When building your savings, a high-yield savings account can help your savings grow by earning more interest than a traditional savings account.The SCF also breaks down average account balances by household type. Couples with no children have the highest median balance, while single parents have the lowest. Again, the average balance is skewed by outliers, so the median balance may be more representative of how much households have saved.While the median bank account balance is $8,000, according to the late ...

Core Insights - The article discusses the financial challenges faced by individuals nearing retirement, particularly focusing on Robin, a 73-year-old with no retirement savings and outstanding student loan debt, who is considering buying a home in the next three years [5][2]. Group 1: Financial Situation and Challenges - A 2025 study from Vanguard indicates that 60% of baby boomers aged 61 to 65 are not on track to maintain their current standard of living in retirement, with 56% of those aged 60 to 64 having no retirement savings [2][4]. - Robin's financial situation includes over $12,000 in student loan debt and no 401(k), highlighting the struggles of many older Americans in similar circumstances [5][2]. Group 2: Suggested Financial Strategies - Dave Ramsey advises Robin to live frugally, suggesting she "live on beans and rice," which metaphorically means cutting back on unnecessary expenses [1][2]. - To improve her financial situation, Ramsey recommends cashing in on a universal life insurance policy, paying down her student loan faster, and maximizing her down payment savings [3][18]. - The median sale price of a house in Arizona is $425,833, requiring Robin to save approximately $85,166 for a typical 20% down payment, which could take until she is 87 years old if saving $500 per month without interest [4]. Group 3: Tools and Resources for Financial Management - The article mentions tools like Rocket Money for budgeting, which can help users track spending and identify unnecessary costs, ultimately redirecting savings into retirement funds [8][9]. - AARP is highlighted as a resource for older Americans, offering discounts and guides to help manage finances and make informed decisions regarding Social Security and Medicare [11][12][13]. Group 4: Debt Management and Investment Strategies - The article emphasizes the importance of getting out of debt quickly, with methods like the avalanche and snowball techniques for debt repayment [14][15][16]. - It suggests that once debts are cleared, individuals should consider aggressive investment strategies to maximize returns, even if the savings horizon is short [24][25]. - Tools like Acorns can facilitate small, consistent investments by rounding up purchases to the nearest dollar, contributing to a smart investment portfolio [27][29]. Group 5: Savings and High-Yield Accounts - The Wealthfront Cash Account is presented as a viable option for growing retirement funds, offering a base variable APY of 3.30% and a promotional boost for new clients, making it significantly higher than the national deposit savings rate [32][33].

Core Insights - Roth retirement accounts offer tax-free withdrawals and do not impose required minimum distributions, but they may not be suitable for everyone [1][3] Group 1: Myths about Roth Accounts - Myth 1: Roth accounts are beneficial for all retirees; in reality, they may not be advantageous for those expecting a lower tax bracket in retirement [3] - Myth 2: Withdrawals from Roth accounts can be made without penalties at any time; only principal contributions can be withdrawn penalty-free, not gains [4][5] - Myth 3: It is best to have all retirement savings in a Roth account; having taxable savings can provide benefits, such as tax breaks on charitable donations and potential future tax credits [6][8]

Core Insights - The article discusses the retirement strategy of Tom Martinez, highlighting the importance of tax-efficient withdrawal strategies from retirement accounts [2][4]. Tax Strategy - The taxable brokerage account offers a capital gains tax rate of 15% on gains, which is only applied to the profit rather than the total value of the account [3]. - In contrast, withdrawals from an IRA are taxed as ordinary income at a rate of 22%, leading to a higher tax burden when accessing funds [4][8]. Required Minimum Distributions (RMDs) - At age 73, individuals must begin taking RMDs from their IRAs, which can lead to forced withdrawals that increase taxable income and potentially trigger Medicare surcharges [5][6]. - Reducing the IRA balance by withdrawing from the taxable account first can lower future RMDs, thus avoiding higher tax brackets and IRMAA surcharges [6][8]. Flexibility and Tax Benefits - The taxable account allows for more flexibility in accessing funds without penalties, especially in emergencies, unlike IRA withdrawals which can incur penalties if taken before age 59½ [7]. - Selling specific lots in a taxable account can facilitate tax-loss harvesting, providing additional tax benefits that are not available with IRA withdrawals [7][8]. Inheritance Considerations - Heirs of taxable accounts benefit from a stepped-up basis, meaning they pay no capital gains tax on inherited assets, while IRA beneficiaries face ordinary income tax on withdrawals [8].

Group 1 - The average 401(k) balance for individuals in their 50s is $635,320, but the median balance is significantly lower at $253,454, indicating that many individuals have much less saved for retirement than the average suggests [1][3] - In 2026, individuals aged 50 and above can contribute a total of $32,500 to their 401(k) plans, including a catch-up contribution of $8,000, with those aged 60 to 63 able to contribute up to $11,250 in catch-up contributions [2] - The average U.S. household spends over $78,000 annually, meaning a 401(k) balance of $253,454 could be depleted in just a few years without additional income sources [4] Group 2 - Higher earners who have reached contribution limits can utilize a strategy called the mega backdoor Roth, allowing for additional after-tax contributions that can be rolled into a Roth account for tax-free growth, potentially enabling them to save significantly more [5] - Some retirement investors are diversifying their portfolios by investing in fractional real estate through platforms like Arrived, which allows for passive income generation from rental properties with minimal initial investment [6]

Core Insights - The traditional retirement model relying on pensions, Social Security, and personal savings is becoming ineffective, prompting a shift towards self-reliance and diversified wealth-building strategies [1][2] Group 1: Modern Retirement Strategy - The first step in the modern retirement strategy involves maximizing contributions to tax-advantaged retirement accounts such as 401(k) plans and IRAs, which provide long-term tax benefits and compounding opportunities [3] - For 2025, employees under 50 can contribute up to $23,500 to a 401(k) and up to $7,000 to an IRA, depending on income limits, emphasizing the importance of these accounts in retirement planning [3] Group 2: Wealth Building Beyond Retirement Accounts - After maximizing tax-advantaged accounts, the next step is to build wealth through taxable investments, including traditional brokerage accounts and real estate, which can generate income outside of retirement plans [5] - Taxable accounts offer greater flexibility as they are not subject to early withdrawal penalties, allowing for passive income generation through various means such as dividend-paying stocks and rental income [6]

Contribution Limits Changes - The IRS announced that contribution limits for 401(k) and 403(b) plans, as well as governmental 457 plans and the federal Thrift Savings Plan, will increase to $24,500 in 2026, up from $23,500 in 2025 [1] - The IRA contribution limit will rise to $7,500 in 2026 from $7,000 in 2025 [1] Catch-Up Contributions - Individuals aged 50 and older can contribute an additional $1,100 to their IRA starting in 2026, an increase from $1,000 in 2025, due to the SECURE 2.0 Act's cost-of-living adjustment [2] - For workers aged 50 and up participating in 401(k), 403(b), government 457 plans, and the federal Thrift Savings Plan, the catch-up contribution limit will increase to $8,000 in 2026 from $7,500 in 2025, raising their total contribution limit to $32,500 [5] - Workers aged 60 through 63 will have a higher catch-up contribution limit of $11,250, which remains unchanged in 2026 [6] Phase-Out Ranges for IRA Deductions - The phase-out range for single taxpayers covered by a workplace retirement plan will increase to between $81,000 and $91,000 in 2026, up from $79,000 to $89,000 in 2025 [9] - For married couples filing jointly, the phase-out range will increase to between $129,000 and $149,000 if the spouse making the IRA contribution is covered by a workplace retirement plan [12] Roth IRA Phase-Out Ranges - The phase-out range for individuals contributing to a Roth IRA will rise in 2026 to between $153,000 and $168,000 for singles and heads of household, an increase of $3,000 [13] - For married filers, the phase-out range will increase to between $242,000 and $252,000 in 2026, an increase of $6,000 [13] Expert Commentary - A national director of strategic wealth and business advisory noted that the new 2026 retirement plan limits provide more room for savings, which is beneficial as retirement becomes longer and more expensive [15]

Group 1: Cryptocurrency Market Overview - The cryptocurrency market has not recovered since the significant drop on October 10th, with Ethereum (ETH) and Dogecoin (DOGE) struggling to regain previous highs [1][3] - Ethereum reached a low of $2.6k in late November and has been trading around $3k, showing limited movement in early December [1][2] - Dogecoin's price has declined sharply, currently trading below 13 cents, down from nearly 50 cents a year ago, indicating a bearish trend [3] Group 2: Ethereum's Positioning - Ethereum is well-positioned to support real-world assets (RWAs) due to backing from major institutions and the SEC Chair's advocacy for on-chain financial markets [2] - The robust infrastructure and liquidity of Ethereum suggest potential for better price action as the year ends, especially with significant buying from institutional players [2] Group 3: Dogecoin Developments - Despite its price decline, Dogecoin is undergoing development with initiatives like DogeOS being worked on by dedicated engineers, indicating ongoing interest and potential for future growth [3] - The market for DOGE, similar to other cryptocurrencies, is awaiting a catalyst to stimulate a price recovery [3]

分组1 - The Vanguard S&P 500 ETF (NYSEMKT: VOO) experienced a loss of 0.6% last week but is showing a premarket gain of 0.5% as investors anticipate significant economic news this week [1] - The U.S. Bureau of Labor Statistics (BLS) will report nonfarm payroll figures for November, providing updated insights into the jobs market [2] - The U.S. Census Bureau will release retail sales figures for October, although this data is considered less important due to its delayed arrival and lack of context regarding the government shutdown [2] 分组2 - iRobot (Nasdaq: IRBT) filed for bankruptcy protection, framing the announcement in terms of growth and restructuring with its Chinese contract manufacturer, Shenzhen PICEA Robotics Co., Ltd. [4] - iRobot stated that PICEA will receive 100% of the equity interests in the company, which will eliminate its debt and allow continued operations and product development [5] - Following the bankruptcy news, iRobot's stock plummeted over 70%, with analysts suggesting it should be down 100% given the complete loss of equity for shareholders [6]

Market Catalysts host Julie Hyman takes on the day's biggest market stories on December 10, 2025. Athene USA co-president and Athene Holding COO, Michael Downing, speaks with Yahoo Finance executive editor Brian Sozzi about how investors can close the savings gap while continuing to save for retirement. Athene USA is a subsidiary of Yahoo Finance's parent company, Apollo Global Management. Humilis Investment Strategies CEO and Chief Investment Officer Brian Belski also comes on to talk about why he finds al ...