Posts by SmartAsset Team
Financial Planning
Personal Loan vs. Credit Card: Types of Credit, Rates and Payments
Personal loans and credit cards are both common ways to borrow money, but they work differently and carry very different costs. A personal loan gives you a fixed amount upfront with a set repayment schedule and a predictable monthly payment. A credit card gives you a revolving line of credit you can draw on repeatedly,… read more…
Tax Planning
Bunching for Charitable Donations: Tax Strategy and Examples
Giving to charity can support causes you care about, but it does not always translate into meaningful tax savings. That is why some households use a strategy called charitable donation bunching, which involves combining several years of donations into one tax year to potentially unlock larger deductions. As tax rules change and itemized deduction limits… read more…
Inheritance
Intestate Probate Process: Rules, Examples and Steps
When a loved one passes away without a will, their estate doesn’t simply transfer to the people they cared about most. Instead, it enters a court-supervised process called intestate probate, where state law decides who inherits what. This default system can produce surprising and sometimes unwelcome outcomes. It can leave long-term partners with nothing, divide… read more…
Retirement Planning
How to Build a Retirement Investment Plan: Strategies and Steps
A retirement plan that needs to last 30 or more years can succeed or fail based on its structure. Account types, contribution levels, asset allocation, tax treatment and withdrawal sequencing will determine how much you keep, how long it lasts and how much goes to taxes. That is why the decisions you make when setting… read more…
Other
Statutory Durable Power of Attorney: Uses and Requirements
A statutory durable power of attorney authorizes someone you trust to manage your financial affairs if illness, injury or cognitive decline makes it impossible for you to do so yourself. Without one, family members may face court proceedings just to access accounts or pay bills, and those proceedings take time that a financial emergency rarely… read more…
Market Analysis & Economic Trends
Behavioral Economics: Definition, Goals and Examples
Why do people panic and sell investments during market downturns or overspend even when trying to save money? Why do some avoid financial decisions altogether? Traditional economics assumes people make rational choices based on logic and self-interest. However, real-life behavior often tells a different story. Behavioral economics examines the psychological and emotional factors that influence… read more…
Credit Score
Credit Score Factors: Uses, Weights and Examples
Your credit score can quietly shape some of the biggest financial decisions of your life, sometimes without you even realizing it. Whether you’re applying for a mortgage, signing a lease or even setting up a new phone plan, this three-digit number ultimately determines your options and the rates you’ll pay. However, your score doesn’t appear… read more…
Real Estate
Real Estate Asset Classes: Types, Benefits and Risks
Real estate has long been a cornerstone of wealth building and options have expanded far beyond rental properties. Today, investors can access apartment buildings, office space, data centers, life sciences facilities and cell tower infrastructure. Each investment has its own risk profile, return potential and place in a portfolio. Knowing the differences between each could… read more…
Investing for Beginners
Ethical Investment Funds: Types, Uses and How to Choose One
Ethical investment funds incorporate values-based, environmental, social and governance criteria into their selection process alongside traditional financial analysis. These pooled investment vehicles allow investors to align their portfolios with personal or institutional values while still getting the diversification, professional management and accessibility that conventional funds provide. A financial advisor can help you identify which ethical… read more…
Retirement Planning
Micro Retirement: Definition, Benefits, Drawbacks and Taxes
A micro retirement is an intentional, extended career break taken mid-career rather than waiting until traditional retirement age. Unlike standard vacation time, these breaks typically last from a few weeks to a year, are usually unpaid, and are self-funded and self-directed rather than provided by an employer. Micro retirements can look very different: some people… read more…
Investing for Beginners
Private Market Investing: Types, Opportunities and Risks
Private markets, once reserved for large institutions and the ultra-wealthy, are becoming more accessible to individual investors. These investments offer exposure to startups, real estate projects and privately held companies with significant growth potential, but they also come with added complexity and risk that investors need to weigh carefully before committing capital. A financial advisor… read more…
Retirement Taxes
7 Tax-Efficient Retirement Withdrawal Strategies
The order in which you withdraw money from your retirement accounts could cost, or save, you tens of thousands of dollars over the course of your retirement. While most retirees follow the conventional wisdom of tapping taxable accounts first and saving Roth accounts for last, this seemingly logical approach can actually trigger a cascade of… read more…
Financial Planning
When Do You Need a Financial Planner for Early Retirement?
Most people who retire early do not regret leaving work. They regret not planning for what comes after. Decades without a paycheck means your investments, taxes and healthcare costs all have to carry weight they were never designed to carry alone. A financial planner can help you figure out if your plan actually holds up… read more…
Tax Filing
How to File Taxes for Dependents: Reasons and Steps
Claiming a dependent on your tax return can unlock meaningful savings, but the rules around who qualifies are more nuanced than many people realize. Whether you’re supporting a child, an aging parent, or another family member, understanding the IRS requirements and the benefits tied to dependency status can make a real difference in what you… read more…
Roth & Traditional IRAs
Mega Backdoor Roth Limits in 2026
For high earners who’ve already maxed out their 401(k) and Roth IRA contributions, the mega backdoor Roth offers a rare opportunity to push tens of thousands of additional dollars into tax-free retirement savings each year. In 2026, the strategy allows eligible savers to contribute up to the overall 401(k) limit of $72,000. Even higher caps… read more…
401(k)
Can You Make 401(k) Withdrawals to Pay for Long-Term Care?
Long-term care is one of the most significant expenses many retirees face. Annual costs can easily exceed $100,000 for nursing home care, with tens of thousands more for in-home or assisted living services. And for those without dedicated insurance or the savings to cover care, tapping a 401(k) may seem like the most accessible option.… read more…
Personal Finance
Can I Open a 529 Plan for Myself? Requirements and Options
529 plans are often associated with parents saving for a child’s college education, but they can also be a powerful tool for adults investing in themselves. Whether you’re planning to go back to school, earn a professional certification or prepare for a career change, opening a 529 plan for yourself could provide tax advantages while… read more…
Mortgage Basics
Can You Switch Mortgage Lenders? Reasons and Steps
Getting approved for a mortgage doesn’t mean you’re locked into the first lender you choose. Whether you discover a lower interest rate, more favorable loan terms or better customer service, switching mortgage lenders can sometimes save thousands of dollars over the life of a loan. However, changing lenders midstream in a home purchase or refinance… read more…
Investing for Beginners
Warren Buffett Retires: Key Takeaways for Investors
At age 95, Warren Buffett officially stepped down as CEO of Berkshire Hathaway on January 1, 2026. He had spent six decades transforming what was once a failing textile company. Now it is one of the largest and most influential corporations in the world. From 1964 through 2024, Berkshire delivered a compounded annual gain of… read more…
Real Estate
REITs for Beginners: Types, Requirements and How to Get Started
Real estate has long been one of the most reliable paths to building wealth. It’s also among the most difficult. Becoming a property owner requires enormous upfront capital, dealing with difficult tenants, and navigating endless maintenance headaches. Real Estate Investment Trusts, or REITs, change that equation entirely. These allow you to invest in large-scale real… read more…
Investing for Beginners
AI Uses for Investing: Analysis Types, Benefits and Risks
AI can offer advantages in data processing speed and scale, but it also comes with risks, including data quality issues, algorithmic bias and the potential for over-reliance on automated recommendations. Knowing when to use AI tools and when human judgment remains essential helps investors make better-informed decisions. If you prefer a more hands-on approach, a… read more…
Financial Planning
GI Bill for Dependents: Eligibility and Benefits
Military service demands extraordinary sacrifices from not just service members but also their entire families. Supporting someone who serves in uniform often comes with frequent moves, long separations and constant uncertainty. To recognize these sacrifices, one of the most valuable benefits the government offers is the ability for service members to share their GI Bill… read more…
Healthcare & Living
Life Insurance Over 75: Why Get It and Coverage Options
While obtaining coverage past age 75 comes with challenges, including higher premiums and more limited options, several types of policies remain available that are specifically designed for older adults. Taking advantage of these options can provide much-needed protection from financial burden for your family during an already difficult time, or simply cover the cost final… read more…
How to Invest
Price-to-Cash Flow: Investment Uses, Formula and Calculation
When it comes to evaluating stocks, savvy investors know that earnings can tell only part of the story, and sometimes a misleading one. While headlines often focus on price-to-earnings ratios and quarterly profits, the price-to-cash flow ratio focuses on the actual cash a company generates. This can help you spot undervalued gems that other investors… read more…
401(k)
401(k) Rollover to a Roth IRA: Tax Consequences
Converting your 401(k) to a Roth IRA can be one of the smartest moves for your retirement strategy. However, it comes with an immediate price tag that catches many investors off guard. A traditional 401(k) rollover to a traditional IRA is tax-free, Roth conversions are not. Moving money from a 401(k) into a Roth IRA… read more…