Core Insights - The article discusses the choice between owning a $1 million home and having $1 million in a 401(k) for retirement, highlighting the advantages of liquidity and flexibility offered by a 401(k) compared to the stability of homeownership [1] 401(k) Overview - A 401(k) is a tax-advantaged retirement account that provides tax deductions on contributions, with withdrawals taxed at ordinary income rates [1] - Investment options typically include index funds and target-date funds, allowing for flexibility in withdrawals, although penalties apply before age 59½ [1] - Financial planners favor the 401(k) for its liquidity and control over investments, emphasizing the importance of access to funds in retirement [1] Homeownership Overview - Owning a home provides a place to live without monthly rent or mortgage payments, but incurs ongoing costs such as property taxes and maintenance [1] - From Q1 2020 to Q3 2025, home prices increased nearly 55% nationally, though appreciation varies by region and does not account for homeownership costs [1] - Financial planners express concerns about the ongoing expenses associated with homeownership, which can outweigh the benefits of having a physical asset [1] Decision Factors - The choice between a 401(k) and a home depends on individual retirement needs, with a 401(k) offering low fees and easy access to funds, while homeownership may appeal to those wanting to avoid rental payments or pass down property to heirs [1] - Homeownership lacks liquidity but can provide equity access through options like reverse mortgages [1]

Social Security benefits go a long way for millions of retirees, lifting around 16 million adults age 65 and older out of poverty, according to 2023 data from the Center on Budget and Policy Priorities. The age at which you begin taking benefits will have an enormous impact on the size of your checks, which can make or break retirement for some older adults. Here's exactly what the average retiree collects at various ages from 62 to 70. Will AI create the world's first trillionaire? Our team just release ...

Core Insights - Economic uncertainty during President Trump's second term is leading baby boomers to make financial decisions that could jeopardize their retirement [1] Group 1: Financial Missteps - Many baby boomers are clinging to outdated investment strategies, such as relying heavily on cash, bonds, or dividends without adjusting for market volatility, which could erode their purchasing power due to inflation [2] - Overreacting to market volatility, particularly in response to Trump's tariffs, is causing some boomers to shift towards conservative investments, risking long-term growth due to panic-driven decisions [3][4] - A significant portion of older adults are delaying retirement due to economic uncertainty, with only 10% currently retired, as rising costs of living, housing prices, and healthcare are forcing them to reconsider their retirement plans [4][5]

For many Americans, Social Security serves as a financial lifeline during retirement. And whether you're single or married, those benefits may provide a large chunk of your income later in life. There are certain Social Security rules that married couples in particular need to be aware of. Here are three that may help you better plan for your retirement. Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now, when you join Stock Advisor.  ...

Retirement has changed in ways that many near-retirees don’t fully grasp until they’re already in it. Longer lifespans, higher costs and the disappearance of pensions have reshaped what it takes to retire securely. Financial experts say the biggest risk is relying on outdated assumptions that no longer reflect economic reality. Below are six common retirement assumptions that worked for previous generations but no longer apply today — and how experts suggest reframing them. 1. Retirement Only Needs To L ...

People use artificial intelligence (AI) for many things: meal planning, budgeting and interior design. But can you use a platform like ChatGPT for tasks that normally require a professional, like financial planning? I chose a hypothetical scenario and asked ChatGPT to construct a retirement plan that would allow a retiree to live on $100,000 a year. I assumed an annual income of $125,000 for a 40-year-old who wants to retire in a fully paid-off home in Tennessee at age 65. After setting the parameters (and ...

Advisor.com connects you with participating unaffiliated third-party registered investment advisors (RIAs) through its matching tool or provides personalized investment advice via its in-house wealth management service, Advisor Wealth Management.With the help of a qualified professional, like those found through Advisor.com , you can easily plan when, where, and how you want to retire.Research from T. Rowe Price found that individuals with a formal financial plan had two to four times more wealth when enter ...

More workers are adding side hustles in their retirement planning for income and to maintain a purpose in life. These steps can help get them off the ground. https://t.co/dZPz4GCZ2X (Photo: Getty Images) https://t.co/cOTEP8BXrv ...

Hall said, "Social Security has a cost-of-living adjustment [that] keeps up with inflation. Our investments will also adjust over time if we keep some growth in the mix. The real lever is spending. When prices bite, pull back on nonessentials. Maybe fewer big trips for a season. Maybe different choices than what you have always done. Keep core bills matched to steady income and let the portfolio work."We don’t marry a 3% or 4% rule [for the percentage of your retirement funds to withdraw each year ]. We set ...

Quick Read Medical care costs rose 2.85% year-over-year versus 2.16% general inflation. Healthcare spending grew 6.9% while consumer spending rose 4.6%. Original Medicare has no out-of-pocket maximum. Medicare Advantage plans cap catastrophic costs but impose network and prior authorization restrictions. Personal savings rate fell from 6.2% in early 2024 to 4.2% by mid-2025. A recent study identified one single habit that doubled Americans’ retirement savings and moved retirement from dream, to rea ...