Author: Money Mechanics

(Image credit: Getty Images)Question: At 54, we’re young grandparents. My wife wants to start a college fund for our grandson, but I think we have to focus on funding our retirement. We’ve already saved $1.8 million. Who is right?Answer: As of 2022, the most recent year for which data are available, the average retirement savings balance among 54-year-olds was about $313,000, per the Federal Reserve. If you’re 54 years old with $1.8 million saved for retirement, you’re clearly in a strong position compared to the typical person your age.Just because you’ve amassed a $1.8 million fortune by age 54 doesn’t…

Key Takeaways According to Federal Reserve data, just 57% of Americans in their mid-50s to mid-60s have a retirement account, a participation rate that is near a 30-year low.More recent data from Empower placed the median saved for 50-somethings at $253,454 and the median saved for 60-somethings at $186,902.Retirement readiness varies widely at this stage, shaped by housing wealth, access to workplace plans, and exposure to market swings. Get personalized, AI-powered answers built on 27+ years of trusted expertise. How Many Americans Ages 55–64 Have Any Retirement Savings at All The Federal Reserve’s Survey of Consumer Finances shows that 57%…

(Image credit: Getty Images)Many families with children consider having one parent stay home. Sometimes the decision is driven by lifestyle preferences, but rising child care costs are also pushing more families to rethink whether two incomes always make financial sense.The ability to live on a single income varies widely depending on where a family lives. Housing, taxes and everyday expenses differ significantly from state to state, which can make living on one income easier to manage in some places than others.In lower-cost states, a single salary may be enough to support a parent staying home with a child. In higher…

Key Takeaways Rolling over a 401(k) into an IRA provides more investment options and control but limits annual contributions.Transferring funds to a new employer’s 401(k) can maximize employer match benefits and consolidate accounts.Leaving funds in an old 401(k) keeps investments growing but prevents new contributions and employer matches. Get personalized, AI-powered answers built on 27+ years of trusted expertise. When you leave a job, it’s important to decide what to do with your 401(k), because each option affects your taxes, fees, and long-term savings. One Reddit user shared their experience when changing jobs: “My 401(k) is with Principal. I’m not…

High prices and economic uncertainty kept demand muted; now, rates are already rising again and global tensions could add to homebuyer hesitation.  The median monthly housing payment was $2,591 during the four weeks ending March 1, down 2.8% year over year.  Payments are falling largely thanks to the weekly average mortgage rate dropping to 5.98% last week, down from 6.76% a year earlier and the first time it has dipped below 6% in three and a half years. (The daily average mortgage has risen from 5.99% last week to 6.07% on March 4.) On the other side of the housing…

Key Takeaways The average American aged 45 to 54 spent $6,748 on health insurance. This average masks huge variation: the top 10% of working families spend more than $14,800 annually, often due to chronic conditions or high-deductible plans that require thousands before coverage kicks in.When you add insurance premiums, deductibles, co-pays, and prescriptions, typical spending jumps to $3,000-$6,000 annually. Americans ages 45-54 spent an average of $6,748 on health care in 2024—up from $6,338 the year before, according to the Bureau of Labor Statistics Consumer Expenditure Survey. That covers insurance premiums, doctor visits, prescriptions, and medical supplies. But the average…

Key Takeaways Most Americans ages 35–44 have retirement accounts, but the Fed’s latest survey shows the median balance for this age group has declined.Among those with a retirement account, the median balance is $45,000 for those in their late 30s and early 40s.This time in life often brings higher pay but rising costs, making this period a challenging but crucial window to build meaningful savings. How Many People Ages 35-44 Have Any Retirement Savings? It’s no surprise that age impacts a household’s income, wealth, and ability to save for retirement. Families tend to see earnings and assets increase through midlife,…

KEY TAKEAWAYS About 6.4 million federal student loan borrowers are ages 50 to 61, with the average student loan debt in this group at $48,203.That is the highest average balance out of all other age groups. Get personalized, AI-powered answers built on 27+ years of trusted expertise. Generation X is caught in a financial squeeze. Borrowers aged 50 to 61 carry an average student loan balance of $48,203—more than any other age group—even as many Gen Xers also support aging parents and help their own children pay for college. About 6.4 million federal borrowers fall into this age range, holding…

Inflation will be in the spotlight this week. Two major economic reports on prices are landing just ahead of next week’s key interest rate decision, providing fresh indicators on the cost of living as central bankers debate whether to further lower borrowing costs and investors eye energy prices. Existing-home sales and other housing data comes as economists are watching for improvements in that market. Investors will also be evaluating momentum in the AI and software sectors, with Oracle, Hewlett Packard Enterprise, and Adobe set to report earnings this week. Dollar General leads a string of noteworthy retail earnings, while Tesla’s Chinese…

Key Takeaways Finland is the world’s happiest country, according to the World Happiness Report, offering retirees and others peace, safety, and balance.You can collect U.S. Social Security benefits while living in Finland.Health care is universal, high-quality, and accessible to residents, although private insurance is still an option.The cost of living is a bit less than that in the U.S., but taxes are higher. If you’ve ever dreamed of a peaceful retirement surrounded by nature, Finland might be calling your name. Ranked as the happiest country in the world by Gallup’s World Happiness Report, Finland offers a lifestyle centered on wellbeing,…