Today's Personal Finance Pulse
New student loan repayment options debut on July 1
Starting July 1, borrowers will be offered two new repayment plans and must choose the option that best fits their financial situation. The change aims to give borrowers more flexibility in managing loan payments.
Advantages of Owning Vanguard Total US and Total International Stocks ETFs Separately
Vanguard’s VTI and VXUS together capture the entire U.S. and international equity markets at a lower blended expense ratio than the all‑world fund VT. Holding the two ETFs separately lets taxable‑account investors claim a Foreign Tax Credit on non‑U.S. dividends, a benefit VT cannot provide. The credit adds roughly 0.13 % of annual return after expenses, a small edge that compounds significantly over decades. The added complexity of managing two funds is minimal, making the split‑ETF approach attractive for after‑tax performance.
U.S. Credit‑Card Balances Drop $25 B in Q1 2026, Yet Debt Remains 5.9% Higher YoY
The New York Fed reported that U.S. credit‑card balances fell by $25 billion to $1.25 trillion in the first quarter of 2026, marking the first quarterly decline in months. Despite the drop, total card debt is still 5.9% higher than a year...
IRS Rules Turn Health Savings Accounts Into Tax Traps for Non‑Spouse Heirs
IRS inheritance rules strip health savings accounts of their tax‑advantaged status when passed to anyone other than a surviving spouse. The entire balance becomes taxable in the year of death, a risk that can thrust heirs into the top 37%...
Learning to Manage Personal Finance With Smart Digital Tools
Smart digital tools are reshaping how consumers manage personal finance by providing real‑time visibility into spending, budgeting, and savings. Apps that track expenses, automate transfers, and set goal‑based accounts help users identify hidden costs and build disciplined habits. Integrated debt‑payoff...
Create an “Eat First” Zone, Halve Food Waste
Americans throw away billions of dollars in food every year and most of it’s because we forget what’s in the back of the fridge. I put an ‘eat first’ zone in mine for anything about to expire and it’s cut...
Suze Orman Urges Grieving Spouses to Freeze Life‑Insurance Cash‑Outs
Suze Orman told a grieving widow on the Women & Money podcast to do nothing with her late husband’s life‑insurance proceeds for now, warning that early cash‑outs can trigger surrender charges, tax hits and fraud. The advice highlights how grief‑induced...
Strategic Personal Finance Moves to Reduce Fees and Improve Returns
The article outlines practical personal‑finance tactics that cut hidden fees and boost net returns. It advises consolidating redundant bank and brokerage accounts, moving idle cash into high‑yield checking or savings products, and favoring low‑cost index funds or ETFs. Automation tools...
Financial Freedom Requires Proactive Steps, Not Luck
Everyone deserves to be FINANCIALLY FREE. But like anything worth having — a fit physique, radiant health, a strong loving relationship with your spouse… It takes a lot of proactive effort (in the beginning). IOW: financial freedom does NOT just happen to...
IRS Lifts 2026 Retirement Contribution Caps and Requires Roth Catch‑up Contributions
The Internal Revenue Service announced on May 17 that contribution limits for 2026 retirement accounts will be increased and that a Roth catch‑up contribution will become mandatory for eligible participants. The move aims to boost retirement savings and simplify catch‑up...
Fidelity Flags Housing, Auto Loans and Food as Top Budget Drains for U.S. Households
Fidelity Investments released a spending guide that identifies housing, transportation and food as the three biggest budget leaks, accounting for roughly 63% of U.S. household outlays. The firm warns that high mortgage or rent ratios, extended auto‑loan terms and unchecked...
I'm a Financial Planner: My 2 Key Rules for Investing Work Even When the Markets Are in a Tizzy
Veteran financial planner emphasizes two controllable pillars: spending awareness and asset allocation. By monitoring where money goes and aligning it with personal values, investors can live within their means. Simultaneously, setting a balanced allocation—mixing conservative assets with equities—protects against severe...
05.18.26 Saving: Take It Up A Notch / Furniture Sales Traps
In this episode of the Clark Howard Show, Clark highlights that the average American saves only four cents of every dollar earned, stressing the need for incremental habit changes to boost savings and reduce debt. He outlines a "baby steps"...
Experts Urge 401(k) Owners to Rebalance and Diversify Beyond Stocks as Equities Near Record Highs
Financial advisers from Fidelity, Charles Schwab, Morningstar and Vanguard are urging 401(k) participants to trim equity exposure and add bonds or global stocks as the S&P 500 nears all‑time highs. The push comes after a decade‑long rally that has left many retirement...
Combine IRA and HSA for Tax‑Efficient Retirement Savings
For any retiree that is saving for both medical expenses in retirement and also all of their other retirement goals, using a combination of an IRA (for most retirement expenses) supplemented by an HSA as a "retirement health savings account"...
The $40,000 Tax Move That Comes After Your 401(k) Hits Its Limit
Affluent investors who have maxed out 401(k) and mega backdoor Roth contributions can still shave taxes by switching a taxable S&P 500 ETF to a direct‑indexed separately managed account. On a $1.2 million sleeve, the strategy typically harvests $30‑$50 k of losses, translating...
The Average American Made a Retirement Savings Mistake It's Hard to Come Back From -- But Not Impossible
Many Americans wait until their early thirties to begin retirement savings, missing years of compound growth. A study from Northwestern Mutual shows the average start age is 31, which forces later savers to contribute substantially more each month—about $509 versus...
Trump’s $1.7 B IRS Settlement Proposal Sparks Bipartisan Outcry
A proposed $1.7 billion settlement to end Donald Trump's $10 billion lawsuit against the IRS has ignited bipartisan condemnation. Critics say the deal would create a taxpayer‑funded slush pool for political allies and could halt audits of the former president’s finances.
Saving 15% Can Turn a 54‑Year‑Old’s Zero Savings Into a $1 Million Nest Egg by 67
On May 16, a Ramsey Everyday Millionaires host told a 54‑year‑old caller with no retirement savings that contributing 15% of gross income to growth‑stock mutual funds could produce a $1 million portfolio by age 67. The plan hinges on a roughly...
Powell Steps Down as Fed Chair, Leaving Interest‑Rate Future in Flux
Jerome Powell has been named interim Federal Reserve chair pending the swearing‑in of Kevin Warsh, ending his eight‑year tenure. His exit comes as inflation remains 27% above pre‑pandemic levels and the Fed’s benchmark rate sits at a two‑decade high, raising...
AI Chatbots Surge as Budgeting Tools for 44% of Americans, Privacy Concerns Loom
Financial experts say AI chatbots are becoming a mainstream way for Americans to cut household costs, with 44% of respondents naming spending control a top priority. While the technology offers quick budgeting tips, privacy advocates caution that sharing sensitive financial...
New Benchmark Shows Most Americans Lag Far Behind Retirement Savings Targets
A new analysis of the Federal Reserve’s Survey of Consumer Finances shows median retirement account balances remain insufficient across all age groups. Even the oldest retirees could withdraw just $5,200 a year under the 4% rule, while Social Security provides...
Digital Banking Could Boost UK Household Economy by $127 Billion, Study Finds
A new research report estimates that wider adoption of digital banking services could add roughly £100 billion ($127 billion) to UK household economic activity. The analysis identifies seven use cases—from automated investing to AI‑driven mortgage tools—that together could unlock significant savings and...
Fidelity Unveils 10 Recession‑Proof Income‑Protection Strategies for Workers
Fidelity Investments rolled out a guide with ten specific tactics to help workers safeguard their careers and household cash flow ahead of an expected recession. The plan, authored by VP Andy Alvarez, splits into four career‑resilience moves and six cash‑flow safeguards,...
I Have $310,000 in Cash From a Maturing CD. Where Should I Put It Next?
A wave of maturing certificates of deposit (CDs) is forcing savers to redeploy large cash balances, exemplified by a reader with $310,000 becoming available. The article advises splitting the funds to stay within the $250,000 FDIC insurance limit, using a...
I Have $500,000 in Retirement Savings. Is It Wise to Invest It with a Single Firm?
A 68‑year‑old retiree with $500,000 in a 403(b) is considering moving the balance to a rollover IRA at a single brokerage, which would push the account above the SIPC protection limit. The Securities Investor Protection Corporation insures up to $500,000...
Consus Wealth Management Debuts Integrated Retirement Planning Platform
Consus Wealth Management Group, LLC launched an integrated retirement planning platform that combines investment management, tax strategy, income projection, healthcare, and estate coordination. Founder Thomas L. Costantiello says the service addresses the anxiety of 77% of Americans who feel insecure...
IRS Raises 2026 IRA Limits, Experts Tout CDs, IRAs and HSAs for Extra Tax Savings
The IRS has lifted the 2026 contribution limit for traditional and Roth IRAs to $7,500, with a $1,100 catch‑up for those 50 and older. Financial planners say the change underscores the need to diversify beyond 401(k)s, recommending certificates of deposit,...
I Always Dreamed of Buying a House, and Now I Can Finally Afford One. But I'm Realizing My Money Is...
After years of assuming homeownership was unattainable, a UK millennial couple finally qualified to buy a starter home. However, the properties within their budget were limited to undesirable locations, small spaces, and leasehold terms that offered little true ownership. Comparing...
The Break-Even Age for Delaying Social Security -- and Why It Does and Doesn't Matter Right Now
Social Security benefits can be claimed as early as age 62 or delayed until age 70, with monthly payments increasing by roughly 8% each year of delay. The break‑even age—when delayed claiming yields the same lifetime total as early claiming—typically...
Is a Roth Conversion Just Not That Into You? Here's When It's a Perfect Match (and When It Isn't)
A Roth conversion moves pre‑tax retirement assets into a Roth IRA, creating tax‑free growth but requiring income tax on the converted amount. While the strategy can boost long‑term flexibility and eliminate required minimum distributions, the five‑year waiting rule and immediate...
The First 5 Years After a Salary Jump: How to Handle a Pay Raise Without Buying a Life You Can't...
A salary raise often triggers lifestyle inflation, eroding the potential boost to net worth. Psychological factors like hedonic adaptation and social comparison lead many to upgrade spending before solidifying savings. The article advises automating at least half of any raise...
Retirement Accounts
The article dismantles the myth that retirement accounts are merely "paper wealth" by highlighting their flexibility and powerful tax benefits. It explains early‑withdrawal options such as IRS Rule 72(t) and the Rule of 55, and notes that Roth IRA contributions can be...
Schwab Advises Investors to Tap Equity via Margin Loans, SBLOCs and HELOCs
Charles Schwab’s Center for Financial Research released a guide that details three credit products—margin loans, securities‑based lines of credit (SBLOCs) and home‑equity lines of credit (HELOCs). The guide highlights low‑interest alternatives to credit cards, while warning of collateral risks.
Retirement Savings Gap Widens as Social Security Strains and Employer Plans Falter
Chantel Sheaks of the U.S. Chamber of Commerce warned that small‑business employees are hit by shrinking 401(k) coverage, while Social Security’s long‑term solvency is in doubt and a $1 trillion Medicaid cut threatens retirees’ safety nets. The combined effect leaves millions...
5 Money Moves that Made This 32-Year-Old Dad a Millionaire in Just 9 Year...
Blake Edwards and his wife turned a modest $60,000 salary into a $1 million net worth in just nine years. Despite a career shift to a $19,000 teaching salary, a pandemic, and two children, they followed five disciplined financial moves that...
Barter Boom in New York: Beauty Services Replace Cash as Residents Cut Costs
New York residents are increasingly swapping beauty services like haircuts, manicures and tattoos for other services or goods, bypassing cash and credit. Financial coach AJ Schneider says the surge reflects mounting economic pressure, while participants like Hannah M. Le and...
Electric Cars Save Thousands and Cut Pollution
What can you do if you are tired of wasting money on gasoline? Did you know that every 30 miles of driving a gasoline car, you spend three to five dollars more than driving the same 30 miles in an electric...
Emergency Fund, Clear Debt, Then Invest in VTI
"I inherited $1M at 30, what should I do?" I would: 1. Set aside 6-12 months of emergency funds in a MMF 2. Pay off any debt with interest of 7%+ 3. Invest the rest in $VTI What would you do?
LendingTree Report Finds Personal Loans for Everyday Bills Double, Gen Z Leads
LendingTree’s latest data shows personal loan requests for routine bills have risen to 8.2% of all applications, more than double the 2023 level. Generation Z borrowers are the most likely to use loans for groceries, rent and utilities, with 10.5% of...
My Family Isn't Rich but I Have $2 Million in Company Stock. How Much Should I Sell?
A former employee who helped build a startup now faces a $2 million equity windfall after the company’s IPO. The author asks how much of the stock to sell and how to allocate the proceeds, citing both financial and emotional concerns....
Financial Wellness Surge: No‑Buy Months, $0 Audits and Wealth‑Planning Shifts Gain Traction
Financial‑wellness experts are urging consumers to adopt no‑buy months, conduct a “$0 Audit” of hidden expenses and shift from budgeting to long‑term wealth planning. The movement targets the $133 average monthly spend on forgotten subscriptions and aims to boost motivation...
Student Loan Rates Projected to Rise to 6.5%‑9% for 2026‑27, Adding Costs for 42 Million Borrowers
Higher education finance analyst Mark Kantrowitz estimates federal undergraduate rates will hit 6.52% for the 2026‑27 academic year, with graduate and Parent PLUS rates climbing to 8.07% and 9.07% respectively. The hikes, driven by a 4.468% 10‑year Treasury yield, will...
64% of Gen Z Embrace Income Stacking as Paycheck Anxiety Rises
A Fiverr‑commissioned survey finds 64% of Gen Z consider multiple income streams essential, while 39% already freelance. Rising living costs and AI‑driven job insecurity are driving a shift toward “income stacking,” forcing a rethink of budgeting, savings and credit for...
Paying a $100 Fraud Charge Restored My Credit
About 5 yrs into my real estate career, I went to refi a building, the bank pulled my credit and the score was like 550 or something. Turned out some clown had stolen my ID, got store credit at JC Penney,...
Got a Bonus at Work? Here’s What to Do First
The article outlines a step‑by‑step approach for handling work bonuses, urging readers to first eliminate high‑interest debt, then bolster emergency savings, followed by self‑investment, and finally a modest splurge. Financial experts recommend a 50/30/20 allocation—50% to savings or investments, 30%...
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Should I Switch Bank Accounts? [Calculator]
A new interactive calculator helps savers decide whether to move money between high‑yield savings accounts. Users input current balance, existing APY, the prospective account’s APY, any sign‑up bonus, and transfer‑time days. The tool computes the final balances, net gain or...
Some Companies Are Pausing 401(k) Matches in 2026: What It Means for Your Taxes and Retirement Savings
Employer-sponsored 401(k) matches, averaging 4.6% of pay, are being paused or reduced by firms such as TTEC and previously Sherwin‑Williams as they trim benefits costs. The loss of a typical $3,450 annual match for a $75,000 earner can erode retirement...
Charles Schwab Bank and Marcus by Goldman Sachs Top J.D. Power Online Banking Rankings
Charles Schwab Bank earned the highest score (750) for online checking accounts, while Marcus by Goldman Sachs led the high‑yield savings category with a 749 rating in J.D. Power’s 2026 Direct Banking Satisfaction Study. The results, based on more than...
Potential 23% Social Security Cut Forces Wealth Managers to Rethink Retirement Plans
Wealth managers warn that the Social Security Old‑Age and Survivors Insurance Trust Fund could run out of money by 2032, triggering a possible 23% benefit reduction. The prospect is pushing advisors to prioritize larger personal savings, early investing and diversified...
Venmo Overhauls App to End Public-By-Default Feed, Boost Privacy
PayPal's Venmo is rolling out a ground‑up redesign that removes the public‑by‑default transaction feed, defaulting new users to friends‑only visibility and adding granular privacy controls. The change, driven by user feedback, aims to strengthen data protection while expanding the app’s...