Key Points Surprisingly, folks well into their retirement years appear to have preserved a great deal of their initial retirement nest egg. Remember, however, that the averages are skewed higher by a small handful of very successful savers. Worry less about where others are and more about making the most of the time and money you have. The $23,760 Social Security bonus most retirees completely overlook › You've probably got a good idea of how much the average person saves for retirement as they ...

Key Points The start of a new year is a great time to get your finances in order. Get onto a budget to track your spending and make your goals easier to meet. Boost retirement plan contributions, but don't neglect healthcare and emergency savings. The $23,760 Social Security bonus most retirees completely overlook › There's something mentally refreshing about kicking off a new year. It's not like you're one person on Dec. 31 and a different one on Jan. 1. But the thought of a new beginning could ...

Review your budget regularly: Come back to your budget at regular periods to make sure that you're still on track. If needed, you may need to make slight adjustments to keep up with inflation.Make smarter choices: Consider finding ways to cut back. This may be canceling unused subscriptions and memberships (like that gym you no longer visit), switching service providers, or downsizing, if possible.Prioritize your needs over your wants: Needs are essential expenses like housing, groceries, transportation, ut ...

Core Insights - Health Savings Accounts (HSAs) provide significant tax benefits that can enhance retirement savings, making them a valuable financial tool for individuals planning for retirement [2][3]. Tax Benefits of HSAs - HSAs offer a triple-tax advantage: contributions are tax-deductible, earnings grow tax-free, and withdrawals for qualifying medical expenses are tax-free [4][6]. - Contributions for 2025 are capped at $8,550 for family coverage and $4,300 for self-coverage, with increases for 2026 to $8,750 and $4,400 respectively. Individuals aged 55 and older can contribute an additional $1,000 [5]. Comparison with Other Retirement Accounts - After age 65, HSAs can provide greater tax benefits compared to 401(k)s and IRAs, particularly for those looking to supplement retirement savings [7].

Core Points - Cash gifts during holidays are often viewed negatively, perceived as impersonal or lazy, but they can be beneficial if used wisely [1][2] - Recipients are encouraged to avoid impulse spending and consider more productive uses for cash gifts, such as saving or investing [3][4] Investment Opportunities - Cash gifts can be utilized to explore investment options, especially for those who have been hesitant to invest due to lack of experience or disposable income [5] - Fractional share trading is highlighted as a viable option, allowing individuals to invest smaller amounts in high-value stocks by purchasing portions of shares [6]

Core Insights - The Hong Kong Mandatory Provident Fund (MPF) market experienced a downturn in November 2025, with a return of -1.3%, bringing the GUM MPF Composite Index to 281.3 [1] - Despite the short-term volatility, the MPF has accumulated a year-to-date return of 14.7%, indicating overall robust performance [1] - The average loss per member in the first half of November was HKD 4,042, while the cumulative return year-to-date adjusted to HKD 40,155 [1] Market Performance - The recent adjustment in the MPF market is attributed to global stock market trends, changes in interest rate expectations, and investor sentiment regarding economic outlook [1] - The overall annual performance of the MPF remains positive, benefiting from strong gains in major global markets and improved performance in certain asset classes due to favorable policy environments [1] Investment Strategy - GUM advises MPF members to avoid frequent changes to their investment portfolios due to short-term fluctuations, emphasizing the MPF as a long-term retirement savings tool [1] - Members are encouraged to regularly review their asset allocation strategies based on their risk tolerance and retirement planning goals to balance short-term market volatility with long-term growth potential [1] - Diversifying investments across different regions and asset classes is recommended to enhance portfolio stability and mitigate the impact of changes in any single market [1]

Group 1 - Turning 50 in 2026 allows individuals to make catch-up contributions to retirement accounts, enhancing their savings potential [4][5][6] - Contribution limits for 401(k) plans will increase, allowing those turning 50 to contribute up to $32,500, including catch-up contributions [5] - IRA contribution limits will also rise, enabling individuals to contribute up to $8,600 if they turn 50 in 2026 [6] Group 2 - Individuals should consider long-term care insurance as Medicare does not cover long-term care expenses [7][9] - The potential costs of long-term care can be significant, making it essential to prepare financially for these expenses [9]

Core Insights - The average Social Security retirement benefit is slightly over $2,000 per month, equating to about $24,000 annually, which may not be sufficient for many retirees [1][2] - There is a potential financial shortfall in the Social Security program, which could lead to reduced benefits in the future [2] - Consistent funding of retirement accounts is emphasized as crucial for financial security in retirement [2] IRA Contribution Limits - In 2026, IRA contribution limits will increase to $7,500 for individuals under 50 years old, and for those aged 50 and older, the total contribution limit will rise to $8,600 due to a $1,100 catch-up contribution [4][5] - The catch-up contribution can be utilized by anyone aged 50 or older, regardless of their current savings status [5] - These contribution limits apply to both traditional IRAs and Roth IRAs, with Roth IRAs offering tax-free gains and withdrawals [6] Importance of Maxing Out Contributions - Maxing out an IRA is more achievable compared to 401(k) plans, which have higher contribution limits, and can significantly benefit retirement savings [8]

Core Insights - The IRS allows a maximum contribution of $7,500 to IRAs in 2026, with an additional $1,100 catch-up contribution for individuals aged 50 and older [2] - Two investment scenarios are analyzed: investing entirely in an S&P 500 index fund or a conservative 60/40 portfolio of equities and fixed-income assets [2][5] Investment Scenarios - Contributing $7,500 annually to an S&P 500 index fund from age 27 to 67 could result in approximately $1.38 million, assuming a historical inflation-adjusted annual return of 6.69% [3][4] - A conservative 60/40 portfolio would yield a significantly lower amount, just over $882,000, with an average annual return of 4.89% from 1901 to 2022 [3][6] Implications for Investors - Investing in an S&P 500 index fund offers the potential for higher returns compared to a conservative 60/40 portfolio, but it also comes with greater volatility [5] - The 60/40 portfolio, while more stable, results in a smaller retirement nest egg, highlighting the trade-off between risk and return [6]

Key Points The contribution limits for 401(k) plans are increasing in 2026. The limit for workers under 50 is rising by $1,000, and catch-up contributions are increasing as well. If you can't max out your 401(k), don't sweat it, but make sure to save something. The $23,760 Social Security bonus most retirees completely overlook › The reason it's important to save for retirement is simple. Without savings, you might struggle to cover your living expenses once your career comes to an end. If you e ...