Third Quarter Summary of Webinar Take-Aways

We are almost three-quarters through 2026 and it’s time for another quarterly summary of takeaways from webinars, podcasts, and classes that I have recently attended. Below are seven “nuggets” that stood out to me as I reviewed notes taken in my personal learning journal:

Tax-Deferred Retirement Savings Plans- When you invest in traditional (pre-tax) individual retirement accounts (IRAs) and qualified employer plans, you are in a “long-term partnership” with the IRS. All of the money that you accumulate is not yours. When you reach the age for required minimum distributions (73 or 75, depending on year of birth), the IRS wants its cut.

 

Stock Investing Timelines- Investments need to match the time frame for financial goals. Stocks are generally way too volatile for a one-year time horizon but, for long-term goals, it is a very different story. There has never been a 20-year period in the U.S. that cash outperformed stocks. Market declines will happen for sure; we just don’t know when.

 

Financial Accounts- One webinar presenter suggested having five accounts- two checking accounts and three savings accounts- each with a designated purpose. Like five fingers on a hand, the accounts are 1. Checking for bills, 2. Lifestyle checking (for fun), 3. Emergency savings (3 to 6 months of living expenses), 4. Short-term savings (for upcoming planned goals), and long-term savings.

 

Cybersecurity Concerns- AI has increased the frequency of cyberattacks and vigilance is key. Attackers are scaling at a rapid pace and sending specially crafted “hyper-personalized” e-mails and texts to lure victims. The age 60+ age demographic has the highest dollar losses and reports of crime. Multi-factor authentication (e.g., biometrics, texted code) blocks about 99% of unauthorized logins.

 

Home Inspections- Insurance companies are increasingly requiring 4-point inspections after  policyholders have lived in their home for a specified number of years. This is because insurance companies will only pay claims for various home components before their longevity is complete. 4-point inspections typically include: 1. HVAC and compressor, 2. water heater, 3. electrical panel, and 4. roof. Some include appliances and plumbing. Insurance companies want to see their condition.

 

AI Impacts- Many browsers today include an AI component. For example, Google Gemini. This saves time and makes it very easy to find an answer to a query. Instead of a search engine simply providing a list of resources to find an answer (that users must sort through), AI provides the answer, thereby boosting productivity. The more you use AI products, the more they know your preferences.

 

Medicare Insights- Medicare premiums are billed every three months if they cannot be deducted from a monthly Social Security benefit. The annual open enrollment period for Medicare is October 15 to December 7. Medicare Advantage (Part C) plans are rated with stars (five is the highest) and are available at www.Medicare.gov. The lowest star rating that beneficiaries should accept is 3.5.

This post provides general personal finance or consumer decision-making information and does not address all the variables that apply to an individual’s unique situation. It does not endorse specific products or services and should not be construed as legal or financial advice. If professional assistance is required, the services of a competent professional should be sought.

 

 

Money After 80

For the past four years, I’ve taught a class called Money After 70, which describes over a dozen changes in the finances of septuagenarians (people between 70 and 79 years old) and those who are older. Recently, a student requested a new class specifically for octogenarians (people between 80 and 89 years old); i.e., Money After 80. The class isn’t prepared yet but below are some thoughts.

 

People age 80 and older often face financial planning challenges that differ significantly from those they encountered during the early years of retirement. Their emphasis often shifts from “go-go” years spending, and perhaps continued employment, to preserving assets, maintaining independence, managing health care costs, simplifying finances, and ensuring a smooth transfer of assets to heirs.

 

Below are five key financial planning issues faced by people age 80+:

 

Remaining Life Expectancy- According to Social Security actuarial tables, an 80-year-old's average remaining life expectancy differs by gender. An 80-year old man and an 80-year old woman have an average remaining life expectancy of 7.6 years (age 87.6) and 9.2 years (age 89.2), respectively. Personal health status and lifestyle choices can significantly impact these numbers, however. Some people live long enough to become nonagenarians (age 90-99) and centenarians (age 100+).

 

Larger RMDs- Required minimum distributions (RMDs) generally become larger as people get older because retirees have fewer remaining years over which to withdraw their retirement savings. Even if an IRA or 401(k) balance remains unchanged, the percentage of a tax-deferred account that must be withdrawn increases each year. For example, it’s 3.77% at age 73 and 4.95% at age 80. As retirees get older, their age-based RMD divisor gets smaller, and their RMD withdrawal gets larger.

 

QLAC Withdrawals- A Qualified Longevity Annuity Contract (QLAC) allows individuals to use a portion of their retirement plan savings to purchase deferred lifetime income. QLACs, therefore, help protect against outliving assets by providing guaranteed income later in retirement when other resources may decline. Under current rules, QLAC payments must begin no later than age 85.

 

CCRC Entrance- The average age of entrance into a Continuing Care Retirement Community (CCRC), also called a Life Plan Community, is generally in the early to mid-80s. Most CCRCs encourage residents to move in while they are still healthy, independent, and able to participate fully in community life. A key financial planning consideration is that many CCRCs require a substantial entrance fee (often hundreds of thousands of dollars) plus monthly fees.

 

Housing Changes- Many octogenarians make key decisions related to their housing. For example, if they decide to “age in place,” they install accessibility improvements such as ramps, grab bars, stair lifts, walk-in showers, and wider doorways. If they are widowed or become more frail, they might opt to move closer to a family support system or into an assisted living facility. The average age of entry into assisted living in the United States is generally in the mid-to-late 80s.

This post provides general personal finance or consumer decision-making information and does not address all the variables that apply to an individual’s unique situation. It does not endorse specific products or services and should not be construed as legal or financial advice. If professional assistance is required, the services of a competent professional should be sought.

 

 

Need to Knows About Section 530A Child Savings Accounts

I recently attended a webinar about a new way to save money for children: Section 530A (of the IRS tax code) accounts, which became available in July 2026 as a result of the 2025 OBBBA tax law. Below are some key facts to know about 530A accounts:

Government Seed Money- For children born from 1/1/25 through 12/31/28, the U.S. government will provide $1,000 in funding as a pilot project. Eligible individuals must be U.S. citizens and have a valid Social Security number issued before they apply. Also, thanks to philanthropists, children born from 2016 to 2024 can receive a $250 seed if they qualify by their residence’s median income.

 

Enrollment Process- Information about 530A accounts can be found at https://trumpaccounts.gov. To enroll, a new IRS Form 4547 must be filed with the IRS, along with a current year tax return. Another option is to use an online portal for which a mobile app is now available. Accounts may be opened by a parent, legal guardian, adult sibling, or grandparent. No income caps on them apply.

 

Retirement Focus- 530A accounts are a type of individual retirement account (IRA) that allows children to start saving for retirement much earlier than was previously possible, thereby providing a tremendous head start on a child’s lifetime wealth accumulation. Unlike traditional and Roth IRAs, however, earned income is not required. Obviously, most babies do not have jobs.

 

Additional Deposits- Beyond the seed money, up to $5,000 per year can be contributed to 530A accounts that grow tax-free until a child reaches age 18. The $5,000 limit will rise with inflation starting in 2028. Deposits can be made by parents, family members, and/or charitable organizations. A child’s parent’s employer can also contribute up to $2,500 (of the $5,000) as an employee benefit.

 

530A Account Investments- Account funds are automatically invested in a low-cost index fund where fees and expenses cannot exceed 0.1% of the investment balance. Initial trustees are BNY partnered with Robinhood. Withdrawals are typically not permitted during the growth phase before December 31 of the year before an eligible child turns 18.

 

Distribution Options- There are four options for beneficiaries at age 18: 1. Take distributions from the account (e.g., for college), 2. Keep the account open and invested, 3. Roll the account over to a Traditional IRA, and 4. Convert the traditional IRA to a Roth IRA. Standard IRA tax rules apply, meaning investment gains and money from the government or donors is taxed as ordinary income.

 

Income Tax Rules- IRA distributions before age 59.5 are subject to a 10% penalty unless an exception applies. Common exceptions are education expenses and a first-time home purchase. When a 530A account is converted from a rollover IRA to a Roth IRA, the beneficiary/owner must pay taxes on pre-tax contributions and earnings. Taxes will likely be low in a young adult’s tax bracket.

 

Account Purpose- Before opening a 530A account, designate a purpose for this money. Is it savings for college or retirement? For college savings, also consider 529 plans where qualified distributions are tax-free and up to $35,000 can rollover to a Roth IRA. If it’s retirement, 530A accounts have a powerful edge with almost two decades of extra savings and compound interest growth. The website for 530A accounts states that an account with an initial $1,000 and no further deposits could be worth $243,000 by age 55 based on historical S&P index averages. With $5,000 annual contributions added, the account could be worth $13 million!

This post provides general personal finance or consumer decision-making information and does not address all the variables that apply to an individual’s unique situation. It does not endorse specific products or services and should not be construed as legal or financial advice. If professional assistance is required, the services of a competent professional should be sought.

 

 

Need to Knows About Fraud

I recently attended a seminar and a webinar about consumer scams and risk reduction strategies to avoid becoming a victim. Below are eight key take-aways:

Fraud Statistics- Approximately three million fraud reports were filed with the Federal Trade Commission in 2025 with reported losses of $15.9 billion. The five top fraud categories were imposters, online shopping, internet services, business and job opportunities, and investments.

 

Government Impersonation Scams- These are imposter scams where scam artists pretend to be from government agencies like Social Security and the IRS. They often demand payment with gift cards or wire transfers and threaten to cut off benefits. Other scammers request personal information that the government already has to “verify” an account. If contacted, hang up or delete immediately.

 

Account Monitoring- It is wise to monitor financial accounts regularly to ensure that there are no errors or irregularities that might indicate identity theft. Use two-factor authentication (2FA), such as biometric data or a texted code, to further strengthen account security.

 

Checking Account Fraud- Paper checks contain a bank account routing number and account number that can be misused if mail is stolen or gets into the wrong hands. Experts advise receiving money, paying bills, or sending money using secure digital payments such online bill-pay platforms and peer-to-peer apps. Always store checkbooks in a secure place (e.g., locked desk drawer).

 

Tech Support Scams- These typically start with pop-up windows that claim that a computer has a virus. The pop-ups contain a “tech support number” and instruct victims to call it. Next, scam artists ask for remote access to the computer to “fix” a problem that does not really exist. They then request payment and personal information for their “service” and have access to sensitive personal data.

 

Scam Prevention Tips- Personal decision rules can help prevent scam opportunities. Examples include letting “potential spam” calls go to voice mail, never letting your credit card out of your sight, never clicking on links from unknown sources, and never sending money to someone that you have not met in person, which is a key part of “romance scams.”

 

Red Flags- A common red flag of scams is being contacted out of the blue and pressured to act fast because an “opportunity” is a limited time offer. Poor grammar and spelling, the use of words like “guaranteed” and “risk-free,” and being asked to pay in an unusual way (e.g., Bitcoin ATMs) are other scam indicators. Common scam targets are older adults and youth and young adults.

 

Tech Tune-Ups-Experts recommend using strong passwords (e.g., JZv5Cmjt! vs. password2468), locking a smart phone when it is not in use, not keeping sensitive personal and financial data on a smart phone, keeping anti-virus software and security updates current on a computer, and not using unsecured public Wifi hotspots (e.g., at airports).

 This post provides general personal finance or consumer decision-making information and does not address all the variables that apply to an individual’s unique situation. It does not endorse specific products or services and should not be construed as legal or financial advice. If professional assistance is required, the services of a competent professional should be sought.