and they appreciate that gift."

Gift them what they want

One of the simplest ways to get everyone on your list something they will enjoy is to put yourself in their shoes, says Mary Steffel, associate professor of marketing at Northeastern University who has published multiple research papers on the psychology of gift giving.

"Try to think about what that person might choose for themselves, and let that help guide your decision," Steffel says. "That's more likely to keep our focus on the recipient's preferences as opposed to other motives, like our desire to feel thoughtful."

The easiest way to do this? Buy something from your recipients' wish list. Studies suggest your loved ones will appreciate that gift more than an unsolicited surprise offering and consider it more thoughtful, even if it doesn't feel that way to you.

That was the conclusion of a study out of Harvard Business School and Stanford University's Graduate School of Business. In one experiment, the researchers gave gifters the option to pick a present from their recipient's Amazon wish list or choose one on their own. People were more satisfied when they received gifts from their list — just as, in other experiments, they preferred to get wedding gifts from their registry and birthday gifts they had explicitly requested.

Still, gifters love to go rogue. Why the disconnect? The researchers concluded that people giving presents mistakenly believe it makes them look more considerate when they think up gift ideas for someone on their own, though the opposite is true.

"We want to feel thoughtful. We want to communicate, I want to show you how well I know you," says Julian Givi, associate professor of marketing at West Virginia University and a leading gifting researcher. In reality, he says, these are unconsciously selfish motivations because they don't put what the recipient really wants first.

Don't get too personal

You may think that a highly personal gift will signal how well you know the unique tastes and preferences of your friends and relatives. But a series of studies spearheaded by Northeastern University's Steffel and Washington University's Williams show how these kinds of presents can backfire.

In one experiment, the researchers randomly assigned participants to imagine that they were either giving a gift to a close friend or receiving one from that pal. They were then presented with two gift options: a Visa gift card that could be used anywhere or a gift card from the recipient's favorite clothing store. As it turned out, givers were far more likely to choose a gift card to the recipient's favorite store, but the people getting the present preferred the more versatile Visa gift card.

Steffel and Williams's research also finds that you are more likely to choose a personalized, less versatile gift for someone you're close to — say, a child or sibling — than people with whom you have a more distant relationship because you think it signals how well you know the recipient. Ironically, you could be giving the people you love worse presents than your acquaintances.

Buying your daughter a gift card to a store you know she's purchased clothes from before shows you are paying attention, but it doesn't take into account all the other facets of her personality, Steffel says. Clothes might not be first on her wish list.

"Givers tend to pick something that is representative of who their recipient is," she says. "Recipients are more likely to focus on what they want or need right now, so gravitate toward a gift that's more flexible."

Play the hits

You also don't have to bend over backward to give everyone a different present, even if the gifts will be opened at the same holiday gathering. If you've landed on a winner — say, Labubus for the grandkids or Amazon gift cards for the adults — go with it.

Steffel and Robyn LeBoeuf, professor of marketing at Washington University, tested that strategy in a series of experiments. In one, the researchers invited college students to get a jump on holiday shopping by giving either one or two friends a $25 gift card; in the two-friend scenario, only one of the recipients was a student at the giver's school. The gift-card choices were Amazon (established in pre-testing as the one people would likely want most), the university bookstore or a sporting goods store.

When giving a present to their fellow student alone, 72% of gifters chose the Amazon card while 24% picked the bookstore. For two friends, 81% picked the Amazon card for the person who didn't attend their school, and the number giving the university bookstore card to the college pal jumped to 43%.

Other experiments established the likely reason was to appear thoughtful by choosing a uniquely suitable gift — even one that might not be enjoyed as much.

"Givers may be overthinking it," Steffel says. "You really should be giving people the thing that you think they're going to like the most, even if it is a duplicate of something you're giving somebody else."

Favor experiences over stuff

Gifts of experiences — say, a gift card to a favorite restaurant or tickets to a play or ballgame — are likely to bring you closer to your loved ones than material gifts, studies show. So think about what the people on your holiday list enjoy doing in their spare time and how you might tailor a gift to their preferred activities, suggests Chan.

Her research, conducted with Cassie Mogilner, a professor of marketing and behavioral decision-making at the University of California, Los Angeles, looked at how different types of presents affect the relationship between giver and receiver. In one experiment, university students were recruited with a friend, with one from each pair randomly assigned to be the giver while the other was the receiver. Givers could purchase either a $15 experiential gift or a $15 material gift, and recipients rated the strength of their friendship with the giver before and after getting the present.

The researchers found that recipients rated the experiential gifts as far more effective at improving the relationship — even when the experience wasn't something the friends could do together.

This is because experiences elicit a stronger emotional response than purely material gifts do, Chan says. It's not so much that the person getting the gift likes it more; rather, it makes her feel closer to the giver when she consumes it.

"Experiential gifts tend to be more emotionally intense and more emotionally evocative, and this has a spillover effect on making the relationship stronger," Chan says.

You can also mix a material gift with an experience for greater impact. Rather than buy your coffee-connoisseur son a gift card to a local java joint, for example, you could present him with a bag of coffee beans and a mug with a heartfelt note saying you hope he will savor them before work. When your son has his first sip each morning, he will think of you fondly.

"It's very different to say 'Here's a mug, I hope you love it,' than 'Here's a mug, I hope it brings you a moment of calmness in your busy day,' " says Chan. "You will feel differently about that mug."

Don't overthink it, though. No matter what you give your loved ones for the holidays, Chan says, they're likely to appreciate the gesture. "People talk about bad gifts, but really, really bad gifts are not the norm," she says. In the end, she notes, "most gifts are well liked."

Note: This item first appeared in Kiplinger Personal Finance Magazine, a monthly, trustworthy source of advice and guidance. Subscribe to help you make more money and keep more of the money you make here.

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Adding a personal element to a trip like this can help make it more memorable and might even give you a good excuse to visit certain destinations.

So, here are five trips for book lovers to take across America.

1. Baltimore, Maryland

Literary Events & Festivals

• Baltimore Book Festival: A multi-day celebration of readers and writers featuring author talks, book signings, panel discussions and activities along the waterfront.
• Edgar Allan Poe Festival & Awards: Held near Poe’s grave, this festival honors the writer with dramatic readings, guided tours, performances and vendors celebrating his legacy.

Baltimore’s longtime motto, "The City That Reads," coined by former Mayor Kurt Schmoke to promote literacy, still fits the city’s character today.

Its iconic libraries, including the George Peabody Library and the Enoch Pratt Free Library, highlight a literary legacy that also extends to its sports culture, like the Ravens, named after Edgar Allan Poe’s famous poem. Visitors can still find subtle nods to the city’s literary icons, like the Poe-themed Apropoe’s restaurant inside the Baltimore Marriott Waterfront.

Poe himself once lived in a small house that now serves as a museum, preserved much as it was when he wrote some of his earliest works. Baltimore was also home to F. Scott Fitzgerald for a time, though his former Bolton Hill residence is not open to the public.

Baltimore also shaped the voice of abolitionist and writer Frederick Douglass. He worked in the Fell’s Point shipyards before escaping to freedom, later returning to build "Douglass Place," a set of rowhomes for African American renters. The houses still stand today, including 524 S. Dallas Street, marked with a plaque honoring Douglass’ legacy.

2. New York, New York

Literary Events & Festivals

• New York Public Library Live Events: A robust calendar of author talks, lectures, workshops and performances hosted across the NYPL branches.
• Brooklyn Book Festival: One of the country’s largest free literary festivals, bringing acclaimed authors, publishers and readers together for panels, readings, and book markets.
• BookCon: A fan-driven book convention featuring author meet-and-greets, signings, interactive panels and sneak peeks from major publishers.
• Harlem Book Fair: A long-running celebration of African American literature, showcasing authors, poets, panels and community programs in historic Harlem.
• U.S. Book Show: A major industry event offering virtual and in-person programming, connecting publishers, authors, librarians and booksellers.
• New York Antiquarian Book Fair: A beloved gathering for rare-book collectors and enthusiasts, featuring thousands of rare manuscripts, first editions, maps and ephemera.

New York City is a dream destination for book lovers, offering some of the most breathtaking libraries and literary landmarks in the world. You can even stay at The Library Hotel, where each floor is themed around a different Dewey Decimal category.

The New York Public Library on Fifth Avenue remains the city’s crown jewel, a National Historic Landmark, and just steps away, Library Way lines 41st Street with 96 bronze plaques engraved with literary quotes.

The Morgan Library, once JP Morgan’s private collection, showcases illuminated manuscripts, early printed books, and treasures like an original Gutenberg Bible.

Book browsing in New York is equally inspiring. Rizzoli Bookstore in NoMad is famed for its illustrated books on architecture, fashion and design, set beneath an Italian-influenced painted ceiling and dramatic columns. Paired with its lineup of festivals, author talks, and publishing events, the city remains a thriving hub for literary culture year-round.

3. Wilmington and New Bern, North Carolina

Literary Events & Festivals

• New Bern Historical Society Homes Tour: A beloved tradition that opens the doors to some of New Bern’s most storied homes. Visitors can explore unique architecture, period décor and local history brought to life by guides and homeowners.
• Tryon Palace Candlelight Celebration: One of New Bern’s most dazzling holiday events, this candlelit evening transforms the palace and grounds with festive décor, live music, performers and holiday treats inspired by 18th-century traditions.
• Outlander in the Palace Tour: A special themed tour for fans of the Outlander series, exploring filming locations, colonial-era settings and the real history behind the scenes that connect to the books and show.

North Carolina is home to many of the scenes that inspired some of your favorite novels. For example, The Summer I Turned Pretty television series, inspired by the novels by Jenny Han, is shot all over Wilmington. You can see where Belly and her friends hang out and where many iconic scenes from the show were filmed.

New Bern, North Carolina is home to The Notebook novelist Nicholas Sparks and the town celebrates him accordingly. This town is also the backdrop to many of his iconic novels. Take A Walk to Remember walking tour or The Return tour inspired by some of his most famous books.

While you’re in the area, stop in and explore the area's beloved independent bookstores. The Next Chapter Books & Art, owned by local author Michelle Garren-Flye, who was named the Heart of the Pamlico Poet Laureate in 2021, offers a warm, creative space for readers and artists alike.

Nearby, Daughtry’s Old Books on Front Street has been a Wilmington institution since 1982. Located in Historic Downtown Wilmington, it’s exactly the kind of small, family-run bookstore that feels like a treasure waiting to be explored.

4. Lenox, Mass. - Edith Wharton's Home

Literary Events & Festivals

• WIT: Words, Ideas, and Thinkers Literary Festival: A flagship gathering hosted by the Authors Guild Foundation designed to amplify new voices. The festival brings together authors, thinkers and cultural leaders to explore critical issues, celebrate literary culture and engage audiences across genres.
• Lenox Library Association Author Talk Series: A curated lineup of virtual and in-person conversations with bestselling and emerging authors.

Tucked into the gorgeous Massachusetts Berkshires lies Edith Wharton's former home. Today the estate is preserved so visitors can enjoy the gardens, sculptures and elegant setting.

And of course, there are plenty of book-themed events to go around. Catch a lecture, take a ghost tour or join a free outdoor poetry reading. You can plan your visit with this packed calendar of events.

Stopping by Boston, too? Be sure to check out the Omni Parker House hotel where Charles Dickens once stayed during his American tour in the late 1800s.

5. Portland, Oregon

Literary Events & Festivals

• Portland Book Festival (PDX Book Fest): One of the Pacific Northwest’s premier literary celebrations, drawing acclaimed authors, poets and graphic novelists for a full day of readings, panels, workshops and book signings. Held each fall, it turns downtown Portland into a lively, book-loving block party.
• Literary Portland: A comprehensive hub that rounds up the city’s thriving literary scene, featuring readings, workshops, author events, open mics and bookish gatherings happening across Portland’s indie bookstores, libraries and creative venues.

Portland is one of the most eclectic cities in America and attracts top-tier authors for readings and signings. Some of the best ones are held at the famous Powell's Books, the world's largest independent bookstore.

The Portland Book Festival hosts over 100 authors for readings and drop-in workshops. For example, Stacey Abrams and Rebecca Yarros are just two of the iconic authors who spoke this year.

Portland is full of character-rich book nooks, and some shine for the way they blend reading culture with local flavor. At Rose City Book Pub, shelves of used books meet craft brews in a cozy, community-minded setting perfect for lingering. Coffee lovers will feel right at home at Bold Coffee and Books, a warm, curated space serving small-batch roasts and a selection of books that encourage you to settle in.

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