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When two families become one, their stories, values, and traditions begin to merge, including how they view and practice generosity. Each partner may come with their own causes, charitable habits, and definitions of impact. So how do you bring all of that together into one shared giving plan?

If you’ve ever felt pulled between honoring different priorities and making a meaningful, lasting impact, you’re not alone. A Donor-Advised Fund (DAF) offers a flexible, strategic way to streamline giving, support the causes you care about, and align your charitable goals as a family. Think of it as a charitable investment account that you fund now and distribute on your own timeline, whether it’s to your church, a local food bank, or a national organization.

More than just a tax-efficient giving tool, a DAF offers a structured way to combine your philanthropic efforts into one unified strategy, respecting family history while building a legacy that reflects your new, shared future. It can help you merge financial resources and charitable goals with clarity, intentionality, and ongoing communication—elements that are especially important when navigating the unique complexities of a blended family.

Because of the flexibility, simplicity, and favorable tax treatment, DAFs have become one of the fastest-growing charitable giving vehicles in the U.S. Here’s why they’re particularly well-suited for blended families, what you should know, and how to determine if a DAF fits your family’s philanthropic vision.

How a DAF Benefits Your Blended Family

For blended families, a Donor-Advised Fund can be a powerful way to align giving goals and strengthen shared values. A well-managed DAF can transform giving from a series of individual contributions into a cohesive, values-driven plan based not only on where the dollars go, but also on how the act of giving strengthens family connections and fosters common purpose.

Immediate Tax Advantages and Tax-Free Growth Potential

One of the reasons DAFs are so appealing is that they combine thoughtful giving with smart, tax-efficient planning. From a tax savings perspective, contributions to a DAF provide an immediate deduction, potentially reducing your current year’s tax liability. And you’re not limited to cash; DAFs often accept securities, restricted stock, private equity interests, or even cryptocurrencies.  

For example, cash donations may qualify for an income tax deduction of up to 60% of your adjusted gross income (AGI). Donating long-term appreciated assets can provide a deduction of up to 30% of your AGI while potentially eliminating capital gains tax on those assets. (Note: beginning in 2026, new OBBBA rules will limit certain deductions, including a 0.5% AGI floor and capped benefits for high-income earners.)

There are also strategies that can help you maximize your deductions if you have the means to “bunch” several of your typical annual charitable donations into a single year. In essence, you could pre-fund your future contributions now, get a greater deduction by itemizing more this year, and then use the standard deduction the following years when you do your charitable giving from your DAF instead of your cash flow.

For example, if you typically give $10,000 to charity each year, you might benefit from donating $50,000 (of cash or appreciated assets, for example) to a donor-advised fund this year, allowing you to itemize more deductions than you otherwise would. Then, for the next 5 years, you use the DAF for your typical giving and take the standard deduction in those years. If you have the means to “bunch” your deductions together, you should consider working with your tax and financial professionals to see how a DAF might help you support causes important to you and your family without throwing your entire plan off track.

Whether you give in a “bunch,” consistently over time, or both, the funds in your DAF can grow tax-free, increasing the total amount available for future charitable giving and expanding the difference your giving can make over time.  IT can give you the means to give back anytime you’re ready.

Imagine sitting around the table the Friday after Thanksgiving, reflecting on the good fortune of your family coming together, and deciding how to share that goodness with others. Or picture ringing in the New Year with a family conversation about your financial goals for the year ahead, teaching your children not only about financial literacy but also about the responsibility and joy of giving. A DAF provides a simple, flexible framework to make those family traditions possible, allowing everyone’s voice to be heard and ensuring your charitable contributions reflect both your shared vision and each person’s values.

Flexibility in Maximizing Your Impact (Now and for Generations)

I am a big believer that building a legacy – no matter how big or small – starts now, not with our estate plan.  If you’re charitably inclined as well, a Donor-Advised Fund can be a powerful way to begin giving as a family, with the potential to shape your impact across generations. Since DAFs allow you to support multiple charities over time on your own schedule, you can align giving with both your financial circumstances and moments when organizations need it most. This flexibility means you can honor each family member’s passions, whether it’s a local animal shelter, a scholarship fund, or global humanitarian aid, without being locked into a single cause.

Just as important, a DAF can be a powerful part of your family legacy planning. You can name children, stepchildren, or grandchildren as successor grant advisors, giving them the opportunity to carry forward your shared mission long after you’re gone. For blended families, where not everyone is bonded by blood, this is an opportunity to become forever bonded by something even more enduring: the values you choose to live by and pass on.

You might even invite younger family members into the process now. For example, each year you could give a child or grandchild the chance to recommend a grant from the DAF to a charity of their choosing, then sit down together to discuss why that cause matters to them. These conversations foster both financial awareness and a sense of responsibility as members of society.

We’ve seen blended families use a DAF as the ‘family table’ where everyone—kids, stepkids, even in-laws—has a seat and a voice. Some clients set aside time to review the year, talk about the causes that moved them, and decide together where to give next. It’s not just about writing checks, but writing a family story that will be told for generations.

Incorporating your DAF into your estate plan means your charitable intent lives on, reducing exposure to estate taxes and making it easier for your heirs to continue giving without the administrative burden of managing a private foundation. With the right guidance, your legacy can be a unifying thread that strengthens your blended family across generations.

Streamlined Record Keeping

Another benefit of DAFs is that the vehicle simplifies record-keeping for your charitable activities. Instead of tracking multiple donations to various organizations throughout the year, you would only need to manage your contributions to the DAF, eliminating some of the complexities that tax season can bring and making the management of charitable contributions a simpler process.

Structuring and Funding a DAF Account

Structuring, funding, and managing a donor-advised fund account for your blended family is a straightforward process when you have the help of an advisor. 

Step 1: Open an account with a sponsoring organization, such as a community foundation, charity, or financial institution that offers a DAF. 

Step 2: Fund it with cash, stocks, or other appreciated assets. Work with a professional to decide which types are best and how much you’re eligible to donate.

Step 3: Invest the assets in the account, aiming for tax-free growth over time, which will hopefully increase the amount available for charitable donations down the line. 

Step 4: Recommend which charities receive grants from your DAF, keeping in mind that the sponsoring organization has final approval. 

There are other vehicles to give to charity, such as trusts and private foundations, and while other means may have some different benefits than DAF, they also have some other complications, like administrative burdens and regulations. A DAF is usually more cost-effective, simple, and allows your family to enjoy immediate tax benefits and flexibility in the impact you can make, without the hassle of separate tax filings or legal upkeep.

Roles and Responsibilities in Donor-Advised Funds

Donor-advised funds were established, in part, to facilitate the efficient and effective management of charitable giving, designed to operate with a clear structure of roles and responsibilities, involving three key parties: the client (you), the financial advisor, and the charitable organizations.

Your Role

The client, as the donor, plays a central part in the DAF process. Your primary responsibility is to select the beneficiary organizations and determine how the funds will be distributed. This means you’ll get to enact a comprehensive giving strategy that outlines the timing, amounts, and recipients of charitable grants. 

Your decisions and input ensure donations align with your blended family’s values and philanthropic goals. You also have the flexibility to adjust your giving strategy over time, responding to changing priorities or emerging needs within the charitable sector.

Your Financial Advisor’s Role

As financial advisors, we serve as facilitators and managers in the DAF process. We can help by finding a sponsoring organization(many custodians offer a DAF), account opening, and managing the investments within the account, with the goal of growing the assets and potentially increasing the funds available for charitable giving. 

Your advisor plays a key role in facilitating the movement of funds to selected charitable organizations. We ensure the grants are processed properly and according to your wishes, bringing our knowledge and experience to the table to position the account for strategic and impactful giving.

The Charitable Organization’s Role

Charitable organizations are the ultimate recipients of DAF grants. Its role begins with providing the necessary information to receive the donations from your fund, including its tax-exempt status and organizational details. Once the organization receives a grant, it’s responsible for acknowledging the gift, which is important for your record-keeping as the donor. 

Central to the philanthropic agreement, we all trust organizations to utilize the funds in alignment with their stated mission and the donor’s intent. So, it should go without saying that they bear the responsibility of translating the financial contributions into tangible impact.

Is a Donor-Advised Fund Right for Your Blended Family?

Whether or not a DAF is the right choice for your family depends on your goals, values, and financial position. For blended families, it can be a powerful way to create a shared tradition of generosity by merging charitable priorities and while enjoying tax advantages and simplifying the giving process.

That said, the best giving strategy is one that reflects your unique circumstances, philanthropic intentions, and the legacy you want to build together. An advisor who understands the complexities of wealth building for blended families can help you explore how a DAF fits alongside other options. Here at Endurance Financial Group, we have experience offering insights on managing the account, support in involving your children and stepchildren, and guidance on managing the impact of every gift.

With thoughtful planning, your philanthropy can be both meaningful and financially effective, uniting your family around a common purpose and making a lasting difference in the causes you care about most.

This article was originally published here and is republished on Wealthtender with permission.

Headshot of Brian K. Peterson, CFP®, CPWA®, MBA
Brian K. Peterson, CFP®, CPWA®, MBA Planning Built For Blended Family Life

Brian K. Peterson, CFP®, CPWA®, MBA | Endurance Financial Group

🔗 Website | Wealthtender Profile

[Our innovation thought leadership interviews regularly explore the ongoing evolution happening in investment and risk management, but we also take deep dives into “niche” investment areas or specific strategies to learn from experienced managers with unique perspectives. We feel it is critical, in such a rapidly changing industry environment, to continuously re-examine and learn from different investment approaches and ways of thinking.

To that end, I feel it is time to review the perennial discussion on “quality” investing and focusing on “quality” companies. There are so many questions and qualifications around that word and the investment concepts or principles they refer to:

Does the investment designation of “quality” signify certain company operating absolutes or, in the real-world, does it refer to more of a broad range of characteristics and exhibit varying shades of gray? What is a good way to identify companies that truly meet the litmus test of “quality”? How is the competitive landscape of managers approaching and executing this investment strategy differently? How do sophisticated professional investors, including financial advisors, consultants, and due diligence analysts, wrestle with the connotations of the word and the implementation of an investment process around it? Also, how do those parameters around “quality” hold up against a cross-industry backdrop of rapidly changing business environments that history may have no guidance for?

To explore the mindset and execution of this investment methodology more fully, we were introduced to John Crawford, IV, Managing Director of Equity Investments for Crawford Investment Counsel – an Atlanta-based, independent asset management firm founded in 1980 that has focused on high-quality companies with a strong commitment to dividend payments to shareholders. We asked him to share his firm’s four decades of investment experience, research knowledge, and portfolio construction methodologies focused on quality companies.

In hearing their investment approach and experience with their clients, I sense a strong behavioral finance component at play here as well. I am reminded that even at a time of rapid change and growing complexity, explaining and executing on a simple, common-sense strategy can potentially be the most engaging.]

Hortz: How do you define what is a “quality” company?

Crawford: Quality is typically a subjective measure. While we all aspire to quality – and hopefully in all aspects of our life – in the investment business, it is typically measured with three criteria: financial strength, business consistency, and profitability. The most basic measures of those three criteria when it comes to stocks are balance sheet strength, earnings per share variability, and return on equity (ROE). Our portfolios skew high on both ROE and balance sheet strength, and skew low on earnings per share variability, which is a measure of consistency or predictability.

We do not have absolute levels for those different criteria that we seek to satisfy or that we mandate. Every company has its own optimal capital structure. Each business has different reinvestment requirements, end market exposures, and other factors to consider. So, there is not an across-the-board level that you can state. In some respects, “quality” is a relative term, whether you are looking at large cap stocks, small cap stocks, whatever.

Within the large cap universe, we believe the highest quality component of that is comprised of companies that have paid a dividend for 10 years. When you look at balance sheet strength, business consistency, and high ROE, guess what pops up like mushrooms around all those criteria? Dividends, and not just dividends, but usually rising dividends. There are some companies that “fit that bill” that do not pay dividends, but for the most part, you are going to find dividends associated with those “quality” criteria.

Hortz: What is the approximate size and nature of this universe of stocks?

Crawford: In the large cap space, we have determined about 350 companies that meet that criteria and have paid a dividend consistently for at least 10 straight years. We view the 10-year time horizon as meaningful because it spans a full business cycle, effectively screening out more cyclical and economically sensitive companies. A very high percentage of these companies have not just paid dividends for 10 straight years, they have also increased their dividend in most, if not all, of those years. You can ask if there is anything unusual about that, but I would say that is pretty unusual as rising dividends represent approximately 65% – 70% of those companies.

That tells you that once companies get into this “quality” universe, they have some really special characteristics, traits, and tailwinds to their business; not just from an economic standpoint, but they also have a propensity and a willingness to pay that dividend and return capital to shareholders. They are aligned with shareholder interests, and they reward shareholders through not only dividends but also share buybacks once they have reinvested back into their business, which obviously we need to see in order for the enterprise to profit and prosper over the long term.

In the small cap space, we reduce the dividend requirement to a preference for three years of consistent dividend payments, resulting in a broader universe of around 750 companies. While the relative quality of this broader universe is not nearly as high, our small cap strategy actually has quality characteristics similar to those of large cap stocks. The ROE is not quite as high as it is in large cap stocks, but earnings per share variability and balance sheet strength are comparable.

Hortz: What specific research criteria and selection process do you further apply on these quality companies to get to your high-conviction, “best ideas” portfolios?

Crawford: As you might expect, as a fundamental long-term oriented investment firm, we do all the traditional balance sheet, income statement, and cashflow statement analysis. We read all the company disclosure presentations, industry information, et cetera. This is all fairly typical for any fundamental firm, but we have internally developed a number of tools that we use that work particularly well with higher quality stocks.

Examples of this at a very rudimentary level would be that some of the screening we do is unique to higher quality stocks. But beyond that, we have a total shareholder return algorithm, what we call our “TSR framework”, which essentially is our version of price targets and it solves for how we expect to get paid from each component of the profit equation. So fundamental progress, valuation improvement, plus yield – it incorporates all those. We use a three-year horizon, and it works particularly well for higher quality stocks because the businesses are more consistent. The quality and consistency of the companies we invest in provide better visibility so the range of outcomes is narrower and the likelihood of success is better.

We also have a rating system that is designed to communicate to our team our conviction level on valuation, fundamentals, and overall rating so that everybody knows what the value proposition is on each company. We believe these measures help us optimize our company selection process.

Hortz: What kind of research process do you apply on the nature and quality of the dividends that companies distribute, especially as you have different dividend growth and dividend yield portfolios?

Crawford: We look very closely at companies that not just pay a dividend, but also those with dividend sustainability and an ability and willingness to increase it. We do not want to buy a company and have a dividend cut occur. You get into trouble when you reach for yield too much, or you buy a business where the yield comes along with some other factor that manifests in a risk to the company. It might be commodity price risk, or credit risk, or reliance on the capital markets to fund their operations. Or maybe there is interest rate risk, whatever it may be.

That due diligence and research process has resulted in very few dividend cuts in our portfolio over the 45 years we have been in existence. And so, we are analyzing company dividends paid out depending on the portfolio objectives of dividend yield versus dividend growth, as you referenced. We obviously are seeking companies with sound capital allocation policies, so we look at management alignment with shareholder interests.

An interesting point to make here is that what we really like is what the dividend signals to us and what that rising dividend signals to us, which to us is a tangible statement from the board that says, business is good, it is getting better, and the future looks bright. There is a great deal of effort that goes into this – we have a rigorous, time-tested process that includes significant foundational work and in-depth fundamental analysis – but it starts with that basic gesture, and as an owner of a business, we expect to get paid something out of the profits.

Hortz: How does this differentiate your approach from other quality and dividend-focused investment managers?

Crawford: Not paying a dividend is non-negotiable here at Crawford. Every company we have ever bought pays a dividend. Sometimes you get equity income strategies that say 80% of the companies have to pay dividends. Well, ours is a hundred percent. So that is a differentiator.

We are also price sensitive, value-oriented investors, while some dividend growth investors are not value-oriented. We are at the intersection of quality and value, and as a result of that, you get upside participation with well-run quality companies, but the insistence on dividends provides valuation support that protects you in down markets. I do think that is an attractive by-product of what we do.

Hortz: How do you apply your investment approach in each of your focus strategies? Do they have differentiated dividend-focused frameworks?

Crawford: A number of our investment strategies are objectives-based. Our Dividend Yield strategy has to have a yield in that eighth or ninth decile of all dividend paying companies, and we have pegged it at a minimum of around four percent. We have a requirement for income in that strategy as we do in our Managed Income strategy. When you move into the smaller cap strategies like our Small Cap strategy, you move down the cap spectrum, and the dividend or yield becomes much less important there. And the dividend is really a signal of quality, an indicator of business strength and alignment of management with shareholder interests. They do have differentiating frameworks.

We run different screens to help us identify candidates for different strategies and some stocks are owned in more than one strategy. I would say our Dividend Growth strategy is more of a quality portfolio where we are seeking attractive levels of free cash flow trading at a reasonable valuation with good visibility on future growth. When we move to the small cap space, what we are looking for there is to exploit the information advantage, but also capitalize on the quality premium that exists in small cap stocks. You want that tailwind of dividends and quality when you move down the cap spectrum.

Hortz: Can you walk us through a company example or two high-conviction quality companies?

Crawford: A good example is Johnson and Johnson which is a textbook example of consistency. Whether the economy is in a recession or expansion, you are going to take your medicine. The company has paid a dividend and grown it every year for 65 straight years. They have one of the few remaining AAA balance sheets, an ROE that is somewhere in the 30% range, the dividend yield is around 3%, and the stock trades at around 16 times earnings.

In the small cap space, the example I would give you is WD-40 company which is a single product company we all are familiar with and use. The company has extremely high margins, low earnings variability, rock solid balance sheet, a well-run business that is aligned with shareholder interests, and they are still expanding their footprint geographically overseas while announcing a few ancillary products that might prove to help with sales growth. The stock’s not cheap, but you often do not get really blue-chip quality merchandise in the small cap space at deep discounts. This one fits with our theme of quality at a reasonable price, which is where we think WD-40 falls today.

Hortz: What suggestions can you share with advisors on how to position and explain this investment strategy to their clients?

Crawford: I think our investment philosophy, as we explained previously, is looked at as a “sleep-well-at-night” portfolio. Our portfolios are user-friendly with income, low turnover, and recognizable companies. We discuss how the dividends provide some downside protection in rough markets and this is probably the strongest differentiator of our approach. But another significant appeal is that dividends do provide consistent income which still remains one of the primary objectives of many individual investors, particularly retirees and pre-retirees. Additionally, for clients who are in the “decumulation” phase, a benefit of rising income is that it enables spending today with the potential for higher spending in the future.

While advisors understand the quantitative benefits of our strategy, the end client may not understand the significance of the low beta, the above-average risk adjusted returns, and the positive alpha that we create. But intuitively, I think clients understand the common-sense, understandable approach to investing in what we do by focusing on quality and dividends. Sometimes simplicity can be more impactful and lead to clarity and focus, not to mention staying with a strategy.

Reception of our philosophy and process from our clients has been strong, resulting in a 98% retention rate. That makes the risk of abandonment very low — and by staying invested, they can fully benefit from the compounding that the capital markets have to offer.

This article was originally published here and is republished on Wealthtender with permission.

About the Author

A middle-aged man, Bill Hortz, with short dark hair wearing a dark pinstripe suit, white dress shirt, and a maroon tie, posing against a plain gray backdrop. He has a slight smile and is looking directly at the camera.

Bill Hortz

Founder Institute for Innovation Development

Bill Hortz is an independent business consultant and Founder/Dean of the Institute for Innovation Development- a financial services business innovation platform and network. With over 30 years of experience in the financial services industry including expertise in sales/marketing/branding of asset management firms, as well as, creatively restructuring and developing internal/external sales and strategic account departments for 5 major financial firms, including OppenheimerFunds, Neuberger&Berman and Templeton Funds Distributors. His wide ranging experiences have led Bill to a strong belief, passion and advocation for strategic thinking, innovation creation and strategic account management as the nexus of business skills needed to address a business environment challenged by an accelerating rate of change.

Each quarter Ramsey Solutions takes a look at the state of personal finance in the USA and reports back on what Americans are worried about right now — in terms of their personal finance.

Perhaps unsurprisingly, right now we’re worried about the cost of living, the impact of tariffs on consumer prices, and retirement. But we’re also worried about other things that we probably shouldn’t be. Let’s take a look at the results of the latest survey.

Overall, survey respondents are very concerned about the cost of food (41%) and housing (39%) while a much smaller percentage (26%) are very worried about the price of gas, and only 28% identify as very concerned about their debt levels. Surprising perhaps, because total household debt increased by $185 billion in the second quarter of 2025, to hit $18.39 trillion — indicating that people might be burying their heads in the sand over their debt levels.

33% of respondents stated that they’re struggling or in crisis with money, while 52% say they’re living paycheck to paycheck, and only 25% say they’re better off than a year ago. While the reasons for this are likely complicated, 66% of Americans belief that tariff policies have had a negative effect on their money, and 31% are concerned that social security benefits won’t be around when they reach retirement age, putting stress on younger workers to bolster personal pensions.

As is always the case with this kind of study, different groups are worried about different issues. Almost half of Millennials and Gen X have concerns about social security, whereas Boomers — most of whom are already claiming — are less concerned.

Women are more likely to feel that the US economy overall is going in the wrong direction, as are those from low-income households, but perhaps surprisingly the most pessimistic group about the economy overall are the Boomers, who also are the most likely to claim that they personally are financially stable. An indication perhaps that this group do appreciate that the privileges of a stable job market and affordable housing are rapidly disappearing.

What is perhaps notable in this report is that many Americans still have their priorities wrong when it comes to money. While many seem to be ignoring the level of their actual debt, they still care about being able to get into more of it. This is reflected in the ongoing obsession with credit score ranking. 45% of respondents say a high credit score is more desirable, for example, than a fully paid off car.

I’ve written before about how unhelpful it can be to be obsessed with your credit score, and a paid off car is — quite literally — like money in the bank. Continuing to drive a car you’ve paid off can result in a big reduction in monthly expenditure and a much more manageable monthly budget. The fact that a high credit score is seen as more desirable by many, however, is perhaps indicative of how much people believe they’ll need to rely on credit throughout their lives.

Another area many might want to re-assess is their judgement of others based on external factors. 42% of respondents — and 63% of Gen Z — said they admire those around them based on their possessions, specifically expensive homes, cars and clothes: a potentially unhealthy admiration that encourages overspending, often on credit, and lifestyle inflation, with too many people aiming for the most expensive home and car their credit will stretch to.

One final important issue that many have their priorities wrong on is seeking professional financial advice. Only 39% stated that financial advice is designed for them. While different people on different incomes need different types of advice, there’s no doubt that almost anyone can benefit from seeking professional help of some sort to improve their finances.

Ultimately, while many concerns are very real and need addressing, there are other worries that need to be put aside. If you get the chance to pay off your car and keep it, significantly reducing monthly outgoings, take it. And if you can make a purchase that quietly improves your life and supports your goals — even though it does nothing to impress the random onlookers — you should probably take that too.

About the Author

Karen Banes is a freelance writer specializing in entrepreneurship, parenting and lifestyle. She writes articles, website content, ebooks and the occasional award winning short story. Her work has appeared in a range of publications both online and off, including The Washington Post, Life Info Magazine, Transitions Abroad, Brave New Traveler, Natural Parenting Group, and Copia Magazine. Learn More About Karen

Preparing for retirement is more than just picking a date to stop working – one vital component is about knowing whether you’re financially ready to maintain your lifestyle for decades to come. Many individuals feel overwhelmed or uncertain about when they can confidently retire. From understanding your income sources to managing taxes and healthcare costs, this guide covers the essential steps to evaluate your financial readiness.

Start With a Retirement Roadmap

To determine if you’re financially ready to retire, begin by mapping out your expected living expenses and aligning them with your current financial picture. Consider housing, healthcare, lifestyle goals, travel plans, and inflation.

Retirement happens in stages—commonly referred to as the “Go-Go,” “Slow-Go,” and “No-Go” years – each with different spending levels. Understanding these phases helps create a more accurate long-term income plan.

Understand Your Retirement Income Sources

Most retirees rely on a mix of income from Social Security, investment savings, and sometimes pensions. If you’re wondering when to take Social Security benefits, remember that claiming them early (as soon as age 62) can reduce your monthly payout by up to 30%. Delaying benefits until age 70, however, could increase your monthly payments by as much as 24%.

Stress-Test Your Investment Portfolio

Your investments need to last throughout your retirement – possibly 30 years or more. One of the biggest mistakes retirees make is underestimating the impact of market volatility and inflation. A fee-only, fiduciary financial planner can help run simulations to test how your retirement portfolio would hold up under various conditions like market downturns, unexpected health events, or early withdrawals.

Understand Tax Implications

During the early years of retirement, managing your income to avoid unnecessary tax hits is critical. Exceeding certain income levels can trigger Medicare premium surcharges known as IRMAA (Income-Related Monthly Adjustment Amounts).

A thoughtful tax strategy, including when and how to take withdrawals, can help you avoid surprises. This is also an ideal time to consider Roth IRA conversions, especially before you’re subject to Required Minimum Distributions (RMDs) starting at age 73 (as of 2025).

Develop a Withdrawal Strategy

There’s no one-size-fits-all rule for withdrawing from your retirement accounts. The right withdrawal plan balances your income needs with tax efficiency and long-term growth. This may involve blending distributions from traditional IRAs, Roth IRAs, and taxable accounts in a way that minimizes your overall tax burden.

Final Thoughts

Retirement readiness isn’t just about how much you’ve saved – it’s about how well you plan. By evaluating your income sources, understanding Social Security and Medicare nuances, and creating a tax-efficient withdrawal strategy, you can enjoy your retirement years with greater peace of mind.

This article was originally published here and is republished on Wealthtender with permission.

Headshot of John Foligno, CMC®
John Foligno, CMC® Providing tax-efficient financial counsel to professionals and business owners.

John Foligno, CMC® | Grand Life Financial

🔗 Website | Wealthtender Profile

Do you work at Delta Airlines? Get the resources you need and expert insights from financial professionals who specialize in helping Delta Airlines employees make the most of their compensation package and benefits.

Whether you’re a new Delta Airlines employee or you’ve moved up the ranks into a management or executive leadership role over a multi-year career, it’s important to make smart money moves with your income and employee benefits. For example:

✅ Do you know the right moves to make to get the greatest value from the Delta Airlines benefits available to you?

✅If you’re thinking about leaving Delta Airlines for another job or planning to retire from the company in a few years, are you taking the right steps today to ensure you will receive all of the compensation and benefits that you’ve earned?

Get the Most Value from Your Delta Airlines Benefits and Compensation Package

Throughout the year, Delta Airlines provides its employees and executives with updates about their benefits ranging from health insurance and health savings plans to retirement plans like a 401(k), deferred compensation plans, and stock options. While the company offers many useful resources and access to knowledgeable staff who can assist with questions, you’ll also find financial professionals not affiliated with Delta Airlines who specialize in helping Delta Airlines employees make the most of their income and benefits.

Whether you work in the Delta Airlines headquarters in Atlanta, Georgia, another office location around the country, or remotely from home, you may have questions about your compensation package and benefits better suited for a financial professional who can offer unbiased advice and guidance.

For example, sensitive topics like discussing the steps you should take before quitting your job at Delta Airlines to work elsewhere, protecting yourself in advance of a corporate layoff, or deciding when you should plan to retire are all conversations that may be more comfortable with a trusted financial advisor.

Should you hire a Delta Airlines specialist financial advisor or an advisor close to home?

You’ll likely find dozens of nearby financial advisors well-suited to help you reach your money goals with a personalized plan. But it may be more difficult to find a financial advisor who specializes in serving Delta Airlines employees.

Fortunately, many financial advisors offer virtual services so you can meet online no matter where you (or they) live.

This means you can choose to hire a specialist financial advisor who lives hundreds of miles away if you decide their knowledge and experience working with Delta Airlines employees is a better fit to help with your unique needs.

💡 In the Q&A below, you’ll gain insights from financial advisors who work with Delta Airlines employees to help them make smart decisions to get the most value from their compensation and benefits, reduce their money stress, and prepare for a comfortable retirement.

🙋‍♀️ Do you have questions not yet answered? Use the form below to submit questions anonymously and watch this article for updates with answers to your questions. You can also reach out to the financial advisors below to set up an introductory call or contact them with your questions by email.

💸 Smart Money Insights for Delta Airlines Employees & Executives

This page is organized into sections to help you quickly find the information you need and get answers to your questions:

  1. Q&A: Financial Planning Tips for Delta Airlines Employees & Executives
  2. Get Answers to Your Questions About Your Delta Airlines Benefits and Career
  3. Browse Related Articles

Q&A: Financial Planning Tips for Delta Airlines Employees & Executives

Answers to Delta Employee Questions with Martin Smith, CRPC®, AIFA®

Martin Smith is a financial advisor based in Peachtree City, Georgia, who specializes in offering financial planning services to Delta employees. Martin helps his clients get the most value from their Delta benefits and compensation package so they can enjoy life and feel confident about their financial future.

Q: As a financial advisor with experience helping Delta Airlines employees save for their retirement, how do you help them make the most of their employee benefits?

Martin: Delta offers employees a variety of benefits designed to support long-term financial well-being, but the key is knowing how to prioritize them. I work with Delta employees to ensure they’re taking full advantage of their 401(k) plan, particularly when it comes to contribution limits and company matching. From there, I help them layer in benefits such as profit-sharing contributions, stock purchase plans, and insurance options. My approach is to show them how to integrate these resources into one coordinated financial strategy, rather than treating each benefit in isolation.

Q: When you first speak with a Delta Airlines employee, what questions do you like to ask to better understand their unique circumstances and determine how you can best help them achieve their goals?

Martin: I begin with questions that uncover both their professional and personal goals. For example:

  • Do you plan to retire directly from Delta, or are you considering a second career?
  • What does financial independence look like for you and your family?
  • Have you thought about how travel privileges or healthcare will factor into your retirement?
  • Are you primarily focused on wealth accumulation, or do you want to start thinking about legacy planning?

The answers help me tailor a plan that reflects the unique career path and lifestyle that comes with working at Delta.

Q: Is there a particular benefit available to Delta Airlines employees you feel isn’t as well utilized or understood by employees as it should be?

Martin: Yes—the profit-sharing program. Many Delta employees appreciate it when the bonus arrives, but they don’t always see how powerful it can be when applied strategically. Directing a portion of that profit-sharing into retirement savings or investment accounts can accelerate long-term wealth creation. Treating it as an annual wealth-building opportunity, rather than just a cash bonus, can make a meaningful difference over the course of a career.

Q: Beyond Delta Airlines employee benefits for retirement savings, are there other types of benefits offered by the company that you find valuable to discuss with your clients (e.g., stock, education savings, health savings)?

Martin: The Employee Stock Purchase Plan (ESPP) is particularly valuable at Delta. If managed properly, it allows employees to accumulate ownership in the company at a discount, which can compound wealth over time. I also like to discuss health savings accounts, especially for employees who anticipate higher healthcare costs in retirement. For those with children or grandchildren, Delta’s benefits can be supplemented with 529 college savings strategies, helping align family and financial priorities.

Q: For Delta Airlines employees thinking about leaving the company to accept a job elsewhere, what actions do you recommend they take before resigning and shortly thereafter?

Martin: Before resigning, I encourage employees to:

  1. Review how their departure impacts travel privileges for themselves and their families.
  2. Check the vesting status of retirement contributions and profit-sharing allocations.
  3. Revisit stock purchase plan holdings and decide whether to diversify.

After leaving, the next steps include rolling over retirement accounts into an IRA if appropriate, evaluating insurance needs, and ensuring no gaps exist in healthcare coverage. Smooth transitions reduce financial stress and allow employees to focus on their new opportunity.

Q: For Delta Airlines employees approaching retirement age, how do you recommend they prepare to make the transition from living off their salary to relying upon other sources of income?

Martin: One of the most important steps is creating a reliable income strategy that feels as stable as a paycheck. For Delta employees, this often means coordinating 401(k) withdrawals, Social Security, and, in some cases, pension income. We also factor in retiree healthcare costs and travel benefits that might offset other expenses. Building a retirement income plan that emphasizes both stability and flexibility gives employees peace of mind as they leave the structure of regular paychecks behind.

Q: For Delta Airlines employees who have managed their finances on their own to this point, what would you suggest they consider to help them decide if they should begin working with a financial advisor at this stage in their lives?

Martin: A key question to ask is: Do you have the time, expertise, and desire to manage increasingly complex financial decisions? As employees approach retirement or accumulate significant assets, the margin for error becomes smaller. Tax planning, estate considerations, and retirement income distribution strategies often go beyond what online tools or personal research can provide. An advisor adds value by helping avoid costly mistakes and offering strategies that bring all the pieces of a financial life into alignment.

Q: What are some of the unique financial planning challenges you commonly see among your clients who are Delta Airlines employees and how do you help them overcome these obstacles?

Martin: One challenge is the cyclical nature of airline profitability, which can affect profit-sharing and stock value. Another is ensuring employees don’t over-rely on travel privileges when budgeting for retirement, since policies may change over time. I help clients build contingency plans and diversify their wealth so they’re not overly dependent on benefits tied to the airline’s performance.

Q: What questions do you recommend Delta Airlines employees ask financial advisors they’re considering hiring to help them decide if they’re a good fit?

Martin: They should ask:

  • How familiar are you with airline industry benefits and retirement structures?
  • What is your process for creating an income strategy from my retirement savings?
  • How are you compensated, and how does that align with my best interests?
  • What steps will you take to help me manage risk during market downturns?

Q: Is there anything that comes up frequently in your initial meeting with Delta Airlines employees that surprises you?

Martin: I’m often surprised by how many employees underestimate the long-term financial impact of their profit-sharing bonuses and ESPP participation. Many treat these as “extras” rather than core parts of their wealth-building strategy. Once employees see how these benefits can significantly accelerate their retirement timeline, it changes how they view their overall plan.

Q: For highly compensated Delta Airlines employees and executives, are there any special benefits you believe it’s important to take into consideration when preparing their financial plan?

Martin: Yes. Executives often have access to deferred compensation plans that allow them to defer income taxes and manage their tax bracket more effectively. Additionally, equity-based compensation requires careful planning around vesting schedules and diversification. These benefits can be powerful, but without thoughtful strategies, they can also introduce unnecessary risk or tax burdens.

Q: Is there a particularly memorable experience or a moment you recall with a client who worked at Delta Airlines when you realized they have unique opportunities and circumstances when it comes to their financial planning needs?

Martin: I worked with a long-time Delta pilot who had accumulated significant assets through profit-sharing and the ESPP but was concerned about retiring during a period of market volatility. By creating a phased retirement income strategy that combined guaranteed income sources with carefully timed investment withdrawals, we gave him the confidence to retire when he wanted, not when the market dictated. That experience reinforced for me the unique opportunities Delta employees have—but also the need for tailored planning that accounts for the airline industry’s ups and downs.

Get to Know Martin Smith, Financial Advisor for Delta Employees:

Headshot of Martin A. Smith, CRPC®, AIFA®
Wealthcare Financial Group, Inc. Martin A. Smith, CRPC®, AIFA®
Peachtree City, Georgia
Serving Clients Nationwide
Serving High Net Worth Individuals, Doctors, Healthcare Pros, and Institutions.
0 Certified Advisor Reviews™
Areas of Focus
Biblical Finance Choosing a Financial Advisor Direct/Personal Indexing Employee Benefits Estate Planning

Book Intro Call with Martin

View Martin’s profile page on Wealthtender or visit his website to learn more.

🙋‍♀️ Have Questions About Your Delta Benefits or Career?

Financial Planning Top Questions to Ask a Financial Advisor
Financial Planning How Much Does a Financial Advisor Cost?
Professional Designations Top Financial Certifications to Know Before You Hire a Financial Professional

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About the Author
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About the Author

Brian Thorp

Brian is CEO and founder of Wealthtender and Editor-in-Chief. He and his wife live in Austin, Texas. With over 25 years in the financial services industry, Brian is applying his experience and passion at Wealthtender to help more people enjoy life with less money stress. Learn More about Brian

Do you work at Leidos? Get the resources you need and expert insights from financial professionals who specialize in helping Leidos employees make the most of their compensation package and benefits.

Whether you’re a new Leidos employee or you’ve moved up the ranks into a management or executive leadership role over a multi-year career, it’s important to make smart money moves with your income and employee benefits. For example:

✅ Do you know the right moves to make to get the greatest value from the Leidos benefits available to you?

✅If you’re thinking about leaving Leidos for another job or planning to retire from the company in a few years, are you taking the right steps today to ensure you will receive all of the compensation and benefits that you’ve earned?

Get the Most Value from Your Leidos Benefits and Compensation Package

Throughout the year, Leidos provides its employees and executives with updates about their benefits ranging from health insurance and health savings plans to retirement plans like a 401(k), deferred compensation plans, and stock options. While the company offers many useful resources and access to knowledgeable staff who can assist with questions, you’ll also find financial professionals not affiliated with Leidos who specialize in helping Leidos employees make the most of their income and benefits.

Whether you work in the Leidos headquarters in Reston, Virginia, another office location around the country, or remotely from home, you may have questions about your compensation package and benefits better suited for a financial professional who can offer unbiased advice and guidance.

For example, sensitive topics like discussing the steps you should take before quitting your job at Leidos to work elsewhere, protecting yourself in advance of a corporate layoff, or deciding when you should plan to retire are all conversations that may be more comfortable with a trusted financial advisor.

Should you hire a Leidos specialist financial advisor or an advisor close to home?

You’ll likely find dozens of nearby financial advisors well-suited to help you reach your money goals with a personalized plan. But it may be more difficult to find a financial advisor who specializes in serving Leidos employees.

Fortunately, many financial advisors offer virtual services so you can meet online no matter where you (or they) live.

This means you can choose to hire a specialist financial advisor who lives hundreds of miles away if you decide their knowledge and experience working with Leidos employees is a better fit to help with your unique needs.

💡 In the Q&A below, you’ll gain insights from financial advisors who work with Leidos employees to help them make smart decisions to get the most value from their compensation and benefits, reduce their money stress, and prepare for a comfortable retirement.

🙋‍♀️ Do you have questions not yet answered? Use the form below to submit questions anonymously and watch this article for updates with answers to your questions. You can also reach out to the financial advisors below to set up an introductory call or contact them with your questions by email.

💸 Smart Money Insights for Leidos Employees & Executives

This page is organized into sections to help you quickly find the information you need and get answers to your questions:

  1. Q&A: Financial Planning Tips for Leidos Employees & Executives
  2. Get Answers to Your Questions About Your Leidos Benefits and Career
  3. Browse Related Articles

Q&A: Financial Planning Tips for Leidos Employees & Executives

Answers to Employee Questions with Martin Smith, CRPC®, AIFA®

Martin Smith is a financial advisor based in Peachtree City, Georgia, who specializes in offering financial planning services to Leidos employees. Martin helps his clients get the most value from their Leidos benefits and compensation package so they can enjoy life and feel confident about their financial future.

Q: As a financial advisor with experience helping Leidos employees save for their retirement, how do you help them make the most of their employee benefits?

Martin: Leidos offers a competitive benefits package, but many employees don’t always recognize how to align those benefits with their long-term goals. My role is to act as a bridge between the benefit options Leidos provides and the employee’s personal financial objectives. I help employees optimize their Thrift Savings Plan (TSP) or 401(k) contributions, especially when there’s a company match at stake, ensuring they don’t leave free money on the table. We also review how employer-provided insurance, stock purchase plans, and health savings accounts can be integrated into a broader wealth strategy. The goal is to maximize every dollar Leidos makes available while reducing inefficiencies and preparing for a secure retirement.

Q: When you first speak with a Leidos employee, what questions do you like to ask to better understand their unique circumstances and determine how you can best help them achieve their goals?

Martin: I begin by asking questions that uncover their priorities and values, not just their numbers. For example:

  • What does retirement mean to you?
  • What are your short-term and long-term financial goals?
  • How comfortable do you feel managing your own investments?
  • Do you anticipate major life changes (college tuition, relocation, elder care responsibilities)?
  • What level of risk are you truly comfortable with?

These questions open the door to conversations that are about more than money—they’re about lifestyle, family, and legacy. Once I understand the “why” behind their goals, we can design a plan that uses Leidos’ benefits as tools to support their vision.

Q: Is there a particular benefit available to Leidos employees you feel isn’t as well utilized or understood by employees as it should be?

Martin: Yes—Health Savings Accounts (HSAs). Many employees don’t realize HSAs can serve as a powerful retirement savings vehicle. Contributions are tax-deductible, earnings grow tax-deferred, and withdrawals for qualified medical expenses are tax-free. For employees in higher tax brackets, HSAs can be one of the most tax-advantaged accounts available. Yet too often, they’re treated only as a short-term medical savings bucket rather than as part of a long-term wealth strategy. In addition, more employees should consider the long-term tax savings that they can achieve by contributing to the “Roth” portion of their 401(K) Plan.

Q: Beyond Leidos employee benefits for retirement savings, are there other types of benefits offered by the company that you find valuable to discuss with your clients?

Martin: Absolutely. Leidos’ Employee Stock Purchase Plan (ESPP) can be a valuable wealth-building tool if used strategically. I also encourage employees with families to think about education savings options, such as 529 plans, especially since some company benefits can complement those efforts. And as mentioned earlier, HSAs are often overlooked but can become a cornerstone for managing future healthcare costs in retirement. Aligning these benefits with a comprehensive financial plan ensures employees make the most of every advantage available.

Q: For Leidos employees thinking about leaving the company to accept a job elsewhere, what actions do you recommend they take before resigning and shortly thereafter?

Martin: Before resigning, employees should:

  1. Review the vesting schedule for employer retirement contributions. Leaving too early may mean forfeiting part of the match.
  2. Consider how stock options or ESPP shares will be affected.
  3. Assess the portability of insurance benefits.

Shortly after resigning, I recommend consolidating retirement accounts where appropriate, evaluating the new employer’s benefits, and ensuring there’s no gap in healthcare coverage. These are transitional moments when mistakes can be costly, but with careful planning, employees can avoid unnecessary financial setbacks.

Q: For Leidos employees approaching retirement age, how do you recommend they prepare to make the transition from living off their salary to relying upon other sources of income?

Martin: I help employees design an income distribution strategy that balances predictability with growth. This includes assessing Social Security timing strategies, pension options (if applicable), and sustainable withdrawal rates from retirement accounts. We also model healthcare costs, inflation, and tax implications. Importantly, I encourage a “practice retirement” phase—living on their projected retirement budget a year or two before leaving the workforce. This gives employees confidence and reduces anxiety about whether their plan will hold up in real life.

Q: For Leidos employees who have managed their finances on their own to this point, what would you suggest they consider to help them decide if they should begin working with a financial advisor at this stage in their lives?

Martin: I often tell employees: you don’t hire an advisor because you can’t manage your finances—you hire one because your financial life has grown more complex. If you’re managing significant assets, approaching retirement, or juggling multiple accounts (retirement, stock, HSA, etc.), the cost of making a mistake can outweigh the perceived savings of going it alone. A good advisor provides not just investment management, but also tax, estate, and retirement planning that tie everything together.

Q: What are some of the unique financial planning challenges you commonly see among your clients who are Leidos employees and how do you help them overcome these obstacles?

Martin: A common challenge is managing concentrated stock exposure through the ESPP. Holding too much employer stock can create unnecessary risk. I help employees build diversification strategies while still taking advantage of purchase discounts. Another challenge is optimizing retirement contributions around vesting schedules and maximizing tax efficiency—something that becomes particularly important for highly compensated employees.

Q: What questions do you recommend Leidos employees ask financial advisors they’re considering hiring to help them decide if they’re a good fit?

Martin: I recommend asking:

  • How do you get paid? (to understand conflicts of interest)
  • What experience do you have working with clients like me?
  • How will you integrate my Leidos benefits into my financial plan?
  • What’s your process for helping clients transition into retirement?

The right advisor should demonstrate both technical expertise and an ability to align with your personal goals.

Q: Is there anything that comes up frequently in your initial meeting with Leidos employees that surprises you?

Martin: I’m often surprised by how many employees underestimate the long-term value of their benefits package. Many don’t fully understand the match structure in their retirement accounts, the potential of their ESPP, or the tax advantages of HSAs. Once employees see how these pieces work together, the reaction is usually one of relief—they realize they have more resources at their disposal than they initially thought.

Q: For highly compensated Leidos employees and executives, are there any special benefits you believe it’s important to take into consideration when preparing their financial plan?

Martin: Yes. Nonqualified deferred compensation plans can be particularly important for executives, as they allow for tax deferral on income that may otherwise push them into higher tax brackets. Additionally, equity compensation, stock options, and supplemental insurance benefits require a more nuanced strategy to manage liquidity, taxes, and concentration risk. These are areas where tailored advice can make a substantial difference in long-term wealth preservation.

Q: Is there a particularly memorable experience or a moment you recall with a client who worked at Leidos when you realized they have unique opportunities and circumstances when it comes to their financial planning needs?

Martin: One memorable moment was with a client who had accumulated a significant amount of company stock through the ESPP. They had never thought about the risk of being overexposed to a single employer. By developing a systematic diversification strategy, we were able to reduce their risk while still allowing them to benefit from the company’s growth. That experience underscored for me that Leidos employees often have unique opportunities—but they also need a thoughtful plan to avoid pitfalls.

Get to Know Martin Smith, Financial Advisor for Leidos Employees:

Headshot of Martin A. Smith, CRPC®, AIFA®
Wealthcare Financial Group, Inc. Martin A. Smith, CRPC®, AIFA®
Peachtree City, Georgia
Serving Clients Nationwide
Serving High Net Worth Individuals, Doctors, Healthcare Pros, and Institutions.
0 Certified Advisor Reviews™
Areas of Focus
Biblical Finance Choosing a Financial Advisor Direct/Personal Indexing Employee Benefits Estate Planning

Book Intro Call with Martin

View Martin’s profile page on Wealthtender or visit his website to learn more.

🙋‍♀️ Have Questions About Your Leidos Benefits or Career?

Financial Planning Top Questions to Ask a Financial Advisor
Financial Planning How Much Does a Financial Advisor Cost?
Professional Designations Top Financial Certifications to Know Before You Hire a Financial Professional

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About the Author
A headshot of Brian Thorp, the founder and CEO of Wealthtender

About the Author

Brian Thorp

Brian is CEO and founder of Wealthtender and Editor-in-Chief. He and his wife live in Austin, Texas. With over 25 years in the financial services industry, Brian is applying his experience and passion at Wealthtender to help more people enjoy life with less money stress. Learn More about Brian

What we believe about money can impact everything in our life, including how much money we actually have. Changing these particular beliefs brought more money into my life, in very specific ways.

Talking About Money Is Taboo

I grew up with the ingrained belief that subjects like money, politics and religion should not be talked about in public. That may seem crazy in today’s world, where those topics sometimes seem like the only things some people talk about publicly, but old habits die hard.

For a long time it seemed horrifying to me that people openly discussed how much they earned, never mind what they did with it. But I’m over that now. I still think it’s fine to keep some things about your personal finances private, but I’ve gained so much by talking to people about money that I’ve really opened up on this one.

Through friends and acquaintances willing to be open I’ve learned about investments, tax loopholes, government funding options, and savings apps. Through finfluencers willing to constantly talk money on the internet I’ve learned even more. For women in particular, it’s important to talk money among ourselves because we need to manage our finances a little differently than men do.

Budgeting Is Boring

I used to believe this, but now I have this crazy notion that budgeting is fun. Budgeting allows you to feel in control of the money you have, and lets you plan for the future by saving your money into different pots for different things. How is seeing your vacation pot or your dream home pot growing not fun?

To prove the point I even have a whole category in my budget labelled ‘fun money’ and I strongly suggest you do too. If you still need help convincing yourself that budgeting is fun, take a look at apps like You Need A Budget, Smarty Pig, or Habitica. They gamify budgeting and definitely help incentivize you to start tracking and saving.

You Need to Be Wealthy to Think About Wealth Management

It’s right there in the phase, so it’s easy to assume you need to be wealthy to manage your wealth. But managing your money can start at any time, even if you have very little of it. That’s what budgeting and saving is essentially. As is saving into separate accounts like your 401(k), a Health Savings Account or a Dependent Care FSA.

If you’re managing a very small amount of money you may not need the wealth management services that the uber rich employ, but you can still start thinking of it as wealth management. That mindset shift alone can help you take it more seriously.

Investing Is Complicated

It can be, but it can also be pretty straightforward. You don’t have to become a day trader who’s constantly attached to their device and fretting about every shift in the market.

Investing small amounts into simple investment products like index funds over time has proved to be highly worthwhile even if it’s not likely to result in huge or sudden gains.

There are also some investment accounts where you can get started with a tiny amount, so you don’t have to wait until you have a big stake to consider investing.

I Need a Degree to Earn A Lot of Money

This one is controversial in many circles, and I’m not suggesting you drop out of college if you’re already there. But there are lots of well-paid jobs that don’t require a degree, or that don’t require an expensive four-year degree.

In the USA in particular there often seems to be a belief that your choices are four-year degree or minimum wage service job, whereas in reality there’s a lot in between. So research all your options before committing to that student debt.

Confronting and changing these beliefs has literally translated to money in the bank for me. Maybe it can do the same for you.

About the Author

Karen Banes is a freelance writer specializing in entrepreneurship, parenting and lifestyle. She writes articles, website content, ebooks and the occasional award winning short story. Her work has appeared in a range of publications both online and off, including The Washington Post, Life Info Magazine, Transitions Abroad, Brave New Traveler, Natural Parenting Group, and Copia Magazine. Learn More About Karen

Gen Z’s Update to Their Parents’ Playbook Turns Small Wins into Lasting Wealth

Scroll through social media and you’ll find a flood of financial bad news, not to say doom and gloom, when it comes to Gen Z.

According to Newsweek, for example, “Step, a modern financial platform designed for Gen Z, surveyed 1,500 respondents… The survey reported that 41% run out of money nearly every month, and only 22% consider themselves to be financially stable.” 

The “Squeezed Generation” Narrative

The bad news usually headlines three things:

  • Crushing student debt.
  • Tough job markets.
  • Unaffordable houses.

The message is clear and pervasive.

The system is broken, even rigged, keeping today’s young adults from matching, let alone exceeding, the financial achievements of their parents and grandparents.

I touched on this in a previous article, eliciting several comments, including an interesting back-and-forth with James Bellerjeau, who dismissed such claims as, to put it bluntly, clueless whining.

That exchange intrigued me, leading me to research the situation more in-depth. 

Has Gen Z truly gotten such a raw deal? Is their financial life so much worse than Boomers, Gen X, or Millennials faced at the same age?

What I found was eye-opening. It turns out that in their day-to-day budget, Gen Z spends less on the largest line items than prior generations did, when scaling to the median income of each relevant period. 

However, this doesn’t mean their complaints are baseless.

They do face real obstacles when reaching for the first rungs of “the American Dream ladder.”

  • Earning a college degree without crippling debt.
  • Landing a career in their chosen field.
  • Buying a first home.

For Boomers, a college education and starter homes were far more affordable. However, their day-to-day budgets were tighter.

Gen Z faces the opposite challenge. They need to take advantage of their relatively more affordable daily life. To “make it,” they need to be more strategic with their choices. 

Metaphoric brute force won’t cut it.

Gen Z’s Very Real Challenges

Reaching for traditional life-milestone ladder rungs, Gen Z faces a much higher bar to success than Boomers, Gen X’ers, or even Millennials did. As mentioned above, three stand out.

Getting a College Degree

A crucial first rung of the “successful life” ladder, a college degree is widely understood to lead to higher lifetime income. That’s why it’s no surprise that research.com reports that 2 in 3 high school graduates immediately enroll in college, with more joining after a gap year. 

However, the cost of a 4-year degree is now dramatically higher (in multiples of the median household income, Fig. 1) than it was in the 1960s and 1970s. Back then, a degree would cost about 60% of the median household income. By the mid-2010s, it peaked at triple that (!), and recent numbers are still over 140% of the median income, or 2.3× what Boomers faced. 

This dramatically reduced college affordability often leads to crushing levels of student loan debt (Fed data show that nearly half of those who pursued a four-year degree owe over $25k) that take years, if not decades, to pay off.

When my kids went to college, their full cost of attendance varied from a low of less than 25% of our annual income to a high of 125%. One of my former coaching clients finished a Master’s program with a combined student loan debt of more than $360k! While an extreme example, it is illustrative of how bad things get.

Line graph showing cost of a 4-year degree as multiples of median household income from 1964 to 2024, rising from about 0.60 in the 1960s to a peak near 1.75 in 2017, then declining to around 1.45 by 2024.

Fig. 1. Cost of a (nominally) 4-year degree in multiples of median household income from 1964 to 2025.

Buying a Home

If anything defines the American Dream, it’s owning your home. But that dream is harder than ever to achieve. 

In 1964, when the first Boomers turned 18, the median home cost (Fig. 2) was 4.9× the median household income. This decreased to a low of 3.4× in 1998. 

Then, things became tougher. By 2006, the median house cost ratio was over 5.6. Following the subprime mortgage crisis of 2007-2008, prices plummeted, pushing the ratio under 4, but qualifying for a mortgage was much harder, so many would-be first-time homebuyers were locked out of the market. Recently, the ratio climbed back to its 5.6× peak.

My own experience was better. Our ratio for three houses ranged from 2.2× to 3.9×, all on the lower side of the historical range.

Today’s historically high cost ratio, with a national average 30-year fixed mortgage rate of 6.8%, higher than 2006’s 6.4% and more than double the sub-3% of a few years ago, pushes housing affordability to its lowest point in decades. 

Some relief is on the horizon, since the housing market is more balanced than it has been for a long time, the Fed just started cutting interest rates, and Gen Z’ers are expected to inherit an average of $216k by 2048 (more on this below). 

Still, the reality is that most Gen Z’ers won’t be able to afford a first home until they’re much older than previous generations were at that milestone.

Line graph showing median home price as multiples of median household income from 1964 to 2024. Values decrease until about 1980, then rise, peaking near 2006 and 2022 at over 6, and remain above 5 in 2024.

Fig. 2. The median home price in multiples of median household income from 1964 to 2025 based on Yale economist Robert Shiller’s housing cost data and the median household income.

Entering the Workforce

According to Recruitonomics, 52% of college graduates are unemployed or underemployed (e.g., working at a job that doesn’t require a college degree and/or isn’t in their chosen profession) a year after graduating. By five years post-graduation, this drops slightly, to 45%, where it stays at least until 10 years post-graduation. 

Considering the heavy financial and non-financial burdens undertaken by students, many come to regret that choice. Even computer science grads, who for many years could count on robust hiring and high salaries, now face hiring freezes, layoffs, and shrinking pay. 

The takeaway here is that the first few rungs in the ladder are far more difficult to reach.

The Good News: Day-to-Day Expenses Are Relatively Lower

Countervailing the high cost of these lifecycle goals, Gen Z’s costs for major household budget categories went in the opposite direction when scaled to median incomes.

You Have to Live Somewhere

Setting aside homeownership, shelter, comprising over 35% of the average household budget, has consistently been between 20% and 25% of median household income from 1964 to date (Fig. 3). The 2025 reading of 23.2% is near the middle of that range, so paying for day-to-day housing isn’t more difficult.

Line graph showing the average portion of household income spent on shelter from 1964 to 2024, fluctuating mostly between 20% and 25%. Title notes shelter is 35.418% of the CPI in July 2025.

Fig. 3. Changes in spending on shelter as a fraction of median household income, based on the YoY CPI-U shelter inflation data, the current average rent according to Zillow, and the median household income.

You’ve Got to Eat

Spending on food, at more than 13.6% of household budget, actually decreased (Fig. 4), from over 12% of median income in 1964 to 8% in 2025. 

Line graph showing the average portion of household income spent on food from 1964 to 2024. The percentage declines from about 12% to 8%, with some fluctuations. Title notes 13.634% of CPI in July 2025.

Fig. 4. Changes in spending on food as a fraction of median household income, based on Fed data on household spending on food and median household income.

Getting from Point A to Point B

In 1964, Boomers spent, on average, 17% of the median household income on transportation (Fig. 5). By 2025, this fraction decreased by nearly half, to 9%! With transportation comprising over 13% of the average household budget, that’s a big win for Gen Z’ers’ budgets!

Line graph showing the average portion of household income spent on transportation from 1964 to 2024, trending downward from about 17% to around 9%, with some fluctuations along the timeline.

Fig. 5. Changes in transportation spending as a fraction of median household income, based on Fed data on household transportation spending and median household income.

Try to Avoid Getting Sick

It’s widely known that healthcare inflation outpaced overall inflation for many years. Has average healthcare spending, contributing over 8% to the average household budget, jumped higher since 1964 as a result? The data (Fig. 6) say yes. The ratio grew from 3.4% of median household income in 1964 to a peak of 6.0% in 2011, before dropping somewhat to 4.9% in 2025. However, while this is a 44% relative increase from 1964 to 2025, it barely moves the needle, with avera

Line graph showing the average portion of household income spent on healthcare from 1964 to 2024, rising from about 0.03 to over 0.05 around 2010, then slightly decreasing to near 0.045 by 2024.

Fig. 6. Changes in healthcare spending as a fraction of median household income, based on OfficialData.org healthcare inflation data and median household income.

The Takeaway Gives Hope

Compared to Boomers, Gen X’ers, and Millennials, Gen Z’s spends less on the largest budget categories of day-to-day essentials like shelter, food, transportation, and healthcare! 

This gives Gen Z a much-needed budget cushion to save more for big-ticket lifecycle items like a first home.

The Disconnect: Easier Budgets, But Tougher Milestones

Yes, the dominant narrative says that Gen Z has it worse. 

However, the data show they spend a smaller proportion of the median household income on basics like shelter, food, and transportation.

Why the disconnect?

While everyday affordability is more manageable, long-term upward mobility, in the form of higher education, career, and homeownership, is far less achievable than before.

Keeping up with bills is easier, but the American Dream requires more than just finishing the month before your money runs out. It requires those important early milestones: a college degree, a career that builds on your education and pays enough to save and invest for the future, and becoming a homeowner.

With most mortgages fixed-rate with tax-deductible interest, buying a home keeps your shelter costs stable and your equity builds up, a form of forced savings.

For Gen Z, each of these early rungs on the American Dream ladder is higher than before. That’s why so many Gen Z’ers feel stuck at the bottom, despite more (relatively) affordable basics.

Viral TikToks of sky-high student loan debt, being unemployed or under-employed for years after graduation, and ever-less-affordable mortgages, make the disaffection of these young adults more understandable.

Stalled Mobility

While daily expenses are more affordable, it’s climbing the wealth ladder that brings contentment.

Despite paying more for the basics, Boomers and Gen X’ers faced better job prospects, didn’t need student loans, and found homes more affordable.

Many Gen Z’ers, on the other hand, have to take on crushing student-loan debt and have a hard time landing a decent job in their chosen field, which sets their homeownership dreams back by years or decades. 

Worse, these delays compound: pay rent rather than build equity in a home, pay back student loans instead of investing for the future, and spend years unemployed or under-employed, all of which stall upward mobility.

However, this doesn’t mean that upward mobility is impossible.

It just means they have to replace the old playbook that worked well for their parents and grandparents. They can’t simply work harder and trust the system.

They need to be more strategic, using the lower relative cost of the basics to save and invest aggressively, turning a budgetary breathing room into long-term wealth and success.

Don’t Count on It, But There is a Lifeline Coming

While those first few rungs are harder to reach, there’s an unprecedented wave of wealth transfer underway.

As I wrote in an earlier article, “A new Harris poll quotes a projection from industry research firm Cerulli Associates, estimating that by 2048, a staggering $124 trillion in personal assets will change hands.”

While Gen Z stands to gain the least compared to earlier generations, by 2048, they’re still looking at an average inheritance of $216k!

This can be a huge boost to paying off high-interest debt, providing a down payment on a house, and even boosting investments, making up for those harder-to-reach initial rungs.

Still, this isn’t a blanket statement that all Gen Z’ers can count on.

That $216k is an average number. Many will no doubt have no inheritance, while others will benefit from larger ones. And even those who do inherit might fritter it away on things that don’t improve their finances, leaving them with higher lifestyle costs they can no longer afford once the bequest runs out.

However, there is something you can count on, or, rather, someone.

You.

What to Do: Turn Today’s Challenges into a Better Future

The unfortunate reality is that you can’t afford to sit and wait for an inheritance to rescue you.

As they say, “Hope is not a plan.”

Step 0: Kill Your High-Interest Debt Before It Kills You (r Finances)

If increasing income and investments are rungs on the wealth ladder, high-interest debt is the chute that sends you down, wiping out years’ worth of wealth.

Few things give you a higher guaranteed return than paying off high-interest credit card debt. Student loans with relatively high interest rates, say 8% or more, fall just below that priority.

Explore options such as getting support from your employer in paying off student debt, income-based repayment plans, or even taking on a part-time job or gig to bring in the extra cash you need to kill that debilitating debt.

Step 1: Start However Small You Must, but Start Now

Especially if your income is low due to under-employment, you can’t realistically set aside 15%, let alone 30% to over 50% as some adherents of FIRE (Financial Independence, Retire Early) advise.

So start wherever you are.

Can you set aside 10%? Great!

No? Try 5%, or even 2%.

The crucial thing is to start right away, creating a “saving and investing” habit early, giving your investments more time to compound. 

Once you start, anytime you get a raise, bonus, or cash gift, direct half to two-thirds to your investment portfolio.

Don’t make it 100% though. 

That’s unsustainable, and you want to maintain a balance between investing for the future and enjoying the present. After all, none of us is promised tomorrow, let alone the next 40-50 years.

The great thing about this method is that even if you start at 2%, over time, your savings rate will eclipse the 30% that you can’t reach today. 

All that, without ever feeling deprived, because you’re allowing yourself some lifestyle improvement while saving more. Just don’t let lifestyle creep eat up all of your new money.

Step 2: Buying a House the Strategic Way

Instead of pushing your finances to the max to try to come up with a down payment and somehow afford a monthly mortgage payment, ensuring you’ll be house-poor, step back for a bit.

Use the time to build up your savings and investments, biding your time until (a) you have enough saved up and a high enough income, (b) the housing market cools down a bit, and (c) mortgage rates are more favorable.

That’s when you’ll have the resources to afford the house you want, rather than run yourself ragged trying to afford any house, even if it’s not what or where you really want.

Another hack is so-called geo-arbitrage.

Try to find a remote job that pays Silicon Valley wages but lets you live in a much lower-cost area, and you’ll have the best of both worlds: a high income and more affordable housing.

Step 3: Build Career Resilience

If you’re one of the unfortunate Gen Z’ers who can’t find a well-paying job in your chosen field despite having a degree, it’s time to go the extra mile.

Figure out what skills are in rising demand in your preferred field and pursue them. This could be through paid (if you can) or unpaid (if you must) internships, certifications that don’t require more years of school, or side projects that prove to prospective employers that you’re self-motivated.

If the field of your degree is dying (or dead already), possibly due to the exponential growth of AI applications, pivot to a different career that still pays well and is at least somewhat interesting to you, but that’s growing rather than shrinking.

Doing this will boost your income, shortening your path to those critical first few rungs.

Nobody can deny that Gen Z faces very real financial challenges. However, some things are up to you. You can’t use your parents’ old strategies, but there are new ones that can help make your American Dream achievable.

Ryan Nelson, founder of Alchemy Wealth Management, summarizes, “Gen Z faces a steep cost of higher education, delayed career matching, and historically high home price-to-income ratios, which combine to slow their ability to build wealth. To overcome these, start saving and investing at whatever level you can, automate increases from raises and bonuses, focus on building in-demand skills, and time major purchases like housing strategically instead of rushing in. Wealth is built through consistency and time, not perfect timing. Even small amounts saved early compound into meaningful results, and a simple plan you stick with always beats a complex one you abandon.”

Advice from Financial Pros

Cecil Staton, Founder of Arch Financial Planning, lists Gen Z’s challenges: “Gen Z is entering the workforce at a time when the costs of living, housing, and education have grown far faster than wages. Many industries and jobs will undergo rapid changes due to advancements in AI and technology. These headwinds create uncertainty and challenges when saving for retirement.” 

Asked for his best advice to Gen Z, Dr. Steven Crane, Founder of Financial Legacy Builders, says, “Think of one word…unpredictability. The days of working for the same company for 30 years are gone. Gen Z can’t rely on linear career paths, so remaining flexible is more important than ever. 

“Define what success means for your life beyond a career and find purpose outside of a paycheck. Knowing that everyone’s career path is going to be unique invites a certain level of freedom, as you get to decide what success looks like for you and your life. 

“The best investment anyone can make is in themselves. Focus on becoming a person of value; building and stacking skills, and taking care of yourself and your health is probably one of the most valuable things you can do in your 20s.”

Ben Simerly, Financial Advisor and Founder, Lakehouse Family Wealth, elaborates, “The two biggest challenges for Gen Z are a far longer life expectancy after retirement age and the dramatic growth in spending, instead of savings.

“Depending on the field of work and area of the country, the average retirement used to be as short as seven years. Now, Gen Z may experience retirements as long as 40+ years. This means they need to save dramatically more for retirement than prior generations. It also means they must structure their retirement savings based on investment growth rather than spending down savings.

“On the spending side, households tend to spend far more now on discretionary spending outside core needs such as basic food and minimalistic housing. In my work with clients in debt, we’ve jokingly coined the term STA Syndrome, for overspending at Starbucks, Target, and Amazon. When we evaluate client spending habits, we very often find that if they cut back their discretionary spending, their income can easily cover both their immediate needs and retirement savings.

“The biggest growth hack for Gen Z is to take advantage of time, or, more specifically, the time value of money. With medical advancements, Gen Z will have more time to both live and earn income than any previous generation in history.

“While they need to save more, they also have more time for their money to grow. Very often, far more can be earned through the time value of money than through income or cash savings. This is the number one edge Gen Z has in their fight for a real retirement.

“The biggest tip I can give Gen Z in running their financial lives is to surround themselves with people who value their health, spending quality time with others, and saving money. This will make it easier for them to do the same. Pursuing these values rather than over-consumption improves your quality of life and increases your wealth. One of the best-kept secrets of any millionaire next door is that what makes you happiest, like spending quality time with your family, often costs little to no money.” 

The Bottom Line

Despite the widely spread narrative that Gen Z is financially doomed, the truth isn’t so stark.

The key takeaway is that getting a college degree without crushing student-loan debt, building a highly compensated and rewarding career, and buying a first home are all more challenging for today’s young adults, so reaching the first rungs of the “American Dream ladder” is harder. 

This is why Gen Z sees their financial reality as mostly doom and gloom, with major life goals seeming to slip further and further away.

However, while the old strategy of working harder that served previous generations isn’t suited to today’s environment, a more nuanced one is.

The affordability of day-to-day living, scaled to the median household income, is better now than it was for prior generations in their early adulthood. This is notwithstanding the decades-long record inflation we saw a few years ago, now that year-on-year CPI-U inflation has subsided to under 3% since June 2024.

In short, the ladder’s first few rungs may be higher up, but the floor isn’t as slippery.

Combining the greater challenges of achieving major financial life goals with improved day-to-day affordability, Gen Z have more short-term breathing room to pay off high-interest debt, as well as save and invest toward their (currently more expensive) major goals.

One relatively painless way to implement this strategy is to start at whatever savings rate you can, and then direct half to two-thirds of any new money (bonus, cash gift, and especially raises) to bolster your savings rate.

Meanwhile, bide your time while renting until (a) mortgage rates drop, the housing market cools down, and your portfolio grows enough to cover a down payment on a home you’d want to live in.

On the career front, be strategic about gaining in-demand skills and networking to achieve career resilience.

Finally, even if you expect to inherit a nice chunk of change in the coming years, don’t count on it to save you. You should only count on one person – the one you see each morning in your mirror.

In short, the American Dream isn’t dead. Gen Z can still make it; it just requires different strategies than those that worked before.

Disclaimer: This article is intended for informational purposes only, and should not be considered financial advice. You should consult a financial professional before making any major financial decisions.

Opher Ganel

About the Author

Opher Ganel, Ph.D.

My career has had many unpredictable twists and turns. A MSc in theoretical physics, PhD in experimental high-energy physics, postdoc in particle detector R&D, research position in experimental cosmic-ray physics (including a couple of visits to Antarctica), a brief stint at a small engineering services company supporting NASA, followed by starting my own small consulting practice supporting NASA projects and programs. Along the way, I started other micro businesses and helped my wife start and grow her own Marriage and Family Therapy practice. Now, I use all these experiences to also offer financial strategy services to help independent professionals achieve their personal and business finance goals. Connect with me on my own site: OpherGanel.com and/or follow my Medium publication: medium.com/financial-strategy/.


Learn More About Opher

    Many people think of confidence as a bit of a fuzzy concept, or at least a soft skill. Certainly not something that will actually add zeros to your net worth. So a recent headline stating that improving financial confidence could boost net worth by up to £142 billion instantly caught my attention.

    The article was based on a study from UK money management app Moneybox, known as the Moneybox Financial Confidence Index, and the claim was not — obviously — about any individual increasing their net worth by such an elevated sum, but rather about how the UK population could increase collective net worth, by increasing collective financial confidence.

    The study surveyed 4,000 adults to assess their financial confidence and how it impacted other behaviors such as investing, planning for retirement and even things like monthly budgeting. While it was a UK study the concepts are fairly universal, and what the researchers discovered is that there’s a strong link between increased financial confidence, financial behaviors (particularly investing strategies), and ultimate net worth.

    This is hardly surprising. Financial confidence is one of the important factors behind why the rich get richer, and the poor often fail to increase their net worth long term, even if they are blessed with a big lottery win or other windfall. It’s about having the knowledge to handle money, but also the confidence to invest more advantageously, which often means more aggressively.

    Survey respondents who identified as being confident about their ability to manage their personal finances had a significantly higher net worth — by about £86,000 ($114,800) overall — compared to those who expressed that they don’t feel financially confident. This held true regardless of personal income, indicating that financial confidence and knowledge is more important when it comes to building wealth than income level.

    In particular, the survey found a powerful link between financial confidence and investment. Among the financially confident respondents, 44% reported having current active investments, with an average of £111,702 (around $149,000) invested, while among those who stated they are not financially confident only 15% said they currently held investments, with an average investment value of £27,957 (about $37,325).

    It could of course be argued that this correlation works the other way: That those who have managed to invest and see those investments growing are more confident as a result. The truth is probably a combination of both. Financial confidence leads to better investment decisions, and better investment decisions ultimately pay off and lead to higher financial confidence.

    Either way, it seems fair to conclude that increasing financial confidence is an important factor in boosting net worth, especially considering that this difference persisted across groups with very similar salaries or personal income, with those professing confidence having a much higher net worth on a similar income.

    So how should we increase our financial confidence? The organization that ran this survey had some suggestions.

    • Know your goals — and commit to them. Write them down and maybe share them with friends and family.
    • Find the right financial products — based on the above goals, so you make the best investments for your circumstances.
    • Spend 30 minutes a day on managing your finances, tracking your goals, and improving financial literacy.

    I would add a few more:

    • Make education a top priority — there are a ton of resources for learning about personal finance out there. Find the best ones for your life stage and spend time on them each day.
    • Make education fun — because we all learn better when we’re having fun. Find reputable financial influencers you love. Follow them on social media, watch their YouTube or TikTok channels.
    • Consume financial education in a way that works for you — whether that’s reading books, watching documentaries or signing up for an online course.
    • Don’t go it alone — find a financial advisor or coach to help you along the way, or seek out a mentor among your own family, friends or acquaintances.

    Your net worth is the result of a lot of different factors, including of course your actual income, but if confidence really is making the difference between a higher and lower net worth — even when two individuals have the exact same income — it’s definitely something worth cultivating.

    About the Author

    Karen Banes is a freelance writer specializing in entrepreneurship, parenting and lifestyle. She writes articles, website content, ebooks and the occasional award winning short story. Her work has appeared in a range of publications both online and off, including The Washington Post, Life Info Magazine, Transitions Abroad, Brave New Traveler, Natural Parenting Group, and Copia Magazine. Learn More About Karen