Money Management

[[{“value”:”Image source: Getty Images
With most credit cards, you’re free to carry a balance from month to month. It’s usually not the best idea, as credit cards have high interest rates. But you have the option if you want.Alert: highest cash back card we’ve seen now has 0% intro APR into 2026
This credit card is not just good – it’s so exceptional that our experts use it personally. It features a 0% intro APR for 15 months, a cash back rate of up to 5%, and all somehow for no annual fee!
Click here to read our full review for free and apply in just 2 minutes. Charge cards work differently. These are a type of credit card that are designed to be paid in full every month. While they aren’t too common, some of the most popular cards on the market are charge cards. Just like other credit cards, charge cards can offer lots of perks, including rewards and purchase protections.I consider charge cards an even better option than credit cards. Here’s why.1. They keep you out of debtCredit card debt is a serious financial issue that affects millions of Americans. The average amount of credit card debt is $6,380, according to the credit bureau TransUnion. With average rates topping 20%, many consumers are paying well over $1,000 in interest every year.The best way to use a credit card is to pay it off every month. If you do this, you can take advantage of all the benefits without the costly interest charges.Since charge cards require that you pay in full, they essentially force you into good payment habits. There’s no temptation to spend more than you can afford and pay it back later, like there is with credit cards, because you don’t have that option.If you’re in credit card debt, consider getting a card with a 0% intro APR on balance transfers. You’ll be able to transfer over your debt and pay it down interest free. It can help you get out of debt faster while avoiding interest charges. Click here to learn more and see our list of the best balance transfer cards.2. They have flexible spending limitsWhen you’re approved for a credit card, the bank sets a credit limit based on your credit history and income. If you’re approved for a $3,000 limit, that’s the most you can spend with your card. The only way to spend more is to get a credit limit increase, which the bank may or may not be willing to approve.But most charge cards have no pre-set spending limits. This doesn’t mean you can spend as much as you want. It just means the bank doesn’t set a fixed credit limit on your card. It will adjust how much you can spend based on your financial activity.You’re not flying completely blind here. Banks typically offer a tool in your online account that you can use to check your spending power. You enter the amount you want to spend, and you’ll receive confirmation if it will be approved.3. They don’t affect your credit utilizationCredit utilization is one of the main factors that determines your credit score — it’s worth 30% of your FICO® Score. Banks report your card balances and credit limits every month. That information is used to check how much of your credit you’re using. For example, if you have $7,000 in balances and $10,000 in credit limits, your credit utilization is 70%.Charging too much on your credit cards is bad for your credit score, because it looks risky to lenders. A popular rule of thumb is to keep your credit utilization below 30%. If you have a $10,000 credit limit, you’d want to keep your balance below $3,000 at all times.Because charge cards don’t have a credit limit, using them has no impact on your credit utilization. It’s one less factor you need to worry about regarding your credit score.If you’ve just noticed that the credit card you want is actually a charge card, don’t let that deter you. This type of card can work out just as well or better for your finances. And when you use regular credit cards, it doesn’t hurt to use them like charge cards. Paying in full is a smart financial habit, whether your card requires it or not.If you’re ready to see some of the best credit and charge cards, check out our list of the best card options here.Alert: highest cash back card we’ve seen now has 0% intro APR into 2026
This credit card is not just good – it’s so exceptional that our experts use it personally. It features a 0% intro APR for 15 months, a cash back rate of up to 5%, and all somehow for no annual fee!
Click here to read our full review for free and apply in just 2 minutes. We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
Motley Fool Money does not cover all offers on the market. Editorial content from Motley Fool Money is separate from The Motley Fool editorial content and is created by a different analyst team.The Motley Fool has a disclosure policy.”}]] [[{“value”:”

With most credit cards, you’re free to carry a balance from month to month. It’s usually not the best idea, as credit cards have high interest rates. But you have the option if you want.

Alert: highest cash back card we’ve seen now has 0% intro APR into 2026

This credit card is not just good – it’s so exceptional that our experts use it personally. It features a 0% intro APR for 15 months, a cash back rate of up to 5%, and all somehow for no annual fee!

Click here to read our full review for free and apply in just 2 minutes.

Charge cards work differently. These are a type of credit card that are designed to be paid in full every month. While they aren’t too common, some of the most popular cards on the market are charge cards. Just like other credit cards, charge cards can offer lots of perks, including rewards and purchase protections.

I consider charge cards an even better option than credit cards. Here’s why.

1. They keep you out of debt

Credit card debt is a serious financial issue that affects millions of Americans. The average amount of credit card debt is $6,380, according to the credit bureau TransUnion. With average rates topping 20%, many consumers are paying well over $1,000 in interest every year.

The best way to use a credit card is to pay it off every month. If you do this, you can take advantage of all the benefits without the costly interest charges.

Since charge cards require that you pay in full, they essentially force you into good payment habits. There’s no temptation to spend more than you can afford and pay it back later, like there is with credit cards, because you don’t have that option.

If you’re in credit card debt, consider getting a card with a 0% intro APR on balance transfers. You’ll be able to transfer over your debt and pay it down interest free. It can help you get out of debt faster while avoiding interest charges. Click here to learn more and see our list of the best balance transfer cards.

2. They have flexible spending limits

When you’re approved for a credit card, the bank sets a credit limit based on your credit history and income. If you’re approved for a $3,000 limit, that’s the most you can spend with your card. The only way to spend more is to get a credit limit increase, which the bank may or may not be willing to approve.

But most charge cards have no pre-set spending limits. This doesn’t mean you can spend as much as you want. It just means the bank doesn’t set a fixed credit limit on your card. It will adjust how much you can spend based on your financial activity.

You’re not flying completely blind here. Banks typically offer a tool in your online account that you can use to check your spending power. You enter the amount you want to spend, and you’ll receive confirmation if it will be approved.

3. They don’t affect your credit utilization

Credit utilization is one of the main factors that determines your credit score — it’s worth 30% of your FICO® Score. Banks report your card balances and credit limits every month. That information is used to check how much of your credit you’re using. For example, if you have $7,000 in balances and $10,000 in credit limits, your credit utilization is 70%.

Charging too much on your credit cards is bad for your credit score, because it looks risky to lenders. A popular rule of thumb is to keep your credit utilization below 30%. If you have a $10,000 credit limit, you’d want to keep your balance below $3,000 at all times.

Because charge cards don’t have a credit limit, using them has no impact on your credit utilization. It’s one less factor you need to worry about regarding your credit score.

If you’ve just noticed that the credit card you want is actually a charge card, don’t let that deter you. This type of card can work out just as well or better for your finances. And when you use regular credit cards, it doesn’t hurt to use them like charge cards. Paying in full is a smart financial habit, whether your card requires it or not.

If you’re ready to see some of the best credit and charge cards, check out our list of the best card options here.

Alert: highest cash back card we’ve seen now has 0% intro APR into 2026

This credit card is not just good – it’s so exceptional that our experts use it personally. It features a 0% intro APR for 15 months, a cash back rate of up to 5%, and all somehow for no annual fee!

Click here to read our full review for free and apply in just 2 minutes.

We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
Motley Fool Money does not cover all offers on the market. Editorial content from Motley Fool Money is separate from The Motley Fool editorial content and is created by a different analyst team.The Motley Fool has a disclosure policy.

“}]] Read More 

[[{“value”:”Image source: Getty Images
It’s hard to keep your personal information private anymore. Even if you do everything right, there’s always the possibility that hackers steal your information in a data breach. There were 3,205 data breaches in 2023, according to the Identity Theft Resource Center.Alert: highest cash back card we’ve seen now has 0% intro APR into 2026
This credit card is not just good – it’s so exceptional that our experts use it personally. It features a 0% intro APR for 15 months, a cash back rate of up to 5%, and all somehow for no annual fee!
Click here to read our full review for free and apply in just 2 minutes. When you think about tools to protect yourself from identity theft, a credit card probably isn’t the first thing that comes to mind. But credit cards have a few key features that could help in this situation.1. Free credit monitoringA credit monitoring service keeps track of the activity on your credit file. It also alerts you about any changes or suspicious activity. For example, credit monitoring would typically notify you about any of the following:New credit applicationsNew credit cards and loans openedBalance increases and decreases on your credit accountsCredit score increases and decreasesYou could then check whether you were responsible for that activity or if it’s fraudulent. For example, you get an email alert that a new credit card was opened in your name. If you didn’t open a card recently, you’d know that someone else stole your identity, and you could report it to the bank that issued the fraudulent card.Free credit monitoring has become a popular credit card perk. Most of the big card issuers offer it for their cardholders.If you already have a credit card you like, see if you can sign up for credit monitoring through it. And if it doesn’t have that feature, or if you’d just like to find a better card, click here to see our list of the top credit cards.2. Fraud alerts for suspicious transactionsThere are many ways your credit card number could fall into the wrong hands. It could be leaked during a data breach, or you could use your card at a payment terminal where a criminal installed a card skimmer/shimmer. Once your card information is compromised, thieves can use it for fraudulent transactions.Fortunately, banks have systems in place to detect and prevent fraud. They monitor your account for suspicious transactions, such as larger purchases than normal or purchases in new locations.If your bank detects a suspicious transaction, it will notify you by text message or email. It will ask you to confirm if the transaction is legitimate, and it may also block the transaction until it hears from you. If it’s fraud, your bank will lock your card and send you a replacement with a new card number.For situations where it isn’t fraud, you just need to let your card issuer know. You may need to do this if you’re spending more than usual or traveling. By the way, if you travel often, make sure to check out travel credit cards that can help you save money on your trips.3. $0 fraud liabilityDespite your bank’s best efforts, you notice a fraudulent transaction on your credit card statement. Don’t worry — you’re not on the hook for that.Legally, you’re not responsible for digital transactions made using your card number. You’re only responsible for up to $50 in fraudulent transactions if your physical card is lost or stolen. But many card issuers take it a step further and have zero-liability protection.When your credit card has zero-liability protection, you’re never responsible for fraudulent charges. Report the fraud to your card issuer, and it will be taken off your bill. You’ll also receive a replacement card in the mail with a new card number.With free credit monitoring, fraud alerts, and $0 fraud liability, credit cards can help prevent identity theft — and reimburse you for unauthorized transactions. Best of all, these aren’t rare features. It’s easy to find all three, as lots of credit cards offer them.Alert: highest cash back card we’ve seen now has 0% intro APR into 2026
This credit card is not just good – it’s so exceptional that our experts use it personally. It features a 0% intro APR for 15 months, a cash back rate of up to 5%, and all somehow for no annual fee!
Click here to read our full review for free and apply in just 2 minutes. We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
Motley Fool Money does not cover all offers on the market. Editorial content from Motley Fool Money is separate from The Motley Fool editorial content and is created by a different analyst team.The Motley Fool has a disclosure policy.”}]] [[{“value”:”

It’s hard to keep your personal information private anymore. Even if you do everything right, there’s always the possibility that hackers steal your information in a data breach. There were 3,205 data breaches in 2023, according to the Identity Theft Resource Center.

Alert: highest cash back card we’ve seen now has 0% intro APR into 2026

This credit card is not just good – it’s so exceptional that our experts use it personally. It features a 0% intro APR for 15 months, a cash back rate of up to 5%, and all somehow for no annual fee!

Click here to read our full review for free and apply in just 2 minutes.

When you think about tools to protect yourself from identity theft, a credit card probably isn’t the first thing that comes to mind. But credit cards have a few key features that could help in this situation.

1. Free credit monitoring

A credit monitoring service keeps track of the activity on your credit file. It also alerts you about any changes or suspicious activity. For example, credit monitoring would typically notify you about any of the following:

• New credit applications
• New credit cards and loans opened
• Balance increases and decreases on your credit accounts
• Credit score increases and decreases

You could then check whether you were responsible for that activity or if it’s fraudulent. For example, you get an email alert that a new credit card was opened in your name. If you didn’t open a card recently, you’d know that someone else stole your identity, and you could report it to the bank that issued the fraudulent card.

Free credit monitoring has become a popular credit card perk. Most of the big card issuers offer it for their cardholders.

If you already have a credit card you like, see if you can sign up for credit monitoring through it. And if it doesn’t have that feature, or if you’d just like to find a better card, click here to see our list of the top credit cards.

2. Fraud alerts for suspicious transactions

There are many ways your credit card number could fall into the wrong hands. It could be leaked during a data breach, or you could use your card at a payment terminal where a criminal installed a card skimmer/shimmer. Once your card information is compromised, thieves can use it for fraudulent transactions.

Fortunately, banks have systems in place to detect and prevent fraud. They monitor your account for suspicious transactions, such as larger purchases than normal or purchases in new locations.

If your bank detects a suspicious transaction, it will notify you by text message or email. It will ask you to confirm if the transaction is legitimate, and it may also block the transaction until it hears from you. If it’s fraud, your bank will lock your card and send you a replacement with a new card number.

For situations where it isn’t fraud, you just need to let your card issuer know. You may need to do this if you’re spending more than usual or traveling. By the way, if you travel often, make sure to check out travel credit cards that can help you save money on your trips.

3. $0 fraud liability

Despite your bank’s best efforts, you notice a fraudulent transaction on your credit card statement. Don’t worry — you’re not on the hook for that.

Legally, you’re not responsible for digital transactions made using your card number. You’re only responsible for up to $50 in fraudulent transactions if your physical card is lost or stolen. But many card issuers take it a step further and have zero-liability protection.

When your credit card has zero-liability protection, you’re never responsible for fraudulent charges. Report the fraud to your card issuer, and it will be taken off your bill. You’ll also receive a replacement card in the mail with a new card number.

With free credit monitoring, fraud alerts, and $0 fraud liability, credit cards can help prevent identity theft — and reimburse you for unauthorized transactions. Best of all, these aren’t rare features. It’s easy to find all three, as lots of credit cards offer them.

Alert: highest cash back card we’ve seen now has 0% intro APR into 2026

This credit card is not just good – it’s so exceptional that our experts use it personally. It features a 0% intro APR for 15 months, a cash back rate of up to 5%, and all somehow for no annual fee!

Click here to read our full review for free and apply in just 2 minutes.

We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
Motley Fool Money does not cover all offers on the market. Editorial content from Motley Fool Money is separate from The Motley Fool editorial content and is created by a different analyst team.The Motley Fool has a disclosure policy.

“}]] Read More 

[[{“value”:”Image source: Getty Images
I’m not a big fan of shopping at Kohl’s. Although Kohl’s has a few exclusive in-house brands and partnerships, its classic department store shopping experience isn’t the right fit for my needs. Alert: highest cash back card we’ve seen now has 0% intro APR into 2026
This credit card is not just good – it’s so exceptional that our experts use it personally. It features a 0% intro APR for 15 months, a cash back rate of up to 5%, and all somehow for no annual fee!
Click here to read our full review for free and apply in just 2 minutes. If you’re a budget-conscious shopper who likes using coupon apps and finding deals, Kohl’s could be worth a look. Or if you love Kohl’s-only brands like Croft and Barrow, by all means, keep shopping there. But some shoppers might find Kohl’s products, prices, and selection underwhelming. Let’s explore a few items where you can feel safe skipping Kohl’s for your holiday shopping list. 1. Furniture Kohl’s offers a decently wide range of furniture, from sectional sofas to console tables, arm chairs, and storage cabinets. But here’s the problem with Kohl’s furniture: The products generally don’t get great reviews (or have many reviews published at all), and the pricing is not much better than other big retailers like Costco. If you like the styles available at Kohl’s and you love to be a bargain-hunter and snag special discounts on hard-to-find furniture pieces that are just the right fit for your home, Kohl’s could be worth a look. But not every shopper has time for that. If you want a wider selection of furniture, choose a retailer that’s more dedicated to the furniture business, like IKEA or Bed Bath & Beyond. Or if you want to feel confident you’re getting high-quality pieces at competitive prices, warehouse retailers like Costco could be a better choice for your furniture shopping. Whether you buy furniture at Kohl’s or at any other store, the right credit card can help maximize rewards on big-ticket items for your home. Click here to learn more about the best cash back credit cards — and see how they can help you earn 2% (or more) cash back from holiday shopping and everyday spending.2. Electronics Kohl’s sells some electronics, and it has some decent prices on items like Beats by Dre headphones, Smart TVs, and Bluetooth speakers. But Kohl’s wouldn’t be my first choice for electronics shopping, because its selection is limited and kind of eccentric. Some Kohl’s electronics have a uniquely narrow purpose, like a flip-down under-counter TV for your kitchen, or a “magic mirror” TV for the bathroom. If you want highly specialized gadgets like these, Kohl’s offers them — but I don’t shop for electronics with such a niche function. Costco has a much wider range of big-screen TVs and other big-ticket electronics like laptops and smart watches. Best Buy is also a great choice for electronics shopping because of its selection and competitive pricing. 3. Shoes Kohl’s offers a wide range of shoes from major brands like Adidas, Cole Haan, and Nike. If you’re shopping for shoes for kids whose feet grow fast, getting cheap prices on shoes at Kohl’s could be worth the effort. But here’s an unusual complaint: some of Kohl’s shoe deals seem “too cheap” to me. For example, Kohl’s has some men’s dress shoes from its in-house brand, Sonoma Goods for Life®, that only cost $25.49. The shoes get good reviews — 4.3 out of 5 stars. But I’m suspicious of such cheap shoes. Can $25 dress shoes really be high-quality? I’m leery of spending so little money on shoes. (Who knows, maybe I’m throwing away a fortune.)Shoe shopping at Kohl’s is a good choice for families on a budget. But if you’re not as price-sensitive about shoe shopping, if you want to make sure you get the right shoe with your preferred levels of fit, comfort, and durability, you might want to shop at a dedicated shoe store like DSW, or buy shoes directly from your favorite brands. Why Kohl’s is a “no-man’s land” of shopping The past few years of pandemic, higher levels of online shopping, and high inflation have been hard for department stores like Kohl’s. Back in the pre-internet era, big department stores like Kohl’s were one-stop shopping destinations that offered a little of everything. But now, when people can quickly compare prices online and grab their credit cards without ever setting foot in a shopping mall, it’s harder for department stores to be all things to all people. As a result, department stores like Kohl’s are falling into an uncomfortable middle ground, a “no-man’s land,” in the retail world. It’s not always low-priced enough to compete with low-cost discount stores like TJ Maxx and Walmart, not specialized enough to compete with specialty electronics or furniture stores, and not focused enough to compete with Costco (which sells a wide range of products, but focuses on just a few choices of high-quality items).If you feel like Kohl’s is a strange choice for holiday shopping, with not quite the right combination of attractive product selection, affordable prices, and high quality that you want, you’re not alone. Just like other traditional department store brands like Sears or JC Penney, Kohl’s department store business model might be going into permanent decline. Bottom line Kohl’s can be a good choice for certain products like clothes and home goods from popular Kohl’s exclusive brands, but this department store is having some serious struggles. Price-conscious shoppers might get better deals at Walmart or TJ Maxx. More discerning shoppers who want the highest-quality products in categories like electronics or furniture should consider shopping elsewhere.Alert: highest cash back card we’ve seen now has 0% intro APR into 2026
This credit card is not just good – it’s so exceptional that our experts use it personally. It features a 0% intro APR for 15 months, a cash back rate of up to 5%, and all somehow for no annual fee!
Click here to read our full review for free and apply in just 2 minutes. We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
Motley Fool Money does not cover all offers on the market. Editorial content from Motley Fool Money is separate from The Motley Fool editorial content and is created by a different analyst team.The Motley Fool has positions in and recommends Best Buy, Costco Wholesale, and Walmart. The Motley Fool has a disclosure policy.”}]] [[{“value”:”

I’m not a big fan of shopping at Kohl’s. Although Kohl’s has a few exclusive in-house brands and partnerships, its classic department store shopping experience isn’t the right fit for my needs.

Alert: highest cash back card we’ve seen now has 0% intro APR into 2026

This credit card is not just good – it’s so exceptional that our experts use it personally. It features a 0% intro APR for 15 months, a cash back rate of up to 5%, and all somehow for no annual fee!

Click here to read our full review for free and apply in just 2 minutes.

If you’re a budget-conscious shopper who likes using coupon apps and finding deals, Kohl’s could be worth a look. Or if you love Kohl’s-only brands like Croft and Barrow, by all means, keep shopping there.

But some shoppers might find Kohl’s products, prices, and selection underwhelming. Let’s explore a few items where you can feel safe skipping Kohl’s for your holiday shopping list.

1. Furniture

Kohl’s offers a decently wide range of furniture, from sectional sofas to console tables, arm chairs, and storage cabinets. But here’s the problem with Kohl’s furniture: The products generally don’t get great reviews (or have many reviews published at all), and the pricing is not much better than other big retailers like Costco.

If you like the styles available at Kohl’s and you love to be a bargain-hunter and snag special discounts on hard-to-find furniture pieces that are just the right fit for your home, Kohl’s could be worth a look. But not every shopper has time for that.

If you want a wider selection of furniture, choose a retailer that’s more dedicated to the furniture business, like IKEA or Bed Bath & Beyond. Or if you want to feel confident you’re getting high-quality pieces at competitive prices, warehouse retailers like Costco could be a better choice for your furniture shopping.

Whether you buy furniture at Kohl’s or at any other store, the right credit card can help maximize rewards on big-ticket items for your home. Click here to learn more about the best cash back credit cards — and see how they can help you earn 2% (or more) cash back from holiday shopping and everyday spending.

2. Electronics

Kohl’s sells some electronics, and it has some decent prices on items like Beats by Dre headphones, Smart TVs, and Bluetooth speakers. But Kohl’s wouldn’t be my first choice for electronics shopping, because its selection is limited and kind of eccentric.

Some Kohl’s electronics have a uniquely narrow purpose, like a flip-down under-counter TV for your kitchen, or a “magic mirror” TV for the bathroom. If you want highly specialized gadgets like these, Kohl’s offers them — but I don’t shop for electronics with such a niche function.

Costco has a much wider range of big-screen TVs and other big-ticket electronics like laptops and smart watches. Best Buy is also a great choice for electronics shopping because of its selection and competitive pricing.

3. Shoes

Kohl’s offers a wide range of shoes from major brands like Adidas, Cole Haan, and Nike. If you’re shopping for shoes for kids whose feet grow fast, getting cheap prices on shoes at Kohl’s could be worth the effort. But here’s an unusual complaint: some of Kohl’s shoe deals seem “too cheap” to me.

For example, Kohl’s has some men’s dress shoes from its in-house brand, Sonoma Goods for Life®, that only cost $25.49. The shoes get good reviews — 4.3 out of 5 stars. But I’m suspicious of such cheap shoes. Can $25 dress shoes really be high-quality? I’m leery of spending so little money on shoes. (Who knows, maybe I’m throwing away a fortune.)

Shoe shopping at Kohl’s is a good choice for families on a budget. But if you’re not as price-sensitive about shoe shopping, if you want to make sure you get the right shoe with your preferred levels of fit, comfort, and durability, you might want to shop at a dedicated shoe store like DSW, or buy shoes directly from your favorite brands.

Why Kohl’s is a “no-man’s land” of shopping

The past few years of pandemic, higher levels of online shopping, and high inflation have been hard for department stores like Kohl’s. Back in the pre-internet era, big department stores like Kohl’s were one-stop shopping destinations that offered a little of everything. But now, when people can quickly compare prices online and grab their credit cards without ever setting foot in a shopping mall, it’s harder for department stores to be all things to all people.

As a result, department stores like Kohl’s are falling into an uncomfortable middle ground, a “no-man’s land,” in the retail world. It’s not always low-priced enough to compete with low-cost discount stores like TJ Maxx and Walmart, not specialized enough to compete with specialty electronics or furniture stores, and not focused enough to compete with Costco (which sells a wide range of products, but focuses on just a few choices of high-quality items).

If you feel like Kohl’s is a strange choice for holiday shopping, with not quite the right combination of attractive product selection, affordable prices, and high quality that you want, you’re not alone. Just like other traditional department store brands like Sears or JC Penney, Kohl’s department store business model might be going into permanent decline.

Bottom line

Kohl’s can be a good choice for certain products like clothes and home goods from popular Kohl’s exclusive brands, but this department store is having some serious struggles.

Price-conscious shoppers might get better deals at Walmart or TJ Maxx. More discerning shoppers who want the highest-quality products in categories like electronics or furniture should consider shopping elsewhere.

Alert: highest cash back card we’ve seen now has 0% intro APR into 2026

This credit card is not just good – it’s so exceptional that our experts use it personally. It features a 0% intro APR for 15 months, a cash back rate of up to 5%, and all somehow for no annual fee!

Click here to read our full review for free and apply in just 2 minutes.

We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
Motley Fool Money does not cover all offers on the market. Editorial content from Motley Fool Money is separate from The Motley Fool editorial content and is created by a different analyst team.The Motley Fool has positions in and recommends Best Buy, Costco Wholesale, and Walmart. The Motley Fool has a disclosure policy.

“}]] Read More 

[[{“value”:”Image source: Getty Images
Saving money in a 401(k) is one of the best things you can do for your retirement. You’ll need your own savings on top of Social Security, and a 401(k) makes the process of building a nest egg as convenient as can be. Just sign up through your employer, decide on an amount to contribute, and voila — your account will get funded automatically through payroll deductions.Alert: highest cash back card we’ve seen now has 0% intro APR into 2026
This credit card is not just good – it’s so exceptional that our experts use it personally. It features a 0% intro APR for 15 months, a cash back rate of up to 5%, and all somehow for no annual fee!
Click here to read our full review for free and apply in just 2 minutes. Now you may be curious to know how your 401(k) balance compares to the average. And Fidelity says that as of the second quarter of 2024, the average 401(k) balance was $127,100.If your balance is much smaller, don’t panic. If you’re fairly young and new to the workforce, it may be that the average retirement saver has had more years to fund a 401(k) than you have. But if you want to do better than $127,100 in your 401(k), here are three essential steps to take.1. Start saving at a young ageThe more time you give yourself to save for retirement, the larger a balance you’re likely to rack up. Say you begin funding a 401(k) at age 45 with $150 a month and do so until age 65. If you’re able to get a 10% yearly return on your money (more on that below), that leaves you with about $103,000.But watch what happens if you start saving that $150 a month 10 years earlier, giving your money 30 years to grow instead of just 20. Assuming that same 10% return, you’re looking at a 401(k) balance of $296,000, which is more than double the average balance today.So if you’re in your 20s or 30s, don’t put off retirement savings just because that stage of life is so far away. Instead, do your best to save some amount of money for retirement each month. And if you don’t have access to a 401(k) plan, don’t sweat it. Check out this list of the best IRAs and open your own retirement account.2. Claim your match in fullThe nice thing about saving for retirement in a 401(k) is that many employers match worker contributions to some degree. This doesn’t mean your employer will match every dollar you put in. But if your company will match up to $3,000 per year in contributions, then putting in $3,000 from your own paychecks gets your account funded to the tune of $6,000 per year.Some people don’t manage to get their full workplace match because they don’t know what it entails. So dig up that information, or ask your benefits coordinator so you know what 401(k) contribution to make each year at a minimum.3. Invest in stocks to maximize your gainsIf you’re not familiar with the stock market, you may find it scary. And the reality is that there is some risk in owning stocks. But if you own stocks for a long period of time, you minimize that risk. And you may find that you need the power of the stock market to grow your retirement savings nicely.Over the past 50 years, the stock market’s average annual return (as measured by the performance of the S&P 500) has been about 10%. That’s why we used 10% in the example above. But you should know that this return accounts for years when the market did well, and years when it most certainly didn’t.Now the nice thing about IRAs is that they let you invest your money in individual stocks. You generally can’t buy stocks individually in a 401(k). But what you can do is load up on S&P 500 mutual funds, which is commonly an option in a 401(k). This allows you to invest in the 500 largest publicly traded companies today.Of course, you could play it safe in your IRA or 401(k). But let’s say you do so by only investing a small portion of your money in stocks, and putting the rest into more stable assets, like bonds. If you invest $150 a month over 30 years at a 6% average annual return (which is what you may be looking at with that sort of investment mix), it results in a balance of about $142,000.That still beats the average 401(k) balance today. But it’s a lot less money than the $296,000 balance we arrived at above by saving and investing over the same 30-year period at a 10% return.It’s more than possible to grow your 401(k) plan (or IRA) balance beyond the average today. And these steps combined should increase your chances of success.Alert: highest cash back card we’ve seen now has 0% intro APR into 2026
This credit card is not just good – it’s so exceptional that our experts use it personally. It features a 0% intro APR for 15 months, a cash back rate of up to 5%, and all somehow for no annual fee!
Click here to read our full review for free and apply in just 2 minutes. We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
Motley Fool Money does not cover all offers on the market. Editorial content from Motley Fool Money is separate from The Motley Fool editorial content and is created by a different analyst team.Maurie Backman has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.”}]] [[{“value”:”

Saving money in a 401(k) is one of the best things you can do for your retirement. You’ll need your own savings on top of Social Security, and a 401(k) makes the process of building a nest egg as convenient as can be. Just sign up through your employer, decide on an amount to contribute, and voila — your account will get funded automatically through payroll deductions.

Alert: highest cash back card we’ve seen now has 0% intro APR into 2026

This credit card is not just good – it’s so exceptional that our experts use it personally. It features a 0% intro APR for 15 months, a cash back rate of up to 5%, and all somehow for no annual fee!

Click here to read our full review for free and apply in just 2 minutes.

Now you may be curious to know how your 401(k) balance compares to the average. And Fidelity says that as of the second quarter of 2024, the average 401(k) balance was $127,100.

If your balance is much smaller, don’t panic. If you’re fairly young and new to the workforce, it may be that the average retirement saver has had more years to fund a 401(k) than you have. But if you want to do better than $127,100 in your 401(k), here are three essential steps to take.

1. Start saving at a young age

The more time you give yourself to save for retirement, the larger a balance you’re likely to rack up. Say you begin funding a 401(k) at age 45 with $150 a month and do so until age 65. If you’re able to get a 10% yearly return on your money (more on that below), that leaves you with about $103,000.

But watch what happens if you start saving that $150 a month 10 years earlier, giving your money 30 years to grow instead of just 20. Assuming that same 10% return, you’re looking at a 401(k) balance of $296,000, which is more than double the average balance today.

So if you’re in your 20s or 30s, don’t put off retirement savings just because that stage of life is so far away. Instead, do your best to save some amount of money for retirement each month. And if you don’t have access to a 401(k) plan, don’t sweat it. Check out this list of the best IRAs and open your own retirement account.

2. Claim your match in full

The nice thing about saving for retirement in a 401(k) is that many employers match worker contributions to some degree. This doesn’t mean your employer will match every dollar you put in. But if your company will match up to $3,000 per year in contributions, then putting in $3,000 from your own paychecks gets your account funded to the tune of $6,000 per year.

Some people don’t manage to get their full workplace match because they don’t know what it entails. So dig up that information, or ask your benefits coordinator so you know what 401(k) contribution to make each year at a minimum.

3. Invest in stocks to maximize your gains

If you’re not familiar with the stock market, you may find it scary. And the reality is that there is some risk in owning stocks. But if you own stocks for a long period of time, you minimize that risk. And you may find that you need the power of the stock market to grow your retirement savings nicely.

Over the past 50 years, the stock market’s average annual return (as measured by the performance of the S&P 500) has been about 10%. That’s why we used 10% in the example above. But you should know that this return accounts for years when the market did well, and years when it most certainly didn’t.

Now the nice thing about IRAs is that they let you invest your money in individual stocks. You generally can’t buy stocks individually in a 401(k). But what you can do is load up on S&P 500 mutual funds, which is commonly an option in a 401(k). This allows you to invest in the 500 largest publicly traded companies today.

Of course, you could play it safe in your IRA or 401(k). But let’s say you do so by only investing a small portion of your money in stocks, and putting the rest into more stable assets, like bonds. If you invest $150 a month over 30 years at a 6% average annual return (which is what you may be looking at with that sort of investment mix), it results in a balance of about $142,000.

That still beats the average 401(k) balance today. But it’s a lot less money than the $296,000 balance we arrived at above by saving and investing over the same 30-year period at a 10% return.

It’s more than possible to grow your 401(k) plan (or IRA) balance beyond the average today. And these steps combined should increase your chances of success.

Alert: highest cash back card we’ve seen now has 0% intro APR into 2026

This credit card is not just good – it’s so exceptional that our experts use it personally. It features a 0% intro APR for 15 months, a cash back rate of up to 5%, and all somehow for no annual fee!

Click here to read our full review for free and apply in just 2 minutes.

We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
Motley Fool Money does not cover all offers on the market. Editorial content from Motley Fool Money is separate from The Motley Fool editorial content and is created by a different analyst team.Maurie Backman has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

“}]] Read More 

[[{“value”:”Image source: Upsplash/The Motley Fool
With the talk of tariffs in the air and a fear of inflation soaring once again, I made a decision recently to start shopping at Costco in a more serious way. No more just popping in for snacks and big purchases. I’m going to leverage my Costco membership to truly take advantage of the items there that can save me a lot of money, since I’m going to buy them somewhere else anyway.Top credit card to use at Costco (and everywhere else!)
We love versatile credit cards that offer huge rewards everywhere, including Costco! This card is a standout among America’s favorite credit cards because it offers perhaps the easiest $200 cash bonus you could ever earn and an unlimited 2% cash rewards on purchases, even when you shop at Costco. Add on the competitive 0% interest period and it’s no wonder we awarded this card Best No Annual Fee Credit Card.
Click here to read our full review for free and apply before the $200 welcome bonus offer ends!I quickly found out that doing this is overwhelming, and a lot more complicated than simply walking into your favorite big box store and buying a package of whatever. You can’t just jump into Costco whole hog — you must have a system.Here are my tips for getting started.1. Check the Costco ad flyers that come in the mail and the online ads for salesThere’s no point in just running into Costco without a plan, and by taking advantage of these resources, you have some idea what your costs may be vs. other retailers you generally do business with. The online prices may be a little bit higher than in store, but you’ll have some idea if they could save you money, or time, which is sometimes just as good.If you want to maximize your Costco purchases, make sure to read about our No. 1 strategy for saving money at Costco here.2. Plan a regular Costco trip and put it on your calendarMy first two weeks of using Costco in this new and exciting way turned into some really expensive trips. I was dashing back to the warehouse for that “one thing” I forgot, which then quickly snowballed into two, three, six, 11, or 112 things very, very easily.Because Costco packages are so large, and very little is priced under about $15, it’s easy to quickly rack up the grocery bill popping back for that one thing you forgot. Instead, schedule a regular day to go to Costco, so you’re not making extra trips that cost you more money than you may realize. Keep a dedicated Costco list for your one day every couple of weeks, or whatever works best for your schedule.3. Don’t buy everything at onceIt’s easy to just immediately start buying everything in giant bulk packages, since you’re already at Costco, but I’d advise against it. Buying a Costco-sized package of laundry detergent isn’t like buying an extra grocery-store sized package. You will quickly overwhelm yourself and end up with way more than you need.Instead, ask yourself if you really need that item, and if you don’t, add it to your Costco list for when you’re nearly out. Don’t buy it just because you’re at Costco — you can go back, they don’t check how many times you visit.4. Really consider your purchasesIt dawned on me how important this was when I was standing in Costco staring at a container of All Free and Clear laundry detergent consisting of 150 loads’ worth of soap. I do laundry, I have a washing machine in my home, but I might do two or three loads a week, since I live alone.As I reached for the barrel of laundry soap, I considered whether it actually made sense to buy. Sometimes we get caught up in how much we can save on these items and forget that if we don’t actually use them, we’re just wasting money in a new and exciting way.So, rather than buy a year’s worth of laundry detergent, it might make more sense to sign up for a Costco-friendly credit card that gives you 2% to 3% cash back, like the ones on this curated list. That way, you get a nice discount, but also don’t have to worry about a year’s worth of soap going bad in your laundry room.5. Start creating more storageYou simply cannot create the level of storage you’re going to need to lean into the Costco lifestyle all at once. It will take time to figure out where in your home makes the most sense to stash your dragon’s hoard of toilet paper and Gatorade. And without a decent storage system, you’re just going to end up living among 5,000 boxes of spaghetti noodles.This dawned on me when I was trying to find somewhere to put my newly acquired package of 12 giant rolls of paper towels. I had always stored the six-pack in my laundry room, on the shelf above the dryer, but that wasn’t going to work anymore. Right now, they’re still precariously stacked there, but I fear what happens when I open them next week when we run out of the pre-Costco paper towels.I’m a Costco girl, in a Costco worldWith the threat of inflation on the horizon, I’m not waiting around to see if I’ll lose the ability to afford to live and eat food. Instead, I’m getting started on living a Costco lifestyle. There are a lot of savings possible by taking advantage of the bulk-buying opportunities Costco offers, but you have to ease into it.Alert: highest cash back card we’ve seen now has 0% intro APR into 2026
This credit card is not just good – it’s so exceptional that our experts use it personally. It features a 0% intro APR for 15 months, a cash back rate of up to 5%, and all somehow for no annual fee!
Click here to read our full review for free and apply in just 2 minutes. We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
Motley Fool Money does not cover all offers on the market. Editorial content from Motley Fool Money is separate from The Motley Fool editorial content and is created by a different analyst team.Kristi Waterworth has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Costco Wholesale. The Motley Fool has a disclosure policy.”}]] [[{“value”:”

With the talk of tariffs in the air and a fear of inflation soaring once again, I made a decision recently to start shopping at Costco in a more serious way. No more just popping in for snacks and big purchases. I’m going to leverage my Costco membership to truly take advantage of the items there that can save me a lot of money, since I’m going to buy them somewhere else anyway.

Top credit card to use at Costco (and everywhere else!)

We love versatile credit cards that offer huge rewards everywhere, including Costco! This card is a standout among America’s favorite credit cards because it offers perhaps the easiest $200 cash bonus you could ever earn and an unlimited 2% cash rewards on purchases, even when you shop at Costco.

Add on the competitive 0% interest period and it’s no wonder we awarded this card Best No Annual Fee Credit Card.

Click here to read our full review for free and apply before the $200 welcome bonus offer ends!

I quickly found out that doing this is overwhelming, and a lot more complicated than simply walking into your favorite big box store and buying a package of whatever. You can’t just jump into Costco whole hog — you must have a system.

Here are my tips for getting started.

1. Check the Costco ad flyers that come in the mail and the online ads for sales

There’s no point in just running into Costco without a plan, and by taking advantage of these resources, you have some idea what your costs may be vs. other retailers you generally do business with. The online prices may be a little bit higher than in store, but you’ll have some idea if they could save you money, or time, which is sometimes just as good.

If you want to maximize your Costco purchases, make sure to read about our No. 1 strategy for saving money at Costco here.

2. Plan a regular Costco trip and put it on your calendar

My first two weeks of using Costco in this new and exciting way turned into some really expensive trips. I was dashing back to the warehouse for that “one thing” I forgot, which then quickly snowballed into two, three, six, 11, or 112 things very, very easily.

Because Costco packages are so large, and very little is priced under about $15, it’s easy to quickly rack up the grocery bill popping back for that one thing you forgot. Instead, schedule a regular day to go to Costco, so you’re not making extra trips that cost you more money than you may realize. Keep a dedicated Costco list for your one day every couple of weeks, or whatever works best for your schedule.

3. Don’t buy everything at once

It’s easy to just immediately start buying everything in giant bulk packages, since you’re already at Costco, but I’d advise against it. Buying a Costco-sized package of laundry detergent isn’t like buying an extra grocery-store sized package. You will quickly overwhelm yourself and end up with way more than you need.

Instead, ask yourself if you really need that item, and if you don’t, add it to your Costco list for when you’re nearly out. Don’t buy it just because you’re at Costco — you can go back, they don’t check how many times you visit.

4. Really consider your purchases

It dawned on me how important this was when I was standing in Costco staring at a container of All Free and Clear laundry detergent consisting of 150 loads’ worth of soap. I do laundry, I have a washing machine in my home, but I might do two or three loads a week, since I live alone.

As I reached for the barrel of laundry soap, I considered whether it actually made sense to buy. Sometimes we get caught up in how much we can save on these items and forget that if we don’t actually use them, we’re just wasting money in a new and exciting way.

So, rather than buy a year’s worth of laundry detergent, it might make more sense to sign up for a Costco-friendly credit card that gives you 2% to 3% cash back, like the ones on this curated list. That way, you get a nice discount, but also don’t have to worry about a year’s worth of soap going bad in your laundry room.

5. Start creating more storage

You simply cannot create the level of storage you’re going to need to lean into the Costco lifestyle all at once. It will take time to figure out where in your home makes the most sense to stash your dragon’s hoard of toilet paper and Gatorade. And without a decent storage system, you’re just going to end up living among 5,000 boxes of spaghetti noodles.

This dawned on me when I was trying to find somewhere to put my newly acquired package of 12 giant rolls of paper towels. I had always stored the six-pack in my laundry room, on the shelf above the dryer, but that wasn’t going to work anymore. Right now, they’re still precariously stacked there, but I fear what happens when I open them next week when we run out of the pre-Costco paper towels.

I’m a Costco girl, in a Costco world

With the threat of inflation on the horizon, I’m not waiting around to see if I’ll lose the ability to afford to live and eat food. Instead, I’m getting started on living a Costco lifestyle. There are a lot of savings possible by taking advantage of the bulk-buying opportunities Costco offers, but you have to ease into it.

Alert: highest cash back card we’ve seen now has 0% intro APR into 2026

This credit card is not just good – it’s so exceptional that our experts use it personally. It features a 0% intro APR for 15 months, a cash back rate of up to 5%, and all somehow for no annual fee!

Click here to read our full review for free and apply in just 2 minutes.

We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
Motley Fool Money does not cover all offers on the market. Editorial content from Motley Fool Money is separate from The Motley Fool editorial content and is created by a different analyst team.Kristi Waterworth has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Costco Wholesale. The Motley Fool has a disclosure policy.

“}]] Read More 

[[{“value”:”Image source: Getty Images
If you’ve built up a $3 million nest egg, congratulations. That’s almost 35 times what the average American has in their retirement accounts. It takes dedication to build up a fund of that size. The great news is that, depending on your situation, you should safely be able to withdraw around $120,000 a year from it once you retire.Alert: highest cash back card we’ve seen now has 0% intro APR into 2026
This credit card is not just good – it’s so exceptional that our experts use it personally. It features a 0% intro APR for 15 months, a cash back rate of up to 5%, and all somehow for no annual fee!
Click here to read our full review for free and apply in just 2 minutes. Read on to find out where that number comes from, and how to know if you’ll have enough. And if you’re trying to build up a similar retirement balance, click here to learn more about how these top IRA brokers can help.You can withdraw around $120,000 each yearMany financial planners use something called the 4% rule to estimate how much you might need in retirement. It was created in 1994 by a financial advisor called William Bengen. Given that stock market performance can fluctuate wildly, he wanted to know how much retirees could safely withdraw, even in the absolute worst conditions.He analyzed a half-century’s worth of 30-year retirement windows, starting in 1926. What he discovered was that if you take 4% out of your nest egg in your first year of retirement, you can be confident you’d be able to take that amount, plus inflation, for the coming 30 years.So if you have $3 million, you could withdraw $120,000 in your first year. If inflation was around 3%, you could safely take $123,600 in the next year, and so forth. History tells us you can be pretty sure that your money will last at least 30 years — and in many scenarios, it will last longer.Knowing if your retirement fund is big enoughHaving $3 million in your retirement and brokerage accounts is a sizable amount. Even so, it’s a big leap to retire and rely on Social Security and your retirement investments to stay afloat. It can be hard to plan because there are so many unknowns. But you can still make some pretty solid estimates based on your current income and spending.For example, a lot of people estimate their retirement spending will be about 80% of what it is now. You won’t need to get all of that from your nest egg. Factor in other sources of retirement income, such as Social Security, rental property income, or other cash. Then work back to see how it compares.Let’s say you’ll get $22,000 a year in Social Security and $120,000 from your retirement funds. That comes to $142,000 in annual income. If that’s 80% of your current income, we’re talking about $177,500 a year. If you’re earning about that now, you can be fairly confident you’ll be able to maintain the same standard of living for the whole of your retirement.Map out different retirement scenariosThink of retirement planning like shopping for clothes — you can’t just go to the store and buy the same size, style, and color as everybody else. There’s no one-size-fits-all retirement, so it’s important to treat these financial rules as a starting point that you adapt to your situation and needs.For example, if you plan to retire early and want your nest egg to stretch to 40 years or more, you might instead take just 3% ($90,000). On the other hand, if you’re comfortable with risk, you might decide to take 5% ($150,000) and alter your asset allocation accordingly.Here are some factors to explore.ConfidenceThe 4% rule is based on a 90% probability that your money will be enough for your whole retirement. But if you’re OK with more uncertainty, you might be able to withdraw 5% or 6% a year. For example, Fidelity’s simulations predict retirees could withdraw over 5% and have a 75% probability the money will last.Balance of risk in your portfolioEvery portfolio will have a mix of assets with varying degrees of risk and returns. Many people shift to a more conservative ratio of stocks vs. bonds as they approach retirement. But if you’re worried your fund won’t go far enough, you might take a different approach.Retirement length and any healthcare needsThis is one of the trickiest parts of retirement planning because it’s something few people really want to think about too closely. But you can use your family history to take a guess. And if you’re retiring early, you’ll need your money to go further.You don’t have to go it aloneRetirement planning is hard, even if you’ve built up a decent amount of money. There are retirement calculators and other resources online, but you don’t have to work all of this out on your own. Consider speaking to a financial advisor who could help you map out different scenarios. You’ve worked hard to build up a $3 million fund — you deserve the golden years that you want from it.Alert: highest cash back card we’ve seen now has 0% intro APR into 2026
This credit card is not just good – it’s so exceptional that our experts use it personally. It features a 0% intro APR for 15 months, a cash back rate of up to 5%, and all somehow for no annual fee!
Click here to read our full review for free and apply in just 2 minutes. We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
Motley Fool Money does not cover all offers on the market. Editorial content from Motley Fool Money is separate from The Motley Fool editorial content and is created by a different analyst team.Emma Newbery has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.”}]] [[{“value”:”

If you’ve built up a $3 million nest egg, congratulations. That’s almost 35 times what the average American has in their retirement accounts. It takes dedication to build up a fund of that size. The great news is that, depending on your situation, you should safely be able to withdraw around $120,000 a year from it once you retire.

Alert: highest cash back card we’ve seen now has 0% intro APR into 2026

This credit card is not just good – it’s so exceptional that our experts use it personally. It features a 0% intro APR for 15 months, a cash back rate of up to 5%, and all somehow for no annual fee!

Click here to read our full review for free and apply in just 2 minutes.

Read on to find out where that number comes from, and how to know if you’ll have enough. And if you’re trying to build up a similar retirement balance, click here to learn more about how these top IRA brokers can help.

You can withdraw around $120,000 each year

Many financial planners use something called the 4% rule to estimate how much you might need in retirement. It was created in 1994 by a financial advisor called William Bengen. Given that stock market performance can fluctuate wildly, he wanted to know how much retirees could safely withdraw, even in the absolute worst conditions.

He analyzed a half-century’s worth of 30-year retirement windows, starting in 1926. What he discovered was that if you take 4% out of your nest egg in your first year of retirement, you can be confident you’d be able to take that amount, plus inflation, for the coming 30 years.

So if you have $3 million, you could withdraw $120,000 in your first year. If inflation was around 3%, you could safely take $123,600 in the next year, and so forth. History tells us you can be pretty sure that your money will last at least 30 years — and in many scenarios, it will last longer.

Knowing if your retirement fund is big enough

Having $3 million in your retirement and brokerage accounts is a sizable amount. Even so, it’s a big leap to retire and rely on Social Security and your retirement investments to stay afloat. It can be hard to plan because there are so many unknowns. But you can still make some pretty solid estimates based on your current income and spending.

For example, a lot of people estimate their retirement spending will be about 80% of what it is now. You won’t need to get all of that from your nest egg. Factor in other sources of retirement income, such as Social Security, rental property income, or other cash. Then work back to see how it compares.

Let’s say you’ll get $22,000 a year in Social Security and $120,000 from your retirement funds. That comes to $142,000 in annual income. If that’s 80% of your current income, we’re talking about $177,500 a year. If you’re earning about that now, you can be fairly confident you’ll be able to maintain the same standard of living for the whole of your retirement.

Map out different retirement scenarios

Think of retirement planning like shopping for clothes — you can’t just go to the store and buy the same size, style, and color as everybody else. There’s no one-size-fits-all retirement, so it’s important to treat these financial rules as a starting point that you adapt to your situation and needs.

For example, if you plan to retire early and want your nest egg to stretch to 40 years or more, you might instead take just 3% ($90,000). On the other hand, if you’re comfortable with risk, you might decide to take 5% ($150,000) and alter your asset allocation accordingly.

Here are some factors to explore.

Confidence

The 4% rule is based on a 90% probability that your money will be enough for your whole retirement. But if you’re OK with more uncertainty, you might be able to withdraw 5% or 6% a year. For example, Fidelity’s simulations predict retirees could withdraw over 5% and have a 75% probability the money will last.

Balance of risk in your portfolio

Every portfolio will have a mix of assets with varying degrees of risk and returns. Many people shift to a more conservative ratio of stocks vs. bonds as they approach retirement. But if you’re worried your fund won’t go far enough, you might take a different approach.

Retirement length and any healthcare needs

This is one of the trickiest parts of retirement planning because it’s something few people really want to think about too closely. But you can use your family history to take a guess. And if you’re retiring early, you’ll need your money to go further.

You don’t have to go it alone

Retirement planning is hard, even if you’ve built up a decent amount of money. There are retirement calculators and other resources online, but you don’t have to work all of this out on your own. Consider speaking to a financial advisor who could help you map out different scenarios. You’ve worked hard to build up a $3 million fund — you deserve the golden years that you want from it.

Alert: highest cash back card we’ve seen now has 0% intro APR into 2026

This credit card is not just good – it’s so exceptional that our experts use it personally. It features a 0% intro APR for 15 months, a cash back rate of up to 5%, and all somehow for no annual fee!

Click here to read our full review for free and apply in just 2 minutes.

We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
Motley Fool Money does not cover all offers on the market. Editorial content from Motley Fool Money is separate from The Motley Fool editorial content and is created by a different analyst team.Emma Newbery has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

“}]] Read More