Dave Ramsey Warns Against Making These 3 Costly Mistakes
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It is important to have a financial plan at any stage of life, but when you are about to retire, it is even more important to prepare your money. It’s also important to avoid financial planning mistakes that can be detrimental to your long-term goals.
Famed financial guru Dave Ramsey, known for his aversion to debt and focus on budgeting, has given plenty of advice over the years on how to set yourself up for success in your 50s. Here are three mistakes to avoid when planning for retirement.
1. Retirement and debt
Ramsey emphasizes that leaving your job with debt can be a big mistake. He suggests paying off your mortgage, car loan, credit cards and other types of debt before you retire. While a nest egg may make debt feel manageable, a medical bill or other unexpected expenses can put you in a situation where you fall behind on your debt payments.
Ramsey recommends attacking debt aggressively before retirement. That way, you also have time to let your money accumulate before retirement. Those extra few years of asset benefits can give you more flexibility in retirement so you don’t feel tied down and can spend on what you enjoy.
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2. Living without a budget
Creating and maintaining a budget isn’t just a solid financial step for people thinking about retirement. It can help you keep your spending in line with your expenses and goals no matter how old you are – and doing so can help ensure you’re saving enough for retirement.
People who are not on a budget can end up spending a lot of money on houses, cars and more. Some people buy larger homes than they can afford or opt for a luxury car if a used car makes more sense for their long-term financial goals.
Ramsey views the budget as a “permission to spend” rather than a punishment. Once you’ve taken care of important expenses, paid off bills and invested some of your money, the remaining cash can go towards guilt-free spending.
Save Smartly: Manage your money with Rocket Money’s budgeting app, one of Money’s favorites
3. Exceeding Social Security
Social Security is a retirement safety net, but it won’t provide you with enough money to cover all of your expenses. Some people underestimate their monthly expenses and quickly find that Social Security is not enough to cover their essentials. And remember that taking Social Security as soon as you’re eligible reduces your benefits compared to extending your payments, which increases your payment rates.
Ramsey advises savers not to rely solely on Social Security in their retirement years. As the cost of living increases — and health care costs in particular balloon — it’s important to build a nest egg that can help cover your living expenses and retirement goals, such as travel. In that way, Social Security provides additional income rather than being the basis for financing your lifestyle.
People looking to retire shouldn’t be the only focus when they can retire. They should also consider How they can retire, and calculate how much they will need as expenses rise.
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Roth Conversion Timing: Should You Convert Early in the Year? End it? Or, Spread Them?
A Roth conversion is one of the best planning methods for managing taxes throughout your life. Used judiciously, they can reduce future tax risk, increase flexibility during retirement, and help smooth incomes at different stages of life.
Once you’ve decided that a Roth conversion might make sense in your situation, the next question is probably about timing. Should the change happen at the beginning of the year, later in the year, or spread out over time? Below, we’ll break down the pros and cons of each method to help you make informed planning decisions.
Is an Early Years Roth Conversion the Right Move?
Going forward with a Roth conversion early in the year can be attractive, especially for people who value discretion or anticipate a year of low income. There are real benefits to early action, but there are also trade-offs that need to be carefully considered.
Pro: More time for tax-free potential growth
Assets converted earlier in the year have more time to grow within the Roth account. If the markets do well, that growth happens in a tax-free account rather than a tax-deferred one, which can increase the long-term benefit of the conversion.
This may be particularly relevant from a heritage perspective. You may choose to invest aggressively (think: stocks) in Roth accounts, while holding more conservative assets in tax-deferred accounts. Since qualified Roth withdrawals are never taxed and these accounts are not subject to Required Minimum Distributions (RMDs), high-growth assets can be compounded over time without tax deductions or forced withdrawals.
That said, this benefit is not guaranteed. It depends on how the markets actually work and how the assets are invested after conversion. If the markets go down or the returns are the same across all accounts, the conversion benefit at the beginning of the year may be limited or may not occur at all.
Pro: Simplicity and speed
Early years Roth conversions allow you to make a clear decision and move on. If your income is stable and predictable, switching early can feel more efficient than dragging out the decision for a year. Managing the transition before the year is filled with other tax planning, investment decisions, and life, in general, can make the process feel more manageable and purposeful.
This approach may also work well in years when income is clearly lower than normal, such as after retirement but before other sources of income, such as Social Security, kick in.
Con: Uncertainty of income at the beginning of the year
At the beginning of the year, you may still be working on estimates for your entire income. Bonuses, consulting pay, dividends, capital gains, or unexpected events can all increase your taxable income later in the year.
If income ends up being higher than expected, early changes that seemed reasonable may backfire. It could push your average income into a higher tax bracket, change the 0% long-term benefit to 15%, reduce or eliminate ACA premium subsidies, or implement higher Medicare premiums (IRMAA) two years later.
Once the conversion is complete, it cannot be modified again. That means premature decisions made with incomplete information can lock in the outcomes you’re specifically trying to avoid.
Con: Less flexibility when markets move during the year
If you change at the beginning of the year, you are committing to a decision before you know how the markets will perform during the rest of the year. If the markets go down over time, you may wish you had waited and switched at lower values, but once the reversal is complete, it will not be reversed.
Waiting until later in the year preserves flexibility. You can see how the markets have actually performed and decide whether to trade the same amount, more, or less based on what happened than you expected.
This does not mean that early conversion is wrong. It just means that they trade flexibility for decisions, which may or may not suit the way you choose to plan.
Should You Wait Until Later in the Year to Convert?
As there are reasons to convert early, there are compelling reasons to wait. Year-end Roth conversions tend to appeal to people who value accuracy and prefer to make decisions with as much information as possible.
Pro: More clarity on your annual income
Later in the year, you tend to have a clearer picture of your actual income. Salaries, bonuses, dividends, interest, capital gains, and other taxable events are no longer estimates but known numbers.
This clarity reduces reliance on guesswork and guesswork. Instead of planning annual projections, you make decisions based on what actually happens.
For you, this can greatly reduce the risk of surprises related to income fluctuations, year-end capital gains distributions, and other taxable income events.
Pro: Better control over tax brackets and income limits
Since the annual income is known, you can be more precise in how you size a Roth conversion. Waiting until the end of the year allows you to convert “enough” to fill the tax bracket you want without accidentally spilling over into the next one.
This accuracy is especially useful when managing income-based thresholds, such as Medicare IRMAA levels. Because these limits are determined by your gross annual income, having complete information allows you to make changes on purpose rather than on a whim.
For many, this ability to plan results is the main appeal of the year-end conversion.
Con: The pressure of a year-end decision
Waiting until the end of the year can compress decision-making into a shorter window. This can feel stressful if the transition is considered a last-minute task and other end-of-the-year planning tasks.
Late-year transitions work best when done with purpose and planning, not in a rush. If you prefer to make decisions later, this added pressure may feel like a logical setback.
Con: Risk of overdoing the decision altogether
For some, waiting until later in the year increases the risk that the conversion will be delayed or not happen at all. As the year fills up with other priorities, even well-intentioned plans can be shelved.
This is not a tax issue or a market issue. It is a matter of execution. Life tends to get busy later in the year with holidays, travel, work deadlines, and year-end planning competing for attention. Something that starts like “we’ll do this in December” can change silently and not change at all.
In those cases, acting early, even imperfectly, may be better than waiting for the “perfect” moment that never comes.
Splitting or Converting a Roth Conversion Throughout the Year
Roth conversions don’t have to happen all at once in any year. You may also consider a staged approach that spreads the conversion throughout the year.
This is conceptually similar to the dollar cost ratio of an investment. Rather than doing everything all at once, you spread out the decisions, which can help reduce the stress of getting the timing right.
Pro: Flexibility without having to do everything at once
The stage method allows you to change part of your budget at the beginning of the year and leave room to adjust later. That flexibility allows you to respond as revenue and market conditions unfold, rather than doing everything at once.
If the markets go up, some assets are already in the Roth. If the markets fall, the latest reversals may occur at lower values. This approach doesn’t eliminate uncertainty, but it spreads it out, which you may find more comfortable than making one big decision at once.
The platform approach is less about predicting markets and more about planning decisions so no single choice carries all the weight.
Con: More moving parts to handle
However, year-round classification changes require more follow-up and follow-up.
You need to look at how much has been changed, how much room is left in your target tax bracket, and whether any income is changing the equation along the way. This method can also create multiple decision points. Instead of making one clear choice, you review the decision several times as the year goes on, which can add to the mind.
If you prefer simplification over continuous maintenance, this added complexity may feel more draining than energizing.
Multiple Roth conversions throughout the year can also add complexity regarding how and when taxes are paid.
It is generally recommended to use money from foreign retirement accounts to pay the tax on the conversion, rather than withholding taxes directly on the converted amount, to keep more money growing inside the Roth. When conversions are spread out throughout the year, you may need to think more deliberately about cash flow, holding changes, or estimated tax payments to stay on track and avoid surprises. For some, this connection can feel like a solo project.
If managing tax payments sounds like a burden, one, well-planned conversion may be easier to implement than several, even if it offers less flexibility.
How to Estimate Time for Roth Conversions in the Boldin Planner
If you’re not sure which time method works best for you, you can explore different strategies directly in the Boldin Planner. Modeling removes the guesswork and replaces it with real numbers based on your plan.
To model a Roth conversion in your plan, go to My Plan > Cash Flow > Transfers and add a new Transfer. Set up a future transfer from one of your tax-deferred accounts to a Roth account. If you don’t have a Roth IRA in your plan, you can simply add one with a $0 balance.
From there, you can select the month you want the conversion to take place. For example, you can choose January or February for early-year conversions, or November or December if you’re modeling year-end conversions. You can also model multiple Roth conversions throughout the year, rather than committing to a single conversion date.
When is the Best Time for a Roth Conversion? Focus on the Schedule, Not the Calendar
There is no universally correct month to do a Roth conversion.
Whether you convert at the beginning of the year, later in the year, or in stages throughout the year, the key is to make a deliberate decision as part of your overall financial planning. If the transition is planned in line with your income, taxes, and long-term goals, small differences in timing tend to matter much less than you might expect.
The right Roth conversion method helps you stay confident, informed, and consistent with your plan year after year.
The post Time Roth Conversions: Should You Convert Early in the Year? End it? Or, Spread Them? appeared first on Boldin.
Why Vanguard Icon Jack Bogle Promotes Low-Cost Investing
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Investing doesn’t require checking earnings reports and analyst forecasts, trying to identify stocks that are about to take off. In fact, the key to reaching your long-term financial goals is often to keep investing simple.
Vanguard founder Jack Bogle pioneered low-cost investing, ushering in a new era of affordable mutual funds and exchange-traded funds (ETFs). If you are 50 years old and about to retire, you may be wondering how to adjust your portfolio to fit your risk tolerance, time horizon and goals. Bogle’s low-cost investment model can help – and implementing it can be easy.
Consolidating power of low payments
Investing in cheaper index funds instead of funds with higher expense ratios won’t change your returns overnight, but it can result in big savings over time. There are plenty of ETFs like the S&P 500 and other popular benchmarks with expense ratios under 0.10%. Funds that charge 1% of the fee rates look very unattractive in comparison.
For example, someone with $500,000 in their portfolio invested at a 1% expense ratio will pay $5,000 in fees at the end of the year. But someone investing the same amount in funds with 0.25% expense ratios would pay just $1,250.
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Why simplicity reduces risk for late-stage investors
Bogle’s recommended approach is to invest in a few broad index funds and have long holding periods. That way, your wealth is not dependent on a single stock or sector. It rises during bull markets, but losses tend to be worse during bear markets and corrections.
Consistently buying shares of index funds on a dollar cost basis, such as monthly, and holding for a long time helps you avoid making investment decisions based on emotion.
Save Smartly: Manage your money with Rocket Money’s budgeting app, one of Money’s favorites
How to go ‘Bogle style’ in the 50s
Applying Bogle’s investment advice in your 50s may not require major changes. It involves an audit to see what funds you have invested in and how much you are paying in fees. If you are not diversified across assets, such as stocks and bonds, domestic and international assets, and assets of various sizes and sectors, invest in funds that offer more diversification. If you’re paying more than you’re comfortable with in fees, you can sell shares at higher interest rates and invest in affordable ones.
As you approach retirement, it may make sense to increase your retirement savings accounts so you can enjoy tax benefits along the way. While Roth accounts protect you from taxes on withdrawals, a traditional retirement plan allows you to enjoy tax-deferred contributions.
Extra Money: See how you can get up to $1,000 in stocks when you fund a new SoFi investment account
Analyze your current tax situation and what tax bracket you expect to be in in the future to determine which type of account you should invest in. Tax diversification can also help reduce risk and costs in retirement: Many investors invest in employer-sponsored retirement accounts such as 401(k)s, as well as individual retirement accounts (IRAs) and taxable brokerage accounts.
Trump’s Mortgage Bond Plan Sends Rates Low… for now
Housing affordability will be one of the administration’s top priorities in 2026 as President Donald Trump seeks to lower mortgage rates.
In a recent social media post, Trump announced that he is “directing” his representatives at Fannie Mae and Freddie Mac to buy $200 billion in mortgage-backed securities, or MBS, also called “housing bonds.” When the demand for MBS increases, the price of the bond increases, but the yield – the interest paid to investors – decreases, pulling down the mortgage rates and, in turn, reducing the cost of borrowing and monthly payments.
The strategy worked, at least for now. Mortgage rates fell by about 0.20 percent due to the January 8 position release.
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The sudden rate drop was welcome news to some home buyers, who wasted no time in taking advantage of the dip. According to the Mortgage Bankers Association, mortgage applications rose nearly 30% week over week on a seasonally adjusted basis during the week ending Jan. 9. Landlords also got in on the action, with refund requests up 40%.
The question now is whether this decline is sustainable or a one-time decline. Many experts believe that the impact of bond purchases will likely be limited.
Joel Berner, chief economist at Realtor.com, tells Money in an email that the drop in prices is “probably a sharper reaction than we’ll see in the coming days and weeks. Prices will likely continue to fall, but not at this rapid daily pace.”
How low could mortgage rates go?
Bill Banfield, chief business officer at Rocket Mortgage, expects rates to drop 0.15- to 0.25-percent from their previous levels, with other mortgage experts citing a similar range. If so, rates may not go much below their current average of around 6%.
The reason they are not backing down on the sale of mortgage bonds, said Banfield, is that, although the $200 billion is significant, it only represents 15% of the mortgage market. Whether Fannie and Freddie make a lump sum investment or make a series of purchases over time, lenders already have a purchase price for their rates.
Still, these low rates provide a much-needed boost to some prospective homebuyers. According to a report from brokerage Redfin, potential buyers gained nearly $14,000 in buying power last month as rates edged closer to 6%. Since mid-summer, when mortgage rates began to drop from about 6.8% to their current level, buyers have gained $30,000 in purchasing power.
“It’s going to take a while, but affordability will slowly get back on track,” Banfield said.
Despite these recent developments, there is no guarantee that Fannie and Freddie’s mortgage bond purchases it will lead to a long-term decline. Indeed, since Trump’s social media posts have sent rates plummeting, they noted again, although they remain below the average seen two weeks ago.
Any further rate cuts will depend on other economic factors, including moves in the 10-year Treasury yield, inflation, the labor market and the strength of the overall US economy, all of which could push rates either way. Possible legal action against Federal Reserve Chairman Jerome Powell could also affect interest rates, raising them.
The impeachment of the Fed chairman will destroy confidence in the central bank’s independence from political influencewhich may result in economic instability, higher inflation and investors’ demand for higher bond yields to compensate for increased economic risk.
Mortgage rates and monthly payments are only part of the total cost of home ownership and home ownership. Berner notes that homeowners insurance, property taxes and HOA fees have also increased in the past few years and continue to do so. Home prices are also rising, although at a slower pace than in previous years. These higher costs could dampen any significant improvement in housing affordability due to lower mortgage rates.
“It’s important to take a closer look at the cost of home ownership before buying, not just jump at the sudden drop in mortgage rates,” says Berner.
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Why are credit card balances a bad idea? What are some ways we can make prices less crazy?
President Trump recently floated a proposal to cut credit card rates by 10%.
On the face of it, this sounds like a good idea.
Most borrowers’ credit card rates are in the 20-30% range. The average balance for the 45% or so people who default on their balance each month is around $6-7k. Carrying a balance while paying high loan rates is a surefire way to crush your money and your score.
So why would capping these prices be a bad idea?
JP Morgan CFO Jeremy Barnum explains:
Our belief is that actions like these will have a completely different effect on what management wants from consumers. Instead of reducing the price of credit, we will simply reduce the supply of credit, and that will be bad for everyone: consumers, the broader economy, and yes, at the margins, for us.
Basically deposit rates will cause banks to withdraw their lending in this space. Only those with strong credit scores will be able to borrow. Those who rely on credit cards to support their lifestyle may be forced into payday loans or other more stressful borrowing arrangements.
I don’t think capping credit card rates at 10% makes sense but I also don’t think the current system is fair to those stuck in debt who meet you faster than the world’s best investors. It just didn’t make sense to me that credit card rates stayed so high even when other lending rates were at record lows in the 2010s and early 2020s.
To understand why credit card rates are so high and how we got to this point it’s important to go through a brief history of credit cards with some help from Joe Nocera in his book. Action Episode, which accounts for the growth of consumerism in the latter half of the 20th century.
The first consumer credit boom came during the Roaring 20s. The freewheeling attitude from that time was quickly ended by the Great Depression, which turned an entire generation of people into thrifty slaves.
People didn’t want to spend money and it wasn’t until after World War II, when everyone wanted to borrow money to finance their middle class lifestyle. People wanted to buy refrigerators, televisions, new homes, and the latest models of cars. And they didn’t want to wait.
Many banks were not equipped to handle this new consumer. There was no real difference in consumer financial institutions at that time. No one paid interest on checking accounts and passbook savings account rates were regulated. Most people just choose the most convenient bank near their home or work.
Many banks have focused more on business loans than consumers. In fact, banks were reluctant to give loans to buyers because they wanted to protect households from the risks of over-lending.
Bank of America was the first financial institution to recognize the growing importance of consumers in the new economy. After seeing significant growth in mortgages, they began exploring BankAmericard in the late 1950s.
In 1958, Bank of America mailed 60,000 credit cards to households in Fresno, CA. No one asked them. They just arrived at the mailbox. By 1959, 2 million cards had been circulated and were out of the races. Chase and American Express were right behind them with their offerings.
So how do they charge such high interest rates on these cards?
Joseph Williams was the founder of BankAmericard. Williams set credit card interest rates by examining how companies like Sears set theirs. Nocera explains:
Williams had friends at Sears and Mobil Oil, and those friends secretly allowed his team to monitor their credit operations. From this latest research, fortunately, many common features of credit cards emerged, features that have remained remarkably unchanged to this day. The idea of a one-month grace period, a time when customers could pay off their balances without being charged interest, came from that research, as did the idea of charging 18 percent per year on credit card loans—a figure that would be seen in the works for the next thirty years, as all other interest rates were highly variable. There was no black magic involved: The bank simply figured that if a one-month grace period and a monthly interest charge of one and a half percent (roughly 18 percent annually) was good enough for Sears, with its fifty years of credit experience, then it was good enough for Bank of America.
They also needed to find vendors to push these new projects forward.
That was an easy sell.
The bank will act as a broker’s office, guarantee payment in a short period of time, collect payment from customers, and make the process easy and convenient for the buyer to use the money. The initial cut was 6% on all transactions.
The first release was a disaster.
Fraud was rampant. Too many people did not pay their balance on time. In fifteen months, Bank of America lost more than $20 million, a huge sum in those days.
One of the reasons why higher rates are delayed after the discharge period is because fewer people pay off the balance each month than expected. The delinquency rate is over 20% (they estimate it will be 4%).
So they cleaned things up, demoted users who failed to pay, added some penalties to the system and strengthened fraud prevention. By the late 1960s, credit cards were a new profit center for banking.
Consumer credit use exploded, from $2.6 billion in 1945 to $45 billion in 1960 and $105 billion in 1970.1
The rest is history.
We now have over $1.2 trillion in credit card debt in America:
Rewards credit cards are a business in themselves, where people who pay off their balances every month are effectively funded by those who don’t.
Last year alone, American Express paid Delta more than $8 billion for its credit card/mileage rewards relationship.
So the main reason there are such high rates and high fees on credit cards is because we’ve always done things this way. This is not a system you can design if you are starting from scratch today.
How do you help people who are struggling with credit card debt?
Financial education can help.
Right or wrong, the best way to lower credit card rates is probably the most demanding credit standards. These loans are not backed by anything, which is another reason why the rates are so high.
I don’t know if there is a system-wide solution that you can wave a magic wand at to fix this.
If you have credit card debt, don’t rely on the government to fix it for you.
Talk to the credit card companies if you can’t repay the loan. You can also try to negotiate ridiculously high late fees. Or you can combine at a low level.
But carrying a balance is one of the worst financial decisions you can make. The rates are so high that it is a negative effect of the merger.
Barry Ritholtz joined me on Ask the Compound this week to answer this question in detail:
We also answered questions about stock market valuations, 401k contributions, the best sources of financial information and buying vs. renting.
Further reading: How Bad Is Credit Card Use In America?
1In the 1950s Bank of America had a $60 million loan portfolio made up almost exclusively of $200 refrigerator loans.
Car Payments Over $1,000 Are Now Common – Even Used
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With a growing share of drivers, car payments are starting to resemble rent.
A record number of American car buyers are now committing to four-month payments, according to new data from Edmunds. By the end of 2025, 20.3% of financed new car purchases came with a monthly bill of $1,000 or more – up from 18.9% a year earlier and the largest share ever recorded.
Used car buyers are hitting records, too, with about 6% now facing monthly car loan payments of at least $1,000.
To be clear: Not every car buyer pays $1,000 a month, but almost everyone does is something paying more. The average monthly payment for a new financed car reached a record $772 by the end of 2025, up from $754 a few months ago.
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In order to keep a new or used car available, buyers take out large loans and long terms – a trend Ivan Drury, Edmunds’ director of information, in the report “reflects the financial difficulties that many buyers face throughout the year.”
For most Americans, cars aren’t just a nice to own – they’re a daily necessity. In rural areas and small towns with little or no public transportation, or for families rushing to and from school, skipping the car isn’t an option. But that demand now comes with rising prices that are forcing more consumers to take out debt.
The type already appears in missed payments. Auto loan delinquencies have risen to record levels, with a growing number of borrowers at least 60 days behind on their payments – a sign that rising monthly costs are pushing some drivers past what they can realistically afford.
With new cars costing more upfront — the average price paid for a new car hit a record high of $50,326 in December, according to Kelley Blue Book — many buyers have no choice but to borrow more. And Edmunds data shows that consumers are financing more than ever. The average new car loan rose to $43,759, from $42,647 at the start of the year, with longer payment terms to help spread the cost.
Loans with terms of 84 months or longer make up about 21% of new car purchases – down slightly from the start of the year but up from the 17.9% share seen last year.
For many households, that combination can turn an unavoidable expense into a long-term financial burden.
Still, there are signs that 2026 could bring some relief. A strong note in the report is that while high prices and economic uncertainty continue to worry consumers, new car prices are starting to stabilize as improved purchasing power and softer demand reduce upward pressure on car prices.
Some analysts predict that interest rates may drop slightly in 2026, potentially giving buyers more affordable options. Still, industry experts stress that it could take months for the Federal Reserve’s policy changes to be reflected in auto loan rates. As Cox Automotive interim economist Jeremy Robb noted in the Kelley Blue Book, “because the Fed’s policy tools are slow to operate, mortgage relief will likely come in the spring or later.”
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Gold 2026 Outlook: Here’s What the Experts Are Predicting
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Gold investors have enjoyed a strong 2025, with the precious metal rising more than 60% over the past year. What is in store for 2026?
Strategists from Goldman Sachs, JPMorgan Chase and other major financial institutions have provided information on where the price of the precious metal will enter in 2026. Here’s what you need to know.
Gold overview and price predictions
Gold started 2025 above $2,600 before rising to above $4,000 per ounce. Reliance on gold from central banks and uncertainty about taxes have been two factors that have helped boost the price of gold.
Many financial institutions are determined to see where the price of gold will go in 2026. Yardeni Research has set its gold price target at $6,000 per ounce. The research team of JP Morgan Chase expects gold to be $5,055 in the last quarter of 2026. HSBC says gold could reach $5,000 in the first half of 2026. Goldman Sachs predicts a price of $4,900 for gold while Morgan Stanley says it could reach $4,800 in the final quarter of the year. Deutsche Bank says gold could rise to $4,950, with a base of $4,450.
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Distribution of gold to retirees
Most financial advisors recommend that you don’t put more than 5% to 10% of your total portfolio in gold. A precious metal can reduce risk through diversification and help against inflation, but it does not generate income and its prices can fluctuate.
The right allocation also depends on your time frame. For example, gold may perform better in a portfolio if an investor can leave it untouched for at least five years. However, if you have immediate cash needs, gold should not make up a large part of your portfolio. It’s best to avoid gold if it means using your extra cash to pay off high-interest loans or build your emergency fund.
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How to buy gold
Many people consider buying physical gold, such as coins and bars. While doing so is certainly an option, investors need to consider storage and insurance – and the costs that come with that.
You may be able to save money and take some of the complexity out of gold investing by buying shares of gold exchange-traded funds (ETFs). These funds give investors exposure to gold without having to worry about storage and insurance costs, and often come with low expense ratios.
Volatility Shield:Read about Newport Gold Group precious metals price matching
Gold retirement accounts (IRAs) are another option for people who want to accumulate precious metals while enjoying tax benefits. However, these IRAs can come with high fees and strict rules defined by the IRS. You cannot keep physical gold for a gold IRA at home.
If you’re not sure if owning gold makes sense for you, talk to a financial advisor who can give you suggestions about where gold should and shouldn’t fit into your financial plans. And remember, price predictions about gold are just estimates. The price of precious metal can fluctuate, and it is important to be strategic when investing, not speculative.
This article is part of a series sponsored by the Risk Insurance Education Alliance.
As we move into 2026, the Risk & Insurance Education Alliance continues its mission to deliver insurance education, risk management training, and new learning tools for professionals. In a recent interview with President & CEO William Hold and Chief Information Officer Danielle Janecka, we explored what’s new for our partners and the industry this year.
Envisioning 2025: Growth and Change in Insurance Education The year 2025 was a milestone year. We’re expanding self-paced learning options for CIC and CRM systems, offering flexibility with interactive modules that include videos, audio segments, and quizzes—more than static learning. The RiskPro series started with the Contractor Risk Professional and Restaurant Risk Professional certifications, providing specialized knowledge in niche markets. The response and registration of the program has been very good. We have also improved our AI-powered tool, AlliBot, adding features such as policy comparison and document uploading, giving participants quick access to industry-specific information.
Check out the 2025 Alliance Wrapped in YouTube tour:
Introducing CIRP: Certified Insurance and Risk SpecialistOne of the most exciting developments for 2026 is the Certified Insurance and Risk Professional (CIRP) designation. Designed for new producers, CIRP integrates sales techniques and techniques across five courses—including the career-changing Dynamics of Selling program. For only $330 for a 12-month subscription, agencies can train producers effectively and affordably.
RiskPro Expands: Human Resources and Cyber Risk Certifications Building on the success of the Contracts and Restaurant RiskPro programs, we are adding Workers’ Compensation Risk Professional and Cyber Risk Professional certifications in 2026. These minor certifications serve as review options and help professionals stand out in competitive markets. Graduates earn badges and letters—credentials that improve visibility on LinkedIn and beyond.
AI in Insurance Education: Personal, Adaptive, and Effective Innovation is at the heart of the Alliance, and innovation in education is at the heart of our vision. In 2026, expect AI-informed and use cases embedded in courses, as well as personalized learning methods and flexible tests that adapt questions to your knowledge level—making tests shorter, smarter, and more relevant. Think of AI as your learning assistant: analyzing progress, recommending next steps, and even simulating real-world scenarios.
Upgrade Options: Flexible and Future-proof From RiskPro certifications and CISR-to-CIC credit to classroom seminars in places like Napa Valley and Las Vegas, we offer review options that fit your schedule and your career goals. Self-paced courses remain popular with busy professionals, while live online seminars deliver engaging creativity and deep learning. Some of everything you’ve come to expect from Mbimbitho.
Ready to explore what’s new in insurance education? Visit or connect via live chat or call 800-633-2165.
Your journey is important—and we’re here to help “Control Your Power.” and make your educational journey smarter, more flexible, and future-proof.
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Jack Bogle’s Vanguard Icon’s 4 Simple Rules of Investing
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You don’t have to make investing difficult to generate long-term returns. Vanguard founder Jack Bogle advocated keeping investing simple with cheap funds.
People in their fifties – who are often close to retirement – may be afraid of making mistakes that put their savings at risk. Following Bogle’s investment advice helps reduce risk and cost while still seeing growth in your portfolio. Here are his rules you can use to continue building your nest egg.
1. Own the haystack, not the needle
Searching for individual stocks can be like finding a needle in a haystack. You can dig a lot and not end up finding stocks that will go up after investing. Haystack management has very little risk and still leads to strong long-term returns.
Think of a haystack as a collection of various stocks, such as the S&P 500. A broad market index that gives investors exposure to the 500 largest US companies. The S&P 500 has produced an annualized return of approximately 10% historically. That’s enough to beat inflation, and build wealth to support your retirement.
It is possible to get high returns by picking individual stocks. However, it is very difficult to bypass the market – and you risk having all your eggs in a few baskets.
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2. Keep costs down
Bogle emphasized the importance of lower cost ratios and transaction costs because payments can quietly decrease your net worth. A 1% expense ratio may sound small, but that’s an extra $10,000 that someone would have to pay each year on $1 million in their portfolio. A 0.10% expense ratio results in only $1,000 in annual payments for the same net amount.
Index funds are generally cheaper than actively managed funds, and over time, many index funds outperform their actively managed counterparts.
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3. Stay on course with market noise
Not surprisingly, the creator of index funds was strongly against trying to time the market and chasing strong stocks. When investors chase rising stocks, they risk buying high to avoid missing out and selling short when the rally is over. Investors who only buy a stock because it is rallying may fail to understand the fundamentals, which can lead to high trading costs and significant losses.
Reacting to the headlines and having more risk in the portfolio can be more dangerous for someone over the age of 50, as their portfolio has less time to recover from market losses than a younger investor. Many index investors add a small amount of money to their positions each month through automatic transfers to take the emotion out of investing.
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4. Match risk with age and horizon
Most investors take on more risk as they get older. Stocks are still important for growth, but switching to bonds can reduce volatility and provide stable cash flow. Bogle recommended an age-based bond/stock ratio. There are several rule of thumb ways to use this, including subtracting your age from 120 to determine your stock allocation.
Remember that the rules of thumb are just general guidelines that may require some adjustments, depending on your circumstances. However, they provide a good starting point for determining your optimal allocation, especially since it is important to adjust your portfolio as you age to match your changing time horizon, goals and risk tolerance.
ABLE Accounts Expand to Millions of Americans by 2026
The single-use savings account for people with disabilities recently relaxed its eligibility rules, extending tax-free savings and investment benefits to millions more Americans.
As of Jan. 1, tax-advantaged ABLE accounts — named after the Better Living Act of 2014 — are available to Americans diagnosed with a qualifying disability at age 46.
Previously, the age limit was 26, limiting account access to 8 million people. Now, about 14 million Americans may qualify for one, according to the National Disability Institute.
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The accounts come with a host of tax benefits for those who qualify. In 2026, the contribution limit is $20,000, and up to an additional $15,650 if you don’t have a 401(k) or other employer-sponsored retirement plan.
Donations can be invested, and profits grow tax-free. What’s worse, the amount of the account is completely exempt from the means test rules for Medicaid and federal student aid through FAFSA. In the Supplemental Security Income Plan, up to $100,000 is excluded.
ABLE withdrawals are tax-free as long as the money is used for expenses related to disability, housing, health care, wellness or education. (Withdrawals outside of these categories incur a 10% tax penalty and are taxed as income.)
Despite the benefits, few qualified people sign up for one. By the end of September 2025, of the estimated 8 million eligible Americans, approximately 223,000 of them opened an ABLE account.
Who is eligible for ABLE accounts?
ABLE accounts are now available to US residents with qualifying disabilities that begin before age 46, or about 14 million Americans.
The disability must be severe to qualify. If you receive Supplemental Security Income or Social Security Disability Insurance, you are automatically eligible. Otherwise, the main qualification is a signed fitness letter from your doctor stating that your condition is long-term, “marked and severe.”
Similar to 529 college savings plans, ABLE accounts — formally known as 529A plans — are operated at the state level. Currently, 46 states offer ABLE programs, which are administered by partner banks and investment firms. Idaho, North Dakota, South Dakota and Wisconsin do not offer ABLE accounts. However, many programs accept out-of-state applicants. Eligible applicants may have only one account.
Although the core qualifications are the same across the country, there are differences between state programs. That is, the maximum account balance varies by state, typically running between $300,000 and $600,000. Affiliated banks and investment firms often vary by state, with most states offering between four and eight investment options.
The age adjustment from 26 to 46 has been a long time coming. After years of pushback from lawmakers since ABLE’s creation in 2014, the 46-year limit was struck by former President Joe Biden in 2022 as part of a $1.7 billion spending package. That legislation also included the SECURE 2.0 retirement reform bill, as well as changes to ABLE’s sister account — the 529 college savings plan. The ABLE changes didn’t go into effect until this month.
“It’s no exaggeration to say that ABLE is a life-changing savings program,” Pennsylvania Treasurer Stacy Garrit, who oversees the state’s ABLE programs, said at the time. “[A]and the ABLE Age Adjustment Act will have a very positive impact.”
“It will help millions of Americans with disabilities, including 1 million veterans,” he added, “by providing financial strength and increased independence.”
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