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Author: Maurie Backman

  • Retiring soon? Not so fast. Here are 3 serious retirement risks that older Americans often forget about — and how to deal with them ASAP

    Retiring soon? Not so fast. Here are 3 serious retirement risks that older Americans often forget about — and how to deal with them ASAP

    Planning for retirement is something that’s best to do throughout your career, not just when you’re approaching that milestone and have a year or two left to work.

    Only half of Americans have tried to calculate how much money they’ll need in retirement, according to a 2024 survey by the Employee Benefits Research Institute (EBRI).

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    However, among those workers who did the calculation, 52% were inspired to save more. Even if you feel confident in your ability to cover your retirement expenses, it’s important to be mindful of hidden costs that could impact your retirement finances. Here are three to keep on your radar.

    Healthcare expenses not covered by Medicare

    Fidelity Investments expects the typical 65-year-old to spend $165,000 on healthcare during retirement. That may sound surprising, but even with Medicare coverage, several expenses could arise.

    For one thing, Medicare isn’t entirely free. Most enrollees don’t pay a premium for Part A, which covers hospital care. However, Part B, which covers outpatient care, charges a monthly premium, as do some Part D drug and Medicare Advantage plans. Plus, higher earners risk surcharges on their Medicare premiums.

    Premiums aside, there are a number of expenses that original Medicare (Parts A and B plus a Part D drug plan) does not cover, which retirees commonly need. These include dental care, eye exams, prescription glasses and hearing aids.

    You’ll also face copays and coinsurance under Medicare that you must pay out of pocket. If enrolled in original Medicare, you can buy supplemental insurance known as Medigap to help offset those costs. But then you’re looking at premiums for Medigap, too.

    Read more: You don’t have to be a millionaire to gain access to this $1B private real estate fund. In fact, you can get started with as little as $10 — here’s how

    Long-term care

    It’s a big misconception that Medicare will pay for you to live in a nursing home or cover the cost of a home health aide. Medicare’s scope of coverage is typically limited to medical issues only. So while Medicare might pay for rehab or physical therapy because you broke a hip, it won’t pay for a home health aide because you’re getting older and need help dressing yourself and using your kitchen.

    Meanwhile, the cost of long-term care can be astronomical. According to Genworth, here are the annual median costs for certain long-term care services in the U.S. for 2024:

    Home health aide: $77,792

    Assisted living: $70,800

    Shared nursing home room: $111,325

    Private nursing home room: $127,750

    One option for defraying these costs is to buy long-term care insurance. But that might bust your budget, too. The American Association for Long-Term Care Insurance says an average $165,000 policy with no inflation protection purchased at age 55 by a single male costs $950 a year. For a 55-year-old female, that policy costs an average of $1,500. And for a 55-year-old opposite-gendered couple, the average price is $2,080 combined.

    Of course, the actual cost of long-term care will depend on factors such as where you’re located, your age at the time of your application and the state of your health. But all told, you might spend a lot of money to put that coverage in place.

    Inflation

    In recent years, retirees and working Americans alike have experienced their share of rampant inflation. But even when inflation isn’t as aggressive, it’s still a hidden cost that can upend your retirement budget.

    Social Security benefits are, thankfully, designed to keep up with inflation. They’re eligible for an annual cost-of-living adjustment tied to the Consumer Price Index for Urban Wage Earners and Clerical Workers, a subset of the more widely known Consumer Price Index.

    But ensuring that your savings can keep up with inflation is also critical. One way to do this is to avoid eliminating equities from your portfolio in retirement. You need some growth in your portfolio to make up for rising living costs. You can work with a financial advisor to develop an appropriate asset mix based on your income needs and risk appetite.

    A financial advisor can also help set you up with assets in your portfolio that generate income. These could include dividend stocks, bonds and real estate investment trusts (REITs).

    It could also be a good idea to delay your Social Security claim past your full retirement age, which is 67 for anyone born in 1960 or later. For each year you do, until age 70, your benefits rise 8%. And that boost is guaranteed for life.

    Having a larger monthly benefit gives you more leeway to tackle not only inflation, but also surprise medical and health-related expenses. So it’s a move worth considering if you don’t need to sign up for Social Security sooner.

    What to read next

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    This article provides information only and should not be construed as advice. It is provided without warranty of any kind.

  • I’m a 32-year-old single mom with two kids and my $2,000 monthly rent eats up half of my take-home pay. How can I cover my other expenses?

    I’m a 32-year-old single mom with two kids and my $2,000 monthly rent eats up half of my take-home pay. How can I cover my other expenses?

    Redfin puts median asking rent in the U.S. at $1,633, so if you’re paying $2,000 a month in rent, that doesn’t seem so out of line – especially if you live in a city with higher rent prices, or if you’re renting a larger unit because you need more than one bedroom.

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    Housing is the largest expense for Americans. But if you’re spending $2,000 a month on rent and your take-home pay after taxes is only $4,000, you may be in a position where it’s tough to impossible to cover your remaining bills.

    The popular 50/30/20 budgeting rule says 50% of your take-home pay should cover your needs, 30% should go towards wants and 20% is for savings and debt repayment. However, such guidelines are not realistic or wise for everyone, so don’t worry if you can’t meet those goals.

    Your situation isn’t hopeless. But some changes may be in order so that you don’t fall behind on either your rent or your non-housing expenses.

    How to cope when rents are high

    One thing you can do is create a budget for yourself and try to identify areas you can cut back on. You can use one of several budgeting apps available to make this process easier.

    Housing may not be one that immediately comes to mind. But if you live in a walkable area, it may be possible to get by without a car and rely on buses and the occasional rideshare.

    AAA puts the average cost of owning and operating a new car at $1,024.71 per month. But even used vehicles can be expensive to own and maintain. So if you’re able to unload that expense, it could help.

    You can also look into getting a side job to boost your income. However, if you’re 32 with two kids, your children may be on the young side. And that means childcare costs could eat into your side hustle profits. So you may want to focus on opportunities you can do from home, like data entry.

    You can also see if your state has a rental assistance program you can apply for. You may, for example, be eligible for subsidized housing. Contact your local public housing agency to find out more.

    Finally, do some research to see if moving to a different neighborhood results in lower rent prices. If you have children in school, moving may not be easy, as it could mean having to switch districts. But if you’re struggling to keep up with your bills, it may be your only choice for the time being until your income increases or other costs of yours start to go down.

    Once you feel like you’re covering your basic costs, focus on building an emergency fund that will protect you from taking on debt in the future.

    Read more: You don’t have to be a millionaire to gain access to this $1B private real estate fund. In fact, you can get started with as little as $10 — here’s how

    Why so many Americans are rent-burdened

    An estimated 21 million renter households in the U.S. are cost-burdened, says the U.S. Census, meaning they spend more than 30% of their income on rent. That represents nearly 50% of all renter households based on 2023 data.

    Rents soared after the pandemic, and the reason largely boils down to limited supply and high demand. According to Zillow, the U.S housing shortage grew to 4.5 million homes in 2022, up from 4.3 million the year before. "This balance reached a tipping point when the Great Recession ushered in a decade of underbuilding and millennials — the biggest generation in U.S. history — reaching the prime age for first-time home buying. The result has been worsening affordability, now exacerbated by stubbornly high mortgage rates," it said in a press release.

    The National Low Income Housing Coalition recently said the U.S. has a shortage of 7.1 million affordable housing units. Only 35 affordable and available rental homes exist per 100 extremely low-income renter households.

    The good news is rents have been gradually decreasing. The bad news? This makes multifamily housing less appealing to investors, according to Realtor.com, which could result in lower rental unit inventory going forward and, in turn, cause rent prices to go up.

    What to read next

    Money doesn’t have to be complicated — sign up for the free Moneywise newsletter for actionable finance tips and news you can use. Join now.

    This article provides information only and should not be construed as advice. It is provided without warranty of any kind.

  • I recently bought a bungalow and noticed my neighbor using my water — he openly hooks up to my outdoor spigot and says it won’t cost me money. How can I deal with this without a big fight?

    I recently bought a bungalow and noticed my neighbor using my water — he openly hooks up to my outdoor spigot and says it won’t cost me money. How can I deal with this without a big fight?

    Just about everyone wants a good relationship with their neighbors. And, generally, the more courteous you are and the more you respect each other’s property and boundaries, the better that relationship is likely to be.

    But sometimes neighbors overstep in ways they think are innocent, but end up being bothersome and even costly. And if you’re on the receiving end, being put in a situation where you’re forced to address it can be very uncomfortable.

    Here’s an example: Let’s say you recently bought a new home and after settling in, you notice that your neighbor is blatantly using your water and garden hose for his property. Not only is he trespassing, but it will also drive up your water bill over time, even if your neighbor insists that it won’t. That’s why it’s important to know how to handle this awkward situation from the start to establish boundaries for the future.

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    How to settle a dispute with a neighbor

    A 2024 survey by Top Rail Fence found that 46% of respondents have had a dispute with a neighbor, so it’s far from uncommon.

    There are several ways you could tackle the situation described above.

    • You could lock your spigot so your neighbor can’t easily access your water.
    • You could firmly insist that — even if using your hose and water were the working arrangement with the previous owner — going forward, you are asking they not use your water or trespass onto your property.
    • if it’s feasible, you may even want to erect a fence
    • And if these efforts fail, you could even go as far as to write them a certified letter threatening legal action if they don’t stop.

    However, before any of that, it’s important to look into whether your neighbor’s claims are correct — that using your spigot won’t increase your water bill. Your best bet in that regard may be to call your utility provider and ask the question for a quick answer.

    You can also carefully review your water bill to try to determine whether your neighbor’s claim is accurate or not. But do note, the bill may not break down your usage in enough detail to get an accurate answer. It may only indicate the number of gallons of water used. And it will be difficult to calculate how many of those came from your usage versus that of your neighbor, unless you haven’t moved in yet and used the water yourself.

    If your water company confirms that having your neighbor tap your spigot will indeed increase your bill, ask them if they’d be willing to provide a statement to support this. You can show it to your neighbor as proof that their actions are costing you money.

    The going principle here is that you want to maintain as pleasant and collaborative a relationship as possible, as neighbors can also be helpful partners (keeping an eye on your property while you’re away, picking up delivery parcels to avoid porch pirates, maintaining neighborhood safety and so on). So these conversations should be conducted in a friendly tone whenever possible.

    Perhaps your neighbor genuinely thought their usage wouldn’t add to your bill. Give them the benefit of the doubt, but do explain that because their habit could be driving your bills up, you need for them to stop.

    Read more: You don’t have to be a millionaire to gain access to this $1B private real estate fund. In fact, you can get started with as little as $10 — here’s how

    Ways to protect yourself if a neighbor dispute escalates

    If your attempts to resolve a dispute in an amiable manner are unsuccessful, you may need to take further steps to protect yourself. Sticking with the example above, purchasing a spigot lock could be a sensible next step. Home Depot sells these for about $15, so it’s not a huge expense. However, if your neighbor continues to try to access your yard despite this added layer, you may need to take further action, as his actions are a clear breach of your boundaries and unneighborly. Here are some next steps:

    **1. Make sure to document everything your neighbor does that trespasses on your property and your rights. **Record the dates and times you catch them on your property. You may even want to invest in an outdoor camera to record any activity while you’re away from home. **2. Discuss the matter with your neighbor one last time before calling in reinforcements. **Explain that you don’t want to take legal action and that you’d rather have a good relationship with them. If they still refuse to be reasonable, though, you may need to contact an attorney to discuss your rights. A real estate attorney can offer advice on how to handle the situation. Sometimes a letter from a lawyer restating your intent to pursue legal action is enough of a deterrent to show them you’re serious and won’t be pushed over. **3. If necessary, contact law enforcement. **You may need to contact the police if your neighbor continues to trespass on your property despite your progressively serious warnings. According to the legal self-help website, Nolo, trespassing is considered a common misdemeanor.

    Once you contact law enforcement, they’ll likely come by to investigate so be sure to show them the evidence you’ve collected over a reasonable length of time. They may issue a citation or take other action, depending on the circumstances. But at this point, you’re handing over the policing of your neighbor’s trespassing to the professionals.

    What to read next

    Money doesn’t have to be complicated — sign up for the free Moneywise newsletter for actionable finance tips and news you can use. Join now.

    This article provides information only and should not be construed as advice. It is provided without warranty of any kind.

  • Many baby boomers are utterly unprepared for retirement — but here are 3 things the savviest of them do to basically guarantee themselves a life of comfort. Do you do any of them?

    Many baby boomers are utterly unprepared for retirement — but here are 3 things the savviest of them do to basically guarantee themselves a life of comfort. Do you do any of them?

    A significant portion of older Canadians are headed for retirement with insufficient savings.

    Spring Financial reports a median retirement savings of $809,100 for Canadians aged 55 to 64 as of 2025.

    Among those ages 65 to 74, the number decreases to $739,200. Considering Canadians think they need $1.54 million to retire, according to a study from BMO, these figures are falling short of expectations due to economic headwinds caused by inflation.

    Baby boomers as a whole might not seem prepared for retirement, but that doesn’t mean all older Canadians are doomed. Some baby boomers are headed for financial security, and it’s all thanks to the smart decisions they make on a regular basis.

    Here are three things financially savvy baby boomers do with their money that could lead to decades of comfort once they retire.

    Pay themselves first

    Earlier this year, RBC found that 60 % of Canadians across all ages don’t think they can cover an unexpected cost, meaning a large portion do not have a robust emergency fund.

    But financially savvy boomers don’t let themselves get into a situation where they can’t cover a surprise bill and end up with debt. Rather, they practice paying themselves first.

    On a basic level, paying yourself first means allocating money to your savings from every paycheque before using it for anything else — but there are different ways to do it.

    If your employer offers a RRSP match and you sign up, contributions can be taken directly from your paycheque. If not, you can set up automatic transfers so you’re funding your retirement plan every month.

    You can also set up automatic transfers from a chequing account, where your paycheque might land, to a savings account to build an emergency fund. Having emergency cash reserves could spare you from having to take out a loan or put an unplanned expense on a credit card.

    Avoid lifestyle creep

    As people’s paycheques increase, a funny thing starts to happen. Instead of taking the opportunity to save more money, many folks opt to spend more instead. But that could lead to more stress, more debt and less stability.

    The aforementioned RBC survey also found that 47% of all Canadians are living paycheque to paycheque. And the reason may boil down to lifestyle creep.

    Financially literate boomers don’t let themselves increase their spending as they edge toward the end of their careers and their earnings peak.

    Instead, they find ways to be happy with their current standard of living and continue saving so they can support their lifestyles without worry once retirement arrives. It’s a practice you may want to adopt so you can benefit from your growing paycheque instead of having it become a source of stress.

    Smart investing

    Investing isn’t just important when you’re young and trying to build retirement wealth. It’s just as important to hold your investments as you approach retirement, and during retirement.

    Boomers who are financially stable continue to invest, and they don’t completely withdraw from the stock market out of fear.

    It’s a good idea to scale back on stocks as you age to minimize your risks. But ditching stocks completely could mean not generating enough income to lead the lifestyle you want.

    Boomers who maintain a diverse investment mix over time often end up having more stable returns. They should also consider assets that can generate income for them once they’re no longer working. Some options that work well in that regard include dividend stocks, municipal bonds and real estate investment trusts (REITs).

    Guaranteed Investment Certificate (GIC) laddering can also be a good option, namely because doing so offers low-risk returns while earning different interest rates over different term lengths. When each GIC reaches maturity, you can reinvest your earnings. When interest rates fall, GICs become less attractive. However, in the near term, GICs are another smart option for boomers to consider for their investments.

    Savvy boomers also invest in the most tax-advantaged manner possible. For those who are still working, TFSAs make sense.

    The nice thing about this account is that there are no age limits for making your annual contributions, so boomers can fund them as long as they’re still working and earning money. You may want to continue funding your TFSA for as long as possible to take advantage of the tax benefits involved.

    Sources

    1. Spring Financial: The Average Savings by Age in Canada – How Do You Compare?, by Jessica Steer (May 5, 2025)

    2. BMO: BMO Retirement Survey: Over Three Quarters of Canadians Worry They Will Not Have Enough Retirement Savings Amid Inflation (Feb 15, 2025)

    3. RBC: “Financially paralyzed”: Higher costs have Canadians feeling unable to move forward – RBC poll (Jan 23, 2025)

    This article provides information only and should not be construed as advice. It is provided without warranty of any kind.

  • Here are the top 5 things happy Americans do really (really) well in retirement — how many are you doing in 2025?

    Here are the top 5 things happy Americans do really (really) well in retirement — how many are you doing in 2025?

    Retirement represents a significant transition that most people are eager to make. In fact, a recent Wealth Enhancement survey found that 90% of older Americans don’t regret retiring when they did, and 33% of retirees say their senior years are going better than expected.

    But a big part of enjoying retirement to the fullest is approaching it strategically. Here are some of the top things Americans do well in retirement — and why you should aim to emulate them.

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    1. They invest strategically

    Recent data by Schroders found that 37% of retirees consider themselves comfortable, while 5% say they’re living the dream. But 84% of Americans would like to better protect their nest egg from inflation. The best way to do that is to invest strategically.

    Some believe that retirees shouldn’t invest in the stock market at all, but that’s not wise advice. If you want your savings to outpace inflation, you must keep a portion of your portfolio in stocks. The exact percentage will depend on your income needs and risk tolerance.

    For some, a 50/50 split between stocks and bonds allows for moderate growth without causing undue stress. If you’re more risk-averse, a portfolio that’s 30% stocks and 70% bonds may be more appropriate for you. It’s a good idea to work with a financial advisor on a retirement portfolio that produces income and growth so you don’t have to worry about losing buying power from year to year.

    2. They manage their retirement plan withdrawals carefully

    A recent Allianz survey found that 64% of Americans are more concerned with running out of money in retirement than dying. To avoid this, you need to have a carefully planned withdrawal strategy and be willing to make adjustments when needed.

    For many years, financial advisors have promoted the 4% rule, which advises withdrawing 4% of your savings in the first year of retirement and then adjusting future withdrawals to account for inflation. However, depending on the interest rates, a 4% withdrawal rate may not be optimal.

    In 2021, Morningstar stated that an ideal withdrawal rate for the typical retiree was 3.3%. It then adjusted that rate to 3.8% in 2022, 4% in 2023, and 3.7% in 2024 based on bond yields. However, in May 2025, Morningstar reported that Bill Bergen, the financial advisor behind the 4% rule, now believes that the safe withdrawal rate is closer to 4.7%.

    The figure is up for some debate, which is why it’s a good idea to work with a financial professional who can help you stretch your nest egg during retirement. They will take into account your income needs as well as market conditions. Of course, it helps if you can be flexible about how much money you’re drawing in case there’s a period when you need to scale back.

    Read more: You don’t have to be a millionaire to gain access to this $1B private real estate fund. In fact, you can get started with as little as $10 — here’s how

    3. They stay healthy and active

    Taking care of your health in retirement may not just lead to a longer life — it could also save you money if you can stave off serious medical issues and keep your healthcare costs down.

    A recent Transamerica survey found that 67% of retirees today are prioritizing being healthy and fit. To that end, it’s a good idea to establish a fitness routine that keeps you moving regularly.

    What that looks like depends on you (and it’s a good idea to consult with a doctor before you start a new fitness regimen). For example, if you enjoy swimming, getting a membership at a community pool and doing laps three days a week could be a great activity. Or you could schedule a regular tennis match with a friend.

    And staying active doesn’t have to be complicated. Walking is also a great form of exercise and is gentle on the body. If you love animals and can afford one, consider getting a dog. Companionship aside, it’s a great way to push yourself to walk consistently.

    4.They prioritize time with loved ones

    When you’re working a full-time job and running a busy household, it can be challenging to find the hours to spend with the people who mean the most to you.

    The benefit of being retired is having the time to spend with the people you care about. So if that’s what makes you happiest, make it a priority. Transamerica found that 58% of retirees today are spending more time with family and friends.

    If you don’t have loved ones nearby, you may want to consider a move if it’s financially feasible. Otherwise, don’t forget that technology makes it easier than ever to stay in touch.

    If in-person contact isn’t something you can do regularly, schedule a standing FaceTime date with your grown children, siblings, and other important people in your life to stay connected.

    5.They find new purpose

    It’s not uncommon for retirees to lose their emotional footing once they’re no longer somebody’s employee. Unfortunately, many people tie their identities to a job. In retirement, it’s easy to feel like you don’t have a purpose and become depressed as a result.

    That’s why it’s crucial to discover a new purpose in retirement. And there are many ways to do that.

    You could go back to work. The Bureau of Labor Statistics reports that in 2024, 38.3% of Americans ages 65 and over worked part-time. Even if you don’t need the money, working a few days or shifts per week could help you settle into your routine, meet new people and, with the right job, do something you enjoy.

    Volunteering is another great option to look at if you don’t need to chase a part-time paycheck.

    According to the National Library of Medicine, various studies have found that volunteer work is associated with improved self-esteem, reduced depression, and an overall better quality of life.

    Finding a cause to support, or several causes, could give you something meaningful to do with your newfound free time.

    What to read next

    Money doesn’t have to be complicated — sign up for the free Moneywise newsletter for actionable finance tips and news you can use. Join now.

    This article provides information only and should not be construed as advice. It is provided without warranty of any kind.

  • Here are 5 things nobody warns you about in the first year of retirement — and spoiler, they have little or nothing to do with your finances

    Here are 5 things nobody warns you about in the first year of retirement — and spoiler, they have little or nothing to do with your finances

    When people think about their retirement years, their primary concerns tend to focus on financial matters.

    In fact, Allianz Life recently found that 64% of Americans are more worried about running out of money than death. It also found that 70% of Gen Xers worry about depleting their nest eggs.

    Given that many of them are in their 50s and rapidly approaching retirement, that’s not exactly a surprising statistic. But while you might expect retirement to throw you for a financial loop, it could also mess with your mental and emotional health.

    Here are some things that could catch you off guard during your first year of retirement — and what to do about them.

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    Fighting off boredom

    A 2024 MassMutual survey found that 67% of retirees are happier than when they were working. However, 8% report feeling less happy, and boredom could be a significant factor.

    In fact, 16% of older Americans say retirement is more boring than they expected. If you’re struggling to fill your days, you may want to consider getting a part-time job, volunteering or easy side hustles that could get you out of the house.

    Unexpected health issues

    In retirement, it’s easy to fall into a more sedentary lifestyle when you don’t have to leave the house for work.

    The National Library of Medicine states that "physical activity and sedentary behavior are major risk factors for chronic disease. These behaviors may change at retirement with implications for health in later life."

    The research further states that, while retirement can be associated with both positive and negative changes in physical activity, the latter can lead to a steady decline in health.

    If you find yourself falling into an idle pattern at home, start adding physical activities to your calendar. It could be anything from a 15-minute walk each day or taking up tennis lessons with a friend once a week.

    Travel may not be as much fun as you’d anticipated

    While 63% of older Americans say travel is an important retirement goal, many find it less fulfilling than expected. According to Merrill Lynch and Age Wave, more than 40% of retirees travel less than planned — often due to health limitations, fatigue, or the unexpected stress of logistics.

    Flight delays, crowded airports, and the physical toll of navigating unfamiliar places can turn a dream vacation into a draining experience. Even changes in diet, climate, or sleep routines can take a toll as we age.

    That doesn’t mean you should give up on travel altogether — but it helps to adjust your expectations. Start with shorter trips to test your stamina, and build flexibility into your plans. You may also find that low-key destinations or trips centered around comfort and routine are more satisfying than chasing constant adventure.

    Read more: You don’t have to be a millionaire to gain access to this $1B private real estate fund. In fact, you can get started with as little as $10 — here’s how

    A lack of purpose

    In a recent Transamerica survey, 79% of retirees reported having a strong sense of purpose in life, which means roughly one-fifth of older Americans may be struggling in that regard.

    If you feel lost in the absence of a job, you may want to dedicate some time to volunteering for a cause that’s meaningful to you.

    And it’s worth trying, as researchers at Columbia University found that volunteering greatly reduced the odds of depression among those who are struggling.

    It can strain your relationship

    Some couples find themselves less happy in their relationship during retirement, mainly because they’re not used to spending so much time together without a break.

    According to Psychology Today, there is a trend of decreasing marital satisfaction after people retire. So, if you and your spouse seem to be getting on each other’s nerves, it may be time to find some hobbies you can pursue separately.

    Discuss your feelings and work together to support each other through the transition to retirement. Retirement can be a major adjustment for couples — but open communication and a willingness to adapt can help turn the challenge into a new chapter of connection.

    What to read next

    Money doesn’t have to be complicated — sign up for the free Moneywise newsletter for actionable finance tips and news you can use. Join now.

    This article provides information only and should not be construed as advice. It is provided without warranty of any kind.

  • Many Americans without kids say they ‘worry’ about who will care for them — do these 4 things now if you’re nervous about aging alone

    Many Americans without kids say they ‘worry’ about who will care for them — do these 4 things now if you’re nervous about aging alone

    The U.S. fertility rate may not be as weak as in other developed nations around the world, but nevertheless in 2023 it reached a historic low, according to Pew Research Center data.

    It figures: the economic case for having kids has maybe never been harder to muster, as inflation — housing and child-care costs, especially — has pushed parents to their financial limits.

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    But not having children carries its own risks. The Pew data finds that 26% of child-free Americans aged 50 and up frequently worry about who will care for them as they age. And 19% worry extremely about being lonely.

    If you’re nervous about aging alone, here are some steps to take now.

    1. Ramp up your savings

    Being child-free has a major benefit — you don’t have to take on the expense of raising a child. The USDA puts the cost of raising a child from birth through age 17 at $233,610 for children born in 2015. Given recent inflation trends, it’s more than fair to say that that figure has grown exponentially since it was last calculated. The money you aren’t spending on child-related costs is money you can save and invest in a retirement account.

    And remember, even older parents continue to provide financial support to their children. A 2024 Savings.com survey found that 47% of parents with grown children provide them with some form of financial support. And almost shockingly, the average amount comes to $1,384 per month.

    If you’re 50 or older, you’re eligible to make catch-up contributions in an IRA or 401(k). Not having to worry about helping grown children pay their bills could make those catch-ups far more feasible.

    2. Establish a social network

    Aging without a support system isn’t easy. But one thing that may help is surrounding yourself with people of a similar age who can provide you with the company you need.

    Put some focus into creating a network, whether through volunteer work, writing clubs or community events. You’ll want to be well established with relationships and a social routine long before you retire.

    If you’re looking for convenience as well as community, you may consider a 55-and-over community. Many of these facilities are loaded with amenities that include fitness centers, tennis courts, swimming pools, and more that are instrumental to helping retirees keep busy.

    Of course, one drawback to these communities is the cost, which can range from a more reasonable $1,500 a month all the way up to $4,000, according to AssistedLiving.org. But it could pay to prioritize this expense in your budget if you know you’ll be entering retirement without grown children to lean on.

    Read more: You don’t have to be a millionaire to gain access to this $1B private real estate fund. In fact, you can get started with as little as $10 — here’s how

    3. Reduce the hassle of home maintenance

    Aging alone could mean facing mobility and health challenges. One big source of stress for seniors is maintaining their homes. You may not have the physical ability to mow the lawn, remove snow, and do other types of upkeep once you’re well into retirement. So to that end, it pays to eliminate as much home maintenance as possible.

    Again, a 55-and-over community could be an attractive option to avoid this expense. Often, these communities feature condo-style living so that you’re only responsible for maintaining the interior of your home, while your monthly HOA fee goes toward exterior maintenance.

    If one of these communities isn’t what you want, consider downsizing out of a larger home and into a smaller space that requires less work. It could also be a good idea to buy a one-story home in case climbing stairs becomes an issue down the line.

    4. Buy a long-term care insurance policy

    One of the scariest things about aging alone is reaching the point when you simply can’t perform daily tasks without assistance. In the absence of having grown children to step in and help, it’s important to be prepared for long-term care. One way to do that is by putting insurance in place to help defray the often-astronomical cost.

    Genworth reports that the average annual cost of an assisted living facility is $64,200, while a home health aide costs $75,504 per year. A semi-private nursing home room, meanwhile, has an average yearly price tag of $104,025.

    Meanwhile, the median retirement savings account balance among Americans 65 to 74 is $200,000, according to the Federal Reserve. Costs like these have the potential to bankrupt a retiree with just the typical savings, so it’s important to have insurance as a backup plan.

    The ideal time to apply for long-term care coverage is in your mid-50s. This makes it more likely that you’ll qualify for a policy with premiums you can afford. It’s possible to secure coverage beyond your mid-50s, but the older you get, the harder and more expensive it might become.

    In addition to these specific tips, consider sitting down with a financial adviser and talking through your retirement concerns. They may be able to make the process of aging alone easier from a money-related perspective.

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    This article provides information only and should not be construed as advice. It is provided without warranty of any kind.

  • I’m 27 and ready to get serious about my finances, but struggle with high living costs — where do I start?

    I’m 27 and ready to get serious about my finances, but struggle with high living costs — where do I start?

    If you’re a young adult and feel like your finances aren’t in order, you’re not alone. A 2024 Bank of America survey found that 52% of Americans aged 18 to 27 say they don’t make enough money to live the life they want, and that sky-high living costs are a top barrier to financial success.

    Furthermore, adults in this age group are delaying major financial milestones, such as buying a house and saving for retirement. And 46% have to rely on financial support from parents and family just to stay afloat.

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    Let’s say you’re 27 years old and ready to get serious about your finances, but are struggling to get by with the high cost of living. Here are some steps you can take toward securing your financial future en route to achieving major life goals.

    Emergency fund

    One of the most important things you can do right away is get started on an emergency fund. This is cash you can easily access in case something unexpected happens, such as losing your job. Having a cushion to fall back on can help prevent you from falling (further) into debt.

    Many experts recommend stashing away three to six months’ worth of expenses, however, since you’re just starting out you might want to think a bit smaller. Personal finance expert Dave Ramsey, for example, recommends setting aside $1,000 at first. Over time, you can build up your emergency fund. Since this cash isn’t meant for everyday spending, it’s also a good idea to keep it in a high-yield savings account so it can earn interest.

    Tackling debt

    Take a look at your debt situation. You may already be on a payment plan when it comes to student debt or auto loan debt. But if you have any high-interest debt, including credit card debt, it’s in your best interest to pay it off as quickly as possible. The last thing you want to do is continue digging yourself a bigger hole. Come up with a plan to tackle your debt so you can get to saving. Drawing up a budget with this goal in mind may be helpful.

    Read more: You don’t have to be a millionaire to gain access to this $1B private real estate fund. In fact, you can get started with as little as $10 — here’s how

    Saving for retirement

    Does your employer offer a 401(k) plan? If so, you can sign up and direct a portion of your paycheck, pre-tax, into an account and invest it in the market. This is a good idea especially if your employer offers matching contributions (up to a certain percentage of your pay), which essentially amounts to free money. It’s recommended you contribute as much as you can afford, at least up until the maximum employer match amount.

    Otherwise, you can start building your retirement savings through an individual retirement account (IRA), which can also be invested in the market. Keep in mind there are yearly contribution limits for 401(k) and IRA accounts.

    Long-term goals

    At age 27, you still have most of your adult life ahead of you, but you may have long-term goals beyond achieving financial security. These can include starting a family, buying a home or simply generating as much wealth as possible. A financial advisor can help you plot a path toward achieving them.

    Think about how your finances might impact your life goals. There are costs associated with many personal milestones, so look at the big picture in the course of mapping out your long-term plan.

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    This article provides information only and should not be construed as advice. It is provided without warranty of any kind.

  • ‘A menace to the neighborhood’: LA residents say ‘hell house’ drawing squatters after owners ‘hoarded themselves out of their home’ — leaving them in ‘limbo’ waiting months for city help

    ‘A menace to the neighborhood’: LA residents say ‘hell house’ drawing squatters after owners ‘hoarded themselves out of their home’ — leaving them in ‘limbo’ waiting months for city help

    The Los Angeles neighborhood of Westwood is "well maintained" with "surroundings [that] are quiet and clean" according to comments on the online real estate marketplace Trulia.

    But now, one home that neighbors describe as a “hell house” — attracting squatters, drugs and criminal activity along with a growing pile of garbage — is making life miserable for residents.

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    As KTLA reports, the underlying issue is that the older brother and sister who own the home are anti-social hoarders who regularly engage in profanity.

    "They’ve been a menace to the neighborhood for the whole time that we’ve lived here," said Amy Gordon, a local resident.

    But Gordon says things went from bad to worse in the past year as the pair “hoarded themselves out of their own home” — moving into their cars out front, essentially opening their front door to problems.

    Now the neighbors have banded together to address the challenge, and their city council rep is taking action.

    When one problem house causes problems for everyone

    Serious hoarding presents a number of concerns for both hoarders themselves and their neighbours. Safety is a serious issue.

    Hoarding can attract rodents, increase risk of fires and — in the case of the Westwood “hell house” — intruders.

    Gordon says the home is attracting people who leave drug paraphernalia around the community, including across the street from a school.

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    It also impacts property values — as the home where the hoarding takes place drops in value, so do other homes in the area.

    However, it’s important to approach the situation with compassion, since hoarding is a real disorder that affects people of all ages.

    Area resident Carrie Livingston, told KTLA that she called Adult Protective Services to try to help the homeowners, to no avail.

    Neighbors reached out to city police, city leaders and even building and fire inspectors to get the "hell house" owners the help they desperately need.

    Since then, community residents have filed restraining orders against the brother and sister.

    They’ve also gathered more than 150 signatures on a petition they sent to their city council representative Katy Yaroslavsky.

    And that got a response.

    Yaroslavsky promptly asked the city attorney to declare the property a public nuisance and reached out to the Los Angeles County supervisor to provide the siblings with mental health support.

    She’s also advocating for policy change in such situations, saying it takes too long for the city to step in on properties like this one.

    “The process is slow, complicated, and leaves neighbors in limbo,” she said in a statement. “I support current efforts to streamline how the City handles nuisance properties and will keep pushing to move that work forward.”

    What to do if your neighbor is a hoarder

    If you find yourself next to a hoarder, you could try speaking to your neighbor directly about the problem, but they may not be responsive.

    Like the residents in Westwood, you may need to seek intervention. It helps to be aligned, as they have been, in your approach.

    Reach out to local law enforcement if you feel you’re in danger and connect with a local resource like Adult Protective Services and health departments to check in on your neighbor and try to help them.

    This process could take some time. It’s important to protect yourself and your loved ones — as well as your property — in the meantime.

    • Consider constructing a fence, sealing garbage and recycling bins and bringing in a pest control company if required.
    • Document the evolving situation with images, video and notes — particularly in the event your property ends up sustaining damage due to your neighbor’s hoarding.
    • Contact the local code enforcement office if you feel your neighbor has violated a specific ordinance. For example, if there are piles of trash outside your neighbor’s home seeping onto your property, that’s something you could bring to your town or local law enforcement agency.
    • Report any violations of homeowners association (HOA) rules to the HOA board, as Nolo legal services advises. From there, they should be the ones to step in and take action.

    You may, depending on the circumstances, have grounds to file a lawsuit against your neighbor if their hoarding has caused damage to your home or cost you money in a specific way.

    Even if you’re not in danger per se, you have the right to protect your home and community. And you could help people suffering from a very serious disorder.

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    This article provides information only and should not be construed as advice. It is provided without warranty of any kind.

  • Want to retire early? Suze Orman says to open these 3 accounts ASAP to move up your departure date

    Want to retire early? Suze Orman says to open these 3 accounts ASAP to move up your departure date

    Personal finance expert Suze Orman didn’t grow up wealthy — she worked her way through a number of challenging jobs and learned how to invest before becoming the success she is today.

    Orman is a firm believer that everyone deserves to live without financial stress — both during their working years as well as in retirement. To achieve that goal, Orman is a fan of living below your means, always having a financial safety net, and working toward financial independence.

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    But doing that takes time and effort.

    As Orman says, “Financial independence is not something we snap our fingers and have materialize right then and there. It is the result of a process that we create and then commit to seeing through.”

    If your goal is to achieve financial independence to the point where you’re able to retire early, the right tools could set you up for success. To that end, here are three accounts Orman recommends putting in place as soon as possible.

    An emergency fund in a high-yield savings account

    You never know when you might face a surprise expense or a period of financial hardship. That’s why it’s important to have an emergency fund — money in savings to cover unplanned bills, or to take the place of your paycheck for a while if that becomes necessary.

    Unfortunately, an early 2025 U.S. News & World Report survey found that 42% of Americans do not have an emergency fund. In addition, SecureSave, a fintech Orman co-founded, reported in August of 2023 that 63% of workers do not have enough emergency savings to cover an unplanned $500 expense.

    At the very least, it’s a good idea to save enough money in an emergency fund to cover three to six months of essential bills. However, Orman would prefer that you save more.

    “You know that I want you to have far more than three months of living costs set aside. One year is my sweet spot advice for being prepared for major financial setbacks,” she said.

    An emergency fund could also be an important component of your early retirement strategy. If you retire before you can access your IRA or 401(k) penalty-free, you can potentially dip into your cash reserves to pay bills (though ideally, that money should be saved for unplanned expenses).

    You can also use your emergency fund to cover expenses during periods when the stock market is down and it’s a bad time to tap your portfolio.

    Read more: You don’t have to be a millionaire to gain access to this $1B private real estate fund. In fact, you can get started with as little as $10 — here’s how

    A retirement account

    The number of Americans who are nearing retirement without savings is alarming. AARP found last year that 20% of Americans 50 and older don’t have any money socked away for their golden years.

    In addition, the Federal Reserve puts median retirement savings among Americans 65 to 74 at just $200,000 as of 2022.

    Orman says the key to building a strong retirement nest egg is to start saving when you’re young — ideally, in your 20s. The sooner you fund your retirement account, the more time that money has to grow.

    Orman also thinks people should save at least 15% of their income for retirement when they’re younger (and beyond). And if you want to retire early, you may even want to aim higher.

    If you have access to a 401(k) plan, it can be particularly advantageous to participate — and max out if possible. This year, that means contributing $23,500 if you’re under 50, $31,000 if you’re 50 or older, or $34,750 if you’re between the ages of 60 and 63.

    One easy way to boost your 401(k) savings is to claim your employer match in full. If you’re not sure what that entails, ask your benefits department.

    You should also know that your employer match won’t count against your contribution limit. So if you’re 29 and want to contribute $23,500 out of your paycheck, and your employer matches your first $2,500 in contributions, you can put in $26,000 this year.

    An investment portfolio

    The nice thing about retirement plans like IRAs and 401(k)s is that they give you a tax break on your money. With a traditional IRA or 401(k), for example, your contributions go in tax-free and investment gains are tax-deferred.

    The problem with these accounts, though, is that you’re required to wait until age 59 and 1/2 to take distributions. If you take an earlier withdrawal, you’ll typically face a 10% penalty. And a penalty like that could easily eat away at your savings.

    That’s why it’s important to invest in a taxable brokerage account if you think you’d like to retire early — though you won’t get any IRS benefits, your account will also be unrestricted. You’ll be able to take withdrawals whenever you want and contribute as much as you want in any given calendar year.

    Orman says it’s important to be strategic with your investments — and to be mindful of your asset allocation at different stages of life.

    "For many people, as they near retirement, it can make sense to reduce their reliance on stocks if they want a smoother ride," she said. "But just because you had 80% or more invested in stocks when you were 40 doesn’t mean you need or must keep that much invested in stocks when you are 65 or 75."

    To be clear, you shouldn’t reduce your stock exposure at a certain age so much as at a certain point before retirement. Generally speaking, the five-year mark is a good time to start moving out of stocks and into bonds, which tend to be more stable.

    This doesn’t mean you should dump your stocks completely as retirement nears. But you may want to limit your portfolio to 50% or 60% stocks so you’re not overly exposed to market volatility at a time when you’re ready to start tapping your investments for income.

    What to read next

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    This article provides information only and should not be construed as advice. It is provided without warranty of any kind.