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  • This San Diego married couple lives paycheck to paycheck on $500K-$600K a year — admits to $30K in monthly expenses including car lease payments. Here’s Dave Ramsey’s advice

    This San Diego married couple lives paycheck to paycheck on $500K-$600K a year — admits to $30K in monthly expenses including car lease payments. Here’s Dave Ramsey’s advice

    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.

    Despite earning an estimated combined income of $500,000 to $600,000 a year, Bill from San Diego admits he and his wife struggle to save any money — and it’s easy to see why.

    “Our monthly expenses are about $30,000, and then add taxes to that, so we pretty much even out every year,” Bill told Dave Ramsey on an episode of “The Ramsey Show” in a clip posted Jan. 13.

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    An exploration of the San Diego, California, couple’s finances and spending habits reveals how even high-earning households can struggle and end up living paycheck to paycheck.

    Spending problem

    A 2023 Empower survey found that 71% of U.S. adults believe earning more money would solve most of their problems, a mindset Ramsey once shared. However, he learned that higher earnings can’t fix poor organization and lack of detail.

    Bill’s case shows that increasing income isn’t enough. He and his wife spend $12,000 a month on mortgages, $8,000 to $10,000 on charity, and $750 on a leased vehicle.

    Ramsey considered their spending excessive, comparing it to “throwing a bale of dollars over the fence and coming back to see what’s left.” He advised them to create a detailed budget that tracks every dollar in and out.

    Budgeting and tracking can help you understand where your money is going, so you can make every dollar work for you.

    You can keep a close eye on your finances with a money management platform such as Monarch Money, which can give you a clear view of where you’re overspending. It also helps you monitor your expenses and payments in real time.

    For a limited time get 50% off your first year with the code MONARCHVIP.

    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

    Easy targets

    Data from Bank of America shows that 20% of households earning over $150,000 lived paycheck to paycheck in 2024, often due to expensive homes and high mortgage payments.

    However, Bill and his wife seem to be spending just as much on their mortgages as they are on easily avoidable expenses. For example, they lease a vehicle, which Ramsey believes is unnecessary given their income. He suggested buying the car outright instead.

    Additionally, nearly a third of their monthly expenses go to charity. While Ramsey supports generosity, he advised the couple to adjust their donations temporarily, especially since they aren’t investing.

    Even high-income earners can struggle to save and invest, often facing lifestyle inflation and increased spending.

    With Wealthfront’s automated investing platform, the power of compound interest works for you. Their sophisticated "set it and forget it" approach means your money is professionally managed and automatically rebalanced, allowing your wealth to grow steadily over time.

    Start investing for the long term with globally diversified portfolios or go for a higher yield than a traditional savings account with an automated bond portfolio.

    Open your account today and receive a $50 bonus to jumpstart your investment journey. Whether you’re saving for retirement, a home, or building generational wealth, Wealthfront’s low-cost, automated investment strategy can help you achieve your financial goals.

    Get help from a professional advisor

    Seeking professional help from a financial advisor can be a game-changer when it comes to managing your money. According to Vanguard’s research, people who work with financial advisors see a 3% increase in net returns. This difference can be substantial over time. For example, if you’re starting with a $50,000 portfolio, you could potentially retire with an extra $1.3 million after 30 years of professional guidance.

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

    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.

  • ‘Don’t blame that on the Holy Spirit’: Dave Ramsey urges Missouri woman to instantly liquidate her $60,000 crypto portfolio to pay off debts — but she says she’s waiting for a sign from God

    ‘Don’t blame that on the Holy Spirit’: Dave Ramsey urges Missouri woman to instantly liquidate her $60,000 crypto portfolio to pay off debts — but she says she’s waiting for a sign from God

    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.

    Arabella from Springfield, Missouri called into “The Ramsey Show” because she was facing a financial fork in the road.

    With about $60,000 in cryptocurrency, $14,000 in student loans and $37,000 in auto debt, she and her husband were preparing to close on their first home.

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    Her question to financial guru Dave Ramsey: Should they liquidate their crypto holdings to become debt-free before taking on a mortgage, or hold out for the market upswing that many in the crypto world are anticipating?

    “I wouldn’t try to time the market with it,” co-host Jade Warshaw said. “You guys are in debt today, and you’re closing on the house really quickly. So, I would liquidate this crypto, and I would pay off this debt. I would do that instantly.”

    Ramsey didn’t mince words about the digital currency’s risks either.

    “It’s one of the most volatile, high-risk investments on the planet. And it’s not technically an investment, it’s actually called speculation.”

    ‘You’re in Vegas, and your car payment’s on the line’

    Arabella said that the digital coins they hold aren’t meme tokens, but admitted their portfolio was worth $30,000 more before President Donald Trump’s tariff announcements.

    “And so what happens when Trump burps again? You’re screwed,” Ramsey said.

    Ramsey and Warshaw emphasized that investing in the cryptocurrency market is more like gambling than wealth building, especially when the assets are held instead of used for paying off loans.

    “It’s the roll of the dice. You’re in Vegas, and your car payment’s on the line,” Ramsey said.

    He also used a sunk cost analysis to help Arabella reframe her thinking:  If she had no debt, would she borrow against her car and on credit cards to buy $60,000 worth of crypto? Arabella responded, “Absolutely not.”

    “It’s the same thing.” Ramsey said. “If you don’t sell it today, you’ll borrow it again tomorrow.”

    Instead of riding market swings on risky bets, consider putting your money into consistent, low-cost investments. After all, starting early and building your investments a little at a time can pay dividends later.

    An investment platform like Acorns can automatically invest your spare change into diversified ETFs tailored to your risk level and retirement goals —  a far cry from putting money into volatile, high-risk investments like crypto.

    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. That $4.25 coffee to start your day? It’s now a 75 cent investment in your future.

    Acorns also lets you deliberately set aside a little each month for investing. If you sign up with a recurring monthly contribution, you get a $20 bonus to help jumpstart 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

    ‘It might’ve been a spirit, but it wasn’t the holy one’

    Arabella then revealed a different reasoning for the couple’s crypto holdings as the conversation turned spiritual.

    “We are Christian and we do not gamble,” she said. “But we felt like God showed us these three specific coins that we’re invested in.

    “And we have just been waiting for the right time for him to show us when to sell, which is why we’ve been holding for five years through two bull runs.”

    Arabella’s story hit a nerve with Ramsey, who drew a sharp line between what he sees as biblical financial wisdom and reckless speculation.

    “Playing short-term games with money you don’t have — because you’re broke — please don’t blame that on the Holy Spirit,” he said. “It might’ve been a spirit, but it wasn’t the holy one.”

    Ramsey didn’t mince words. For Arabella, and anyone else listening, the message was clear: If you’re buried in debt, banking on a crypto miracle isn’t a plan — it’s a gamble.

    When you’re dealing with tough financial decisions, having a qualified financial advisor by your side can provide much-needed clarity. But with over 321,000 financial advisers in the U.S., according to the Bureau of Labor Statistics, where do you start?

    One option is to search for a financial advisor near you with Advisor.com. How it works is simple: Just answer a few questions about your finances and goals, then Advisor.com will match you with a financial advisor near you.

    From here, you can book a free consultation call with no obligation to hire.

    The best part? Advisor.com is a SEC registered advisor network, and so are the registered investment advisors you can be matched with. This means that they have a legal obligation to look out for your best financial interests.

    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.

  • Do you need a 6-figure income to retire early? No — here are 5 money-growing moves for the under-$100K set

    Do you need a 6-figure income to retire early? No — here are 5 money-growing moves for the under-$100K set

    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.

    Think retiring early is out of reach because you don’t make a six-figure salary? It takes careful planning and discipline, but that doesn’t mean it’s impossible.

    According to the 2025 EBRI/Greenwald Research Retirement Confidence Survey, about 60% of American retirees entered their golden years before turning 65, with a median retirement age of 62.

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    Still, only one in 10 Americans retired before 55 — proving it’s much harder the younger you are. So if you want to join those younger retiree cohorts but don’t have a high income, you’ll likely need to make some smart money moves (and a few sacrifices).

    Here are practical steps you can take today to get on the road to retiring early.

    1. Work with a financial advisor

    Industry studies have shown that professional financial advice can add up to 5.1% to your portfolio returns. But beyond greater growth, advisors can also help you navigate complex topics such as tax efficiency strategies, optimal retirement withdrawal timing and how to make suitable investments for your goals and risk tolerance.

    FinancialAdvisor.net can support you in shaping your financial future by connecting you with expert guidance. A trusted advisor helps you make smarter choices for your retirement, and ensures you stay on track with your money objectives.

    Just answer a few questions, and the extensive online database will match you with two to three vetted advisors based on your answers.

    You can view the advisors’ profiles, read past client reviews, and schedule a free consultation with no obligation to hire.

    2. Make two budgets

    While budgeting may seem too boring to be ‘savvy,’ it truly is a key financial tool. It’s a powerful way to understand your current finances, rein in your spending if needed and then shape your financial plan accordingly. Tracking your expenditures against your budget can even reveal new obvious avenues for saving.

    Monarch Money is a money management platform that helps you budget, track spending, set goals and plan your financial future within one app. For a limited time, you can get 50% off your first year with code MONARCHVIP.

    The budgeting process is also a great opportunity to make sure you’re paying the best rates for monthly necessities, like insurance.

    OfficialCarInsurance.com makes comparing multiple insurance companies easier than ever. They’ll ask you some quick questions then sort through leading insurance companies in your area, ensuring you find the lowest rate possible. The process is 100% free and won’t affect your credit score.

    Similarly, OfficialHomeInsurance.com can help you get great rates to protect your home. All it takes is two minutes for them to comb through over 200 insurers — for free — to find the best deal in your area. The process can be done entirely online.

    After tracking and assessing your budget over a few months, you can use that data to estimate your future retirement budget — setting a clear target. You’ll want to review this retirement budget periodically and make adjustments as needed.

    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. Automate your investments

    To join the Financial Independence and Retire Early (FIRE) movement and retire in your 30s or 40s, you may need to save more than the 15% that’s often suggested. When it comes to retiring early, that number might end up much closer to 75% of your income.

    Regardless of the specific retirement age you’re aiming for, you’ll need discipline to reach any early retirement goal. Automating your investments is an easy way to make that process happen in the background, without much extra thought.

    You can make 401(k) contributions directly from your paycheck, but you can also set up direct deposit into a high interest savings or investment account.

    There are several apps that can help you automate your investments, including Wealthfront Investing.

    Their "set it and forget it" approach means your money is professionally managed and automatically rebalanced, allowing your wealth to grow steadily over time. Wealthfront offers up to 17 global asset classes to help diversify your portfolio.

    If you open a Wealthfront account today, you can snag a $50 bonus.

    4. Manage your debt

    If you’re carrying a large balance on a credit card or any other high-interest debt, it will be hard to retire early. The savviest move is not to carry a balance at all — but life happens, so if you do have one, paying it down should be your top financial priority (along with building an emergency fund).

    If you have substantial equity in your home, consider consolidating your debts and paying them down with a HELOC. 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.

    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. Terms and conditions apply. NMLS#1136.

    If you don’t own a home, there are other ways to consolidate your debt. For instance, Credible can help with loan consolidation by letting you shop around for lower interest rates with just a few clicks of your mouse. In just two minutes you can compare lenders willing to consolidate your loans into one easy-to-manage payment.

    Even if you’re just curious about your options, checking rates on Credible could be a good idea. It won’t hurt your credit score, it’s totally free and it could save you a bundle.

    5. Maximize your biggest asset

    Your biggest asset is likely your stream of future earnings, so to retire early you’ll want to maximize this asset.

    While you could consider a side hustle or second job, look first at your current job and evaluate whether your time and energy might be better spent on developing your career to increase your future income stream. Consider whether you could make more from extra sales, a raise or a promotion — or if it makes more sense to take on a side gig.

    Yes, retiring early takes planning and dedication, but not necessarily a six-figure income.

    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.

  • My wife and I just closed on our dream home — only to realize after all the bills are paid, we’re left with $200/month while she’s on mat leave. We have $80K in savings, but is it enough?

    My wife and I just closed on our dream home — only to realize after all the bills are paid, we’re left with $200/month while she’s on mat leave. We have $80K in savings, but is it enough?

    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.

    Picture this: A young couple has just closed on their dream home. They’re debt-free and have $80,000 in savings. The wife is on maternity leave, and after crunching the numbers, they realize they’ll have just $200 left over each month after paying their bills.

    It’s a classic case of being house poor: A financial situation where mortgage payments leave little room for anything else.

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    This hypothetical family isn’t really that hypothetical. U.S. households spent an average of 32.9% of their income on housing in 2023, according to the Bureau of Labor Statistics. That’s a significant chunk, although still manageable.

    But, if that number creeps closer to 40% — especially with tight cash flow and limited income — it’s time to reassess.

    Here are three ways this couple could stay on track financially.

    1. Build a bare-bones budget around any surplus

    When your financial margin is razor-thin, every dollar counts. The first step? Create a strict budget where every dollar has a job and no money goes to waste.

    The couple should:

    • Break down fixed expenses like mortgage payments, insurance and utilities
    • Track variable costs including groceries, gas, baby supplies and subscriptions
    • Eliminate non-essentials like takeout, streaming services or unused memberships

    Budgeting apps can help visualize spending and find areas to trim. Even cutting $50 here or $100 there can stretch that $200 into something more sustainable.

    As new homeowners, this couple should also be aware of the add-on costs that come with homeownership — including insurance. Some couples lose out on savings because they don’t shop around for the best price on their policies, instead going with an insurer they already use.

    If you need to trim your budget to the minimum, look for a better insurance rate with OfficialHomeInsurance.com, where you can find the lowest rates on your home insurance for free.

    In under 2 minutes, OfficialHomeInsurance.com can help you browse offers tailored to your needs from a list of over 200 reputable insurance companies.

    Simply fill in a bit of information and quickly find the coverage you need at the lowest possible cost for you. On average, you can save $482 a year.

    While you’re saving money on home insurance, you might also consider whether your auto insurance is optimized for coverage and expense.

    OfficialCarInsurance.com helps you instantly sort through the best policies from car insurance providers in your area, including trusted names like Progressive, GEICO and Allstate. With rates as low as $29 per month, you can find coverage that suits your needs and potentially saves you hundreds of dollars per year.

    To get started, fill in your information and OfficialCarInsurance.com will provide a list of the top insurers in your area.

    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

    Maximizing your insurance savings can open the door to saving, and investing, hundreds of dollars more than you would otherwise.

    2. Treat $80K like a six-month lifeline

    That $80,000 in savings is a huge asset, but it needs to be used wisely.

    Here’s a potential breakdown:

    • $10,000 Emergency Fund: Set this aside and don’t touch it unless it’s a true emergency, like job loss or a major medical expense
    • $20,000–$30,000 Maternity Leave Cushion: Use this as a buffer for the next six months. That’s roughly $3,300–$5,000 per month to help fill in gaps while living on one income
    • $40,000+ Long-Term Savings: Keep this intact for future goals like investing, education or improvements. Don’t dip into it unless absolutely necessary

    Assigning a purpose to each dollar can help the couple spend confidently without jeopardizing their long-term financial stability.

    They can also stretch their budget to accommodate a bit of extra savings with Acorns.

    This platform automates investing and saving to simplify the process of setting aside extra funds. When you link Acorns to your bank account, each purchase you make is automatically rounded up to the nearest dollar. The difference is invested in a smart investment portfolio so you can grow your wealth without even thinking about it, even while you maintain a strict budget.

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

    Another way for this couple to stretch their existing savings is to ensure it’s deposited in a high yield savings account, so that the $40,000 balance can continue to grow.

    SoFi offers high-yield accounts that can earn you up to 3.80% APY. Plus, with no account, monthly or overdraft fees, banking with SoFi helps you keep more money in your pocket.

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

    3. Plan for post-maternity leave finances

    This tight stretch won’t last forever.

    Once both partners are working again, the couple should shift their focus from surviving to thriving. That means:

    • Budgeting for child care now, since it can significantly reduce net income
    • Replenishing any money used from the cushion fund
    • Resuming long-term saving and investments — whether for retirement or their child’s future

    Retirement may seem like a long way off when you’re holding your first child, but planning for your future should start as early as possible. A gold IRA is one option that can help you build a stable retirement fund.

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

    Gold IRAs allow investors to hold physical gold or gold-related assets within a retirement account, which combines 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 $10,000 in free silver on qualifying purchases.

    This couple may also benefit from speaking with a financial advisor to map out a long-term strategy.

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

    If the couple can get through this tight stretch without touching their emergency fund or long-term savings, they’ll emerge stronger and more financially resilient.

    Being house poor doesn’t have to be a life sentence. With disciplined budgeting, a smart savings plan and short-term income boosts, this couple can navigate the squeeze — and still build the future of their dreams.

    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.

  • Are you finally rich in America? Here are the top 5 reasons you should tell absolutely no one (not even your closest friends)

    Are you finally rich in America? Here are the top 5 reasons you should tell absolutely no one (not even your closest friends)

    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’ve managed to accumulate some wealth, showing it off can often be tempting. After all, what’s the point of success if you can’t indulge in it?

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    However, a growing cohort of ultra-wealthy Americans are trying to conceal their wealth rather than flaunt it openly.

    Here are five reasons why stealth wealth or quiet luxury lifestyles are gaining traction and why you should consider concealing the true extent of your fortune.

    Privacy and security

    Being publicly wealthy could make you a prime target for thieves, fraudsters and criminal gangs. A study by Silicon Valley Bank found that identity theft is 43% more common among the wealthy.

    Celebrities like Kim Kardashian and Paris Hilton, as well as top NBA and NHL professional athletes have been targeted by criminal gangs. Even Warren Buffett once narrowly avoided a kidnapping in the 1980s.

    With this in mind, downplaying your fortune could be the best way to safeguard your privacy and protect your family.

    Another effective way to safeguard your wealth is by diversifying your investments across a range of asset classes. Gold, in particular, is considered a classic safe haven. During times of economic uncertainty, investors tend to flock to the asset — since it isn’t tied to any currency or economy.

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

    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.

    Broken relationships

    Money undeniably affects personal relationships, particularly when loved ones are not on the same page about finances.

    While it’s generally unwise to conceal your financial situation from a legal spouse, being more discreet with new friends or certain family members might be beneficial. According to a 2023 finance survey, around 57% of Americans admit to feeling envious of someone else’s financial status.

    In some cases, keeping details about your income and wealth private could actually help preserve harmony in your relationships.

    That said, it’s even more important to have a will and a revocable living trust in place. This creates clarity and removes the guesswork around how your assets will be distributed after you’re gone.

    However, getting started can feel overwhelming. That’s probably why over 72% of Americans lack a valid will, according to Planned Giving.

    With Ethos Will & Trust, you can create both a will and living trust online from the comfort of your own home in as little as 20 minutes. All documents created on the platform are vetted by experienced estate-planning attorneys — giving you complete peace of mind.

    You can also make unlimited updates forever as your life changes, helping you protect your family without the price of an attorney.

    You can create a will starting at just $149 and a living trust starting at just $349. And if you’re not happy with the results, you’re covered by a 30-day money-back guarantee.

    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

    Avoid lifestyle creep

    One of the downsides of flaunting wealth is that it can be hard to stop. After purchasing a luxury home or fancy car, scaling back might feel humiliating, creating pressure to maintain that lifestyle.

    In effect, you’ve locked yourself into golden handcuffs — trapped by the need to keep up appearances. A smart way to avoid this kind of lifestyle creep is to live below your means and work with a financial advisor. A trusted, pre-screened financial advisor can help you develop a solid retirement 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. For instance, if you start with a $50,000 portfolio, you could potentially retire with an extra $1.3 million after 30 years of professional guidance.

    Finding the right advisor for your needs is simple with Advisor.com. Their platform connects you with experienced, qualified financial professionals in your area who offer personalized guidance and support in managing market fluctuations and optimizing your portfolio mix.

    Social isolation

    Wealth can be isolating, according to therapists surveyed by CNBC.

    “They live in such a rarified place of the top 1% where there are very few people who share the realities of their world,” said Paul Hokemeyer, the founding principal of Drayson Mews clinic.

    Living a modest lifestyle allows you to stay grounded, nurture meaningful relationships, and maintain a sense of humility and relatability. As a high-net-worth individual, this doesn’t mean denying yourself luxury; it simply shifts the focus. Instead of indulging in overt displays of wealth, you might choose quiet luxuries, such as investing in fine art, over more conspicuous spending.

    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, investing in fine art often required shelling out millions for a prized painting, making it challenging even for the ultra-wealthy.

    Now platforms like Masterworks have opened the door to art investing, with over one million members now using the service.

    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.

    Better negotiating power

    Whether you’re hiring a contractor, shopping for luxury goods or making a major real estate purchase, appearing wealthy can actually work against you. Sellers often assume you can afford to pay more, reducing your chances of scoring a deal or meaningful discount.

    This approach — adjusting prices based on how much the seller believes a buyer can afford — is called price discrimination, a well-known concept in economics.

    For that reason, keeping your financial status under wraps may offer a strategic advantage, helping you negotiate more effectively and secure fairer, more competitive pricing.

    As a high-net-worth individual, maintaining discretion about your financial status not only enhances your ability to negotiate effectively and secure fairer prices but also opens doors to exclusive, institutional-grade investment opportunities.

    As a high-net-worth individual, keeping your financial status discreet not only helps you negotiate more effectively and achieve fairer prices but also grants you access to exclusive, institutional-grade investments in real estate.

    Real estate can be a solid way to build generational wealth. 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.

    New investing platforms are making it easier than ever to tap into the real estate market.

    For instance, Homeshares gives access to the $36 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.

    Another avenue is commercial real estate. 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.

    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.

  • Tony Robbins just blasted this 1 popular approach to Social Security in America — calls it ‘disaster’ that seriously risks running out of cash. Are you falling into this trap, too?

    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.

    Tony Robbins, the well-known motivational speaker, warns that the most popular approach to Social Security is also the most dangerous.

    On his blog, he says relying on the program as the foundation of your retirement plan is a “recipe for disaster."

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    Here’s why Robbins encourages people to look beyond this safety net and why a growing number of working-age Americans are already leaning towards alternative strategies.

    Social Security isn’t nearly enough

    For most Americans over the age of 65, an average monthly Social Security benefit of $2,000 isn’t enough. Data from the Consumer Expenditure Surveys (CE) program shows that retired households spend over double that every month.

    The program’s sustainability is also in doubt, meaning future retirees could potentially see even lower benefits. Trust fund assets are expected to be depleted by 2033, according to the Social Security Administration (SSA), while the Trump administration’s proposed tax cuts could deplete the funds in as little as six years, according to Marc Goldwein of The Committee for a Responsible Budget.

    In other words, Social Security might not be a solid foundation for your retirement plan.

    “Time to get your head out of the sand and do some easy number crunching to find out where you are and where you need to be,” Robbins wrote in a blog post.

    A better plan for your future

    Robbins goes on to encourage working-age Americans to create their own nest egg. Instead of relying on Social Security, it could be a good idea to start building out an independent retirement fund as soon as you can.

    Robbins recommends targeting savings of roughly 20 times your annual expenses. This can be coupled with the 4% withdrawal rule, which means you can safely use 4% of these assets after adjusting for inflation to meet your living expenses without depleting your funds over the long term.

    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

    To reach that level of savings, it’s important to start investing early and often.

    With Acorns, you can start automatically investing your spare change to begin working on a nest egg in less than 3 minutes.

    How it works is simple. Acorns rounds your purchase up to the nearest dollar and invests the rest in a smart portfolio of ETFs on your behalf. That $4.25 morning coffee? It’s now a 75-cent investment in your future.

    Even better, when you set up a recurring investment with a minimum of $5, you’ll get an extra $20 within 10 days of the following month to help kickstart your investing journey.

    Diversify your portfolio

    The key to building a robust portfolio for the long run is spreading your wealth across different asset types. As you approach retirement, you’ll often need to sell off assets to maintain your lifestyle.

    But if all of your investments are in a single stock, and that stock is down when you want to retire, what will you do? That’s why diversification is key.

    Gold

    The stock market has see-sawed during 2025 due to a combination of geopolitical uncertainty and shifting economic priorities, driven in part by U.S. tariff negotiations.

    This is one reason why considering inflation-resistant investments for your retirement, such as gold, may be worthwhile. This precious metal is typically more stable than stocks during economic downturns and recessions. In April 2025, gold breached the $3,000 per ounce benchmark. What’s more, JP Morgan Chase predicts that gold could soar to $4,000 per ounce in 2026.

    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 and a 5-star rating from Trust Link.

    If you’d like to convert an existing IRA into a gold IRA, Priority Gold offers 100% free rollover, as well as free shipping, and free storage for up to five years. Qualifying purchases will 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, download their free 2025 gold investor bundle.

    Fine Art

    According to a Deloitte survey, 89% of wealth managers believe art and collectibles should be a part of a wealth management offering. That could be a sign it’s worth considering this physical asset as a part of your retirement strategy.

    This market has traditionally been the domain of the ultra-rich, but now you don’t need to be an expert in art to take advantage of this asset class.

    Platforms like Masterworks simplify the process of art investing, allowing everyday investors to buy fractional shares of blue-chip artwork from iconic artists like Picasso, Basquiat and Banksy. Like blue-chip stocks, these are pieces of art that tend to only increase in value over time. This can make it easier to diversify your portfolio without the complexity and cost of managing art investments on your own.

    Through 23 exits so far, investors have realized representative annualized net returns like 17.6%, 17.8% and 21.5% among assets held for longer than one year. You can get VIP access and skip the waitlist here.

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

    Real estate

    Then there’s real estate. For most people, this means purchasing a home, but there are now ways to invest without amassing a sizable down payment and taking on a mortgage.

    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.

    Another way to tap into this market is by investing in shares of vacation homes or rental properties through Arrived.

    Backed by world-class investors including Jeff Bezos, Arrived allows you to invest in shares of vacation and rental properties, earning a passive income stream without the extra work that comes with being a landlord of your own rental property.

    To get started, simply browse through their 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, potentially earning quarterly dividends.

    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.

  • Dave Ramsey warns nearly 50% of Americans are making 1 big Social Security mistake — here’s what it is and 3 simple steps to fix it ASAP

    Dave Ramsey warns nearly 50% of Americans are making 1 big Social Security mistake — here’s what it is and 3 simple steps to fix it ASAP

    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.

    With over 30 years of fielding listener calls and cultivating a devoted audience, Dave Ramsey has become one of the rare experts truly in tune with the nation’s financial heartbeat. His company’s surveys and reports deliver unique insights into how Americans earn, save and spend their money.

    Ramsey’s 2023 "Today’s Retirement Crisis" study based on a 2016 survey highlights a surprising statistic — 42% of Americans are not currently saving for the future. This is also reflected in the Fed’s 2022 Survey of Consumer Finances, which shows that only 54.4% of families had retirement accounts.

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    "Even among savers, few are setting aside enough to afford a truly secure retirement. In fact, only one-in-10 Americans save 15% or more of their income — the amount industry experts recommend individuals set aside in order to build adequate savings — for retirement," according to the Ramsey Solutions study.

    This “alarming” information could indicate that many people are facing dire retirement prospects.

    “Instead of packing their bags for their dream vacations in their 60s and 70s, millions of Americans will be packing their lunch for another day at the office,” Ramsey’s team wrote in a March 2025 update on average retirement savings in the United States.

    Nearly 60% of retired Americans say Social Security is a “major source” of their retirement income, according to Gallup. AARP estimates that monthly social security checks account for at least half of retirement income for 40% of retirees (aged 65 or above).

    But these benefits are designed to replace just 40% of pre-retirement income. The estimated average monthly Social Security retirement benefit for May 2025 was $1,913.70, which translates to an annual income of less than $23,000 — much less than what a comfortable retirement would usually require.

    What’s more, recent moves by the Trump administration have raised concerns about the future of Social Security payments. About 59% of non-retired Americans are worried that social security won’t be available by the time they retire, according to a survey from DepositAccounts.

    Here are the three steps you can take to start stitching together a safety net that can protect your golden years.

    1. Create a saving benchmark

    The first step for anyone looking to retire with a comfortable nest egg is to set a benchmark for minimum monthly savings to help secure your future.

    As of April 2025, the U.S. personal savings rate was just 4.9%, according to the Bureau of Economic Analysis. This is the ratio of personal savings to disposable personal income, and it is simply too low to fund a robust retirement. Ramsey recommends setting the benchmark significantly higher at 15% of gross income. This also assumes you already have an emergency fund and you’re out of debt.

    For example, a person earning $100,000 a year who manages to save 15% of their income and invests it in an asset that delivers 10% returns annually could accumulate roughly $1.5 million within 25 years. This means it’s possible to retire as a millionaire even if you start saving and investing in your early 40s.

    When the market shifts, investors of all stripes look for reliable and safe savings vehicles to cushion their nest egg. SoFi’s high-yield checking and savings account account is designed for those savers.

    You could earn up to 4.00% APY on your savings. Plus, SoFi charges no 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.

    If you feel like you can’t set aside enough of your income to invest each month, you can still make your purchases productive with Acorns.

    Acorns is an automated investing and saving platform that simplifies the process of setting aside extra funds.

    By signing up and linking your bank account, Acorns automatically rounds up the price of each of your purchases to the nearest dollar and deposits the difference into a smart investment portfolio, allowing you to grow your wealth without even thinking about it.

    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

    2. Max out tax-advantaged accounts

    Reducing your tax liability could be just as important as maxing out your savings rate. Every penny saved in taxes is another penny that can be used to invest and compound your wealth over time.

    For most people, the best way to mitigate taxes is to utilize tax-advantaged accounts like 401(k)s and Roth IRAs.

    Unfortunately, many people neglect these accounts. About 40% of Americans don’t have a retirement savings account, according to a recent survey by Gallup.

    As of year-end 2024, the average participant account balance was $148,153, while the median balance was just $38,176, according to Vanguard.

    None of these balances is close enough to the estimated $1.26 million an average American needs to comfortably retire. But raising your contributions and maxing out these accounts can help you get ahead of your peers.

    Another option to fund your retirement is investing directly in precious metals.

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

    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 and a 5-star rating from Trust Link.

    If you’d like to convert an existing IRA into a gold IRA, Priority Gold offers 100% free rollover, as well as free shipping, and free storage for up to five years. Qualifying purchases will 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, download their free 2025 gold investor bundle.

    3. Go beyond the bare minimum

    Saving 15% of your gross income and maximizing your tax-advantaged accounts are the bare minimum for a comfortable retirement, according to Ramsey. However, if you’re looking to retire sooner, want a better lifestyle in retirement or simply waited too long to get started you may need to go beyond this minimum threshold.

    Consider adding sources of passive income, such as rental property, to augment your annual earnings. For accredited investors, Homeshares gives access to the $36 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.

    Another 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.

    Finally, it can’t hurt to cover your bases by regularly re-negotiating your salary, or looking for a lateral career change that can earn you more.

    Regardless of your current financial situation, there are usually a few ways to make improvements and boost your chances of a successful retirement —- from investing to budgeting best practices.

    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.

  • Think you’re ‘middle class’ in America? This income level says you’re probably wrong

    Think you’re ‘middle class’ in America? This income level says you’re probably wrong

    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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    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.

    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

    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.

    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.

  • There’s a new ‘magic number’ Americans say they’ll need to retire comfortably — and it’s a shocking change since 2024. Here’s how to reach it ASAP without turning to sorcery

    There’s a new ‘magic number’ Americans say they’ll need to retire comfortably — and it’s a shocking change since 2024. Here’s how to reach it ASAP without turning to sorcery

    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.

    Don’t miss

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

    Gold IRAs allow investors to hold physical gold or gold-related assets within a retirement account, which combines 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 $10,000 in free silver 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.

    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

    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.

    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.

  • US boomers are using 2 top secret strategies to spend more in retirement — and it’s earning them fat monthly cash flow while nest eggs stay protected. Are you still using the ‘old’ 4% rule?

    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.

    For decades, people planning for retirement have relied on the guideline that retirees should withdraw 4% of their investment portfolio every year in retirement, with the option to make adjustments to account for inflation.

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    This maximum withdrawal rate was believed to be a sure-fire method for stretching a senior’s retirement income for 30 years or more.

    But given how unpredictable the economy has been this year, the 4% rule might be a little outdated in 2025.

    If you’re looking for an alternative, the team at Vanguard recently put forward two new strategies. Here’s a closer look at these updated retirement spending and withdrawal strategies, and why they could help you set a more realistic financial goal for retirement.

    The bucket strategy

    Unlike the simple 4% rule, Vanguard’s bucket strategy recommends splitting your assets into different categories depending on when you expect to spend the money.

    For instance, you could create an “ultra-short-term” bucket that includes your checking account and emergency savings that can be tapped into for monthly living expenses. Another medium-term bucket could be set aside in relatively safe fixed income securities to meet spending needs — such as a home renovation — for the next two to three years.

    You can also use specialized tax-advantaged accounts, such as a Health Savings Account, to create a separate bucket for medical expenses. Finally, you can deploy the rest of your assets into long-term investments such as stocks or real estate to compound over time.

    By splitting your assets into different categories, you can adjust the risk-return profile on each so that they match the timeline of the expected expense. You can also customize these to meet your specific spending needs and lifestyle — for example, if you know you’re facing major health concerns in the near-term, you can divert more of your wealth into that category.

    With the bucket approach, you’ll need specific savings vehicles to maximize your returns and keep your money growing. For your short-term bucket, you can consider a high-yield savings account that offers full access to your money at all times.

    Wealthfront’s cash account is designed for those seeking a reliable and safe plan, offering a 4% APY, which is more than 10x the national average. Wealthfront offers an account that allows for fast (and free) transfers to internal Wealthfront investing accounts, as well as external accounts. That gives you the flexibility you need with your on-hand funds.

    Plus, when you fund your new account today with $500 or more, you can get a $30 bonus with Wealthfront Cash.

    For the medium-term, you’ll want a high-growth asset with stable returns. A certificate of deposit is a top choice.

    Long out of favor due to the sluggish return rates, CDs now offer rates just under 5%, giving you a solid return on your cash.

    You can compare rates and deposit terms using MyBankTracker, a bias-free aggregator of the top certificate of deposit offers from various banks nationwide.

    Their extensive database shows the most competitive rates, with daily rate updates and personalized recommendations based on your risk preferences and time horizon so you can find the right CD to meet your retirement savings goals.

    Finally, for your long-term investments, opting to grow your money in the real estate market can be a good way to bet on long-term growth.

    New platforms like Homeshares offer accredited investors access to the $34.9 trillion U.S. home equity market, which has historically been the exclusive playground of large institutions.

    When you invest with Homeshares, you get 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.

    The fund focuses on homes with substantial equity, utilizing Home Equity Agreements (HEAs) to help homeowners access liquidity without incurring debt or additional interest payments. With risk-adjusted target returns ranging from 14% to 17%, the U.S. Home Equity Fund could unlock lucrative real estate opportunities, offering accredited investors a low-maintenance alternative to traditional property ownership.

    Simply put, the bucket approach is more nuanced than the conventional 4% rule. That means it requires more planning — and perhaps the assistance of a financial advisor — to ensure you don’t deplete your savings in retirement.

    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 dynamic spending strategy

    Another alternative to the 4% rule is the dynamic spending plan. Instead of simply assuming you will spend 4% of your assets every year in retirement, this strategy involves setting an annual budget based on how much your assets have earned over the previous year, how much inflation you expect, and what you want to spend money on in the year ahead.

    So, if your portfolio jumped 8% in value last year and inflation was at 2%, you can set a budget to spend 6% or less this year. You may also need to set a floor for annual spending if the stock market returns 0% or less in any given year. For instance, you could set a flat $40,000 budget for any down years in the stock market.

    In other words, you’re not relying on an average estimate of stock market returns over several previous decades. Instead, you’re setting a clear target for how much you want to spend every year based on the real returns and inflation you’ve experienced over the past twelve months.

    To set this target and keep track of your projected yearly spend, you’ll need a reliable tool where you can manage your money in minutes.

    Monarch Money is a financial management platform that offers an all-in-one tool to help you track investments, spending and budgeting, and even offers personalized advice so you can feel confident about your money.

    You can also feel confident about sharing your financial data with Monarch Money — the app is protected by Plaid for secure data integration, and employs multi-factor authentication at login, so you can keep your accounts safe.

    Download the app now for a seven-day free trial. After that, you can get 50% off your first year with the code MONARCHVIP.

    The advantage of the dynamic spending strategy is that it adapts to the economy and your personal circumstances in real-time. If the stock market had an exceptional year, you can spend more. If inflation was higher than expected, you can spend less.

    The upside is that your chances of running out of money in retirement are significantly lowered. The downside is that this strategy doesn’t give you long-term visibility and needs effort and assessment on an annual basis.

    Working with a financial advisor or using online tools to automate some of this process could help to make this a successful strategy for you. If you plan to pursue the dynamic spending approach, consider consulting with a vetted financial advisor.

    Platforms like Advisor.com can help you find someone that’s right for you.

    Advisor.com can connect you with professional advisors in minutes. Just answer a few quick questions about yourself and your finances and the platform will match you with experienced professionals best suited to help you develop your retirement plan.

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

    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.