Death and taxes may be inevitable. A big bill for your heirs is not.
The rich have made an art of avoiding taxes and making sure their wealth passes down effortlessly to the next generation. But the tricks they use – to expedite payouts to heirs and avoid handing money to the government – can also work for people with far more modest estates.
“It’s a strategic game of chess played over decades,” says Mark Bosler, an estate planning attorney in Troy, Michigan, and legal adviser to Real Estate Bees. “While the average person relies on a simple will, the well-to-do utilize a different playbook.”
CONSIDER A TRUST
First, consider the facts: Despite widespread misconceptions, only estates of the very richest Americans are generally subject to taxes. At the federal level, estates of over $15 million typically trigger taxes. At the state level, 16 states and the District of Columbia do collect estate or inheritance taxes, according to the Tax Foundation, sometimes with lower exemptions than the IRS, but still at thresholds targeting millionaires.
While most people can pass on what they have without worrying about their heirs being caught in a web of taxes, it can require planning to escape a messy process that can hold up estates for years and cost families significantly in court fees and lawyer bills.
The solution at the center of many estate planners’ designs is a trust.
Though trusts conjure images of complex arrangements utilized by the uber-rich, they are relatively simple tools that can make
‘‘ It’s a strategic game of chess played over decades. While the average person relies on a simple will, the well-to-do utilize a different playbook.”
— Mark Bosler, an estate planning attorney in Troy, Michigan
sense for many people. They come with expense, often costing thousands of dollars in lawyer fees to set them up. But for a retired couple with a paid-off house, 401(k)s and a portfolio of investments, they can ease the passing of assets to heirs.
Among the reasons: Even if you aren’t leaving enough behind to trigger taxes, your estate can get tied up in probate court, which typically assesses fees based on an estate’s total value.
“You are leaving what might have gone to your children or other loved ones to attorneys and the courts,” says Renee Fry, CEO of Gentreo, an online estate planner based in Quincy, Massachusetts. “Anywhere from 3% to 8% of an estate might be lost.”
Trusts can allow an estate to sidestep court altogether and to shield it from public view by keeping details out of public records. Some people also use them to protect their savings if they someday need nursing home care and would prefer to qualify for a government-paid stay under Medicaid instead of paying themselves.
PASS ON STOCKS VIRTUALLY TAX-FREE
Imagine being an investor in a stock like Nvidia that has soared in recent years. Now imagine being able to reap the profit of selling your shares without paying tax.
It’s possible with one caveat: You have to die.
That scenario, known in estate lingo as “step-up,” allows many rich families to grow their wealth while ensuring their heirs won’t be saddled with the bill.
It works like this: Say your savvy uncle bought 100 shares of Nvidia
when it began trading in 1999 at $12 a share. Between splits and a soaring price, that $1,200 investment would be worth more than $9 million today. If he left it all to you, you could sell the shares owing little or no tax because gains are calculated from the day he died, not the day he bought it.
Benjamin Trujillo, a partner with the wealth advisory firm Moneta, based in St. Louis, Missouri, says it all seems “like a magic trick.” And it’s completely legal.
“Wealth transfer looks like smoke and mirrors,” Trujillo says. “Assets like stocks can quietly grow for decades and, when they’re inherited, the tax bill often disappears.”
Lawmakers have sometimes proposed limits on the “step-up” rule but at least for now, it remains, making it one of the biggest notso-secret weapons in the arsenals of those looking to create generational wealth. If stocks aren’t your forte, “step-up” applies to other types of investments too, including artwork, real estate and collectibles.
KEEP UP TO DATE ON BENEFICIARIES
Ever get a prompt on one of your accounts asking you to name a beneficiary? It’s more than a confusing (or annoying) nudge from your brokerage. Estate planners say it is one of the simplest ways to ease the transfer of assets to loved ones after you die. Regulations vary from place to place, but many banks and brokerages allow you to name a beneficiary to whom the funds will be transferred upon your death. This is “one of the easiest ways to transfer assets hassle-free,” says Allison Harrison, an attorney in Columbus, Ohio, who focuses on estate planning.
Beneficiary designations generally override wills, so it’s important to make sure yours are up to date to avoid the mess of having, say, an exspouse end up with everything you saved.
All of this requires planning, but experts say investing a little time in mapping out your estate is one of the moves that separates the rich from the less well-off.
NEW YORK — Barbara Goldberg brings a stack of newspapers to the office every day. The CEO of a Florida public relations firm scours stories for developments relevant to her clients while relishing holding the pages in her hand. "I want to touch it, feel it, turn the page and see the photos," Goldberg said.
Generation Z employees at O’Connell & Goldberg don’t get her devotion to newsprint when so much information is available online and constantly updated, she said. They came of age with smartphones in hand. And they spot trends on TikTok or Instagram that baby boomers like Goldberg might miss, she said.
The staff's disparate media consumption habits become clear at a weekly Monday staff meeting. It was originally intended to discuss how the news of the day might impact the firm's clients, Goldberg said. But instead of news stories, the conversation often turns to the latest slang, digital tools and memes.
The first time it happened, she listened without judgment, and thought, “Shoot, this is actually really insightful. I need to know the trending audio and I need to know these influencers." Of her younger colleagues, she said, "they know the cultural conversation that I wasn’t thinking about.”
With at least five generations participating in the U.S. workforce, co-workers can at times feel like they speak different languages. The ways people born decades apart approach tasks may create misunderstandings. But some workplaces are turning the natural divides between age groups into a competitive advantage through reverse mentoring programs that recognize the strengths each generation brings to work and uses them to build mutual skills and respect.
Unlike traditional mentorships that involve an older person sharing wisdom with a younger colleague, reverse mentoring affords less experienced staff members the opportunity to teach seasoned colleagues about new trends and technologies.
“The generational differences, to me, are
something to leverage. It’s like a superpower,” Goldberg said. “It’s where the magic happens.”
Here are some ways to make the most of a multigenerational workplace.
MENTORING UP
Beauty product company Estée Lauder began a reverse mentoring program globally a decade ago when its managers realized consumers were rapidly getting beauty tips from social media influencers instead of department stores, said Peri Izzo, an executive director who oversaw the initiative.
The voluntary program now has roughly 1,200 participants. The mentors are millennials, born 1981 to 1986, and Gen Zers, born starting in 1997. They're paired with mentees who are part of the U.S. baby boom of 1946 to 1964, and members of Generation X, born 1965 to 1980, according to the generational definitions of the Pew Research Center.
At the start of a new mentoring relationship, participants do icebreaker activities like a Gen Z vocabulary quiz. The young mentors take phrases they use with friends in group chats and quiz older colleagues about what they mean, said Izzo, who at age 33 qualifies as a young
millennial. For example, if a Gen Zer says something is “living rentfree in your head,” it refers to someone or something that constantly occupies your thoughts.
"Most of the mentees knew what it was, but then one mentee’s reaction was, ‘Oh I get it, my son lives rent-free in my house,’ and everyone thought it was so funny because they were like, ‘You really don’t understand the context that it’s being used on TikTok and amongst millennial and Gen Z,’” Izzo said.
Madison Reynolds, 26, a product manager on the technology team at Estée Lauder, is a Gen Zer and serves as a reverse mentor in the program. She and her contemporaries teach their older colleagues phrases such as “You ate it up,” which means you did a good job. When her manager tries out Gen Z phrases, Reynolds offers feedback, saying, “No, that's not right," or “You got it.”
GIVE AND TAKE
When 81-year-old hotelier Bruce Haines brought in athletes from Lehigh University’s wrestling team to participate in a mentorship program at the Historic Hotel Bethlehem in Pennsylvania, he taught them about entrepreneurship by having the students shadow managers in
various departments. He also gained valuable marketing insights from the students, which he hadn’t anticipated.
“It’s been energizing for me. It’s almost reinvigorating," Haines, the hotel's managing partner, said. “We tended to be Facebook-focused. We’re a luxury destination hotel, so we tend to be an older crowd that we’re reaching. They enhanced our marketing by alerting us that we need to be on Instagram and YouTube and get out there and reach the younger people.” The students also suggested offering prepackaged pints of ice cream to the hotel's inhouse parlor because their contemporaries didn’t want to wait around for cones. “We were really missing out, and it’s truly increased our ice cream sales and our profitability,” Haines said.
OLD-FASHIONED PEOPLE SKILLS
Carson Celio, 26, is an account supervisor at the PR firm Goldberg leads. She's part of the cohort that advises the CEO about what's trending on TikTok and what's over with. She says Goldberg has taught her how to successfully work a room and spark conversations that feel natural and organic.
Celio was a sophomore in college when
COVID-19 hit, which pushed most of her classes online, including a public speaking course.
“We have spent so much time online and conducting meetings over Zoom or Teams.” As a result, in-person networking can feel overwhelming to her generation, she said.
“Learning the value of actually being face to face with people and building those connections — Barbara has helped me a lot with that.”
A TEXT OR A TOME
At Harvard Medical Faculty Physicians, a medical group that employs 2,400 doctors in eastern Massachusetts, Dr. Alexa B. Kimball adapts her communication style to a range of age groups. Some mature clinicians send very long emails, which can be unproductive.
“When you have an email conversation that’s in its 15th response, that tells you you should pick up the phone,” Kimball, the group's CEO, said. On the other extreme, some of the youngest trainees communicate with six-word texts, she said.
A reverse mentoring program that teachers doctors about different communication styles helped when the practice launched a new medical records system that required 14 hours of training. Following the training, Kimball paired
workers with more techsavvy colleagues, who tended to be younger, to provide support.
PHASED RETIREMENT
Robert Poole, 62, is the only person at health care technology company Abbott who manages the laser used to create nearly microscopic components of a cardiovascular device. Since he’s approaching retirement, Abbott hired Shahad Almahania, 33, an equipment engineer, to work alongside him and absorb some of his decades of knowledge.
“The equipment is all custom, so it takes a long time to learn how to run it and keep it running,” Poole said.
Poole, who began working in the 1980s, said he also learns from Almahania. When Abbott removed landline telephones five years ago, he migrated to group chats like Slack, asking her for help deciphering the meaning of emojis.
“When you strip away all the generational stereotypes, ... every age group, every person, is looking for some of the same things,” said Leena Rinne, vice president at online learning platform Skillsoft. “They want supportive leadership. They want the opportunity to grow and to contribute in their workplace. They want respect and clarity.”
PETER HAMLIN/AP
The greatest financial danger in retirement isn’t always the stock market. It’s the constant, nagging fear of running out of money. This anxiety causes many people to underspend and worry, even when their finances are sound.
Here are eight ways to replace that worry with lasting security.
1. DETERMINE YOUR SPENDING BASELINE
Worry often starts with the vague question, “Am I spending too much?”
Instead of operating on gut feeling, work with an advisor to determine your personal sustainable withdrawal rate (often between 3% and 5%). Once you know your lifestyle is covered by a responsible withdrawal rate, you can stop guessing and start living confidently.
2. MAKE ADJUSTMENTS WHEN NEEDED
Many retirees treat their spending plan like an all-ornothing system. This rigidity creates panic during market downturns.
Instead, adopt a dynamic spending strategy. Slightly reduce or delay discretionary spending in poor market years. By reducing your withdrawal rate by just 10% when your portfolio is down, you dramatically reduce the risk of permanent capital depletion,
allowing the assets time to recover.
3. REALIZE YOUR SPENDING WILL NATURALLY DECLINE
The high level of discretionary spending you need at age 65 will likely not be the same at age 85, especially once you have long-term care coverage (see No. 7).
Expenses for travel, hobbies, dining out, and maintaining multiple homes typically decrease as you age. Knowing that your major risk (long-term care) is insured, you can trust that your remaining costs will naturally ease over the next two decades. Your money is working harder when
you’re younger and enjoying it most, and your needs will taper off as your capital naturally draws down.
4. CREATE A RECESSION BUFFER (THE ’ANTI-PANIC’ FUND)
The greatest tactical threat to longevity is experiencing a large market crash early in retirement and having to sell depressed assets to pay for basics such as groceries. To protect yourself, maintain a six- to 12-month cash cushion outside of the market.
This “recession buffer” allows your growth assets (equities) to sit untouched and recover during a market downturn, preventing you from locking in losses. This
separation between your living money and your longterm growth money is the most direct way to eliminate panic during volatility.
5. BUY OUT THE RISK OF SURPRISE TAXES
Future, unknown tax rates and large required minimum distributions from traditional retirement accounts are a major source of financial uncertainty. What can you do? Eliminate the tax uncertainty by creating a tax-free bucket. By using targeted Roth conversions—using up lower tax brackets to recharacterize traditional IRAs—you ensure a significant portion of your
savings is shielded from all future tax increases. Having a large tax-free account gives you maximum flexibility to control your taxable income every year, protecting you from future legislation and eliminating the anxiety of surprise tax bills.
6. ANCHOR YOUR ESSENTIALS WITH GUARANTEED INCOME
Retirement is worry-free when your core, nonnegotiable needs (housing, food, utilities) are covered by income sources shielded from market volatility. Social Security is your primary source of inflationadjusted, governmentbacked income. While claiming at full retirement
age is a safe minimum, aiming to delay Social Security until age 70 maximizes your lifetime benefit. If a gap exists between your guaranteed income and your essential expenses, you can buy a single premium immediate annuity. This annuity converts a lump sum of savings into an unbreakable income stream throughout your lifetime, closing the gap and securing your basic lifestyle.
Long-term care is the single largest threat to a lifetime of savings. Getting a quality long-term care insurance policy protects your nest egg from being wiped out by nursing home or in-home care costs. Once that risk is contained, you no longer need to worry about a seven-figure expense appearing unexpectedly.
Home equity is your parachute, a huge, flexible reserve. In an extreme situation—such as severe market crashes or unforeseen emergencies—accessing this capital through a reverse mortgage, a line of credit, or eventually downsizing and selling provides an unparalleled safety net, allowing you to invest your remaining liquid portfolio with more confidence. You are now equipped with multiple strategies to build financial security. Feel better?
C4 RETIREMENT GUIDE
What you need to know for stress-free tax filing
B ADRIANA MORGA y Associated Press
NEW YORK — Tax season is underway and you have until April 15 to file your return with the IRS. If you want to avoid the stress of the looming deadline, start getting organized as soon as possible.
“Don’t wait until the last minute but also don’t rush,” said Tom O’Saben, director of tax content and government relations at the National Association of Tax Professionals, Gathering all your documents, signing up for direct deposit and keeping copies of your tax returns are some of the best practices when it comes to preparing to fill out your taxes. This year, due to the Republican tax and spending bill that President Donald Trump signed over the summer, there are new deductions taxpayers should know about.
Among them are no tax on tips, no tax on overtime, deductions for car loan interest, and deductions for people who were 65 or older by Dec. 31, said Miguel Burgos, a certified public accountant and an expert for TurboTax.
The average refund last year was $3,167. This year, analysts have projected it could be $1,000 higher, thanks to changes in tax law. More than 165 million individual income tax returns were processed last year, with 94% submitted electronically.
If you find the process too confusing, there are plenty of free resources to help you get through it.
Here are some things you need to know:
GATHER YOUR DOCUMENTS
While the required documents might depend on your individual case, here is a general list of what everyone needs:
—Social Security number
—W-2 forms, if you are employed —1099-G, if you are unemployed —1099 forms, if you are self-employed —Savings and investment records
—Any eligible deduction, such as educational expenses, medical bills, charitable donations, etc.
—Tax credits, such as the child tax credit, retirement savings contributions credit, etc.
To find a more detailed document list, visit the IRS website.
O’Saben recommends gathering all of your documents in one place before you start your tax return and also having your documents from last year. Taxpayers can also create an identity protection PIN number with the IRS to guard against identity theft. Once you create a number, the IRS will require it to file your tax return.
KNOW SOME OF THE CHANGES FOR THIS YEAR
— Change to standard deduction
The standard deduction for single taxpayers is $15,750 for this year. For married couples filing jointly, it has increased to $31,500. For heads of households, the standard deduction is $23,625.
— Change to state and local taxes (SALT) deduction
The deduction cap on state and local taxes has increased from $10,000 to $40,000. The change is also known as the Working Families Tax Cut and was enacted in July 2025.
“This is a big benefit, especially for states like
California, New York, and New Jersey, that have a higher state income tax,” said Keith Hall, president and CEO of the National Association for the SelfEmployed and a certified CPA.
The SALT deduction is a federal tax deduction for some state and local taxes paid during the year. The total deduction had been capped at $10,000 since it started in 2018.
People who have not previously itemized their SALT deduction might want to consider it this year.
To know if you should itemize your deductions, O’Saben recommends that you ask yourself the following questions: Did you pay state taxes? Did you pay property taxes? Do you have mortgage interest? Do you have charitable contributions?
—Deductions for tips
What is known as “no tax on tips” is not quite accurate. This new deduction is only for qualified tips and is subject to income limitations.
“It can be cash, it can be electronic as well. But the main thing is, hey, it has to be voluntary (tips),” Burgos said.
The maximum annual deduction is capped at $2,500. The deduction phases out for taxpayers with modified adjusted gross income over $150,000, or $300,000 for joint filers. The tax deduction is also limited to specific industries where tipping is common practice. Some of the included industries are bartenders, food servers, musicians and housekeeping cleaners.
To claim the new tax break, you will need to fill out a new tax form called Schedule 1-A.
—Additional Schedule 1-A deductions
Schedule 1-A is an IRS form used to claim and calculate four tax deductions originating from the tax and spending bill. They are the change in state and local tax deduction, deduction on qualified tips, and car loan and senior deductions.
LOOK FOR RESOURCES
IRS Direct File, the electronic system for filing tax returns for free, will not be offered this year. For those who make $89,000 or less per year, IRS Free File offers free guided tax preparation; you can choose from eight IRS partners, such as TaxAct and FreeTaxUSA.
Beyond companies such as TurboTax and H&R Block, taxpayers can also hire licensed professionals, such as certified public accountants. The IRS offers a directory of tax preparers across the United States.
The IRS also funds two programs that offer free tax help: Volunteer Income Tax Assistance (VITA) and Tax Counseling for the Elderly (TCE). People who earn $69,000 or less a year, have disabilities, or are limited
English speakers, qualify for the VITA program. Those who are 60 or older qualify for the TCE program. The IRS has a site for locating organizations hosting VITA and TCE clinics.
AVOID COMMON
MISTAKES ON YOUR TAX RETURN
Many people fear getting in trouble with the IRS if they make a mistake. Here’s how to avoid some of the most common ones:
—Double-check your name on your Social Security card
When working with clients, O’Saben asks them to double-check their number and their legal name, which can change when people get married.
“If you got married last year and you now want to use your married name, that married name doesn’t exist if you haven’t filed it with Social Security,” O’Saben said.
—Search for online tax statements
Many people opt out of physical mail but when you do, it can also include your tax documents.
“These documents may actually be available online because you may have chosen to have paperless contact. And because of that, you may need to go get those documents yourself,” O’Saben said.
—Make sure you report all of your income
If you had a second job in 2025, you need the W2 or 1099 form for each job.
In general, if you make a mistake or you’re missing something in your tax records, the IRS will audit you. An audit means that the IRS will ask you for more documentation.
KNOW ABOUT THE CHILD TAX CREDIT
Currently, the tax credit is $2,200 per child but only $1,700 is refundable. This refund is called the Additional Child Tax Credit. To
claim the Additional Child Tax Credit, you must have at least $2,500 of income for the tax year.
You qualify for the full amount of the Child Tax Credit for each qualifying child if you meet all eligibility factors and your annual income is not more than $200,000 ($400,000 if filing a joint return). Parents and guardians with higher incomes may be eligible to claim a partial credit.
You can find more details about the child tax credit here.
AVOID PAPER CHECKS FOR YOUR TAX REFUND
Last September, the IRS began phasing out paper tax refund checks. If you’re expecting a tax refund, the IRS recommends you sign up for direct deposit.
AVOID TAX SCAMS
Tax season is prime time for tax scams, O’Saben said. These scams can come via phone, text, email and social media. The IRS uses none of those means to contact taxpayers.
Sometimes scams are even operated by tax preparers, so it’s important to ask lots of questions. If a tax preparer says you will get a refund that is larger than what you’ve received in previous years, for example, that may be a red flag, O’Saben said.
If you can’t see what your tax preparer is working on, get a copy of the tax return and ask questions about each of the entries.
KEEP COPIES OF YOUR TAX RETURNS
It’s always good practice to keep a record of your tax returns, just in case the IRS audits you for an item you reported years ago. O’Saben recommend keeping copies of your tax return documents five to seven years.
B SHERYL ROWLING y
The One Big Beautiful Bill Act made some longawaited permanent changes to the tax code. It also introduced short-term tax breaks that come with strict limits and phaseouts, and many of them are only available through 2028 or 2029. Here are four ways to get the most out of the OBBBA’s temporary provisions as you file your 2025 taxes and plan ahead.
1. DON’T DISMISS ITEMIZING YOUR DEDUCTIONS
The OBBBA temporarily boosts the state and local tax deduction cap, or SALT, from $10,000 to $40,000 (for married couples filing jointly and single filers). This higher cap applies from 2025 through 2029.
Run the numbers: For 2025, the standard deduction is $31,500 for married couples and $15,750 for singles. If your total itemized deductions — including mortgage interest, charitable giving, and state and local taxes (up to the new $40,000 cap) — add up to more than your standard deduction, you should itemize.
Watch your income: The new $40,000 SALT cap isn’t for everyone. It begins to phase out if your modified adjusted gross income is over $500,000 (for all filers). If your MAGI reaches $600,000, your SALT deduction reverts to the original $10,000 limit.
2. MAXIMIZE THE NEW TARGETED DEDUCTIONS — IF YOU QUALIFY
The OBBBA introduced several temporary above-theline deductions (available whether you itemize or not) to help middle-income workers. But they have very strict income and benefit limits.
The qualified overtime pay deduction: Capped at $25,000 for married couples filing jointly and $12,500 for singles. Only the extra “halftime” portion of your timeand-a-half pay qualifies for the deduction. For a married couple, this benefit begins to disappear if your MAGI hits $300,000 and is entirely gone once your MAGI reaches $550,000.
The qualified tips income deduction: Allows you to write off qualified tip income up to $25,000 per tax return, whether you file as married or single. The deduction is only available for tips that are formally reported on a Form W-2 or Form 1099. It phases out sharply for higher earners,
starting at a MAGI of $300,000 for married couples and $150,000 for singles, and is fully eliminated at $550,000 and $400,000, respectively. The auto loan interest deduction: This temporary deduction allows you to write off up to $10,000 of interest paid on a loan for a new, personal-use vehicle with final assembly in the US. (Leases are excluded.) It starts to phase out at $200,000 for married couples and $100,000 for singles and is completely gone by $250,000 and $150,000.
3. SENIORS, TIME YOUR 2026 ROTH CONVERSIONS CAREFULLY
If you are 65 or older, the OBBBA offers a new, temporary deduction for seniors of up to $12,000 for married couples ($6,000 per eligible spouse) and $6,000 for single filers. This is a welcome tax break, but it’s fragile. Beware the MAGI trap: This deduction begins to disappear for married couples with a MAGI over $150,000 and for singles over $75,000. Model Roth conversions for 2026: If you are a senior who is close to the $150,000 MAGI limit, a Roth conversion done in 2026 could push your income over the threshold, causing you to lose this entire $12,000 deduction. Work with your adviser to model any planned 2026 conversions.
4. OPTIMIZE INCOME TO QUALIFY FOR THE BEST BREAKS
Many of the OBBBA’s most valuable temporary provisions are income-sensitive, particularly those new targeted deductions and the elevated SALT cap. Keep these rules in mind for 2025 filing and 2026 tax planning. For your 2025 return: You can still influence your 2025 MAGI by:
1. Making 2025 HSA contributions (before the April 2026 tax deadline).
2. Making 2025 deductible IRA contributions, if you’re eligible.
Plan for 2026 income: If your 2026 income is likely to approach any phaseout thresholds (such as the $300,000 limit for tips/overtime or the $500,000 limit for the elevated SALT cap), consider strategies that help keep it within the qualifying range.
3. Postponing the sale of highly appreciated stock to avoid realizing large capital gains in 2026.
4. Delaying the exercise of nonqualified stock options if doing so would push you over a phaseout threshold.
Tips on cleaning up investment portfolios on your own
B CHRISTINE BENZ y Morningstar
If you’d like to do a thorough review of your portfolio and plan, here are the key steps to take. I recommend doing them over a series of sessions, not all at once.
STEP 1: GATHER YOUR DOCUMENTATION
This could be your current investment statements, plus Social Security and pension. Pro tip: Set up a My Social Security account to get an overview of your benefits and earnings history.
STEP 2: ASK AND ANSWER: HOW AM I DOING?
To find out if you’re on track to reach your financial goals, review your current portfolio balance, combined with your savings rate. Tally your contributions across all accounts. A decent baseline savings rate is 15%, but higher-income folks will want to aim for 20% or more.
Also factor in other goals you’d like to achieve, such as college funding or a home down payment. Are they realistic? Make sure you’re not giving short shrift to retirement.
If you’re retired or about to be, the key gauge of the viability of your total plan is your withdrawal rate—your planned portfolio withdrawals divided by your total portfolio balance. The 4% guideline is a good starting point, but aim for less if you can.
STEP 3: CHECK UP ON YOUR LONGTERM ASSET ALLOCATION
Does your total portfolio’s mix of stocks, bonds, and cash match your targets? Highquality target-date series such as those from Vanguard and BlackRock’s LifePath Index Series can help benchmark asset allocation. My model portfolios can also help. A portfolio that tilts mostly or even entirely toward stocks makes sense for younger investors.
If your portfolio is notably equity-heavy and you’re within 10 years of retirement, shifting to bonds and cash is more urgent. Just mind the tax consequences when you rebalance.
STEP 4: ASSESS LIQUID RESERVES
Holding some cash is crucial to ensure you don’t have to tap your investments or resort to credit cards in a financial crunch.
For retired people, I recommend holding six months to two years worth of portfolio withdrawals in cash investments.
For those still working, holding three to six months’ worth of living expenses in cash is a good starting point.
STEP 5: ASSESS SUBALLOCATIONS, SECTOR POSITIONING, AND HOLDINGS
Your broad asset-class exposure largely deter-
mines how your portfolio behaves. But your positioning within each asset class also deserves a look. Market strength has recently broadened, but growth stocks and funds that own them have outpaced value by a wide margin over the past decade.
Finally, check up on your sector positioning, allocation to foreign stocks, and actual holdings.
STEP 6: IDENTIFY OPPORTUNITIES TO STREAMLINE
Why have scores of accounts and holdings if a more compact portfolio could do the job just as well?
If you’ve changed jobs,
you may have multiple 401(k)s and rollover IRAs. Consider consolidating into a single IRA. If you have several small cash accounts, you may be losing out on a (slightly) higher yield. Could you reduce the number of holdings in your portfolios? Index funds and ETFs provide pure asset-class exposure and a lot of diversification in a single package. I also like target-date funds for smaller accounts to provide diversification without any maintenance obligations.
STEP 7: MANAGE FOR TAX EFFICIENCY
At this point, if you think changes are in
order, be sure to take tax and transaction costs into account. Focus any selling in your taxsheltered accounts, where you won’t incur tax costs and you can usually avoid transaction costs, too. Within your taxable accounts, review the tax implications and/or get tax advice before executing trades. Also review whether you’re managing your portfolio with an eye toward tax efficiency. Are you making contributions to your tax-sheltered vehicles? Are your taxable accounts as tax-efficient as possible? For a lot of people, this is as simple as holding equity ETFs and/or municipal bonds and bond funds for their
taxable accounts. Finally, think about tax-efficient withdrawal sequencing.
Uninsured long-termcare risk is a significant factor for those who are neither well off nor eligible for Medicaid. Develop a plan in case you have sizable longterm-care outlays later in life.
Another common risk factor is providing help to loved ones. In this case, it’s often helpful to talk to a financial advisor and/or estate planner to figure out how you can help without jeopardizing your financial future.
For over 40 years, Lawrence Otolaryngology has provided expert care for patients of all ages. We are proud to be your hometown ENT provider specializing in the care and treatment of the head, neck and face.
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There are multiple tips to consider when trying to clean up your investment portfolios.
Providing monetary gifts can get tricky in retirement
B CHRISTINE BENZ y Morningstar
If you have gifting to loved ones on your mind, here are some considerations related to taxes and logistics.
Unless you’re writing a check from your bank account, the logistics of gifting funds can get a bit complicated.
If you want to gift from your IRA, your only option is to sell a chunk of it, then pay any taxes due, then write a check. That’s not terrible, so long as you understand the tax implications. IRA withdrawals are typically subject to ordinary income tax, along with penalties if you’re not yet 59½. You could also trigger some knock-on tax effects like the income-related monthly adjustment amount. In other words, gifting from your IRA isn’t as seamless as making a qualified charitable distribution from your IRA or naming someone as a beneficiary of your IRA.
Things can also get tricky if you want your financial gift to go toward an investment account for someone else. It’s straightforward if you’re giving a gift to an adult with an eye toward setting them on an investing path: The recipient will have to set up the account, whether an IRA or a taxable brokerage account, and you can then write a check or transfer funds directly to the financial institution.
If you’re giving an investment gift to a child, you have options.
1. 529: Best if you know the money will be for college. It will compound tax-free and skirt taxes upon with-
drawal for qualified highereducation expenses. Plus you’ll typically get a state tax break on a contribution to your home state’s plan.
2. UGMA/UTMA (Uniform Gifts/Transfers to Minors Act): This is an open-ended way to save for minor children. There are no strictures on how the money is ultimately used, and the assets can be invested in almost anything. Note that UGMA/UTMA assets may reduce a student’s eligibility for financial aid.
3. IRA (if the child has earned income): Funding an IRA can ensure that a young
adult fully benefits from compounding for retirement, and the IRA wrapper offers tax benefits. But the young person needs to have earned enough compensation (from work) in a given year to cover the amount of the IRA contribution you’re making on their behalf, though the contribution doesn’t have to come directly from the young adult’s own coffers.
GIFT TAX: A NONISSUE FOR MOST
If you give $19,000 or less to any one individual in a single year, there are no
reporting or tax requirements. Married couples can give twice that amount with no tax or reporting requirements.
Even if you give more than $19,000 to an individual in a single year, it’s not automatically subject to gift tax. Rather, anyone exceeding the gift-tax threshold in a single year must file the gift tax return form, and that excess amount counts against their lifetime exclusion amount. Only when those excess amounts (combined with the value of the individual’s estate) exceed the lifetime exclusion
amount—currently nearly $14 million—does anyone actually owe taxes on those gifts. So that’s not a barrier for most people.
TAX BENEFITS ARE LIMITED
Because the lifetime gift/estate tax exclusion amount is currently so high, avoiding estate tax shouldn’t be a major motivation for most people to gift assets to individuals during their lifetimes—at least for now.
The estate tax exclusion has been much lower in the past and could go lower again: It was $2 million as recently as
2008, for example. Moreover, some states levy their own estate taxes, and in most cases, they’re lower than the federal threshold.
In contrast with making gifts to qualified charities, you won’t be able to earn a tax deduction on your gift to an individual. The exception is a contribution to a 529 college savings plan; you may be eligible for a state tax deduction or credit.
In a similar vein, gifting appreciated assets is unlikely to remove the taxes due on the gains, though it will shift the tax burden to the recipient.
How to make backyard gardens your newest hobby
B CALEIGH WELLS y
If you want healthy food, experts say to eat what's local, organic and in-season. Those foods benefit the planet too, because they are less taxing on the soil and they don't travel as far.
It doesn't get more local, organic and inseason than a backyard vegetable garden.
At this time of year, many backyards across the country are still covered in snow. But it's the perfect time to start planning for a garden because you'll want to have supplies ready to start planting just after the last frost date in your area.
Below are some tips on how to plan a backyard garden and reasons why you should do it.
HOMEGROWN VEGETABLES HAVE FEWER EMISSIONS
Vegetable gardens benefit the surrounding ecosystem by adding diverse plant life, especially where they replace grass or cover a deck or patio. They also can provide flowering plants for pollinators.
The plants capture and store carbon in the soil, promote healthy soil by preventing compaction and can make the air cooler on rooftops and patios, according to Ellen Comeau, who chairs the advisory council for the Cuyahoga County Master Gardener Volunteers with the Ohio State University Extension program.
Homegrown vegetables and fruits are responsible for fewer emissions than their store-bought counterparts because grocery store produce typically travels long distances on trucks.
“There’s this whole idea of a zero-kilometer meal, that I don’t have to travel anywhere, except my backyard, to make food. That certainly helps the climate,” said Carol Connare, editor of The Old Farmer’s Almanac.
GARDENING HAS HEALTH BENEFITS
The health benefits from gardening are multifaceted, “social, emotional, nutritional, physical,” said Katherine Alaimo, an associate professor of food science and human nutrition at Michigan State Uni-
versity.
Gardening promotes physical health because it requires a lot of movement. The food is typically picked at the height of ripeness and eaten fresh so it tends to have more nutrients than grocery store produce.
Alaimo said most gardeners don’t use pesticides and grow their food organically. And of course, when you grow more produce, you eat more produce.
“That’s going to reinforce people eating more fruits and vegetables even in the off season when they’re not growing food. So they try new foods, they potentially increase creativity and their cooking skills,” she said.
Alaimo said gardening also connects people with nature, provides a sense of responsibility and accomplishment and encourages sharing harvests with friends. All of that can contribute to reduced stress, lower blood pressure and higher energy, she said.
PICKING THE RIGHT SPOT AND BUDGETING
Sunlight is the biggest factor in choosing where to put your garden. Most produce wants at least six hours of sunlight per day. If sunny spots are few, save them for fruiting plants because leafy greens can tolerate more shade. It also helps to have a nearby water source because you'll get more food for less effort if you're not lugging buckets of water a long way.
If you're growing in the ground, Comeau said to start with a soil test to determine its acidity and nutrient makeup. Soil samples, once bagged or boxed, can typically be sent to a cooperative extension office at a university. The Old Farmer's Almanac offers a list of extension offices by state. The results will give you an idea of what to grow and whether you need fertilizer or other amendments.
If you have barren soil or a concrete patio, you can buy or build raised beds with purchased soil. Connare said raised beds have advantages such as controlling the soil, but the disadvantages include the cost and the likelihood of compacting soil and eventually needing to replace it.
After finding the right spot, Comeau said the next step is figuring out how much you have to spend. That determines how big the garden is, whether you sow seeds or buy baby plants known as starts and how many supplies you can afford.
Another major investment: fencing for pests. That means digging fences into the soil to stop burrowing animals like groundhogs, making them tall to deter deer or installing netting for climbing critters.
What you can grow depends on what falls into your region’s plant hardiness zone. Californians can grow olives more easily than Ohioans, for example.
Connare recommends finding out what plants are working for your neighbors.
“They might be able to tell you, ‘I can’t grow a Cherokee tomato here to save my life, but these tie-dye ones do great,'” she said.
Once you've narrowed down what can grow, pick what appeals to you. Kevin Espiritu, founder of Epic Gardening, said he used to advise people to focus on what grows the fastest and easiest, but now he also emphasizes choosing what you like to eat.
Connare also recommends adding flowers to attract pollinators. Local garden centers are
CHOOSING WHAT TO GROW AND WHEN TO START good sources of knowledge about what native plants will attract beneficial insects.
Espiritu said to figure out the last frost date in your area and plan around that. Many fruits and vegetables are best planted after the frost threat has passed, but some can go in earlier. Cool-season crops like leafy vegetables can tolerate slightly colder temperatures. Seeds can get started indoors weeks before the last frost date.
Comeau said seed packet labels often provide instructions.
“The label will tell you when you can start it and when it can go into the ground. Some obviously go right into the ground and some can be started ahead of time,” she said.
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AP photo
A lettuce seedling is displayed in Boston on Dec. 8, 2015.
AP file photo
Lettuce seedlings rest in a container under a blue light in Boston on Dec. 8, 2015.
C8 RETIREMENT GUIDE
What is a 'good enough' financial plan?
B CHRISTINE BENZ y Morningstar
I’m a classic satisficer: I’m usually quick about making decisions and often fall back on the tried-and-true. Some people are optimizers, carefully analyzing almost every choice, whether it’s a new sofa or a cup of coffee.
If you want to make decent, “good enough” choices about your financial plan and portfolio and get onto other things, what strategies should you employ? And what should you stop doing? Here are some strategies to embrace.
ELIMINATE ‘ONESIES’ AND EMBRACE SIMPLE BUILDING BLOCKS
Step away from those individual stocks. Forget I bonds and laddered portfolios of individual Treasury Inflation-Protected Securities. If you’re a satisficer, they’re not for you. Reduce your number of accounts and the holdings within them.
A portfolio with fewer moving parts is easier to oversee and simpler to document in case your loved ones or a financial advisor needs to take the wheel. Moreover, Morningstar research indicates that investors tend to do a better job buying and holding broadly diversified investments than they do ones that are more focused.
While they might not compel over some shorter time horizons, total-market index funds have been highly competitive with actively managed funds on a long-term basis, and they require little to no oversight. That means that satisficer portfolios should be heavy on total market index funds and even all-in-one investments like target-date funds. Satisficers should have as few accounts as possible, too.
MINIMIZE OTHER FINANCIAL RELATIONSHIPS
I’m part of a group chat with some delightful people who are keen to maximize their gains from credit cards and hotel loyalty programs. They’re always sharing tips on new card offers and swapping in and out of cards to score free travel.
These people have traveled all over the world, and there’s something to be said for beating the banks at their own game. They’re also eager to take advantage of free financing
programs when buying cars, furniture, and electronics. Why not let the bank float you a loan and invest the funds in the interim, particularly now that you can earn a decent return on your safe money?
Yet as much as the math might argue for such strategies, managing multiple credit relationships requires time, energy, and discipline that most people don’t have to spare. For that reason, taking a minimalist approach to credit cards and other financial relationships is a good policy for most households, especially satisficing ones. My credit-card-optimizer friends might disagree, but I tend to think that a single, well-chosen credit card or two is plenty.
The data suggest that dollar-cost averaging is inferior to lump-sum investing. To which I say, “So what?” The fact is, most of us don’t have big lump sums lying around; we’re able to invest only as we earn money and save it.
Making automatic investments addresses a number of financial pain points in a single shot. It eliminates any question marks about whether and when to invest. And if the target investment amounts are high enough and you increase them as you receive pay increases and bonuses, it also obviates the need to track expenses or budget in the traditional sense.
Here’s another way in which the satisficers may be willing to depart from the optimizers. Yes, paying for financial planning guidance costs money, maybe more than you think it should. (It’s not unusual for good-quality planners to charge $350-$500 an hour or more.)
But if paying for professional financial help frees you up to do other things you enjoy more and it provides peace of mind with your decision-making, it can be money well spent. Moreover, a planner can help point out blind spots that even the most competent DIYers may have missed, while also serving as a valuable receptacle of financial information in caseyou’re unable to manage your own finances at some point. Finally, planners can leverage high-powered software that puts more precision behind decisions like whether to convert traditional IRAs to Roth.
Survey shows most retirees have regrets about planning
For millions of Americans who retired in the last five years, the transition from earning a paycheck to living off savings brings an uncomfortable reality check: many wish they did things differently, according to a new Advisor Authority study, powered by the Nationwide Retirement Institute.
More than half (55%) of recent retirees (those retired in the last five years) say they have regrets about how they saved for retirement. More than a quarter (28%) wish they began saving earlier, and 13% wish they contributed more to their retirement savings and investments each year.
Immediate, tangible financial challenges are fueling these concerns. Just 40% of recent retirees say they're on track with their original budget and decumulation plan, and 21% say they've had to be more conservative with spending compared to their pre-retirement expectations. Only one in five (20%) have avoided the need to tap retirement savings by relying solely on the guaranteed income of a pension and/or Social Security, resulting in a majority who may need to lean on their selfinvested retirement funds accumulated in their working years.
"Many recent retirees told us they wish they had saved differently, highlighting a critical truth: retirement planning isn't just about setting a number—it's about building a strategy that anticipates life's changes and regularly revisiting that plan as life happens," said Kevin Jestice, president of Nation-
wide Retirement Solutions. "Thoughtful, comprehensive planning before retirement can make the difference between uncertainty and confidence in your future. A great way to do this is by working with a trusted financial advisor or leveraging planning resources offered through your workplace retirement plan. For those already retired, it's not too late to take steps to enhance your retirement strategy. Reviewing your budget, exploring additional income opportunities and working with a financial advisor can help you feel more secure and in control."
MARKET VOLATILITY HITS RECENT RETIREES HARDER
Recent retirees are especially vulnerable to market turbulence, and those new to post-career life are facing more significant headwinds than their peers who retired more than five years ago (longerterm retirees). As a result, recent retirees are more likely to make changes to their portfolios in the early years of retirement. Half (50%) of recent retirees made at least some changes to their retirement portfolio due to market turbulence, compared to just one-third (33%) of longer-term retirees. Additionally, 15% made significant changes to their portfolio –nearly double the 8% of longer-term retirees who did the same.
The impact extends beyond portfolio adjustment and into real-world spending decisions. Nearly half (47%) of recent retirees say recent
market volatility has impacted the way they approach managing their portfolio and withdrawing or spending down their savings in retirement, compared to 35% of longer-term retirees. This market uncertainty is also driving interest in guaranteed income solutions. Thirty-six percent (36%) of recent retirees said they are more likely to put part of their portfolio in an annuity given the events of the last 12 months.
ADVISORS RECOGNIZE THE UNIQUE CHALLENGES OF EARLY RETIREMENT
Financial professionals understand the first two years of retirement require heightened attention and strategic adjustments. Based on what they see with their own clients, top challenges for recent retirees cited by advisors include:
Adjusting to life without a paycheck: Six in ten (60%) advisors say adjusting to not earning active income or not having a job is a challenge their recently retired clients face in their first two years of retirement.
Managing anxiety about market volatility: More than four in ten (42%) advisors say dealing with anxiety about market volatility while living off investments is a challenge.
Staying within budget: Four in ten (41%) advisors say maintaining their desired lifestyle within budget constraints is a challenge.
HOME INSTEAD
How do I know that it is time to see an Audiologist?
Do you often have to turn up the volume on the TV? Do people seem to be mumbling during conversations? Do you find it difficult to hear the doorbell or phone? Is it difficult for you to follow the conversation when you are in a group or a crowded restaurant? Has someone close to you mentioned that you have a problem with your hearing? If you answered yes to any of these questions, it is time to see an audiologist and get a baseline hearing test.
There are so many hearing aid ads out there. How can I choose the right place to go?
It’s a great time to explore your hearing options. Today’s hearing aids are more accessible than ever but what truly matters is the care behind them. At Lawrence Otolaryngology, our audiologist team works closely with medical providers, so concerns like earwax, infection, or hearing changes can be addressed quickly and conveniently. This collaboration allows us to provide complete hearing care under one roof, giving you confidence and peace of mind. As the only locally owned practice in town, we offer personalized care backed by expertise in hearing science and rehabilitation. From the latest technology and trusted providers to help select the
best brand for you, we’re here to help you hear, and live, well.
What does it mean when hearing aids say they have AI?
AI-powered hearing aids are incredibly smart. Tiny computer chips automatically analyze your surroundings and adjust settings in real time, helping you focus on conversations while reducing background noise. Many also offer features like fall detection, wellness tracking, and personalized settings for your favorite places. It is a technology designed to support your lifestyle, not complicate it.
What can I do to make sure I get the most of my hearing aids?
Success with hearing aids is a journey, not a quick fix and that’s okay. Unlike glasses, hearing aids don’t instantly “correct” hearing. Your brain needs time and practice to adjust. That’s why our Hearing Healthcare Providers are here to guide you every step of the way. Beyond the fitting itself, our aural rehabilitation program offers simple, practical strategies to help you get the most from your devices and improve speech understanding. Our whole-patient approach helps you adapt comfortably and confidently so you can stay connected to the people and activities you love.
What unique services or specialties does your facility offer that set you apart from other providers in the area?
Home Instead distinguishes itself through a commitment to high-standard staffing and personalized care in Topeka and Lawrence. Our unique edge lies in four key areas:
• Rigorous Screening & Training: All staff undergo criminal, drug, driving, and reference checks. Caregivers receive extensive onboarding, including shadowing experienced staff and specialized training in Dementia and Alzheimer’s care.
• 24/7 Human Support: We offer round-the-clock office support handled by experienced staff—not answering services—ensuring immediate assistance for clients and caregivers. Reliable Continuity: To ensure no shift goes unfilled, we utilize on-call replacements or trained office personnel to maintain care consistency.
• Quality Assurance: We provide personalized care notes after every visit and conduct in-home quality assessments every two months.
What steps are you taking to incorporate the latest medical technologies or innovations into your practice or business?
As the population ages, the demand for quality in-home senior care continues to rise. Fortunately, technological advancements are transforming the way we care for our elderly loved ones, making it easier, safer, and more efficient. Technology is also providing our Caregivers with tools that help answer questions about caregiving and helps ensure their care is compliant with state regulations and Home Instead guidelines. Home Instead is staying ahead of the latest technology from wearable health monitors, scheduling and communication efficiencies, as well as technology that enhances client and caregiver safety. What makes you passionate about the work you do and how does that influence your approach to patient care?
As a Home Instead employee you will be surrounded by amazing people, from our Compassionate office staff, our remarkable Caregivers, the seniors and their families that we serve, and our community healthcare partners. We value our relationships so you can count on being in good company.
Peter and Gail Shaheed have owned the Lawrence and Topeka Home Instead franchise for more than 18 years. They live locally and work in the business on a daily basis.
