An essential document holds the key to making sure your assets go exactly where you want when you pass away. And it's not a will. I'm Sharon Eper, the senior personal finance correspondent at CNBC and the author of the Money 101 newsletter.Actor Chadwick Boseman, singer Liam Payne, and the Queen of Soul, Artha Franklin, are among famous celebrities who died without a will. In fact, only 24% of Americans have a will, according to a 2025 survey by caring. com.But that legal document may not be most important ...

There are more retirement plan options for a member of the U.S. Congress than for a U.S. citizen. https://t.co/OqUsn9oWpo ...

Core Viewpoint - Dave Ramsey emphasizes the importance of not relying on Social Security as a primary source of retirement income, advocating for a proactive and well-structured retirement plan [1][2]. Group 1: Retirement Planning Steps - Clear goals are essential for a successful retirement plan, with individuals encouraged to visualize their retirement dreams to maintain motivation [3][4]. - A significant portion of the workforce, approximately 48%, has not calculated how much they need to save for retirement, indicating a need for better financial planning tools [4][5]. - Ramsey recommends saving and investing 15% of income for retirement, suggesting that this should be a consistent effort throughout one's working life [5][6]. Group 2: Financial Management Before Investing - Individuals should prioritize becoming debt-free and establishing an emergency fund covering 3-6 months of expenses before starting to invest [6].

Core Insights - Artificial intelligence (AI) is increasingly integrated into daily life, enhancing various tasks from communication to retirement planning [1][2] Group 1: AI in Retirement Planning - AI can assist in establishing personalized retirement plans, allowing users to input specific requirements and receive tailored advice [4] - A significant portion of older workers (24%) are uncertain about AI's role in the workplace, indicating a need for education and training on AI technologies [3] - AI tools can help retirees manage and summarize complex documents related to retirement, such as health directives and tax filings, saving time and reducing costs [5] Group 2: AI for Budgeting and Financial Management - AI-powered budgeting applications, like Rocket Money, can aid retirees in creating and managing budgets, which is crucial for financial stability during retirement [8] - With many retirees facing reduced income, effective budgeting is essential to meet financial goals [8] Group 3: AI Usage Statistics - Approximately 56% of individuals in the U.S. utilize AI, with 12% using it on a daily basis, highlighting the growing acceptance of AI in everyday tasks [6]

In your 70s, it's time to put your retirement plan into action. Here are some tips on how to maximize your success. https://t.co/y2u1HNVOXR ...

Core Insights - Suze Orman emphasizes the importance of understanding potential challenges as retirement approaches, highlighting three key issues that could impact retirement plans Group 1: Continuing to Work for Pay - The Employee Benefit Research Institute's survey indicates that 75% of working individuals expect to earn money during retirement, but only 30% of retirees are actually doing so [2][3] - The disparity may arise from age differences, as those still working are likely to be younger retirees compared to those who are not working [3] - Economic factors also play a role, particularly the impact of earning income on Social Security benefits, where exceeding a certain income threshold can significantly reduce benefits [4][5] Group 2: Social Security Considerations - If retirees begin collecting Social Security before reaching full retirement age, they risk losing a portion of their benefits if their earnings exceed $23,400 [4][5] - An example illustrates that a retiree earning $50,000 while collecting Social Security could see their monthly benefit reduced from $2,000 to approximately $891.67 due to exceeding the income limit [5] - Conversely, a retiree earning below the threshold can retain their full Social Security benefits, as demonstrated by another example [6] Group 3: Planning Implications - The key takeaways suggest that individuals may overestimate their ability to work for pay in retirement, necessitating careful planning [7] - It is advisable for those intending to work post-retirement to delay taking Social Security benefits until reaching full retirement age to avoid reductions [7]

Core Insights - The article emphasizes the importance of effectively utilizing Social Security checks as they only replace about 40% of pre-retirement income on average [1] Group 1: Essential Expenses - Social Security should be viewed as the foundation of retirement income, primarily used to cover non-negotiable costs such as housing, groceries, and healthcare [3] - Essential expenses like utilities, food, and Medicare premiums should be prioritized with Social Security income, while discretionary spending should come from savings or investment accounts [4] - Covering essential expenses first ensures that Social Security income provides steady support before drawing on other savings [5] Group 2: Coordination with Other Income Sources - Social Security is one component of a comprehensive retirement plan, which should also include pensions, 401(k)s, IRAs, and brokerage accounts [5] - It is recommended to coordinate withdrawals and investments to smooth cash flow and minimize taxes [5] - Consulting with a CPA can help map out projected income and required minimum distributions, aiding in the management of tax brackets over time [6] Group 3: Emergency Cash Cushion - It is advisable to maintain a cash cushion of six to twelve months' worth of essential expenses in a highly liquid account to handle unexpected costs [7] - This buffer allows individuals to manage surprises without needing to sell investments during market downturns [7]

Retirement Plan Overview - Qualified retirement plans adhere to government guidelines safeguarding employee savings [1] - These plans typically offer tax advantages to both employees and employers [1]

Core Insights - The article emphasizes the importance of establishing a solid retirement plan to achieve personal dreams and financial security in retirement [1] Group 1: Retirement Accounts - The 401(k) or 403(b) is highlighted as a foundational element of a solid retirement plan, with many individuals neglecting to actively manage their contributions [3][4] - Approximately 25% of savers are not contributing enough to qualify for maximum employer matching contributions, which can lead to significant financial losses [4] - The Roth 401(k) is introduced as a beneficial option that combines features of traditional 401(k) and Roth IRA, allowing for after-tax contributions and tax-free withdrawals in retirement [5][6] Group 2: Tax Benefits - The Roth 401(k) offers long-term tax benefits, as contributions are made with after-tax dollars, and withdrawals during retirement are completely tax-free [7]

U.S. Retirement System Challenges - U.S Social Security is facing insolvency by 2033, potentially leading to a 20% benefit cut if the trust fund runs short [1] - The U S retirement system received a C+ rating from the Mercer CFA Institute Global Pension Index in 2024, indicating a solid system with significant risks [1][2] - 401(k) system may not be effective as funds are often withdrawn before retirement for various needs [3] - By 2050, the world could face a $400 trillion shortfall in retirement savings, with the U S being a major contributor to this problem [29] - In 2019, the estimated loss of savings due to 401(k) cash outs ranged from $60 billion to $105 billion [19] Global Comparison and Solutions - Countries are raising retirement ages and requiring mandatory contributions to address issues like longer lifespans and fewer workers paying into the system [4] - A grade retirement systems often feature a net replacement rate of at least 65% for median income earners, private pension coverage of at least 80% of the working-age population, and pension contributions of at least 12% of wages [5][6] - The Netherlands, with its mandatory contributions, serves as a model, transitioning from defined benefit to defined contribution plans [7][9][10] - Australia's mandatory defined contribution plan, covering everyone, is highlighted as a successful approach [11] U.S. Strengths and Weaknesses - U S retirement plan assets are 250% (two and a half times) the median of OECD countries, indicating high savings rates [14] - Despite high savings, the median retirement savings for baby boomers is zero, highlighting inequality [15] - While 70% of U S workers had access to a retirement plan as of March 2023, only 53% participated, indicating a coverage issue [17] - The U S system's voluntary nature and allowance of pre-retirement withdrawals are criticized, but the high savings rates and retirement incomes suggest some success [10][13][34]