Author: Moneywise

We adhere to strict standards of editorial integrity to help you make decisions with confidence. Some or all links contained within this article are paid links.

The term ‘“middle class” is often discussed but rarely defined. It’s a term the majority of Americans would use to define themselves, yet most people don’t know whether their household truly fits into this category.

Based on the Pew Research Center’s analysis of government data, roughly 49% of Americans don’t actually fall into the middle class income category.

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• Want an extra $1,300,000 when you retire? Dave Ramsey says this 7-step plan ‘works every single time’ to kill debt, get rich in America — and that ‘anyone’ can do it

Here’s a closer look at why that is.

The squeezed middle class

Pew Research Center defines the middle class as a household with income that is at least two-thirds of the U.S. median income to double the median income. This would imply a range of incomes from $56,600 to $169,800, based on government data for 2022.

As of 2023, 51% of American households fit into this category.

But, most Americans might not be aware that this cohort of middle-income earners is getting squeezed. Roughly 61% of households across the country were part of this group in 1971 — a full 10 percentage points higher than the recent 51% rate.

This trend may be a reflection of growing income inequality across the country. And many families feel like they’re on the brink of falling into a lower category.

A recent survey by the National Foundation for Credit Counseling (NFCC) found that 53% of U.S. adults feel like they can’t make financial progress and 48% say they are “constantly treading water financially.”

Are you at risk?

If you and your family are middle-income and worried about falling behind, there are ways to cement your position.

Reducing debt, especially consumer debt, could be a great way to secure yourself financially. In 2024, there were 494,201 personal bankruptcy filings in the U.S. — over 60,000 more than the previous year, according to Debt.org.

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By reducing your debt burden, you can mitigate the risks of bankruptcy and reduce the monthly cost burden of servicing the debt.

If you have significant debt and are struggling to pay it off, consider opting for a debt consolidation loan.

Debt consolidation loans typically have lower interest rates compared to credit cards, and can lower your interest burden. Plus, with just one outstanding loan, you won’t need to juggle multiple payment dates or amounts.

Credible is an online marketplace that lets you shop around and compare rates on debt consolidation loans offered by lenders near you.

Just answer some basic questions about your finances by filling out a form, and Credible will sort through its database and display rates from top lenders near you. From there, you can compare rates and repayment terms to choose the loan best suited for you.

The best part? Checking rates with Credible is fast,free and won’t impact your credit score.

After reducing your debt burden, you can automate investing in low-cost index ETFs with Acorns. Consistently saving spare change from everyday purchases can add up over time, thanks to the powers of compounding.

Here’s how it works: When you buy a coffee for $4.25, Acorns automatically rounds up the purchase to $5 and sets aside the extra $0.75. Once the round-ups reach $5, they’re automatically invested into a smart investment portfolio of diversified ETFs.

While the spare change doesn’t seem like much, saving and investing just $3 each day adds up to over $1,000 a year — and that’s before it compounds and earns money in the market.

What’s more, you can get a $20 bonus investment when you sign up for Acorns with a recurring deposit.

Another way to secure your position is to have an emergency fund that can cover your living expenses if you suddenly lose income. A six-month emergency fund can give you enough time to find a new job or different source of income without putting your family at risk.

Parking your emergency fund in a high-yield savings account can help you earn higher returns while keeping your money accessible at all times.

One option is to earn 4% APY on deposits with a Wealthfront Cash account —- that’s roughly 10 times higher than the national average interest rate typically offered by big banks.

The account offers free domestic wire transfers, as well as free instant withdrawals to eligible accounts.

The best part? Deposits of up to $8 million in your Wealthfront Cash account are insured by the Federal Deposit Insurance Corporation (FDIC), ensuring your funds remain secure.

Get started now and receive a $30 bonus when you fund your account with $500 or more.

Find other ways to save

Almost 1 in 5 Americans are “doom spending” — making impulsive and excessive purchases amid increasing economic uncertainty — according to a recent report from CreditCards.com.

However, this could result in increasing financial insecurity especially among the middle class.

Budgeting and tracking where your money is going at all times can help you identify the areas in which you’re overspending, helping you take control of your finances.

One area where you are likely overspending is insurance. The average American spends approximately $2,433 on full-coverage auto insurance yearly, according to MarketWatch. In addition, homeowners’ insurance costs roughly $2,341 per year, according to Bankrate.

And premiums are projected to rise further. Insurify estimates that car and home insurance costs are expected to rise by 5% and 8%, respectively, in 2025.

You can reduce your premiums by shopping around and comparing rates from multiple insurers near you, and choosing the lowest rate. A LendingTree survey showed that 92% of Americans lowered their monthly auto insurance premiums by switching insurers.

With OfficialCarInsurance.com, you can compare rates and coverage from reputable providers like GEICO, Allstate and Progressive within minutes.

You can find rates as low as $29/month — without spending a penny or hurting your credit score.

If you’re looking to switch homeowners insurance carriers as well, consider shopping around and comparing rates through OfficialHomeInsurance.com.

Simply answer a few basic questions about your finances and the home you’d like to insure then OfficialHomeInsurance.com will sort through more than 200 providers near you to display the best rates. On average, you can save $482 each year by shopping around and selecting the lowest possible rate.

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• Here are 5 ‘must have’ items that Americans (almost) always overpay for — and very quickly regret. How many are hurting you?
• How much cash do you plan to keep on hand after you retire? Here are 3 of the biggest reasons you’ll need a substantial stash of savings in retirement
• This is how American car dealers use the ‘4-square method’ to make big profits off you — and how you can ensure you pay a fair price for all your vehicle costs

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.

We adhere to strict standards of editorial integrity to help you make decisions with confidence. Some or all links contained within this article are paid links.

People often seek easy answers and shortcuts. This is not always a flaw, but a form of efficiency. So, it’s no surprise that many want a magic answer to one of life’s biggest financial puzzles: how much to save for retirement.

As a result, we often have a “magic number” in mind for our retirement savings.

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This year, the number Americans believe they’ll need to retire comfortably is $1.26 million, according to Northwest Mutual’s 2025 Planning & Progress Study.

This is $200,000 less than the estimated $1.46 million they believed they’d need when they were surveyed last year. It’s also more in line with the 2022 and 2023 estimates, indicating a reversal in thinking from last year to the years before.

Why the “magic number” might be lower this year

It’s likely that the decline in the “magic number” is at least partially related to declines in inflation, which has been falling — albeit unevenly — since peaking in the summer of 2022.

As inflation has dipped, so too have expectations of future inflation, which were lower in 2024 than in the previous couple of years.

It may also be that views on retirement are changing. Whether by necessity or intention, about half of workers plan not to retire before the traditional age of 65, and 39% expect to retire only at 70 or older, or not to retire at all, according to a report by the Transamerica Center for Retirement Studies.

However, recent economic uncertainty suggests that sticking to the typical portfolio division of 60% stocks and 40% bonds might not be enough. In a see-sawing market, diversifying your portfolio as much as possible could help you weather market downturns or surging inflation.

Investing a portion of your portfolio in safe-haven assets like gold can hedge against this volatility. For instance, a gold IRA can help you combine the inflation and recession-resistant properties of gold with the tax advantages of an IRA.

One option is to work with Thor Metals to open a Gold IRA.

If you’re just getting going with gold, Thor Metals offers a free information guide to help you get a grasp on the market. You can also snag up to $20,000 in free metals on qualifying purchases.

Real estate investments are also known for their inflation-resistant characteristics. However, the cost of buying and managing rental properties can take a lot of time and money.

But the real estate market is vast — and you don’t always have to buy an investment property outright just to diversify your portfolio or build your retirement nest egg.

Instead, you can tap into the over $34 trillion home equity market with Homeshares, provided you have the capital.

With a minimum investment of $50,000, accredited investors can gain direct exposure to hundreds of owner-occupied home equity investments across the country — without the headaches of buying, owning or managing them.

The Homeshares U.S. Home Equity fund focuses on homes with substantial equity, utilizing Home Equity Agreements to help homeowners access liquidity without incurring debt or additional interest payments.

Homeshares also tries to help protect your investment. The fund is built with 45% downside protection, providing a bit of a safety net in the event of defaults.

With risk-adjusted target returns ranging from 14% to 17%, the U.S. Home Equity Fund could unlock lucrative real estate opportunities, offering investors with capital on hand a low-maintenance alternative to traditional property ownership.

For those looking to take it one step further, First National Realty Partners (FNRP) allows accredited investors to diversify their portfolio through grocery-anchored commercial properties.

FNRP leases its properties to national brands like Whole Foods, CVS and Walmart, which provide essential goods to their communities. FNRP follows a triple net lease structure, allowing accredited investors to invest in these properties without worrying about tenant costs eating into potential returns.

Simply answer a few questions – including how much you would like to invest – to start browsing their full list of available properties.

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Is the “magic number” a reasonable goal?

Before you start worrying about achieving that ‘“magic number,” it’s a good idea to determine if it’s a reasonable goal. In 2023, the average expenditure for a household where the head of the household is 65 years or older was $60,087, according to the U.S. Bureau of Labor Statistics.

Let’s look at a hypothetical, but still common, situation. Most retirees will collect Social Security benefits, which averaged about $2,000 in April of 2025 — so $24,000 a year. If only one person collects benefits, the household would need an extra $36,000 to reach that pre-retirement $60,087 benchmark.

It’s also important to note that the Social Security trust fund that helps power these benefits is expected to run dry by 2033 unless Congress takes action, according to the Social Security Administration’s 2025 Trustees Report. This could result in benefits being slashed by 23%.

Research by the Employee Benefits Research Institute shows that retirees are already cutting back on expenditures because of insufficient income. This paints a worrying picture when combined with threats to Social Security benefits.

One area where many retirees — as well as those approaching retirement — can reduce their spending is home and car insurance. By reassessing existing policies and shopping around for better rates, it’s possible to free up cash that can go toward essential living expenses.

But comparing insurance rates can take time and effort that many retirees just don’t have.

Platforms such as OfficialCarInsurance.com allow you to compare rates from GEICO, Progressive, Allstate and others for free.

The process is simple: Just answer a few basic questions about yourself, your driving history and the vehicle you’d like to insure, then OfficialCarInsurance.com will show you the best deals available in your area.

Get started today and you can find auto insurance rates for as low as $29/month.

Home insurance is another pain point for many, but you can also drive down rates by shopping around.

With this in mind, OfficialHomeInsurance.com can help you find the lowest rates near you in under two minutes. Users were able to save an average of $482 per year by shopping around for better rates.

All you have to do is answer a few questions about your finances and mortgage, and OfficialHomeInsurance.com will comb through its database of over 200 insurers and display quotes from leading insurers near you.

Finally, remember that you typically don’t have to wait until your insurance is up for renewal to change policies.

It’s also important to keep in mind that everyone’s “magic number” is different., Finding your number will mean taking an honest look at your financial situation.

For example, where you plan to retire can make a big difference, as can what you plan to do in retirement.

After all, retirement is a very personal thing. If you want to find out what your own “magic number” might be, but don’t know where to start, it could be worthwhile to speak with a financial advisor.

Hiring a financial advisor can be a lifelong commitment. So, hiring reputable fiduciaries — those who are legally required to act in your best interest — can pay off over the long run.

You can find a vetted FINRA/SEC-registered expert near you for free with Advisor.com. Their network of advisors are fiduciaries, so you can trust that the advice you’re getting is unbiased.

You can set up an introductory call with no obligation to hire with your match to see if they’re the right fit for you.

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• This is how American car dealers use the ‘4-square method’ to make big profits off you — and how you can ensure you pay a fair price for all your vehicle costs

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.

We adhere to strict standards of editorial integrity to help you make decisions with confidence. Some or all links contained within this article are paid links.

It’s easy to assume that wealth and income are deeply intertwined. After all, how does anyone become wealthy without a lifetime of earning a six-figure salary?

But data gathered by Dave Ramsey’s team suggests the link between wealth and income may be weaker than most assume.

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Only 31% of American millionaires earned an average annual income of $100,000 over the course of their careers, according to The National Study of Millionaires conducted by Ramsey Solutions. Perhaps even more surprising is that one-third of these millionaires never reached that six-figure income milestone during their careers.

It’s completely realistic to reach a seven-figure net worth without earning a six-figure salary. However, this modest path to millionaire status does require more effort and discipline.

Expenses are the key

The key to accumulating wealth is managing expenses. Many ultra-high-income individuals struggle to break into the millionaires club because they let lifestyle inflation consume them.

In fact, 36% of Americans earning more than $200,000 a year said they were living paycheck to paycheck, according to a PYMNTS survey from 2024.

By comparison, someone earning a five-figure income can become a millionaire with both disciplined saving and smart investing. Building real wealth on a mid-level income means starting early, investing wisely and consistently finding creative ways to reduce monthly expenses, like cutting insurance costs.

U.S. homeowners’ insurers have hiked premium rates by double digits over the past two years. If you’re not paying attention, that could be a major hit to your saving power.

Shopping around is one of the best ways to find better rates, but calling individual providers takes time and effort that many working people just don’t have.

OfficialHomeInsurance.com can take the hassle out of shopping for home insurance. In just under 2 minutes, you can explore competitive rates from top insurance providers all in one place.

OfficialHomeInsurance.com can make it easy to find the coverage you need at a price that could fit your budget.

But home insurance premiums aren’t the only thing coming out of homeowners’ pockets. If you own a car, you have another cost to deal with.

Car insurance rates rose an average of 16.5% in 2024, according to ValuePenguin. Like with home insurance, shopping around can lead to substantial savings.

OfficialCarInsurance.com lets you compare quotes from trusted brands — including Progressive, Allstate and GEICO — to make sure you’re getting the best deal. Their matchmaking system takes into account your location, vehicle details and driving history to find the lowest rate possible for you.

Deals can start at just $29 per month, and you can switch over your policy in only a few minutes.

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Start investing early

Time can be another powerful tool for building your wealth. Given a long enough horizon, even small savings and average investment returns can grow into a substantial nest egg.

For instance, an 18-year-old would need to save only $250 a month and earn a modest 7% annual return on investment to reach $1 million by the age of 66. Put simply, if you want to accumulate exceptional wealth without an exceptional income, starting as early as possible is essential.

The best part? You don’t need a lot of money to start saving for your long-term financial goals.

With Acorns, you can automatically squirrel away your spare change with every purchase to grow your savings effortlessly.

The app rounds up each of your everyday purchases to the nearest dollar and invests the difference into a diversified portfolio of ETFs. This means that every transaction — from your morning coffee to grocery shopping — contributes to building your savings account.

That $13.60 lunch? Acorns rounds it up to $14. That’s 40 cents dropped straight into your savings. You can even get a $20 bonus investment when you sign up with a recurring deposit.

Over the course of a lifetime, a little can go a long way.

Avoid or limit debt

Another essential ingredient in your climb from modest to millionaire is reducing your exposure to debt. After all, serving the interest payments on credit cards or high-interest loans can offset the positive impact of a diligent savings and investing strategy.

For most people, avoiding debt — especially the expensive type — is their biggest challenge. As of early 2025, U.S. households collectively had nearly $5 trillion in non-housing debt such as student loans, auto loans and credit card balances, according to the New York Federal Reserve.

Serving this debt could be one of the key reasons why the average personal savings rate in the United States is only 4.9%, based on data from the Federal Reserve.

By limiting or eliminating consumer debt, you can save more. That could be the key to your financial freedom, regardless of your income.

The best place to start? Paying off high-interest debt as soon as possible. If you have significant equity in your home, you could also consider consolidating what you owe with a Home Equity Line of Credit (HELOC) to lower your interest rate and accelerate your payoff.

A HELOC is a secured line of credit that leverages your home as collateral. Depending on the value of your home and the remaining balance on your mortgage, you may be able to borrow funds at a lower interest rate from a lender as a form of revolving credit.

Rather than juggling multiple bills with varying due dates and interest rates, you can consolidate them into one easy-to-manage payment. The results? Less stress, generally reduced fees, and the potential for significant savings over time.

LendingTree’s marketplace connects you with top lenders offering competitive HELOC rates.

Terms and conditions apply. NMLS#1136.

Keep in mind that not all loans are created equal, and it’s important to understand not only your interest rates but also the repayment period and what assets could be used as collateral.

Creative planning

Life can be messy. Even if you follow all the traditional financial advice, your journey to financial freedom could be derailed by health issues, divorce, bankruptcy or emergencies.

If you’re approaching retirement without much savings or a high-paying career, your chances of becoming a millionaire are lower. That doesn’t mean it’s impossible to enter the club.

Creative solutions could help you get there despite the odds. For instance, you could boost your savings rate by temporarily moving to a town or country with a lower cost of living. Working remotely while paying modest rent in Mexico, for example, could help you accumulate wealth faster.

You could also delay retirement. Adding five or even 10 years to your retirement plan could make a difference, especially if you’re building your nest egg later in life. A 40-year-old would need to save just $900 a month and earn a 7% return on investment to reach millionaire status at 75.

You can also potentially increase your returns by investing in alternative assets, such as farmland, small businesses, high-growth tech stocks or rental properties.

If you’re looking to get into real estate without big down payments or tying yourself to a mortgage, you could tap into the market through crowdfunding platforms like Arrived.

Backed by world-class investors including Jeff Bezos, Arrived allows you to invest in shares of vacation and rental properties, allowing you to potentially receive passive income without having to manage midnight maintenance calls or burst pipes.

To get started, simply browse through Arrived’s selection of vetted properties, each picked for their potential appreciation and income generation. Once you choose a property, you can start investing with as little as $100.

There’s always a practical path to the seven-figure club, regardless of your age or income.

What to read next

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• Here are 5 ‘must have’ items that Americans (almost) always overpay for — and very quickly regret. How many are hurting you?
• How much cash do you plan to keep on hand after you retire? Here are 3 of the biggest reasons you’ll need a substantial stash of savings in retirement
• This is how American car dealers use the ‘4-square method’ to make big profits off you — and how you can ensure you pay a fair price for all your vehicle costs

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.

We adhere to strict standards of editorial integrity to help you make decisions with confidence. Some or all links contained within this article are paid links.

The future of Social Security benefits is a top concern for Americans, but Professor Scott Galloway isn’t convinced the program is essential for everyone.

“Somewhere between 10% and 30% of people who get Social Security right now should not receive it. Because they don’t need it,” the New York University professor, who is known for his controversial takes, said in an episode of his podcast, The Prof G Pod.

"I’ll go as high as a third of senior citizens should not be getting Social Security."

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Galloway suggests this not just as a way to reduce economic inequality in the U.S., but also as a potential solution to cut costs in a program that faces insolvency issues due to shifting demographics. Without reform, the Social Security trust funds will be depleted by 2035. As a result, benefits for all recipients would be automatically cut by 17%.

Here’s why Galloway thinks serious reform and dramatic benefit cuts are required.

"Something is wrong"

Galloway described American seniors as “the wealthiest generation in the history of this planet,” raising concerns about the fairness of the current Social Security system.

Each year, approximately $1.2 trillion is transferred from younger workers — many of whom are struggling with debt, rising living costs and stagnant wages — to retirees, according to Galloway. In 2025, around $1.6 trillion in benefits will be distributed, with about 80% going to retired workers and their dependents.

Galloway argues that this transfer places an unfair burden on Gen Z and millennials, who shoulder most of the Social Security costs through payroll taxes. To help correct this imbalance, he proposes cutting or eliminating benefits for the wealthiest 10–30% of retirees.

“I think it’s called the Social Security tax — not the Social Security pension fund — because we don’t actually have a guaranteed right to it at 65,” Galloway said.

“The idea that ‘I paid in, so I should get it back’ doesn’t hold up, since most people end up withdrawing far more than they ever contributed.”

With the top 10% of Americans holding an average net worth of $7.8 million, according to recent Federal Reserve data, many in this wealth bracket likely wouldn’t be significantly affected if their Social Security benefits were reduced or eliminated.

Higher taxes to fund Social Security?

Galloway criticized the payroll tax cap, which limits Social Security contributions to the first $176,100 of income. As a result, a CEO earning millions pays the same as someone earning $176,100.

Removing the cap on earnings above $400,000 is one favored policy fix, according to a National Academy of Social Insurance survey. However, the Manhattan Institute notes that this wouldn’t fully solve the program’s funding shortfall — only delaying trust fund exhaustion by about 20 years.

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

The institute supports Galloway’s view that Social Security now redistributes wealth upward, not downward.

According to the report, “Raising Social Security taxes (rather than addressing benefits) would accelerate the largest and most inequitable intergenerational wealth transfer in world history."

Reducing your reliance on Social Security

Reducing your dependence on Social Security is essential for long-term financial stability, particularly as the program faces ongoing funding issues.

To take control of your financial future, it’s important to build your savings, invest wisely and diversify your portfolio with tools like gold, real estate and alternative assets.

One of the easiest ways to kickstart this process is by automatically squirreling away your spare change with Acorns. When you make everyday purchases, Acorns rounds up the price to the nearest dollar and invests the difference for you in a smart investment portfolio.

For example, if you spend $8.45 on lunch, Acorns will round it up to $9.00 and automatically save that extra 55 cents. Over time, those spare change round-ups can add up. Saving just $3 a day could grow to over $1,000 in a year, helping you build your savings effortlessly.

Plus, if you sign up with a recurring contribution, you get a $20 bonus.

Investing in gold is another way to grow your wealth and reduce your reliance on Social Security, as it tends to act as an enduring store of value over time.

The price of gold has also jumped by more than 40% since 2023. JP Morgan projects that it will hit the $4,000 mark by 2026.

If you’re optimistic about gold, there’s no need to visit a bullion shop to purchase gold coins or bars. Instead, you can choose a gold IRA, which allows you to  invest directly in precious metals to hedge against market volatility.

Priority Gold is an industry leader in precious metals, offering physical delivery of gold and silver. Plus, they have an A+ rating from the Better Business Bureau.

If you want to convert an existing IRA into a gold IRA, Priority Gold offers a 100% free rollover, as well as free shipping and free storage for up to five years. Qualifying purchases can also receive up to $10,000 in free silver.

To learn more about how Priority Gold can help you reduce inflation’s impact on your nest egg, you can download their free 2025 gold investor bundle.

Investing in real estate can be another effective way to build generational wealth and lessen your reliance on Social Security. For the 12th year in a row, Americans have ranked real estate as the best long-term investment in 2024, according to a new Gallup survey.

With the help of First National Realty Partners (FNRP), you can invest in necessity-based commercial properties and potentially create lasting wealth for yourself and your family.

FNRP specializes in grocery-anchored retail centers leased by major national brands like Walmart, Kroger and Whole Foods, providing investors with potential steady cash flow through rental income and long-term appreciation.

As an accredited investor with a minimum of $50,000, you can access high-quality real estate investments without the hassles of property management.

You can also invest in alternative assets such as art to diversify your portfolio and lessen your reliance on Social Security. Art investment has emerged as a substantial asset class. The global art market size was valued at $552.03 billion in 2024 and is projected to reach  $585.98 billion in 2025, according to Straits Research.

In the past, only the ultra-wealthy could invest in art, but now services like Masterworks have opened the door to art investing. So far, over one million members have joined the platform.

Here’s how it works: Instead of spending millions on a single painting, you buy fractional shares of blue-chip paintings by iconic artists such as Pablo Picasso, Basquiat and Banksy.

All that’s left is to choose the number of shares you want to buy, and Masterworks handles everything else for you.

See important Regulation A disclosures at Masterworks.com/cd.

What to read next

• Financial aid only funds about 27% of US college expenses — but savvy parents are using this 3-minute move to cover 100% of those costs
• Here are 5 ‘must have’ items that Americans (almost) always overpay for — and very quickly regret. How many are hurting you?
• How much cash do you plan to keep on hand after you retire? Here are 3 of the biggest reasons you’ll need a substantial stash of savings in retirement
• This is how American car dealers use the ‘4-square method’ to make big profits off you — and how you can ensure you pay a fair price for all your vehicle costs

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.

We adhere to strict standards of editorial integrity to help you make decisions with confidence. Some or all links contained within this article are paid links.

Short-term turbulence in the stock market can be enough to make novice investors nauseous, but veterans like Warren Buffett remain unfazed.

During his May 2025 meeting with Berkshire Hathaway shareholders, the 94-year-old Oracle of Omaha downplayed the market’s volatility.

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• I’m 49 years old and have nothing saved for retirement — what should I do? Don’t panic. Here are 6 of the easiest ways you can catch up (and fast)
• Robert Kiyosaki warns of a ‘Greater Depression’ coming to the US — with millions of Americans going poor. But he says these 2 ‘easy-money’ assets will bring in ‘great wealth’. How to get in now
• Want an extra $1,300,000 when you retire? Dave Ramsey says this 7-step plan ‘works every single time’ to kill debt, get rich in America — and that ‘anyone’ can do it

“What’s happened in the last 30, 45 days, 100 days, whatever you want to call it, it’s really nothing,” he said.

Here’s why the world’s most famous investor is unconcerned by swings in the stock market, even as he gears up for his own planned retirement at the end of the year.

Berkshire has lost 50% of its value before

Headlines can convince some investors that markets are ablaze. For Buffett they’re often just a bump in the road to long-term gains. After all, the Oracle has been actively investing in stocks since 1941, when he was 11 years old, giving him much more historical context than the average investor.

Now, after over eight decades of picking stocks amid these swings, nothing fazes him. Buffett insists young investors with limited experience should have a similar attitude.

“If it makes a difference to you whether your stocks are down 15% or not, you need to get a somewhat different investment philosophy,” he recommended in his annual shareholder update.

If you fall into that camp of investors who worry about upcoming market swings, here’s how you can prepare to weather the storm like Buffett does.

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

Shock-proofing your portfolio

First and foremost, remember that market crashes and volatility are inevitable. That’s why sophisticated investors like Buffett structure their portfolios to sail through turbulence.

For instance, Berkshire’s assets tend to be well-diversified. According to their latest 13-F filing, they had 36 holdings in their publicly traded portfolio with the largest position being Apple, at about 26% of the total value.

To diversify your investments, you might add different asset classes to your portfolio. After all, targeting investments that aren’t as heavily impacted by stock market shifts can give your portfolio some protection during market downturns.

Invest in precious metals

One option is investing in precious metals like gold and silver, which can sometimes be used to hedge against inflation.

For example, gold surged past $3,000 per ounce in March of 2025 and quickly recovered following President Donald Trump’s Liberation Day tariffs in early April, surpassing earlier highs. If current trends continue the yellow metal could soar past $4,000 per ounce by the second quarter of 2026, according to JPMorgan. Meanwhile, the S&P 500 has only recently edged closer to pre-tariff highs as gold continues to climb.

One way to invest in gold that also provides significant tax advantages is to open a gold IRA with the help of Thor Metals.

Gold IRAs allow investors to hold physical gold or gold-related assets within a retirement account, thereby combining the tax advantages of an IRA with the protective benefits of investing in gold, making it an attractive option for those looking to potentially hedge their retirement funds against economic uncertainties.

To learn more, you can get a free information guide that includes details on how to get up to $20,000 in free metals on qualifying purchases.

Consider real estate

You might also choose to invest in real estate. Commercial real estate can offer higher potential returns than residential real estate, thanks to longer lease terms, higher rental rates and potential for greater appreciation. But direct access to the $22.5 trillion commercial real estate sector has been limited to a select group of elite investors — until now.

One way to invest in real estate is by purchasing rental properties and becoming a landlord. But for the average American who wants to avoid the need for a hefty down payment or the burden of property management, crowdfunding platforms like Arrived make it easier to slice yourself up a piece of that pie.

Backed by world class investors like Jeff Bezos, Arrived allows you to invest in shares of rental homes with as little as $100, all without the hassle of mowing lawns, fixing leaky faucets or handling difficult tenants.

The process is simple: Browse a curated selection of homes that have been vetted for their appreciation and income potential. Once you find a property you like, select the number of shares you’d like to purchase, and then sit back as you start receiving any positive rental income distributions from your investment.

First National Realty Partners (FNRP) allows accredited investors to diversify their portfolio through grocery-anchored commercial properties, without taking on the responsibilities of being a landlord.

With a minimum investment of $50,000, investors can own a share of properties leased by national brands like Whole Foods, Kroger and Walmart, which provide essential goods to their communities. Thanks to triple net leases, accredited investors can invest in these properties without worrying about tenant costs cutting into their potential returns.

Simply answer a few questions – including how much you would like to invest – to start browsing their full list of available properties.

Investing in art

Then there’s art. High net worth individuals surveyed by UBS said they think art is a relatively safe investment compared to other traditional assets like stocks.

Masterworks understands the power of art investing. Their platform has given over one million users the opportunity to invest in art, including pieces from Banksy, Basquiat and Picasso.

From their 23 exits so far, Masterworks investors have realized representative annualized net returns like +17.6%, +17.8% and +21.5% among assets held for longer than one year. To see if you qualify, you can find out more about investing with Masterworks here.

See important Regulation A disclosures at Masterworks.com/cd.

Cash is king

Lastly, Buffett always keeps a healthy pile of cash on hand to buy stocks at a discount when crashes occur.

With Wealthfront Cash, you can save for your future in a high-yield cash account. Unlike traditional savings accounts, high-yield accounts can have up to 10 times the national APY — with Wealthfront clocking in at 4.00%.

Even better, if you fund your account with $500 or more you get a $30 bonus with Wealthfront Cash.

By simply diversifying your portfolio and keeping some cash on hand, you could be in a position to not just sail through market volatility but actually benefit from it. In other words, you can be greedy when others are truly fearful.

What to read next

• Financial aid only funds about 27% of US college expenses — but savvy parents are using this 3-minute move to cover 100% of those costs
• Here are 5 ‘must have’ items that Americans (almost) always overpay for — and very quickly regret. How many are hurting you?
• How much cash do you plan to keep on hand after you retire? Here are 3 of the biggest reasons you’ll need a substantial stash of savings in retirement
• This is how American car dealers use the ‘4-square method’ to make big profits off you — and how you can ensure you pay a fair price for all your vehicle costs

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.

We adhere to strict standards of editorial integrity to help you make decisions with confidence. Some or all links contained within this article are paid links.

“Money — once you get it, it’s easy to get a lot more.”

That’s the biggest and surprisingly simple money lesson from Dave Portnoy, the outspoken entrepreneur who built a media empire out of hot takes and hustle. He shared the lesson during a candid conversation with Shannon Sharpe on Club Shay Shay.

Don’t miss

• I’m 49 years old and have nothing saved for retirement — what should I do? Don’t panic. Here are 6 of the easiest ways you can catch up (and fast)
• Robert Kiyosaki warns of a ‘Greater Depression’ coming to the US — with millions of Americans going poor. But he says these 2 ‘easy-money’ assets will bring in ‘great wealth’. How to get in now
• Want an extra $1,300,000 when you retire? Dave Ramsey says this 7-step plan ‘works every single time’ to kill debt, get rich in America — and that ‘anyone’ can do it

Portnoy, who sold his company Barstool Sports to Penn Entertainment for about $500 million only to buy it back for $1 a few years later, says it took him a decade to accumulate his first million. But once he did, making money became significantly easier. He now claims to be able to make $5 million in a week.

"Once you get over the hump it just comes to you," the 48-year-old online influencer said.

Here’s why wealth creation can accelerate after you hit certain milestones.

The ultra-rich rely on the snowball effect to build wealth

There’s a reason the wealthy seem to get wealthier — and it’s not just luck. Often, the trick is  the power of compound growth, or the “snowball effect.” Charlie Munger, legendary investor and longtime partner of Warren Buffett, described it as a snowball rolling downhill: The longer it rolls, the bigger it gets.

Compound growth explains why wealth tends to grow faster after reaching certain financial thresholds. For example, an investor starting from scratch who invests $1,000 per month in an asset earning 10% annually would hit $100,000 in about 6.5 years. But thanks to compounding, that same $100,000 could double to $200,000 in just four more years — and hit $300,000 only three years after that.

This acceleration happens because returns are being generated not just on new contributions, but also on interest. As the base grows, so does the impact of each percentage-point gain.

This is where the snowball method can turn into an avalanche for the wealthy. Someone with a $100 million net worth could make $5 million with a weekly return of 5% — without lifting a finger.

Portnoy highlighted this during an interview, saying he once spent five hours just marveling at the interest he was earning on his cash after becoming wealthy.

“I couldn’t believe it," he said. "I was making money not doing anything."

That’s why hitting your financial goals early is so crucial. The sooner you start investing meaningful amounts, the more time you give compound growth to work its magic.

But here’s the thing: You don’t always need millions to get started.

One way to kickstart this snowball effect is by automatically saving your spare change with Acorns. When you make everyday purchases, Acorns rounds up the price to the nearest dollar and invests the difference for you in a smart investment portfolio.

Imagine you grab a rideshare that costs $22.30. Acorns will round it up to $23.00 and invest the extra 70 cents. It might seem like pocket change, but over time squirreling a little bit away can add up. Saving just $3 a day could grow to over $1,000 in a year, helping you build your savings effortlessly.

If you want to be directly involved with investing, Acorns has you covered with flexible, automated recurring investments starting with as little as $5 a day. Any dividends are automatically reinvested to keep your money working, and your portfolio is rebalanced as needed to stay aligned with your long-term goals.

Plus, if you sign up with a recurring contribution, you can get a $20 bonus to kickstart your investment journey.

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

How to set clear targets to build wealth

If you want to reach that tipping point where wealth builds itself, you need a strategy, and that starts with setting smart, achievable goals. Think of your first major milestone — like acquiring $100,000 in assets — as the start of your personal snowball.

However, it’s essential that you consider your age, lifestyle and location while setting financial targets. A 60-year-old in San Francisco might need far more than a twenty-something living in a lower-cost city like Detroit.

Once you have a target, the next step is making sure your money is working for you. Keeping a large sum in a savings account earning low interest won’t get you anywhere. And stuffing it under your mattress would be even worse. After all, inflation will eat away at your purchasing power every year.

To help build your wealth, it can be worthwhile to keep a cash cushion in a high-yield savings or checking account like one offered by SoFi. They offer up to 3.80% APY — that’s about 10 times the national return — and don’t charge account, monthly or overdraft fees.

The best part? You can get up to $300 when you sign up with SoFi and set up a direct deposit.

Investing in alternative assets such as art is another creative way to grow your wealth and diversify your portfolio. Art investment has emerged as a substantial asset class. The global art market size was valued at $552.03 billion in 2024 and is projected to reach $585.98 billion in 2025, according to Straits Research.

In the past, only the ultra-wealthy could invest in art, but now services like Masterworks have opened the door to art investing. So far, over one million members have joined the platform.

Here’s how it works: Instead of spending millions on a single painting, you buy fractional shares of blue-chip paintings by iconic artists such as Pablo Picasso, Basquiat and Banksy. From 23 exits so far, Masterworks investors have realized representative annualized net returns like +17.6%, +17.8% and +21.5% among assets held for longer than one year.

All that’s left is to choose the number of shares you want to buy, and Masterworks handles everything else for you.

See important Regulation A disclosures at Masterworks.com/cd.

If you’re drawn to real estate, modern investment platforms are opening the door to easier and more flexible ways to get started.

For accredited investors, Homeshares gives access to the $34.9 trillion U.S. home equity market, which has historically been the exclusive playground of institutional investors.

With a minimum investment of $25,000, investors can gain direct exposure to hundreds of owner-occupied homes in top U.S. cities through their U.S. Home Equity Fund — without the headaches of buying, owning or managing property.

With risk-adjusted target returns ranging from 14% to 17%, this approach provides an effective, hands-off way to invest in owner-occupied residential properties across regional markets.

What to read next

• Financial aid only funds about 27% of US college expenses — but savvy parents are using this 3-minute move to cover 100% of those costs
• Here are 5 ‘must have’ items that Americans (almost) always overpay for — and very quickly regret. How many are hurting you?
• How much cash do you plan to keep on hand after you retire? Here are 3 of the biggest reasons you’ll need a substantial stash of savings in retirement
• This is how American car dealers use the ‘4-square method’ to make big profits off you — and how you can ensure you pay a fair price for all your vehicle costs

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.

We adhere to strict standards of editorial integrity to help you make decisions with confidence. Some or all links contained within this article are paid links.

If you’re planning your own retirement, you probably have a retirement savings goal in mind. Americans believe the “magic number” they need to retire comfortably is $1.26 million, according to a survey by Northwestern Mutual.

Comparing your number with the actual net worth of retirement-age seniors should give you an idea of how realistic your long-term financial plan is and what kind of lifestyle you can expect in your golden years.

Don’t miss

• I’m 49 years old and have nothing saved for retirement — what should I do? Don’t panic. Here are 6 of the easiest ways you can catch up (and fast)
• Robert Kiyosaki warns of a ‘Greater Depression’ coming to the US — with millions of Americans going poor. But he says these 2 ‘easy-money’ assets will bring in ‘great wealth’. How to get in now
• Want an extra $1,300,000 when you retire? Dave Ramsey says this 7-step plan ‘works every single time’ to kill debt, get rich in America — and that ‘anyone’ can do it

Here are the six levels of wealth for senior-led households between the ages of 65 and 69, based on the Federal Reserve’s Survey of Consumer Finances from 2022.

1. Financially vulnerable (Household net worth $69,500 and under)

Seniors with a net worth of less than $69,500 fall into the bottom 25% of retirees. This group is particularly vulnerable to financial shocks and highly dependent on public safety net programs such as Social Security and Medicare.

If you’re approaching retirement with less than this number, it could be a good idea to look for additional income, more ways to save money or even potentially delay your retirement to be less vulnerable in your senior years.

If you’re just starting to think about your retirement, it’s important to start saving immediately.

One way to get ahead a little at a time is to use Acorns to save while you spend. Every time you make a purchase on your credit or debit card, Acorns automatically rounds it up to the nearest dollar, then puts your spare change into a smart investment portfolio for you. When you sign up with a recurring deposit, Acorns provides a $20 bonus investment.

You can also boost your savings by parking your cash in a high-yield account. That way, you can get more bang for your buck.

For example, you could open a high-yield checking and savings account with SoFi and earn up to 4.00% APY — that’s about 10 times the national average of 0.41%. Even better, you can get up to $300 when you sign up with SoFi and set up a direct deposit.

2. Lower middle class (Household net worth between $69,500 and $394,300)

The median net worth of these households is $394,000, according to the Federal Reserve. If your wealth is under this benchmark, around half of all senior households in this age group are wealthier than you.

This cohort isn’t necessarily financially vulnerable. However, this is far from a comfortable retirement. Seniors in this bracket may be forced into a tight budget, cutting costs where possible.

Shopping around for home insurance providers can help make more space in your budget. With OfficialHomeInsurance.com it takes just two minutes to comb through over 200 insurers, for free, and find the best deal for you in your area. The process can also be done entirely online.

Similarly, OfficialCarInsurance.com can help you switch to a more affordable auto insurance option within minutes. After answering a few questions about yourself and your vehicle, you can immediately compare quotes from trusted brands like Progressive, Allstate and GEICO.

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. Solidly middle class (Household net worth between $394,300 and $1.16 million)

Seniors with a net worth that places them between the 50th and 75th percentiles could be described as middle class.

This means access to a more comfortable retirement. But if much of your net worth is trapped in an illiquid asset, such as your house or business, you may need to find easier ways to access cash in your  golden years.

One option, that can provide some tax advantages, is to open a gold IRA with the help of Thor Metals.

Gold IRAs allow investors to hold physical gold or gold-related assets within a retirement account, combining the tax benefits of an IRA with the inflation-resistant nature of gold investing. This can make for an attractive option if you want to hedge some of your retirement fund against economic uncertainties.

Just keep in mind that gold works best when combined with other diversified investments.

To learn more, you can get a free information guide that includes details on how to get up to $20,000 in free metals on qualifying purchases.

4. Upper middle class (Household net worth between $1.2 million and $2.9 million)

Making it to the upper middle class can be the first major hurdle to securing a retirement lifestyle consistent with your highest earning years.

It’s also when the very real threat of lifestyle creep can take hold. After all, now that you’ve almost made it, why not let loose with a little more luxury? But living below your assets now can pay dividends later.

To keep yourself on track, you could consider reassessing your budgeting practice with a personal finance concierge such as Monarch Money, which connects to over 11,200 financial institutions. This means you can have a top-down view of your bank accounts and investment portfolios once you add your accounts — and even digital assets like crypto if you’re using Coinbase.

Services like Monarch aren’t just about monitoring your finances. They’re about actively planning and tracking your financial goals, including trying to chart a course into the top 10% of households. To that end, Monarch offers a net worth tracker that includes your bank accounts, credit card debts, investments, loans and even property values synced with Zillow so you can monitor your progress.

You can also get 50% off an annual subscription with code MONARCHVIP.

5. Affluent (Household net worth $2.9 million or more)

Only the top 10% of senior households between the ages of 65 and 69 have a net worth above $2.9 million. These affluent retirees are usually former bankers, lawyers, C-suite executives or business owners who are accustomed to a lavish and financially free lifestyle.

If you’re a high earner planning for retirement, the gates to this prestigious club should be within reach. However, you still need robust saving habits and resilient investments over the long term to get there.

Diversification can help, because it ensures you aren’t overly invested in any one asset. There are many ways to go about this aside from gold, including investing in real estate.

Platforms like Homeshares allow accredited investors to gain direct exposure to hundreds of owner-occupied homes in top U.S. cities through their U.S. Home Equity Fund.

Their fund can provide an effective, hands-off way to invest in high-quality residential properties. You can diversify your portfolio into real estate across regional markets, with a minimum investment of $25,000.

With risk-adjusted target returns ranging from 14% to 17%, the U.S. Home Equity Fund could unlock lucrative real estate opportunities as a low-maintenance alternative to traditional property ownership.

But gold and real estate aren’t the only tools for diversifying your portfolio.

You could also consider investing in art with Masterworks. Their platform has given over one million users the opportunity to invest in pieces from artists including Banksy, Basquiat and Picasso.

From their 23 exits so far, Masterworks investors have realized representative annualized net returns like +17.6%, +17.8% and +21.5% among assets held for longer than one year. To see if you qualify, you can find out more about investing with Masterworks here.

See important Regulation A disclosures at Masterworks.com/cd.

6. Top 1% (Household net worth $21.7 million or more)

Only the top 1% in this bracket have a net worth over $21.7 million. This is the ultra-wealthy group that most Americans can only dream of belonging to.

If you fall into this group, your retirement plan probably looks a little unconventional. You may be less focused on budgeting and more focused on asset allocation, tax optimization and estate planning.

Making sure you have the right life insurance policy is essential for preserving your legacy and passing on your wealth to your loved ones. Life insurance payouts are also generally tax-free and can provide up to $12.92 million for beneficiaries.

Ethos Life Insurance is a modern life insurance company that offers a seamless, online process for purchasing term life insurance. Ethos doesn’t require medical exams for most applicants either, which can help you achieve peace of mind quickly.

What to read next

• Financial aid only funds about 27% of US college expenses — but savvy parents are using this 3-minute move to cover 100% of those costs
• Here are 5 ‘must have’ items that Americans (almost) always overpay for — and very quickly regret. How many are hurting you?
• How much cash do you plan to keep on hand after you retire? Here are 3 of the biggest reasons you’ll need a substantial stash of savings in retirement
• This is how American car dealers use the ‘4-square method’ to make big profits off you — and how you can ensure you pay a fair price for all your vehicle costs

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.

We adhere to strict standards of editorial integrity to help you make decisions with confidence. Some or all links contained within this article are paid links.

The price of almost everything – from a carton of eggs to a pound of steak – remains stubbornly high.

According to a report by Edelman Financial Engines, 58% of Americans say they need a minimum salary of $100,000 to avoid worrying about everyday expenses.

While you may not have much control over the price of most necessities, here are five things in your monthly budget you may be overpaying for – and how you can cut back.

Don’t miss

• I’m 49 years old and have nothing saved for retirement — what should I do? Don’t panic. Here are 6 of the easiest ways you can catch up (and fast)
• Robert Kiyosaki warns of a ‘Greater Depression’ coming to the US — with millions of Americans going poor. But he says these 2 ‘easy-money’ assets will bring in ‘great wealth’. How to get in now
• Want an extra $1,300,000 when you retire? Dave Ramsey says this 7-step plan ‘works every single time’ to kill debt, get rich in America — and that ‘anyone’ can do it

Car insurance

According to data from Forbes, the national average cost for car insurance in 2024 was $2,150 per year, or $179 per month.

But, depending on which state you live in, your driving history and the make and model of your car, there are some insurers that can offer you far less than what you’re currently paying.

Thanks to OfficialCarInsurance.com, comparing multiple insurance companies is easier than ever.

Just type your info into the fields below, and you’ll instantly get a selection of offers to choose from trusted brands, such as Progressive, Allstate and GEICO to make sure you’re getting the best deal.

In just 2 minutes, find offers as low as $29 a month.

Bank accounts

Most banks charge somewhere between $5 and $35 a month in account fees alone – especially if you bank with a big brick-and-mortar institution.

Online banks, on the other hand, typically charge lower or $0 fees and higher interest rates due to lower overhead costs.

For example, you can open a high-yield cash account with Wealthfront and earn 4.00% APY on deposits — which is almost 10x the national average. Plus, Wealthfront charges no account, monthly or overdraft fees.

Enjoy 24/7 instant withdrawals, plus no transfer fees if you want to move your money into a Wealthfront investment account.

Fund your account with $500 or more to get a $30 bonus today.

Life insurance

Global life insurance premiums are set to increase at an annual rate of 3% in 2025 and 2026, according to a report by Swiss Re Institute.

If you have life insurance in place – especially a term policy – it may be worth comparison-shopping to find a more affordable option. You can typically cancel a term life policy without incurring any penalties.

With Ethos, you can get term life insurance in 5 minutes, with no medical exams or blood tests.

You can get a policy with up to $2 million in coverage, starting at just $2/day.

Ethos’ application process ensures you get flexible coverage options quickly and transparently, allowing you to focus on what matters most.

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

Pet insurance

For pet owners, the average cost for a routine visit to the vet ranges between $50 to $250 depending on where you live in the U.S., according to data from 2023 in a report by Care Credit.

And that doesn’t take into account expensive emergencies that could suddenly pop up and throw off your monthly budget. For example, emergency surgery could cost anywhere between $1,500 to $5,000.

Thanks to BestMoney, it’s easy to shop for affordable pet insurance to give you peace of mind.

You can instantly compare the coverage benefits, any deductibles, geographical availability and reviews — all in one place.

Home insurance

Average homeowners insurance premiums per policy increased 8.7% faster than the rate of inflation between 2018 and 2022, according to recent data released by the U.S. Department of the Treasury.

This is bad news for those who simply auto-renew with their current provider every year. In such a quickly shifting landscape it can pay to take 2 minutes to shop around for better rates.

OfficialHomeInsurance.com makes it easy to find the coverage you need without the hassle of calling multiple providers for quotes.

Simply fill out a few details and you could save an average of $482 a year.

What to read next

• Financial aid only funds about 27% of US college expenses — but savvy parents are using this 3-minute move to cover 100% of those costs
• Here are 5 ‘must have’ items that Americans (almost) always overpay for — and very quickly regret. How many are hurting you?
• How much cash do you plan to keep on hand after you retire? Here are 3 of the biggest reasons you’ll need a substantial stash of savings in retirement
• This is how American car dealers use the ‘4-square method’ to make big profits off you — and how you can ensure you pay a fair price for all your vehicle costs

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.

We adhere to strict standards of editorial integrity to help you make decisions with confidence. Some or all links contained within this article are paid links.

Age 59 ½ isn’t considered a popular milestone, but it probably should be. At this age, a flurry of new financial options and benefits become available to you.

It’s also a good time to double-down on your investment strategy so that you can make your retirement as comfortable as possible.

Don’t miss

• I’m 49 years old and have nothing saved for retirement — what should I do? Don’t panic. Here are 6 of the easiest ways you can catch up (and fast)
• Robert Kiyosaki warns of a ‘Greater Depression’ coming to the US — with millions of Americans going poor. But he says these 2 ‘easy-money’ assets will bring in ‘great wealth’. How to get in now
• Want an extra $1,300,000 when you retire? Dave Ramsey says this 7-step plan ‘works every single time’ to kill debt, get rich in America — and that ‘anyone’ can do it

If you’re quickly approaching or already at this underrated milestone, here’s what you should know.

New options available at 59 ½

Once you turn 59½, retirement account withdrawals are no longer subject to the 10% early withdrawal penalty, making it easier to access your 401(k), Roth IRA, or other qualified plans. While tapping into these funds isn’t always necessary, having the option provides added financial flexibility as you approach retirement.

This age is also ideal for starting Roth IRA conversions—moving money from traditional retirement accounts into a Roth IRA. You’ll pay taxes now, but future withdrawals will be tax-free. Converting before age 73, when Required Minimum Distributions (RMDs) kick in, can also help manage your tax burden.

Since the median retirement age is 62, by 59 ½, you should be ramping up your efforts in this final stretch.

Given the complexity of these calculations, working with a trusted, pre-screened financial advisor can help you develop a solid retirement plan and optimize your withdrawal strategy.

According to research by Vanguard, people who work with financial advisors see a 3% increase in net returns. This difference can be substantial over time.

If you’re unsure which path to take amid today’s market uncertainty, it might be a good time to connect with Advisor.com.

This online platform connects you with vetted financial advisors best suited to help you develop a plan for your new wealth.

Just answer a few quick questions about yourself and your finances and the platform will match you with an experienced financial professional. You can view their profile, read past client reviews, and schedule an initial consultation for free with no obligation to hire.

You can view advisor profiles, read past client reviews, and schedule an initial consultation for free with no obligation to hire.

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

Final sprint before retirement

Every single year of added income or compounded growth can make a big difference to your lifestyle in retirement. With that in mind, 59 ½ is the ideal age to set yourself up so your golden years are as comfortable as possible. Aggressively paying down any outstanding debt is a great idea at this age. Surprisingly, 97% of retirement-age Americans are still in debt, according to USA Today.

By actively reducing your debt between age 59½ and retirement, you can significantly improve your financial outlook compared to many other retirees.

If you have substantial equity in your home, consider consolidating your debts and pay it down with a Home Equity Line of Credit (HELOC) from Lending Tree.

A HELOC is a secured line of credit that leverages your home as collateral. Depending on the value of your home and the remaining balance on your mortgage, you may be able to borrow funds at a lower interest rate from a lender as a form of revolving credit.

Rather than juggling multiple bills with varying due dates and interest rates, you can consolidate them into one easy-to-manage payment. The results? Less stress, generally reduced fees, and the potential for significant savings over time.

LendingTree’s marketplace connects you with top lenders offering competitive HELOC rates. Instead of going through the hassle of shopping for loans at individual banks or credit unions, LendingTree lets you compare multiple offers in one place. This helps you find the best HELOC for your situation.

You could also double down on your savings and investment strategy before your income stops. You can start making catch-up contributions to your 401(k) and other retirement plans from the age of 50, according to the IRS, but 59 ½ isn’t too late to start doing so.

Another way to grow your savings is to use an automated savings or investing platform like Acorns.

Acorns rounds up the price to the nearest dollar and automatically invests the difference for you in a smart investment portfolio.

For example, if you buy coffee for $4.30, Acorns will round up to $5.00 and automatically save that 70 cents. These small amounts can add up significantly – just $2.50 in daily round-ups could accumulate to $900 per year, helping you build your emergency fund without thinking about it.

Plus, if you sign up now you get a $20 bonus.

Finally, this is the right age to consider all the subjective aspects of your retirement lifestyle. Take the time to figure out what you value most and create a strategy to make that possible in this final stretch before you leave the workforce. That’s why it’s important to be consistent in building a cash cushion for your retirement.

Putting your cash in a high-yield checking or savings account can help you grow your cash cushion at a faster rate.

Wealthfront Cash, for example, offers a much higher 4.00% APY on deposits. That’s just about ten times higher than the national average of just 0.42% APY offered by traditional savings accounts.

The account has no annual or maintenance fees and is insured by the Federal Deposit Insurance Corporation for balances up to $8 million. Plus, if you fund your account with $500 or more, you can get a $30 bonus.

This way, you can make the most of every dollar in your retirement planning.

What to read next

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• Here are 5 ‘must have’ items that Americans (almost) always overpay for — and very quickly regret. How many are hurting you?
• How much cash do you plan to keep on hand after you retire? Here are 3 of the biggest reasons you’ll need a substantial stash of savings in retirement
• This is how American car dealers use the ‘4-square method’ to make big profits off you — and how you can ensure you pay a fair price for all your vehicle costs

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