Posts by SmartAsset Team
Financial Planning
Trump Midterm Election Dividend: How It Could Work and What You Could Get
President Donald Trump announced on Sept. 9 that every adult U.S. citizen would receive a $5,000 payment if Republicans keep control of both the House and Senate in the 2026 midterm elections.1 That could mean $10,000 for a married couple. At the moment, there is no approved check, rebate or tax credit to claim. The… read more…
Estate Planning
High-Net-Worth Estate Planning Attorney: Services and Examples
High-net-worth estate planning often requires more than drafting a basic will. Families with substantial wealth may need coordinated strategies for transferring assets, managing taxes and preparing for incapacity. An estate planning attorney can help organize those moving parts. They will create legal documents designed around the family’s goals, beneficiaries and financial circumstances. A financial advisor… read more…
Inheritance
Non-Spouse Beneficiary IRA: Estate Planning Rules
Inheriting an IRA from someone other than a spouse creates both opportunity and a complicated set of withdrawal rules. Adult children, grandchildren, siblings and other beneficiaries generally cannot simply add the inherited money to their own IRA. Instead, the beneficiary’s classification, the type of IRA, and whether the original owner reached their required beginning date… read more…
Tax Policy
Trump Stay-at-Home Parent Payment: How It Could Work and What You Could Get
If you stay home with your children while your spouse works full time, a proposed Trump administration rule could make your family eligible for federal child-care assistance. The aid would come from the Child Care and Development Fund (CCDF), a federal-state program that helps lower- and middle-income working families pay for child care. That program… read more…
Social Security
My Adult Children Support Me Financially. Can I Collect Social Security as Their Dependent?
Even if your adult son or daughter helps pay your bills, you can’t collect Social Security on their work record while they’re alive. After their death, you may qualify for parent’s benefits if you’re 62 or older and they covered at least half of your living expenses.1 Here are the general requirements and an example… read more…
Retirement
My Husband Died. Here’s How Much of His Social Security I Can Actually Claim.
Losing your spouse can change the size of your Social Security benefit. You cannot collect their full amount and your own at the same time, but you generally get whichever is larger. Claiming survivor benefits before your full retirement age (FRA) could reduce that check for as long as you collect it. Here’s how much… read more…
Inheritance
I Inherited My Husband’s $250,000 IRA at 62. Could It Affect Taxes on My Social Security?
If you inherited your spouse’s IRA, the account itself generally isn’t taxed when you receive it. Withdrawals from a traditional IRA count as taxable income, which can increase how much of your Social Security benefits becomes taxable. That could raise your federal tax bill, but as a surviving spouse, you may be able to time… read more…
Investing for Beginners
I’m Retired With $200k Sitting in Cash. Here’s How I’m Investing It Without Losing Sleep.
If you are retiring with a large sum of cash, inflation is reducing the buying power of that money every year you leave it idle. Investing it all at once, on the other hand, could expose cash you may need short term to a market drop. Another strategy might help you divide that money based… read more…
Market Insights
4 Financial Moves to Consider When Interest Rates Go Up
Rising interest rates reshape the investment landscape, creating both risks and opportunities across stocks, bonds and cash. Existing long-term bonds can lose value, while highly valued growth stocks may face pressure as future earnings are discounted more heavily. At the same time, cash begins paying meaningful interest, newly issued bonds offer higher yields and some… read more…
Financial Planning
Rubber Duck Rule for Retirement Planning: Uses and Examples
Many retirement plans look airtight in a spreadsheet until you try to explain exactly how they’ll work. The rubber duck rule, which is the practice of talking through a strategy step-by-step to expose faulty logic, can reveal assumptions and contradictions that are easy to overlook on paper. In retirement planning, where withdrawals, taxes, Social Security… read more…
Social Security
My Son Supported Me Before He Died. Here’s How Much I Could Get Based on His Social Security Record.
If an adult child helped cover your living expenses before dying, Social Security may provide income based on that work record. Meeting the program’s dependency rules can make you eligible for a monthly benefit. The payment amount reflects the deceased worker’s earnings history and whether other family members qualify. When a Parent Can Collect Social… read more…
Tax Planning
I’m a Stay-at-Home Mom With 3 Kids. Claiming This Tax Credit Could Add Up to $6,600 to My Family’s Refund.
Some families may be expecting a new tax break for stay-at-home parents, but despite a 2026 White House draft proposal, no legislation has been approved.1 You may, however, qualify for a higher child tax credit. If you are a stay-at-home parent with three eligible children, that credit could add up to a $6,600 tax refund… read more…
Investing for Beginners
OpenAI Employee Stock Compensation: Vesting, Taxes and Selling
OpenAI CEO Sam Altman said the company will not go public in 2026, citing concerns about timing and AI safety. The startup is reportedly seeking a $1.4 trillion valuation through a new funding round that could provide financing without an initial public offering (IPO).1 If you are an OpenAI employee with company stock, this could… read more…
Retirement Taxes
I’m 72 With a Year Left Before RMDs. Here’s How I’m Shrinking Them Now.
At 72, you may find yourself one year away from required minimum distributions (RMDs), but that narrow window could still offer an opportunity to reduce future mandatory withdrawals. Converting part of a traditional individual retirement account (IRA) to a Roth IRA or taking a voluntary distribution before they begin may help lower your balance. The… read more…
Firm Management
How to Transition or Sell Your Book of Business When You Retire
Transition planning for financial advisors involves deciding how clients, staff and the value of a practice will be handled when an advisor retires. Depending on the advisor’s goals, that may mean selling the book of business to another advisor or firm, transitioning clients to an internal successor or using a combination of both approaches. The… read more…
Inheritance
I Inherited a House Worth $400,000. An Appraisal Could Save Roughly $7,500 in Capital Gains Tax.
Inheriting a house can give you a step-up in basis, potentially reducing capital gains tax when you sell it. To support that tax treatment, you generally need documentation showing what the home was worth when the previous owner died. On a $400,000 home, a timely appraisal could save you $7,500 in federal capital gains tax.… read more…
Wills
Advance Directive vs. Power of Attorney: Differences and Examples
If an illness or accident leaves you unable to speak or make decisions, someone still has to decide what medical care you receive and how your financial affairs are handled. An advance directive and power of attorney can prepare for those situations, but they serve different purposes. Knowing how each works and the role they… read more…
Roth & Traditional IRAs
Early Retirement With a Roth Ladder: Strategy and Examples
A Roth conversion ladder can help early retirees access retirement savings before age 59 ½ without triggering the usual early withdrawal penalty. The strategy works by gradually converting pretax retirement money to a Roth IRA. However, timing is critical: Each conversion generally has its own five-year waiting period before it’s possible to withdraw converted taxable… read more…
Inheritance
I Inherited a House With a $300,000 Mortgage at 3.5%. Assuming the Loan Instead of Refinancing Could Save Me Up to $7,700 a Year.
Inheriting a house with a mortgage may give you the opportunity to keep the existing loan and its interest rate instead of refinancing. Federal protections allow certain heirs and successors to take ownership without triggering the mortgage’s due-on-sale clause. If you inherit a $300,000 mortgage at 3.5%, keeping that rate could be especially valuable when… read more…
Inheritance
I Just Inherited $200,000 Thinking the Step-Up Basis Would Cover My Taxes. Here’s What It Doesn’t Do.
Inheriting $200,000 does not necessarily mean you will owe taxes on the full amount. Some inherited assets receive a step-up in basis, which can reduce or eliminate capital gains taxes on growth before the owner died. This does not mean, however, that you are exempt from taxes. You could still get taxed on gains after… read more…
Retirement Planning
We Retired at 63. Tapping Our 401(k) Before Social Security Changed Everything.
Retiring at 63 can create an income gap if you delay Social Security. One option is to use 401(k) withdrawals as a temporary bridge, which could allow you to claim a higher monthly benefit later. To determine whether this strategy might work for your retirement, you will need to figure out if the increase is… read more…
401(k)
I’m 40 With 25 Years to Retire. Ignoring My 401(k) Match Could Cost Me Almost $165,000.
Skipping a 401(k) match at age 40 could cost you more than the amount your employer would have contributed. You also give up potential investment growth on that money during the next 25 years. Missed contributions and earnings can add up to a substantial gap in your retirement savings. How Much Employer Money You Could… read more…
Social Security
Social Security at 62 vs. 65: What Is the Break Even Point?
Claiming Social Security at 62 gives you three extra years of payments, but each monthly check is permanently smaller than it would be if you had waited until 65. Delaying benefits means giving up that early income in exchange for a larger monthly payment later. The break-even point shows when those larger checks catch up… read more…
Investing for Beginners
U.S. Bonds Sell-Off: What Falling Bond Prices Tell Investors
A U.S. bond sell-off occurs when selling pressure pushes bond prices lower and yields higher. These moves can reflect changing expectations for interest rates, inflation, and economic growth. They can also affect borrowing costs, existing bond holdings, and potential opportunities for investors purchasing newly issued bonds. A financial advisor can help you evaluate how changing… read more…
Social Security
Social Security Check at 62 vs. 70: How Much Can You Get?
Choosing between claiming Social Security at 62 or waiting until 70 can create a wide gap in your monthly income. Starting early gives you more years of payments, while delaying may increase the amount of each check. The tradeoff comes down to how long you expect to collect benefits and how much income you need… read more…