One of the golden rules of personal finance is to contribute enough to an employer-based retirement fund to secure the full company match, but what happens to your paycheck if you max out your 401(k)? To get the answer, it’s essential not to think of 401(k) contributions as saving for retirement, but instead to view them as the purchase of a very big tax cut. A Six-Figure Earner Maxes Out In 2026, the IRS allows a maximum contribution of $24,500 to traditional 401(k) plans. Since Bureau of Labor Statis ...

Core Insights - The discussion highlights a significant disconnect in financial management and marital dynamics between a couple, emphasizing that their financial issues stem from deeper relational problems rather than mere monetary concerns [3][6]. Financial Situation - The nurse earns approximately $115,000 annually and has developed a real estate portfolio with two rental properties valued at around $200,000, with debts of $12,000 and $62,000 respectively [1][2]. - The husband earns about $45,000 and they have a mortgage of $180,000 on a home worth roughly $400,000, which the nurse wishes to pay off before retirement, while the husband does not share this goal [2]. Relationship Dynamics - The couple maintains separate accounts for personal finances but shares a household account for bills and groceries, indicating a lack of financial unity [3]. - The nurse's approach to investments and retirement savings is independent, with $175,000 in her 401(k), while her husband has no retirement savings, highlighting a disparity in financial planning [3][4]. Expert Commentary - Personal finance expert Dave Ramsey noted the nurse's language around her finances, suggesting a lack of partnership in their marriage, with comments indicating that their relationship resembles that of roommates rather than a married couple [4][5]. - Co-host John Delony emphasized the need for the couple to either accept their current situation or seek counseling to foster a more engaged partnership [6].

Core Insights - The article discusses the financial struggles of a young dentist, Lawrence, who graduated with significant student debt and took on additional financial burdens through a mortgage and car loans [1][2]. Group 1: Financial Situation - Lawrence graduated with approximately $309,000 in student loans and has a high income of about $260,000 per year [1][3]. - He also has $100,000 in savings, but still owes $29,000 on a Lexus GX and $24,000 on a leased car [3][4]. Group 2: Behavioral Insights - Personal finance expert Dave Ramsey notes that many young professionals, like Lawrence, often make expensive purchases immediately after graduation due to a delayed sense of gratification during their education [2][3]. - Ramsey emphasizes the importance of returning to the discipline that helped Lawrence succeed in dental school to manage his finances effectively [4][5]. Group 3: Financial Advice - Ramsey advises Lawrence to adopt a "scorched-earth lifestyle," meaning he should stop all unnecessary spending and focus solely on paying off his debts [4]. - He suggests that if Lawrence remains disciplined, he could eliminate his debt within approximately three years [4][5].

At some point, almost everyone gets a wake-up call. It could be job loss, the death of a loved one or the realization that the life you thought you were building isn’t the one you’re standing in anymore. That moment came abruptly for Steph Wagner, National Director of Women & Wealth at Northern Trust and author of Fly! A Woman’s Guide to Financial Freedom and Building a Life You Love (1). In an exclusive interview with Moneywise, Wagner shared her wake-up call. It was when she learned that her husband, ...

Core Insights - Only about 10.5% of Americans aged 18-39 have a net worth of $500,000 or more, with the median net worth for this age group being approximately $178,000 [1][4]. Wealth Composition - Among those who have reached the $500,000 mark, home equity is a significant contributor, with 44.3% of Americans aged 18-39 owning a home and a median home equity of $100,000 [2]. - Approximately 53% of this age group have retirement accounts, with a median balance of $23,600, while the typical 401(k) balance for individuals aged 35-44 is around $40,000 [2]. - Stocks held outside retirement accounts are also a factor, with 22.3% of individuals aged 18-39 reporting stock holdings, having a median value of $5,000 [3]. Financial Challenges - The financial landscape for individuals in their 20s and 30s is characterized by significant expenses, including student loans, housing costs, and child-rearing expenses, which can hinder wealth accumulation [5][6]. - The median American aged 35-44 has saved only 4% of their retirement target in defined-contribution accounts, but this figure increases to 41% when including home equity and other assets [5].

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Core Insights - The article discusses the financial dilemma faced by an individual named Lily, who is burdened with a $150,000 Parent PLUS loan repayment while her parents engage in luxury spending, raising questions about moral versus legal obligations [2][6][10]. Financial Situation Overview - Lily's financial situation includes a $150,000 debt from Parent PLUS loans, which are legally in her parents' names, and a minimal emergency savings of $1,000 [7][12]. - Her parents recently financed a $60,000 luxury vehicle, highlighting a stark contrast between their discretionary spending and Lily's financial struggles [4][6]. Moral and Ethical Considerations - The article emphasizes the moral obligation Lily feels to repay the loans despite having no legal requirement to do so, as the loans were taken out for her education [10][11]. - The discussion includes the ethical implications of the agreement made between Lily and her parents, suggesting that walking away from the debt could damage their relationship and set a precedent for renegotiating promises [13]. Interest Rates and Financial Impact - Current Parent PLUS loans carry a fixed interest rate of 8.94% for the 2025-2026 academic year, making the $150,000 debt a significant financial burden that compounds quickly [12].

Core Insights - A dilemma faced by many Americans involves the decision to pay off credit card debt using funds from a 401(k) account, which can have significant long-term financial implications [1] Group 1: Financial Implications of 401(k) Withdrawals - 401(k) accounts are protected from bankruptcy proceedings, making them a safer form of savings compared to other assets [3] - The IRS imposes penalties for early withdrawals from a 401(k), including a 10% penalty and taxation that can total 30% to 40% depending on the individual's tax bracket and state [4][5] - To access $16,000 for debt repayment, an individual would need to withdraw approximately $25,500, resulting in a loss of about $9,500 due to taxes and penalties [5][7] Group 2: Long-term Financial Growth - Withdrawing from a 401(k) not only incurs immediate costs but also halts the potential growth of the investment, which could amount to nearly $200,000 by retirement [6] - For most individuals, the financial cost of raiding a 401(k) to pay off credit card debt outweighs the benefits of quick debt repayment [6]

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GameStop shares famously soared 1600% in January 2021 before plunging over 80% in a week. That taught many young investors a valuable lesson about risk and reward. Victor Rebilla was in high school when he put an initial $50 investment into the meme stock craze.He rode the wave up and got out before it bottomed out. I think having that hands-on experience was super valuable and I don't really think that's necessarily something that you can really be taught. >> Since the meme stock mania, an increasing numbe ...