YuriArcursPeopleimages / Envato Homeowners’ association fees and property taxes can add up, and homebuyers should consider just how much they can impact the overall cost of a home. As of 2024, about 3 million households in the U.S. paid more than $500 a month in HOA or condo fees. (1) In some cases, increases in HOA fees and property taxes could even make a home that was once within your budget suddenly unaffordable. Imagine the case of Mark, a father of two who has recently gone through a divorce. He ...

Core Insights - The article emphasizes the importance of planning for various expenses that can significantly impact retirement savings, highlighting the need for a comprehensive investment strategy as individuals approach retirement age [2] Group 1: Healthcare - Out-of-pocket healthcare expenses can be substantial even with Medicare, with many financial experts suggesting that individuals need at least $1 million saved for a comfortable retirement due to high medical costs [3] - It is recommended to have a health savings account (HSA) or similar fund for medical expenses, along with regular reviews of health insurance and consideration of supplemental insurance to mitigate costs [4] Group 2: Homeownership - Homeownership can lead to significant expenses in retirement, particularly as homes age and require costly repairs such as roof replacements or plumbing fixes [5] - Setting aside a home maintenance fund and conducting regular home inspections are advised to anticipate and manage these costs effectively [6] Group 3: Inflation - Inflation poses a risk to future savings, necessitating larger withdrawals to maintain living standards, especially if the investment portfolio relies heavily on fixed income strategies that do not keep pace with inflation [7] - To combat inflation, it is suggested to invest a portion of the portfolio in stocks that historically yield better returns than bonds and cash, while maintaining a diversified portfolio for long-term benefits [7]