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.

A 2024 report by AARP found that 20% of Americans aged 50 and over have no retirement savings at all. The U.S. Government Accountability Office paints an equally dire picture. As of 2022, 32% of households with a worker age 55 and older had no savings for retirement or defined benefit plan.

If you’re 65 and haven’t managed to save anything for your senior years, you’re far from alone. You may also be feeling hopeless, and that’s understandable.

That doesn’t mean you’re doomed to working forever, though. Here’s how to salvage your situation so you don’t have to hold down a job until the day you die.

Figure out what income sources you’ll have during retirement

If you don’t have savings for retirement, you can still rely on income from Social Security. If you’ve worked all or most of your life, you’re eligible. The average retiree receives about $1,925 per month, or $23,000 annually, which is typically not taxed.

You can also increase your monthly benefit by delaying your claim. If you’re 65 (born in 1959), your full retirement age is 66 and 10 months, but you can earn an 8% annual increase in benefits by waiting until age 70.

You can also consider downsizing your home to provide extra income by freeing up equity, which you can use to supplement your retirement savings or invest in other financial opportunities.

If you’re looking to supplement your Social Security benefits in retirement, tapping into your home’s equity using a reverse mortgage could provide another valuable source of income. Many homeowners aged 65+ have a median home equity of $250,000, according to the National Council on Aging. This is quite substantial.

Getting a reverse mortgage is essentially cashing out the equity you’ve built up over the years in your house. Finance of America’s reverse mortgage options allow you to turn all that home equity into tax-free cash, helping to support your retirement lifestyle.

With a reverse mortgage from Finance of America, you can continue living in your home while accessing its value — and you won’t have to make monthly mortgage payments. The loan only becomes due when you move out, sell your home, or pass away.

Get your free reverse mortgage guide that walks you through everything you need to know to get started.

Another way to access your home’s equity is through refinancing with Mortgage Research Center. By refinancing your current mortgage, you can potentially secure a better interest rate while tapping into the equity you’ve built up over the years. This option allows you to access your home’s value without taking on a second loan or line of credit.

Mortgage Research Center, licensed in all 50 states, can help you explore various refinancing options that align with your retirement goals. Whether you’re looking to consolidate debt, fund home improvements, or supplement your retirement income, their experienced professionals can guide you through the process of accessing your home’s equity through refinancing.

Set a tight budget you can stick to

Retiring on Social Security alone is difficult, but possible. A Gallup poll found 23% of retirees rely solely on Social Security, and 60% of those feel financially comfortable.

To make it work, you may need to change your lifestyle and habits, including taking advantage of free entertainment and discounted activities. Libraries and community centers often offer complimentary programming for seniors, while AARP membership ($20 annually starting 2025) provides access to entertainment, travel, and dining discounts.

The gig economy also offers flexible options for extra income, like writing, teaching an instrument, or pet sitting.

While retiring on zero savings isn’t ideal, there are ways to work around the situation so you’re not plugging away at a full-time job for the rest of your life.

Sticking to a budget is key to reaching your financial goals, but tracking multiple accounts and expenses can be difficult. Monarch Money makes budgeting easier by bringing all your financial accounts together in one place.

With Monarch Money, you’ll receive custom reminders for upcoming bills and subscription renewals, ensuring you never miss a payment or get caught off guard by auto-renewals.

The app also provides clear visibility of your net worth by connecting your investment accounts and real estate holdings, giving you a complete picture of your financial health. Monarch simplifies your finances so you always know where your money is and where it’s going.

For a limited time, you can sign up and get 50% off your first year with code NEWYEAR2025.

Push yourself to work a few more years – and save during them

Working a few extra years before claiming Social Security can help maximize your benefits. Delaying until age 70 offers the largest monthly checks based on your income history.

Cutting some spending and saving while working could give you a cushion for unexpected expenses like home repairs. If you downsize your home, you could also contribute to an IRA or 401(k). A $500 monthly contribution over five years, with a modest 4% return, could add up to $32,500, especially if you lower your housing costs.

Working a few extra years before retirement can significantly boost your nest egg through continued income and investment growth. Make the most of these extra working years by automatically investing your spare change with Acorns .

The app automatically rounds up your everyday purchases to the nearest dollar and invests the difference into a diversified portfolio . This means that while you’re still earning an income, every transaction — from your morning coffee to grocery shopping — contributes to building your retirement nest egg.

For example, when you spend $3.60 on coffee, Acorns will automatically invest the 40-cent difference. These small amounts add up over time. Plus, with an Acorns Silver plan, you get access to Acorns Later, a retirement investment account with a 1% IRA match on new contributions. With Acorns Gold, you get a 3% IRA match on new contributions and the ability to customize your portfolio by selecting your own stocks.

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.

Imagine buying a home for less than a Honda Civic, ordering the house to your location, and unpacking your new home on top of your property.

A two-bedroom prefabricated home recently sold out on Amazon. The house, which was listed at $19,000, featured a toilet and shower, a living room and a kitchen.

The mostly metal home folds out from its package to reveal a fully assembled single-story structure, complete with a porch, staircase and gable roof overhang. The manufacturer claims the house is built to last 15 years.

It’s unclear exactly how many people have bought tiny homes on Amazon, but it is estimated that there are over 10,000 tiny homes in the U.S., including billionaire Elon Musk’s recently-launched tiny modular homes, starting at $10,000.

While these viral tiny homes on Amazon may seem like a quick and affordable way to get on the property ladder, there’s a catch — issues like poor reviews, lack of instructions, and limited space can make them more hassle than they’re worth.

If you’re looking to get on the property ladder, there may be better, hassle-free investments for your hard-earned cash.

Influencers unbox housing stock

Following the trend of social media personalities, Nathan Graham and Jeffrey Bryant have posted viral videos on YouTube and TikTok, unboxing tiny homes purchased from Amazon.

Graham’s five-part TikTok series, with over 20 million views, shows him and his friends unpacking a $17,000 Chery Industrial Expandable Prefab House. Despite no assembly instructions or reviews, Graham found the home easy to set up.

On the other hand, Bryant’s video, with over 9 million views, reveals mixed feelings about his $26,000 tiny home, highlighting both its quality and limitations.

The doors and bathroom appear OK, but Bryant notes he can touch the ceiling without fully extending his arm despite being five-foot-eight. “I don’t even know where I’m going to put the house,” a remorseful-sounding Bryant said.

Downsides of downsizing

Bryant’s issue shows how the valuations of tiny homes can be misleading.

Buying a traditional house comes with the property it’s already sitting on. Not so for a tiny home.

Connecting your home to the local electricity grid can cost up to $1,500 if you’re near a utility pole, and up to $5,000 if you’re on a rural property.

Then there’s the plumbing.

Some municipalities charge $3,000 for a water meter while sewer lines cost up to $180 per foot. Tiny home occupants hoping to live off the grid can install solar panels and a septic tank, which come with their own costs.

Hassle-free property ownership

Getting on the property ladder doesn’t have to mean downsizing, or settling for a home that looks like a box. Whether you have $20,000, $50,000, or $100,000 to invest, there are innovative ways to enter the real estate market without sacrificing quality or taking on excessive risk.

The $36 trillion U.S. home equity market has historically been the exclusive playground of large institutions.

Homeshares is changing the game by allowing accredited investors to 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.

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. This approach provides an effective, hands-off way to invest in high-quality residential properties, plus the added benefit of diversification across various regional markets – with a minimum investment of $25,000.

With risk-adjusted internal returns ranging from 12% to 18%, the U.S. Home Equity Fund could unlock lucrative real estate opportunities, offering retail investors a low-maintenance alternative to traditional property ownership.

Another avenue for real estate investing is commercial real estate.

First National Realty Partners allows individual investors to access grocery-anchored commercial real estate investments with a minimum of $50,000.

With FNRP, investors own a share of properties leased by national brands like Whole Foods, Kroger and Walmart, providing a stable, positive cash flow without the worry of tenant costs and management.

Accredited investors can use their secure platform to explore available deals, engage with experts, and access the potential for quarterly returns.

If you’re looking for an option with a lower minimum investment requirement, platforms like Arrived could be an option.

Backed by world-class investors like Jeff Bezos, Arrived allows investors to buy stakes in rental homes and vacation rentals without having to worry about tenant management.

You can pick from a curated selection of homes and invest in your own share. Best of all, you can start investing in rental properties with just $100.

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.

Not only have you inherited your parents’ portfolio, you’ve also inherited their long-time advisor. You’ll have to decide for yourself if you should move the money elsewhere or even manage it on your own.

Since the portfolio has strong returns, why fix what ain’t broke? This can be a difficult decision, rife with guilt and obligation, especially if your parents have worked with their advisor for decades.

Understanding your options

Given the size of the portfolio, a financial advisor can assist with portfolio management, investment strategy, performance reporting, and aligning asset allocation with risk tolerance. They can also create a personalized plan to help you meet your retirement goals and adjust the portfolio as needed.

If you’re finding it difficult to make sense of the noise and emotion, now could be the right time to get in touch with a financial advisor through Advisor.com, an online platform that connects people with wealth experts.

Behavioral coaching is one of the most valuable things a financial advisor can offer. A skilled advisor can help ease the negative emotions that arise during financial planning and decision-making.

They do this by “working with you to co-develop a plan with clear, measurable, time-bound goals,” says Kellen Thayer, a financial advisor with Advisor.com.

No matter where you move your money, professional advice isn’t free. Advisors typically charge a percentage of your assets under management (AUM), ranging from 0.5% to 2%. A 1.75% fee isn’t out of line for a full-service wealth management firm, meaning that for a $680,000 portfolio, you could pay around $11,900 annually.

With assets under management, the fee serves as an incentive to maximize returns. In other words, growing your assets is in your advisor’s best interests. So, if the returns are exceptional, then the higher rate may be worth it.

Alternatively, you might explore other options, such as an annual retainer or flat fee for specific services. A retainer typically costs between $6,000 and $11,000, according to a 2023 Advisory HQ report.

If you prefer to handle some of the money management yourself, you could work with an advisor who charges by the hour or project, with fees ranging from $120 to $300 per hour.

It’s also important you weigh the costs against the long-term benefits. Research demonstrates the significant impact of working with a financial advisor. 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 instance, starting with a $50,000 portfolio, you could potentially retire with an extra $1.3 million after 30 years of professional guidance.

Robo-advisors charge lower fees, but you (obviously) won’t get the human touch. This is what sets financial advisors apart from robo-advisors. You can’t get the same personal connection and customization with an algorithm as you can with another human.

When you get matched with a financial advisor through Advisor.com, you can schedule a free consultation call with a real person to discuss your financial goals and see if you have a good rapport. This relationship is meant to last over the long haul – years, even decades – with your advisor accompanying you on each phase of your financial journey.

There’s also the possibility of managing the money yourself, but you should be financially literate and feel comfortable enough to invest according to your financial goals.

When tackling investing on your own, it’s easy to miss hidden costs. A good financial advisor can implement a cost-effective portfolio to minimize these costs and maximize overall returns.

“It’s not what you make, it’s what you keep,” Thayer says. “Advisors help you develop a plan, stick to it, and can help you to avoid costly mistakes that may exceed any fees you pay them over the long term.”

A good financial advisor will help you look for investment opportunities that offer low costs and don’t charge hidden fees. Depending on the size of your portfolio, professionals found through Advisor.com charge clients through a flat fee or a percentage of assets under management. Both methods are presented upfront, so you know what to expect.

Finding the right fit

Before deciding to fire your parents’ advisor, it’s a good idea to have a detailed conversation to assess if they’re the right fit for your goals.

If you opt to shop around thereafter, you don’t have to go it alone. With almost 400,000 financial advisors in the nation, finding one for yourself might be a tall task.

Finding the right advisor for your needs is simple with Advisor.com. Their platform connects you with an experienced and qualified fiduciary advisor in your local area. As they must, by law, put their clients’ interests ahead of their own.

How it works

Get matched with an advisor for free in three easy steps:

• Step 1: Answer a few quick questions about yourself and your financial goals
• Step 2: Advisor.com will match you with a vetted advisor who can provide you with a personalized plan to meet your goals
• Step 3: Book a free, no-obligation consultation to confirm if your match is right for you

Future needs

If you choose to manage the portfolio yourself, it’s important to understand how to build and maintain a diversified portfolio that aligns with your goals. You’ll need to adjust asset allocation as you age and rebalance periodically. In this case, you could also consider paying for hourly or project-based advice when needed.

No matter what you decide, it doesn’t have to be forever.

The key goal is to start building sustainable wealth-building habits, says Thayer. “People often say they will start investing tomorrow, but tomorrow never arrives. A financial advisor can be the accountability partner they need to ensure they don’t put off what they know they should be doing until it’s too late.”

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.

Once you turn 59½, you’re eligible to take penalty-free withdrawals from an IRA or 401(k). However, many people still opt to hold off on retirement for a number of years beyond that point.

If you’re burned out at work or are just plain ready for that next stage of life, then you may be eager to retire at 60 — and with decent savings and minimal to no debt, that may be possible.

For instance, a $750,000 nest egg at age 60 puts you well ahead of the average American aged 55 to 64. The Federal Reserve reports the median retirement account balance for this group is $185,000, with an average of $538,000. While $750,000 sets you up well for early retirement, challenges may arise, so a solid strategy is essential.

The problem with retiring at 60

Retiring at 60 can be appealing, but it comes with challenges, like waiting until 62 to collect Social Security. Even then, filing early reduces your monthly benefit, and you’ll need to wait until 67 for the full payout.

Healthcare is another concern, as Medicare doesn’t kick in until age 65. Paying for private insurance in the interim can be costly, and COBRA benefits typically max out at 18 months, leaving a coverage gap.

To navigate these hurdles and create a sustainable plan that gives you a little more control over your golden years, consider working with a professional through WiserAdvisor.

This free matching service connects you with pre-screened financial advisors tailored to your goals. In minutes, you can receive personalized matches with two to three advisors and book a free, no-obligation consultation to ensure the right fit for your needs. With expert guidance, you can better prepare for a successful retirement.

How to make an early retirement work for you

Retiring at 60 on $750,000 is doable, especially if you’re debt-free and stick to a budget. Following the 4% rule, you’d withdraw about $30,000 annually — but delaying Social Security until full retirement age may require additional income in the meantime. Filing early at 62 could help but would mean a reduced benefit of about 30%.

To bridge the gap, part-time work or flexible side hustles can supplement your income. A recent T. Rowe Price report shows that around 20% of retirees work in some capacity. You might also generate income by monetizing your home, such as renting out a finished basement or driveway space in high-demand areas.

Finally, how you invest your $750,000 will impact its longevity. A key principle to focus on would be low-risk, high-value assets like stable real estate investments, dividend stocks, or high-yield savings accounts.

Real estate

Investing in real estate and its alternatives can be a powerful way to retire early, providing steady income and a hedge against inflation while reducing reliance on Social Security.

With accessible platforms, it’s easier than ever to add income-producing properties to your portfolio, regardless of your financial situation or expertise. One platform that lets you invest in rental homes and vacation properties for as little as $100 is Arrived, and it’s making real estate investing possible for everyone.

Arrived is backed by investors like Jeff Bezos, offers SEC-qualified investments, and has a streamlined process for accredited and non-accredited investors alike. Browse vetted properties, choose your shares, and start earning passive income — no landlord duties required.

Accredited investors focused on maximizing income and long-term appreciation may prefer DLP Capital.

Specializing in private real estate funds targeting high-demand rental areas, DLP Capital offers a hands-off way to benefit from real estate’s resilience, steady income potential, and diversification.

Stocks

The way you invest your $750,000 will help determine how long that money lasts. You don’t want to take on excess risk where you’re at the point of tapping your nest egg, so consider limiting stock holdings to 50% of your portfolio.

If you’re looking for expert advice, an investment research platform offering handpicked stock recommendations could be your solution.

Backed by former hedge fund analysts, Moby distills hours of research into clear, actionable stock reports.

Over the past four years, their picks have outperformed the S&P 500 by an impressive average of 11.95%, helping over five million users uncover winning investments. With a 30-day money-back guarantee, Moby simplifies investing and reduces guesswork.

You don’t always have to invest large sums to start. Ten dollars a week could make a difference – if you’re smart about what to do with your spare change.

Another low-cost way to put part of your nest egg to work is investing in exchange-traded funds through an app like Acorns.

Signing up for Acorns takes just minutes: link your cards, and Acorns will round up each purchase to the nearest dollar, investing the difference — your spare change — into a diversified portfolio. You can invest in an S&P 500 ETF with as little as $5 — and, if you sign up today, Acorns will add a $20 bonus to your account.

You can also customize your approach with Acorns Silver, which offers a 1% IRA match, or Acorns Gold, which includes a 3% IRA match and portfolio customization.

Emergency fund and budget

Make sure to keep at least one to two years’ worth of living costs in an emergency fund. This gives you access to money without having to risk taking a loss on investments.

Consider building some wiggle room into your annual budget for unexpected expenses. Over time, your home may need costly repairs, or health issues could leave you on the hook for higher-than-average medical bills.

You might want to park your emergency funds in a high-yield savings account so it’s easily accessible.

These days, some banks and financial institutions are offering accounts that pay up to 4.50% APY.

Check out our list of The Best High-Yield Accounts of 2025 to find the best rates.

To maintain a budget without the hassle of spreadsheets, consider an app that handles the details for you.

Monarch Money’s expense tracking system makes managing your budget easier. The platform seamlessly connects all your accounts in one place, giving you a clear view of where you’re overspending.

For a limited time, you can get 50% off your first year with the code NEWYEAR2025.

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.

A shaky economy, job uncertainty and rising everyday costs have Americans craving the financial independence that makes money worries a distant memory.

That might be why so many people are turning to author and personal finance expert Grant Sabatier’s seven-level breakdown for financial freedom.

Sabatier’s list is gaining attention because it ladders the distinct levels of wealth people reach on their path to prosperity. Understanding where you stand on the ladder can inform your steps toward the final rung: complete money freedom.

So, where are you on the ladder, and how can you keep climbing?

Level 1: Clarity

The journey starts by understanding your financial situation — your income, debts, and savings.

Today’s high grocery prices and everyday costs make basic living expenses a challenge. But it can be empowering to get an understanding of where you are financially speaking and how much you need to make ends meet. That’s how you build a plan.

How to climb: Begin by following every dollar’s comings and goings. Budgeting apps like Monarch Money can help you track your expenses down to the last penny, helping you figure out where your money is going.

You are probably overpaying for at least one unused subscription, and Monarch Money can help you identify it. According to a survey of 1,106 consumers conducted by Self Financial in 2023, 85.7% of respondents paid for at least one subscription that went totally unused.

Monarch Money’s expense tracking system makes managing expenses and debt easier. The platform seamlessly connects all your accounts in one place, giving you a clear view of where you’re overspending.

For a limited time, you can get 50% off your first year with the code NEWYEAR2025.

Level 2: Self-sufficiency

At this level, you no longer rely on anyone for financial support and can cover basic expenses. Reaching this stage means you’re paying the rent or mortgage, utilities, and other essentials without accumulating debt.

Living paycheck to paycheck, however, is still considered part of this step. A recent study by MagnifyMoney found that half of Americans are dealing with that reality.

How to climb: It’s important to build an emergency fund with three to six months’ worth of living expenses — a safety net to protect against lost income or unexpected expenses. It’s also important to minimize lifestyle inflation and keep expenses low as your income grows.

But you don’t need to contribute huge amounts of money to your emergency fund at once. With Acorns, you can automatically invest spare change from everyday purchases into a smart portfolio of ETFs.

If you want to handpick your investments, you can opt for Acorns Gold, which allows you to invest in individual stocks.

Plus, get a $20 bonus investment when you sign up with Acorns today.

Level 3: Breathing room

At this level, you’ve escaped the paycheck-to-paycheck cycle. Extra money allows discretionary spending. You’re no longer stressed about covering your monthly bills. Knowing your financial house is in order, you have enough to occasionally indulge in eating out, vacations and other non-essentials.

How to climb: Focus on erasing high-interest debt and increasing your savings rate. Prioritizing where your money goes ensures you’ll continue to build wealth while enjoying the results.

You can do this by consolidating your debt using a personal loan at a preferably lower interest rate. This way, you have to make only one payment every month, easing your interest burden.

Credible is an online marketplace where you can compare personal loan rates. You get offers from lenders near you all in one place so that you can make an informed decision to consolidate your debt.

The best part? Checking rates on personal loans through Credible is completely free and won’t impact your credit score.

Level 4: Stability

At this point, you’ve built a solid foundation. Day-to-day expenses and unforeseen emergencies don’t worry you. This level is about security and knowing that one unexpected bill won’t send you spiraling into debt.

How to climb: Maintain regular contributions to your savings and investments. Make sure you have the appropriate insurance policies (health, life, disability) to protect your assets and income.

While the national average rate on savings accounts is about 0.42% APY, according to the Federal Deposit Insurance Corporation (FDIC), several institutions offer significantly higher returns, up to 10x the median.

If you want to compare your options, check out our list of the Best High-Yield Savings Accounts of 2025.

For investors looking for reliable, safer investment options with long-term investment horizons, certificates of deposit (CDs) might be suitable. CDs typically offer higher returns compared to traditional savings accounts, but the investment amount remains locked in during the specified period.

With CD Valet, you can shop and compare top certificates of deposit rates from various banks nationwide.

Their extensive database shows the most competitive rates without bias, with daily rate updates and earnings calculators which give you an array of free tools to help you find the right CD based on your financial goals, time horizon and risk preferences.

Level 5: Flexibility

You can now take more risks or consider life changes — like a career change or entrepreneurship — without fear. Flexibility allows you to follow your passions, knowing your money can handle it.

How to climb: Continue to build diverse income streams and make strategic investments. Real estate, stocks, and side businesses are common ways of building financial flexibility.

To help with growing your portfolio, platforms like Moby, founded by former hedge fund analysts, provides stock research and insights tailored for everyday investors.

Over the past four years, Moby’s stock picks have outperformed the S&P 500 by an average of 11.95%, helping more than 5 million users identify promising investments before they take off.

Level 6: Financial independence

At this level, your investments generate enough income to cover your living expenses. Work is optional.

This level is commonly associated with the FIRE (Financial Independence, Retire Early) movement, where investments provide enough income to cover daily costs and allow you to stop working, all while enjoying more control over your time.

How to climb: Maximize contributions to tax-advantaged accounts like 401(k)s and IRAs, and invest in dividend stocks or rental properties to generate passive income. With the stock market’s ups and downs, a well-diversified portfolio is essential for maintaining your financial independence.

First National Realty Partners makes it easy for accredited investors to grow their returns through grocery-anchored, necessity-based retail properties, like Walmart, Kroger and Whole Foods.

With a minimum investment of $50,000, accredited investors can potentially collect quarterly cash flow through a diverse real estate portfolio – without the leg work of finding deals yourself, negotiating for mortgage rates or managing the purchasing logistics.

Investing in secure commodities

Gold is known for its stability in the face of adverse market conditions or economic downturns. Over the last 10 years, gold prices have risen by over 120%.

Opting for a gold IRA gives you the opportunity to hedge against market volatility by allowing you to invest directly in physical precious metals rather than stocks and bonds.

If you’d like to convert an existing IRA into a gold IRA, companies typically offer 100% free rollover. Others might offer free gold, silver or other metals up to a certain amount when you make a qualifying purchase.

You can check out our top picks for industry-leading companies offering gold IRAs.

Compare offers instantly and request a free information guide to help you understand how to diversify your portfolio.

Level 7: Abundant wealth

Is this the finish line? Sabatier says the final level finds you with more money than you’ll need, allowing you to live your dream life and give back generously. Whether that means traveling, passion projects, or philanthropic work, abundant wealth allows you to pursue what matters most to you.

How to climb: Focus on wealth preservation through diversified investments and estate planning. Giving, whether through charitable donations or creating a legacy for your family, can also become a priority.

Consulting a financial specialist can help you understand the best ways to make your money work for you.

WiserAdvisor has a free online service that helps you find a financial advisor who can co-create a plan to diversify the asset mix in your portfolio and continue building wealth.

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

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

What will happen to your wealth?

Regardless of where you land in Sabatier’s seven tiers, it’s important to plan for the safe transfer of your wealth to the next generation. Creating a will or trust can help you ensure your loved ones remain protected after your passing.

With Ethos Will & Trust, you can create a 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 secure your legacy for your loved ones.

You can create a trust starting at just $349 with Ethos Will & Trust. Plus, if you’re not happy with the results, you can get a full refund within 30 days.

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.

There’s passionate debate about how to solve America’s ongoing housing crisis, much of which revolves around mortgage rates, zoning issues, immigration and construction. However, billionaire entrepreneur and investor Mark Cuban believes the biggest issue of all is being overlooked by the public.

“Home insurance in areas hit by repetitive disasters is going to be the number one housing affordability issue over the next 4 years. And possibly going into the midterms. More so than interest rates,” he said in a post on Bluesky. “Florida, in particular, is going to have huge problems.”

Home insurance crisis

Home insurance rates have surged, driven primarily by two key factors: inflation and climate change.

The cost of labor and building materials for homes has risen rapidly since the pandemic. Although the price of lumber has recovered, the National Association of Home Builders says things like drywall, concrete and steel mill products are still selling at elevated prices.

For those with a replacement cost insurance policy, it can cost the insurer more to cover the cost of replacing your home without taking depreciation into account. The risk this presents will be reflected in your premium.

While homes are more expensive to replace, they’re also more prone to damage because of climate change.

Severe floods, wildfires and hurricanes have become more frequent, which must be factored into the underwriting of property insurance. According to the Insurance Information Institute, “cumulative replacement costs related to homeowners insurance soared 55% between 2020 and 2022.”

In fact, major insurers like Farmers and Progressive have either left states like Florida or limited their exposure to these disaster-prone regions. Mark Friedlander of the Insurance Information Institute said, “We have estimated up to 15% of Florida homeowners may not have property insurance, based on input from insurance agents across the state.”

Homeowners and potential homebuyers should be aware of how risky it is to go without coverage and prepare for the cost of adequate protection.

Lowering the cost of home insurance may seem difficult with these facts at hand, but it is still possible to shop around for a better deal on your home insurance with BestMoney. Moreover, their easy-to-use platform makes finding a better deal possible in just minutes.

Find the best home insurance rates in your area when you answer a few quick questions about yourself and your home. You’ll see a list of offers tailored to your needs so you can easily comparison shop for a new rate on your mortgage.

Ways to protect yourself

If you haven’t purchased a property yet, considering the climate risk of any location you seek to move to is worth your while. The Federal Emergency Management Agency offers flood maps to help you assess risk.

If you already own a high-risk property, consider investing in resilience measures such as securing shutters and roofs, elevating structures in flood-prone areas and using fire-resistant materials in wildfire zones. Doing so can get you a discount on your premium in Florida.

Don’t forget that shopping around is the best way to find an affordable rate. Borrowers who received two rate quotes saved up to $600 annually, according to 2023 research from Freddie Mac. That number rose to $1,200 annually for borrowers who searched for at least four rate quotes from different lenders.

If you want a quick and efficient way to do this, the Mortgage Research Center (MRC) can help you quickly compare rates and estimated monthly payments from multiple vetted lenders. All you have to do is enter some basic information about yourself, such as your zip code, your desired property type and price range and annual income.

Based on the information you provide, MRC will show you mortgage offers tailored to your needs so you can shop for a mortgage with confidence.

After you match with a desired lender, you can set up a free, no-obligation consultation to see if you’ve found the right fit.

Finally, if you can’t afford insurance, look into your state-backed insurer of last resort. California’s FAIR Plan or Florida’s Citizens Property Insurance Corporation could be your ultimate safety net if you can’t find private insurance elsewhere.

Invest in property without owning it

Getting on the property ladder with the soaring price of mortgages and insurance may seem impossible, but you can still grow your wealth in real estate without the hassles of buying, maintaining and insuring a property.

Platforms like Arrived have made it easier for average Americans to invest in rental properties without the need for a hefty down payment or the burden of property management.

With Arrived, you can browse a curated selection of homes, each vetted for their appreciation and income potential. Once you find a property you like, you can choose the number of shares you want to buy and start investing in real estate with just $100.

You can also diversify your investment portfolio with the Arrived Private Credit Fund. This fund invests in short-term loans that are used to finance professional real estate projects, which can include property renovations, rehabs, or new home construction projects managed by real estate professionals.

The fund generates cash returns by collecting interest payments on the loans, so you can get monthly distributions as an investor. To get started, check out their in-depth guide to equity investing.

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 65 years old and gearing up to retire, it’s a good time to assess your savings. The average balance of retirement accounts for Americans aged 65 to 74 was $609,000 in 2022, according to the Federal Reserve’s latest Survey of Consumer Finances.

However, the median balance among this demographic was only $200,000.

With most financial gurus stating that you need millions to retire, is it possible to live comfortably if you only have $500,000 in the bank?

With careful planning it’s possible to make a $500,000 nest egg work. Here’s how.

Set a retirement budget

If you use the classic 4% rule to manage your retirement savings, you’re looking at about $20,000 per year in withdrawals with a $500,000 balance, adjusting for inflation annually. But that’s probably not your only income source available. Chances are, you’re eligible for Social Security at the very least.

The average retired worker on Social Security collects about $23,000 annually. Combined with your savings, you may be able to afford a decent lifestyle if your expenses are relatively low and your home is already paid off (or close to it).

At the same time, it’s important to budget carefully so you’re able to cover your expenses without overdrawing from your savings and putting yourself at risk of running out. To map out your spending and create a strict but realistic plan you may want to consult a financial advisor.

Advisor.com matches you with vetted financial professionals near you. All you have to do is answer a few simple questions about yourself and your financial situation, and Advisor.com will connect you with a fiduciary advisor best suited to assist you.

From there, you can set up a free initial consultation with no obligation to hire to assess whether they’re the right fit.

Prepare for the unexpected

Financial emergencies can arise at any time during retirement, so it’s wise to set aside six to 12 months of expenses in cash so you can cope with unplanned costs.

Keeping your emergency fund accessible at all times can help you avoid taking on debt or liquidating your investments when the market is unfavorable. A high-yield savings account can be your best bet for your emergency fund, as they earn higher returns compared to traditional savings accounts, and are readily available when needed.

You can compare the rates offered on high-yield savings accounts by various banks and financial institutions through SavingsAccounts.com.

Their extensive database shows the most competitive rates, with daily rate updates and personalized recommendations based on your risk preferences and time horizon. Find the right high-yield savings account for you.

Health care expenses can also eat into your savings. Fidelity estimates that the average cost of health care for 65-year-olds who retire today will be $165,000 throughout their golden years.

If you are on the cusp of retirement and are under the age of 65, signing up for health insurance now may mitigate your healthcare expenses down the line.

With U65 Health Insurance, you can compare rates offered by leading insurance providers near you. The process is completely free, and you can get the best quotes within minutes.

Here’s how it works: Enter your zip code and household income, and U65 Health Insurance will show quotes from leading insurance providers like Anthem, Kaiser, Cigna, Oscar Health, and others.

From there, you can review your options and select your preferred coverage before finalizing.

Keep investing in an age-appropriate manner

A $500,000 nest egg can continue to grow in retirement if you invest in a savvy manner. Many retirees are inclined to dump their stocks and shift over to more stable investments, such as bonds, upon retiring. However, it’s a good idea to keep some of your savings in stocks so your portfolio is able to gain value even while you’re withdrawing from it.

One common formula for investing in stocks as a retiree is to subtract your age from 110. If you’re 65, that guidance tells you to keep 45% of your portfolio in stocks, decreasing as you get older.

The nearer you get to your retirement age, the less risk you should be taking. One way to achieve this is to diversify your portfolio outside of stocks and bonds. By including alternative assets such as gold in the mix, your portfolio can remain stable despite market fluctuations.

Gold has long been considered the standard for inflation hedging — helping you ensure the purchasing power of your money doesn’t erode over time.

Opting for a gold IRA gives you the opportunity to hedge against market volatility by allowing you to invest directly in physical precious metals rather than stocks and bonds.

If you’d like to convert an existing IRA into a gold IRA, companies typically offer 100% free rollover. Others might offer free gold, silver or other metals up to a certain amount when you make a qualifying purchase.

You can check out our top picks for industry-leading companies offering gold IRAs.

Compare offers instantly and request a free information guide to help you understand how to diversify your portfolio and secure your retirement fund.

Supplement your savings with earned income

There’s no rule saying you have to stop working completely in retirement. Taking on a part-time job can be a nice way to supplement your savings. And even if you’re collecting Social Security, once you reach your full retirement age, you can earn any amount of income from a job without having any portion of your monthly benefit withheld.

If you don’t like the idea of committing to a part-time work schedule, look at the gig economy. Driving for a ride-hailing service or pet-sitting are things you can do at your own convenience.

You can also get an income without having to take on additional work during your golden years with investments in real estate.

“Whether you are a billionaire or a mom-and-pop property owner, real estate is an outstanding income-producing asset,” said Kevin Chancellor, founder and financial advisor at Black Lab Financial Services.

Arrived can help you get more income in retirement without buying a second property or becoming a landlord.

Backed by world-class investors like Jeff Bezos, Arrived can help you invest in real estate with as little as $100.

Here’s how it works: Browse the curated selection of real estate properties and vacation rentals on Arrived, and select a property you’d like to invest in. Once you have made your selection, review the terms and buy shares within minutes.

The best part? Arrived takes care of homeownership responsibilities such as day-to-day maintenance and finding tenants. You can simply earn returns from the comfort of your home.

Maximize Social Security

Delaying Social Security past full retirement age boosts your monthly benefit by 8% per year, up until age 70.

That could have a big impact on your income if you’re able to wait that long. It would mean dipping more into your savings at first, but the benefit might be worth it in the long run.

While you continue to build your nest egg, consider auto-investing your spare change.

When you make a purchase on your credit or debit card, Acorns automatically rounds up the price to the nearest dollar and places the excess — the coins that would wind up in your pocket if you were paying cash — into a smart investment portfolio.

Let’s say you purchase a doughnut for $2.30. Before you’re done licking the sugar off your fingers, Acorns will round the amount to $3.00 and invest the 70-cent difference for you. Look at this math: $2.50 worth of daily round-ups add up to $900 per year — and that’s before your savings earn money in the market.

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

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.

Imagine checking a long-forgotten account and discovering it’s worth multiple millions of dollars. That’s what happened to Sarah, a 50-year-old mom from Seattle, recently.

Sarah, who says she’s been homeschooling for 20 years, happened to check her employee benefits account from a tech giant where she used to work.

The account had gone from barely worth anything to roughly $18 million at current market price, she told Dave Ramsey in an episode of The Ramsey Show. Although she didn’t reveal which company it was, some online commenters speculated that it could be Nvidia, the tech giant that has surged tremendously over the past two years.

Regardless, this sudden multimillionaire says she has “no idea” what to do with her unexpected windfall. Ramsey offered some advice.

Diversify and withdraw in a tax-conscious way

Having much of your net worth tied up in a single stock is “scary and unwise,” says Ramsey. He recommends offloading some of the shares and investing her money elsewhere. However, given the magnitude of the fortune, selling even a fraction of the account would likely push Sarah into the top tax bracket.

According to the Internal Revenue Service, the highest possible capital gains tax rate for someone in the highest tax bracket is 20%, making that the maximum (federal) tax bill Sarah would face. Depending on where you live, you may also face state taxes on your capital gains. For Sarah, in Washington State, that’s another 7%.

He suggests speaking with an expert tax planner or investment adviser to minimize the tax bill. However, he insists on diversifying away from a single stock as soon as possible. “If I’m you, even if it costs me some money I would rather have the safety than I would the extra 20%,” Ramsey told her.

Consulting financial planners can help you optimize your portfolio so that your net worth isn’t dependent on just one stock.

You can find fiduciary financial advisors near you through Advisor.com. With no fees to get started, Advisor.com matches you with FINRA/SEC registered advisors best suited for your needs.

From there, you can book a free, no-obligation consultation with your preferred advisor.

They can help you build a diversified portfolio that meets your financial goals without taking on too much risk. Plus, working with a financial advisor might result in better returns. According to research from Vanguard, those who worked with fiduciary experts saw 3% higher net returns on average than those who didn’t.

Besides diversification, Sarah’s story offers another lesson for regular investors: the value of longer time horizons.

Time in the market is better than timing the market

“Time in the market beats timing the market," is a commonly repeated axiom in the financial industry. It’s based on evidence that most investors struggle to find the right stock, at the time, at the right price. Instead, a longer time horizon allows a basket of high-quality investments to compound over time and deliver returns.

Legendary investor Warren Buffett once said that timing the market was “both impossible and stupid.” Instead, in a 2015 interview with The Street, he said “the point is to buy something you like at a price you like, and then hold it for 20 years. You should not look at it day to day.”

Many might choose to take a page out of Sarah’s book and “buy and forget” high-quality stocks, preferably for several decades. But in case of a market downturn, they’ll risk losing millions.

Instead, investing regularly in low-cost index funds can help accumulate wealth over time.

According to the Official Data Foundation, if you invested $10,000 in the S&P 500 in 2004, it would be worth $71,640 by November 2024 – which shows the power of compound growth over a long-term investing horizon.

With Acorns, you can invest spare change from everyday purchases into a smart portfolio of ETFs.

Here’s how it works — when you buy a coffee for $4.25, Acorns will automatically round up the purchase to $5 and invest the 75-cent difference into a diversified portfolio.

Just $2.75 worth of daily round-ups total over $1,000 in a year — and that’s before it earns money in the market. The S&P 500 index has delivered an average annual return of over 10% since 1957. Assuming a similar rate of return over the next 20 years, your net balance would be around $57,275.

You can get a $20 bonus investment when you sign up with Acorns.

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.

Buying a dream retirement home is a fantasy for many people, but the big question is — can it become a reality?

Not all older Americans have enough savings to buy a home outright in retirement, and even those who do might prefer not to lock their money into an illiquid asset. Fortunately, retirees have options beyond traditional mortgages.

For personalized strategies, hiring a financial advisor can help retirees explore tailored solutions for securing their financial future.

Alternatively, crowdfunding platforms offer opportunities to invest in real estate without large upfront costs, while private equity ventures provide access to diversified investments. If you’re living in Florida in your mid-60s and are hoping to invest in property, here’s what you need to know.

Should you buy a house as a retiree?

While you absolutely can take out a mortgage as a retiree, think carefully about whether you should.

In fact, it may be worth consulting with a financial advisor to make this big decision, and for investing strategy – yet, finding one you can trust can be an endeavor in itself.

With Advisor.com, you can find the right financial professional to help you navigate big financial decisions. Their free matching service can help you find the right financial advisor who can help tailor a strategy so you can meet your personal goals.

The process is simple: Answer a few quick questions about you and your financial situation. When you’re matched with an advisor, you can set up a free, no-obligation consultation.

No discrimination on the basis of age

For retirees hoping to get a mortgage, there’s some good news. The Equal Credit Opportunity Act prevents lenders from discriminating based on age, so being 67 won’t affect your chances of getting a loan.

However, your debt-to-income (DTI) ratio and stable income are key factors. Most lenders prefer a DTI below 36%, though some may allow up to 43%. Additionally, your credit score and down payment matter. Also be ready to provide sufficient proof of your income – whether that’s from a combination of Social Security benefits, pension income, and investment income.

While some lenders accept as little as 3% down, aiming for 20% is recommended. This could help to keep your housing costs affordable, open up access to a broader choice of lenders and reduce the risk of ending up with negative equity in case you need to sell if something happens — such as your health taking a turn.

How you can invest in real estate and retirement all at once

Balancing real estate investments with retirement planning can be a smart way to build both wealth and security for the future.

So, if you want to get in on real estate value appreciation and passive income, there are several ways you can do so with minimal hassle and flexible entry points while avoiding a pricey mortgage.

Commercial real estate

Commercial real estate is an example of a reliable income stream for your retirement plans.

First National Realty Partners (FNRP) allows accredited individual investors to access grocery-anchored commercial real estate investments on properties with higher rents, longer lease terms, and professional tenants – for a minimum investment of $50,000.

FNRP has developed relationships with the nation’s largest essential-needs brands, including Kroger, Walmart and Whole Foods.

You can even invest through a Roth IRA — meaning, you could receive tax-free payments and distributions that won’t be added to your combined income calculation.

Crowdfunding

If you’ve ever wanted to invest in real estate without the headaches of owning physical property, platforms like Arrived make it easier than ever. Backed by world-class investors like Jeff Bezos, Arrived allows investors to buy stakes in rental homes and vacation rentals without having to worry about property maintenance or tenant management.

You can pick from a curated selection of homes and invest in your own share. While Arrived doesn’t offer a Roth IRA, it accepts investments from a checkbook IRA. You’ll also avoid any tax on rental income you earn, or appreciation on the investment.

Best of all, you can start investing in rental properties with just $100.

You can also invest in loans taken out to finance renovation and construction projects through the Arrived Private Credit Fund. The loans are secured by the underlying residential properties, making them relatively less riskier.

Arrived Private Credit Fund has historically delivered an 8.1% annualized dividend yield, making it ideal for you if you want to potentially set up a monthly income stream without taking on any more work.

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.

Many Americans are heavily reliant — even solely reliant — on their Social Security benefit to get by in retirement.

More than half of non-retired Americans (53%) expect to rely on their benefit to “pay their necessary expenses once they retire,” according to a recent survey from Bankrate. This includes 28% of Americans who expect to be “very reliant.” Of those already retired, 77% say they rely on Social Security for necessary expenses.

President Trump has promised to protect Social Security, but has also floated the idea of cutting taxes on Social Security benefits. This means baby boomers could get a bump in the short term, but experts predict this could speed up its insolvency.

So, no matter what happens (or doesn’t happen), it may be a good time to take control of the reins for your retirement.

Here are three money moves you can consider that will possibly provide more financial stability in retirement and reduce your reliance on Social Security.

1. Max out your retirement savings

Some financial experts, like founder of Financial Samurai Sam Dogen, say you should aim to max out your tax-advantaged retirement vehicles. “Hopefully, it’s something that becomes automatic, and you’re not going to touch it until you’re 59½,” he said to CNBC. This will help you set yourself up for a comfortable retirement.

However, as Dave Ramsey’s Ramsey Solutions points out, you should avoid doing this if you’re still getting out of debt, don’t have money saved for emergencies or are saving up for other financial goals.

Only 15% of private sector workers had access to a defined benefit retirement plan as of 2023, according to the U.S. Bureau of Labor Statistics. 67% have access to a defined contribution plan, such as a 401(k). For those who don’t have access to either, there are other options available to help you save.

For example, an individual retirement account (IRA) is a tax-advantaged savings account that can help you save for retirement. With a traditional IRA, contributions are tax-deductible; you pay taxes upon withdrawal – ideally when you’re in a lower tax bracket. With a Roth IRA, you pay the taxes upfront, but investment growth and withdrawals are tax-free once you reach age 59½. For 2025, the contribution limit is capped at $7,000 (or, if you’re 50+, at $8,000), and you have until Tax Day in April to top it up.

A gold IRA with Priority Gold combines the tax advantages of an IRA with the inflation-resistant properties of gold.

Priority Gold is a precious metals dealer offering IRAs and direct purchases of precious metals and coins. Gold has historically acted as a hedge against inflation, and many find it to be a more secure place to invest their retirement fund.

2. Capitalize on lower taxes — while you still can

In 2017, the Trump Administration passed the Tax Cuts and Jobs Act (TCJA). While this law is complex, it essentially provided for a number of tax breaks and deductions, many of which are scheduled to sunset in 2025. However, President Trump has said he plans to extend these tax cuts.

In the meantime, it may make sense for you to convert a tax-deferred retirement account into a Roth IRA if you expect the tax rate on the converted amount to be higher in the future.

“One reason to consider a Roth conversion this year or next: Without further action from Congress, tax rates are set to rise with the sunsetting of the 2017 Tax Cuts and Jobs Act at the end of 2025,” according to Fidelity. “Although the new administration and many Congressional Republicans support an extension of the current lower tax rates, record debt and deficits could complicate a full extension.” “In the meantime, a Roth conversion at current lower rates could reduce taxes on the conversion, and allow for qualified distributions in retirement that are tax-free.”

This should be done over time so you don’t end up getting bumped into a higher tax bracket. Whether this strategy is right for you depends on your financial situation, so it’s worth talking to a financial advisor about your options for capitalizing on lower taxes.

To get the advice you need on converting your investments, consider RothIRA.org. They provide personalized, expert advice for anyone with a portfolio of $100K or more.

Plus, it’s a simple, straightforward process: Simply enter your information, and then you will be automatically matched with 2 or 3 advisors who suit your needs. From there, you can schedule screening calls for free with no obligation to hire, and find the right fit for you.

All their advisors are also pre-screened and licensed with SEC/FINRA, which could offer peace of mind.

3. Contribute to an HSA

Even with Medicare, retired Americans can expect to spend a chunk of money on healthcare throughout their golden years. Medicare doesn’t cover premiums or deductibles and other out-of-pocket costs, nor does it cover long-term care.

For example, a 65-year-old retiring in 2024 can expect to spend an average of $165,000 in health care and medical expenses throughout retirement, according to Fidelity’s annual Retiree Health Care Cost Estimate. Unfortunately, Fidelity research found the average American estimates these costs will be about $75,000 — less than half the amount it calculated.

If you’re relying on Social Security to get by, unexpected medical costs could leave you stretched thin. One way to save for these additional costs in retirement is to enroll in an eligible High Deductible Health Plan (HDHP) and open a Health Savings Account (HSA).

An HSA has three big tax benefits: contributions are tax-deductible, the money can be spent tax-free for qualifying healthcare expenses and any investment growth in your account is tax-free.

You cannot contribute to your HSA once you enroll in Medicare at age 65, so you may want to max out contributions to your HSA until then.

“While your HSA can’t pay your premiums, it exists as an emergency fund for health care, and maxing it out can leave you better prepared for large out-of-pocket medical bills,” says Experian author Emily Starbuck Gerson. “There is a risk of saving more than you need, and later wanting that money for other purposes. You can’t withdraw that money penalty-free until after age 65, and even then, you’ll still owe taxes on non-qualified expenses.”

Many people combine the benefits of an HSA with a traditional health insurance policy to manage their health care expenses.

But searching through numerous websites to find the most affordable health insurance can be overwhelming.

With U65 Health Insurance, however, you can quickly compare rates from various providers and get the cheapest quote in less than five minutes.

Finding an affordable health insurance policy through U65 Health Insurance is easy, fast and free. They cover any American under the age of 65, including those who might have pre-existing health conditions.

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