Key Points Workers ages 50 and older can make catch-up contributions in a 401(k). Starting this year, higher earners will be barred from making pre-tax catch-ups. It's important to plan for that, since it could impact your taxes. The $23,760 Social Security bonus most retirees completely overlook › If you're going to save for retirement, it generally makes sense to do so in a tax-advantaged account. That way, you can shave down your IRS bill in some shape or form in the course of building up a ne ...

With less than half of Americans on track for retirement, according to the latest Vanguard Retirement Outlook, many people feel the need to catch up. Much of the advice online can feel too generic, and manually scouring sources is time-consuming. That’s where ChatGPT comes in. The artificial intelligence tool can quickly scan the internet for recommendations geared to specific ages, income levels and more, giving you a better idea of what might work for you. Here’s what it said. The Classic Catch-Up Con ...

Key Points RMDs can be a problem if you don't have a specific plan for that money. You don't have to spend your RMD, so you can invest it to better your finances later on. You can also give the money to charity or spend it on something special. The $23,760 Social Security bonus most retirees completely overlook › There's a reason so many people opt to save for retirement in an IRA or 401(k) plan, as opposed to a taxable brokerage account. Taxable brokerage accounts don't come with restrictions. ...

Core Concept - The "wealth ladder" is a structured framework designed to help individuals achieve financial freedom by progressing through six distinct levels of net worth, each with specific financial goals and strategies [1][2]. Level Summaries - **Level 1: Escape the Paycheck-to-Paycheck Trap** Individuals at this level have a net worth under $10,000. The focus should be on managing essential costs, eliminating nonessential spending, and avoiding high-interest debt [3]. - **Level 2: Gain Grocery Freedom** At this level, with a net worth between $10,000 and $100,000, individuals can manage everyday expenses like groceries without financial strain. The priority is to create a values-based budget, pay down high-interest debt, and establish an emergency fund with contributions to a high-yield savings account [4]. - **Level 3: Enjoy Restaurant Dining Without Guilt** Individuals with a net worth between $100,000 and $1 million can dine out without financial anxiety. This stage is an opportunity to start investing wisely, expand retirement savings, and avoid lifestyle inflation by aligning spending with personal values and goals [5]. - **Level 4: Travel on Your Own Terms** Achieved by those with a net worth between $1 million and $10 million, this level allows for stress-free travel. Key strategies include optimizing income, maximizing tax-advantaged accounts, diversifying investments, and maintaining a splurge fund for discretionary expenses [6]. - **Level 5: Buy Your Dream Home Without Sacrifice** At this level, with a net worth between $10 million and $100 million, individuals can purchase their ideal home without compromising other financial goals. The definition of an "ideal" home may vary based on geographic location [7].

Investment Strategy - Save 20%+ of income [2] - Maximize tax-advantaged accounts [2] - Invest in low-risk investments [3] - Ignore market fluctuations [4] - Maintain investments during market volatility [5] - Continuous investment is key [6] Financial Planning - The path to wealth accumulation is through consistent saving and investing [1][2]

Wealth Building Strategies - Resisting lifestyle inflation is a key wealth-building move [1] - Increasing savings rate with each salary increase is crucial [1] - Utilizing tax-advantaged accounts like Roth, 401(k), and HSA is beneficial [1] - Staying invested during market downturns is important [1] - Minimizing portfolio monitoring (99% of the time) can be advantageous [1]

Schwab Center for Financial Research managing director of financial planning, Rob Williams, joins Mind Your Money with Brad Smith to share some tax-efficient strategies to maximize your retirement savings. To watch more expert insights and analysis on the latest market action, check out more Mind Your Money here: https://finance.yahoo.com/videos/series/mind-your-money/ #youtube #stocks #retirement About Yahoo Finance: Yahoo Finance provides free stock ticker data, up-to-date news, portfolio management resou ...

Core Insights - The end of the year presents an opportunity for individuals to enhance their financial situation through strategic money moves aimed at reducing tax liabilities and increasing savings for a more secure financial future in 2026 [1][2] Financial Strategies - **Budget Checkup**: It is essential to review and adjust the budget based on actual spending versus expected spending to identify areas for potential savings or income increases [3] - **Emergency Fund**: Maintaining an emergency fund covering 3 to 6 months of living expenses is crucial to avoid high-interest debt during unforeseen circumstances [4][5] - **Utilizing FSA Funds**: Employees should use their Flexible Spending Account (FSA) funds before the year-end to avoid losing unspent contributions, which are capped at $3,300 annually [6][7] - **Subscription Audit**: Consumers are encouraged to review and cancel unused subscriptions, as the average monthly spending on subscriptions can exceed $200, leading to significant annual costs [8] - **Health Appointments**: Making medical appointments before the insurance deductible resets on January 1 can lead to cost savings if the deductible has already been met [9][10] - **Maximizing Tax-Advantaged Accounts**: Contributions to accounts like 401(k)s and IRAs can lower taxable income, and individuals should aim to maximize contributions before the tax filing deadline [11][12] - **Re-evaluating Taxable Investment Accounts**: Annual tasks such as rebalancing and tax-loss harvesting in taxable brokerage accounts can optimize investment performance [13] - **Paying Down High-Interest Debt**: Reducing high-interest debt, even by small amounts, can improve financial health and reduce interest payments over time [14] - **Refinancing Opportunities**: With recent interest rate cuts, individuals should consider refinancing existing loans to potentially lower monthly payments and overall interest costs [16][17]