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    With fewer safety nets, ‘robbed’ Gen X is facing a retirement crisis, top advisor says

    More than any other generation, Gen Xers are falling short of their retirement savings goals.
    Mounting financial pressures made it harder for the “sandwich generation” to save, according to an advisor on CNBC’s Financial Advisor 100 for 2025.
    But there are some ways to get back on track.

    Most working adults feel behind when it comes to their retirement savings.
    But when broken down by generation, Gen Xers are the least financially prepared generation for retirement by nearly every measure, according to a new research paper by Alliance’s Retirement Income Institute.

    “While Baby Boomers dominate the headlines, Generation X faces an even greater retirement crisis,” the authors wrote.
    The so-called sandwich generation is the most likely to be supporting both children and aging parents at the same time, the paper found. They’ve experienced eight recessions over their lifetimes and witnessed soaring education, health care and housing costs. Many must now contend with large mortgage and car payments, along with student loan debt, while also balancing greater family responsibilities.
    “We’ve held the traditional family values of our parents, but it has maybe robbed us of starting to save for retirement earlier than we might have,” said Ryan Sheffer, a financial adviser at Advance Capital Management in Southfield, Michigan, which is ranked No. 72 on this year’s CNBC Financial Advisor 100 list. 

    Rethinking the ‘three-legged stool’

    “There are some macro challenges and, of course, the micro challenges,” said Jason Fichtner, the Retirement Income Institute’s executive director and co-author of the report.
    Gen X is the age group — roughly defined as those born between 1965 and 1980 — heavily impacted by the shift from defined benefit to defined contribution pensions, as workplace pensions became less common. Only 14% of Gen X workers have a traditional pension compared with 56% of boomers, according to the Retirement Income Institute.

    These days, a successful retirement strategy entails “rethinking the three-legged stool of retirement planning,” Fichtner said, which traditionally included employer pensions, Social Security and personal savings. “Now that pension plan is your 401(k) and that has to generate additional protective income,” he said.

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    At the same time, Social Security is running low on funding. The trust fund Social Security relies on to pay retirement benefits may be depleted in 2033, according to this year’s report by the Social Security Board of Trustees. At that point, 77% of those benefits will be payable, the trustees projected, unless Congress intervenes to shore up the program.
    “I will be eligible for Social Security the year the trust fund is depleted,” said Fichtner, who is also a former deputy commissioner at the Social Security Administration appointed by President George W. Bush. “It becomes a personal issue as well.”

    The risk of outliving your savings

    Pixdeluxe | E+ | Getty Images

    With fewer safety nets, Gen Xers are at a disadvantage, other reports also show.
    As it stands, the typical Gen X household had just $40,000 in retirement savings, according to a 2023 report by the National Institute on Retirement Security.
    Overall, 69% of Gen X workers said they were behind on their retirement savings, including 47% who said they were “significantly behind” — more than any other generation, according to a separate retirement report by Bankrate released last month.
    “Looking across the generations and a variety of income levels, a key challenge for Americans and their retirement savings is to align their contributions with their realistic long-term needs,” Bankrate’s senior economic analyst, Mark Hamrick, said. 
    Compared with 62% of boomers, only 41% of Gen Xers believe their savings will last for the duration of their retirement years, the Retirement Income Institute also found.
    With less money set aside, having enough to last for the remainder of their lifetimes is a huge concern, Fichtner said. “Over half think they are going to run out.”

    How to set a retirement savings goal

    Most experts recommend consulting with a financial professional to get on track. They can help you set a realistic goal and determine the steps you need to take to meet it.
    “Don’t be afraid to pick up the phone,” Sheffer said. Reaching out to a financial advisor who can “diagnose, analyze and prescribe” is a good first step.  
    “Get a plan in place and work to achieve it,” he said. “The sooner the better.”

    Too often, emotional “paralysis” prevents people from facing their financial reality, said Suzanne Norman, a director at the Retirement Income Institute who also co-authored the report.
    “If you don’t know where you are, how do you know how to get where you are going?” she said.
    There are still many options for those concerned about their retirement security, she added, including potentially working longer or pursuing a second act in retirement.
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    States sue Trump admin over rule limiting student loan forgiveness for public servants

    New York Attorney General Letitia James and more than a dozen other state attorneys general on Monday sued the Trump administration over its new rule limiting eligibility for Public Service Loan Forgiveness.
    The AGs’ lawsuit was prompted by the U.S. Department of Education’s final rule, released last week, that changes the definition of a “qualifying employer” under the loan relief program.
    The rule will exclude certain organizations “that engage in unlawful activities” such as “supporting terrorism and aiding and abetting illegal immigration,” according to an Education Department statement.

    New York Attorney General Letitia James stands silently during a press conference on October 21, 2025 in New York City.
    Michael M. Santiago | Getty Images

    New York Attorney General Letitia James and more than a dozen other state attorneys general on Monday sued the Trump administration over its new rule limiting eligibility for a popular student loan forgiveness program.
    The AGs’ lawsuit, filed in Boston federal court, was prompted by the U.S. Department of Education’s final rule released last week. The rule changes the definition of a “qualifying employer” under the Public Service Loan Forgiveness program to exclude certain organizations “that engage in unlawful activities” such as “supporting terrorism and aiding and abetting illegal immigration,” according to an Education Department statement.

    PSLF, signed into law in 2007 by George W. Bush, offers debt cancellation after a decade to borrowers who work for non-profits and the government.
    “Public Service Loan Forgiveness was created as a promise to teachers, nurses, firefighters, and social workers that their service to our communities would be honored,” said Attorney General James in a statement.
    “Instead, this administration has created a political loyalty test disguised as a regulation,” James said.
    In an email to CNBC, Under Secretary of Education Nicholas Kent called the rule “commonsense reform.”

    Read more CNBC personal finance coverage

    More than 40 million Americans hold student loans, and the outstanding debt exceeds $1.6 trillion. Over 9 million borrowers may be eligible for PSLF, according to a 2022 estimate from Protect Borrowers, a nonprofit focused on student loans.

    President Donald Trump has been a vocal critic of the Biden administration’s student loan forgiveness efforts, which included making it easier to qualify for PSLF. Under President Joe Biden, more than 1 million people had their debts cleared under the program, according to a 2024 White House fact sheet.
    The lawsuit was brought by attorneys general of Arizona, California, Colorado, Connecticut, Delaware, Hawaii, Illinois, Maine, Maryland, Massachusetts, Michigan, Minnesota, Nevada, New Jersey, New Mexico, Oregon, Rhode Island, Vermont, Washington, Wisconsin and the District of Columbia.
    A coalition of cities across the U.S, labor unions and nonprofit organizations also filed a lawsuit on Monday against the Trump administration over its PSLF rule.
    “The Trump Administration’s illegal actions threaten to make higher education even more expensive for Boston’s teachers, first responders, and civil servants,” said Boston Mayor Michelle Wu in a statement. More

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    How to navigate open enrollment as health insurance premiums increase

    Open enrollment has begun for many employees, as well as consumers using Affordable Care Act and Medicare health insurance plans.
    Health care premiums are rising 6.5% on average for employees, according to Mercer, and 26% for those on ACA plans, KFF found.
    Health savings accounts, or HSAs, may be an option to help pay for medical, dental and vision expenses.

    A poster reads “Affordable Care Act Premiums Will Rise More Than 75%” as Senate Minority Leader Chuck Schumer (D-NY) (2nd-L), accompanied by Sen. Jeanne Shaheen (D-NH) (L), speaks at a news conference to call on Republicans to pass Affordable Care Act tax breaks on Capitol Hill on Sept. 16, 2025 in Washington, DC.
    Andrew Harnik | Getty Images

    Open enrollment is underway for many employees, Medicare recipients, and those who purchase health insurance on their own through Affordable Care Act plans — and many of those Americans will see significant price hikes. 
    Health insurance premiums for plans bought over the ACA marketplace will increase 114% on average if enhanced subsidies expire at the end of 2025, according to KFF, a nonpartisan health policy research group. About 22 million of the 24 million ACA marketplace participants — including many self-employed and small-business workers — receive those premium tax credits, which are a key issue in the ongoing government shutdown.

    Contributing to that price increase, ACA insurers are raising premiums for next year by an estimated 26% on average, according to KFF, in part because those companies expect healthier people to drop coverage if the enhanced subsidies expire.
    “What’s not certain is whether the price you’re seeing today is what it will actually be,” said Louise Norris, a health policy analyst with healthinsurance.org. “If those subsidy enhancements get extended, or if they get modified and extended, you might end up paying a different premium than what you’re seeing now.”

    Employer-sponsored plans are seeing smaller, but still notable, increases. The vast majority of Americans, about 165 million people, including employees and their dependents, obtain health insurance through their employer, according to KFF.
    Employees could see their payroll deductions for health care coverage rise by 6.5% on average for 2026 —the steepest increase in 15 years, global consulting firm Mercer found. 
    “It’s invisible for a lot of people because it’s paycheck deduction,” said Zach Teutsch, founder of Values Added Financial in Washington, DC. Teutsch is a member of CNBC’s Financial Advisor Council.

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    As costs spike, millions of Americans may be facing a tough decision about which health insurance option to choose — and how to afford it. Here are key steps financial advisors and health policy analysts recommend taking before enrolling in health coverage for 2026. 

    Review your 2025 health-care expenses

    Before you look at 2026 options, tally your out-of-pocket costs for 2025 so far, including co-payments, medical bills, prescriptions and over-the-counter expenses. Tracking what you’ve spent on recent health-care needs will help you calculate potential 2026 expenses and give you a better idea of the type of medical coverage you’ll need. 

    Compare all available plans for 2026

    Even if your insurer is offering the same health insurance plan options as this year in 2026, premiums and deductibles likely increased. Plus, your health needs may have changed. Check which of your current providers are still “in-network” and determine the coverage for out-of-network providers. 
    If you have to undergo surgery or now have a chronic illness, you may opt for a different plan, or you may need to make a plan change to better manage costs. 
    Many employers offer two choices, which boil down to: pay now or pay later. You can pay more upfront with higher premiums deducted from each paycheck and a lower deductible, which is the amount you pay before insurance kicks in. Or you can pay later with lower premiums and a higher deductible. 
    For ACA plans, you can compare options through the federal marketplace, or a state-specific website for residents in Washington, D.C., and 20 states. 
    If you’re enrolled in Medicare, use the Plan Finder Tool on Medicare.gov.

    Pause on ACA enrollment

    Longhua Liao | Moment | Getty Images

    If you are getting coverage through the ACA marketplace, don’t sign up just yet. If the enhanced subsidies are extended or modified, “you might pay less than what it looks like it’s going to be,” said Norris.
    Set yourself a reminder to check on the price in late November and make adjustments. Be sure to sign up before the December 15 deadline for a January 1 start date. 

    Consider your health needs

    You don’t want to be uninsured, experts say: An emergency room visit or intensive care stay can reach six figures.
    “The idea of a multi $100,000 hospital bill is not uncommon at all,” said Norris. “It’s one thing to set up a payment plan with the hospital to pay off, say a $7,000 deductible. It’s a totally different thing when you’re looking at trying to set up a payment plan for a $400,000 bill.”
    People with no health issues and who rarely visit a doctor may save money with a high deductible plan, which, for ACA plans, is the bronze level. “That way, if you all of a sudden get hit by cancer or something bad, you’ll have health insurance coverage,”  said Carolyn McClanahan, a physician and certified financial planner based in Jacksonville, Florida. Some doctors won’t even see you if you don’t have health insurance coverage, she said.

    Another option, if you have chronic care needs or go to the doctor more often than a basic plan covers, is to add a direct primary care physician to a bronze health insurance plan, McClanahan said. A monthly subscription fee, typically $50 to $150, covers basic primary care visits and may include services such as lab work and x-rays. Those payments won’t count toward your deductible.
    “It never goes under insurance,” said McClanahan, the founder of Life Planning Partners and a member of CNBC’s Financial Advisor Council. “It’s basically cash pay.”
    Ask questions to understand what’s covered and that it’s a good fit, McClanahan said: “Just because they’ve opted to be a direct primary care doctor doesn’t mean that they’re necessarily the best doctor for you. So make sure that your personalities fit.”

    Take advantage of FSAs and HSAs

    If your employer offers a health flexible spending account, or FSA, you can use the pre-tax dollars you put into that account to pay for eligible out-of-pocket medical expenses, co-payments, deductibles, prescriptions and vision or dental care. Putting money into this account will not only lower your taxable income for next year, but also allow you to pay for health-care expenses with money that otherwise would have been taxed.
    Health savings accounts, or HSAs, are another tax-advantaged option to help pay for medical, dental and vision expenses — as long as you are enrolled in a qualifying high-deductible health plan. Unlike FSAs, you can use the money over time and put it in long-term investments. Recent legislation has also expanded access to HSAs through more marketplace health plans.
    SIGN UP: Money 101 is an 8-week learning course on financial freedom, delivered weekly to your inbox. Sign up here. It is also available in Spanish. More

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    Many mutual fund strategies are launching as ETFs: What it means for investors

    ETF Strategist

    ETF Street
    ETF Strategist

    Asset managers are taking a variety of approaches to offer their mutual fund strategies as exchange-traded funds.
    They seek to capitalize on ETF popularity in recent years.
    ETFs are generally a better bet for many retail investors, especially those with taxable brokerage accounts, due to their tax-efficiency and lower costs relative to mutual funds, experts said.

    damircudic | E+ | Getty Images

    Asset managers are debuting more of their mutual fund strategies as exchange-traded funds, a move that seeks to capitalize on ETF popularity in recent years and also benefits many retail investors, according to market experts.
    Money managers have taken a few approaches.

    Many have converted specific mutual funds to ETFs. Fifty-six mutual funds were converted to ETFs in 2024, a number that has increased steadily from 15 in 2021, according to Morningstar data. Another 40 have done so this year.
    Others have opened an ETF “clone” of a specific mutual fund, which allows investors to choose from the mutual fund or ETF version of an investment strategy.

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    Additionally, more than 80 asset managers have sought permission from the Securities and Exchange Commission to launch an ETF share class of their existing mutual fund portfolios, said Bryan Armour, director of ETF and passive strategies research for North America at Morningstar.
    This is a slightly different strategy from the others. Mutual funds are generally available in a variety of share classes; in this case, the ETF would be another share class and share the same portfolio as mutual fund investors.
    “This is one of the biggest trends in the fund market right now,” Armour said. “Over the next two years, we’d expect a large number of ETF share classes to be used heavily.”

    The SEC green-lit the first application, for Dimensional Fund Advisors, on Sept. 29.
    “We’re sort of waiting for the next shoe to drop, and my guess is it would have happened were it not for the government shutdown,” Armour said, in reference to the SEC approving more applications.

    ETF popularity

    ETFs and mutual funds are broadly similar: They are relatively liquid baskets of stocks, bonds and other assets overseen by professional money managers, and can help investors diversify their portfolios.
    Investors have shown a strong preference for ETFs in recent years.
    Investors poured about $1.1 trillion into U.S. ETFs in 2024, a record high, according to Morningstar. Meanwhile, investors withdrew $388 billion from U.S. mutual funds.
    ETF assets still account for just one-third or so of the total U.S. fund market, but are gaining ground: They had a 14% market share relative to mutual funds at the end of 2014 and a 5% share in 2004, for example, according to Morningstar.

    That popularity is mainly due to key differences that many financial advisors say make ETFs a generally better financial choice for retail investors.
    Exchange-traded funds are generally more tax-efficient, thereby saving investors from surprise annual tax bills on capital gains distributions, and tend to have lower annual fees than mutual funds, according to certified financial planner Blake Pinyan, a senior financial planner and tax manager at Anchor Bay Capital in Carlsbad, California.
    ETF holdings are also more transparent for investors, Armour said. Asset managers must disclose their ETF holdings every day, while mutual funds typically do so on a monthly or quarterly basis.
    “ETFs have become so much more prominent in the market,” Armour said. “At a high level, asset managers are trying to capitalize on demand,” he added.

    How to decide: ETF or mutual fund?

    D3sign | Moment | Getty Images

    Investors who have taxable brokerage accounts should generally aim to hold ETFs in such accounts, due to their tax efficiency, Pinyan said.
    “Avoid mutual funds in taxable accounts,” said Pinyan, who is a member of CNBC’s Financial Advisor Council. “Having a mutual fund in a taxable brokerage account could result in the investor paying a lot more in tax liability. They’re very tax-inefficient.”
    Exchange-traded funds aren’t necessarily better in all circumstances, though, experts said.
    For example, an ETF’s tax benefits are moot in tax-preferred accounts like IRAs and in 401(k) plans, experts said.

    This is one of the biggest trends in the fund market right now.

    Bryan Armour
    director of ETF and passive strategies research for North America at Morningstar

    Additionally, investors should pay attention to whether an ETF “clone” of an actively managed mutual-fund strategy is an “identical twin” or a “cousin,” wrote Gregg Wolper, a senior manager research analyst of equity strategies for Morningstar Research Services.
    In other words, an ETF portfolio that’s a “cousin” may be similar but not identical to the same manager’s mutual fund, he wrote, and therefore may not be well-suited to all investors depending on preferences.
    If the SEC approves more applications for asset managers to launch their mutual funds in an ETF share, it could come with a potential drawback for some ETF investors: shared tax exposure with mutual-fund shareholders, according to a Morningstar analysis published in October.
    That could dilute some of the relative tax benefits for ETF investors, though such an occurrence would likely be rare, it said.
    “Certain situations, often prompted by the actions of investors in the mutual fund, can leave investors in the ETF share class on the hook for capital gains distributions,” it said. More

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    Top Wall Street analysts suggest these 3 dividend stocks for enhanced total returns

    The Valero Energy refinery in Texas City, Texas.
    F. Carter Smith | Bloomberg | Getty Images

    The focus on dividend stocks is growing, as the U.S. Federal Reserve announced another rate cut. Investors can consider stocks that offer dividends and also have the potential to drive capital appreciation, enhancing the total return.
    In this regard, recommendations of top Wall Street analysts can help us identify stocks that have solid upside and pay attractive dividends. The stock picks of these experts are backed by in-depth analysis of a company’s growth opportunities and ability to pay dividends consistently.

    Here are three dividend-paying stocks, highlighted by Wall Street’s top pros, as tracked by TipRanks, a platform that ranks analysts based on their past performance.

    Valero Energy

    We start this week with Valero Energy (VLO), a manufacturer of petroleum-based and low-carbon liquid transportation fuels and petrochemical products. In Q3 2025, Valero returned $1.3 billion to stockholders via $351 million in dividends and $931 million in share repurchases. On Oct. 29, Valero declared a quarterly dividend of $1.13 per share. At an annualized dividend of $4.52, VLO stock offers a yield of 2.7%.
    Valero Energy recently reported upbeat Q3 results, backed by strong refining margins. Keeping in view the Q3 performance, strong refining outlook, and the company’s attractive capital returns strategy, Goldman Sachs analyst Neil Mehta reiterated a buy rating on VLO stock and raised his price target to $197 from $180.
    “We continue to view VLO as a key beneficiary of our more constructive refining outlook, given the company’s balance sheet strength, low-cost operations, and operational execution,” said Mehta.
    The 5-star analyst noted that during the third-quarter earnings call, management discussed a constructive refining outlook, driven by limited net capacity additions and widening crude differentials. Mehta also highlighted that Valero’s non-refining businesses performed better than Goldman Sachs’ expectations. Looking ahead, Mehta believes that low inventories, resilient demand, and limited net refining capacity additions support tighter supply/demand expectations for 2026.

    In particular, Mehta noted management’s continued focus on capital returns and commitment to allocating excess free cash flow to shareholders. The analyst expects a stronger refining backdrop to contribute to meaningful free cash flow generation, which could support about $4.6 billion of capital returns in 2026, implying a 9% capital return yield.
    Mehta ranks No. 812 among more than 10,000 analysts tracked by TipRanks. His ratings have been profitable 58% of the time, delivering an average return of 8.7%.

    Albertsons

    We move on to the next dividend-paying stock, Albertsons Companies (ACI). The food and drug retailer recently announced upbeat results for the second quarter of fiscal 2025, driven by strong pharmacy sales and digital business. On October 14, Albertsons announced a quarterly dividend of 15 cents per share, payable on November 7. At an annualized dividend of 60 cents per share, ACI stock offers a dividend yield of 3.3%.
    Following Albertsons’ better-than-expected fiscal second-quarter results, Tigress Financial analyst Ivan Feinseth reiterated a buy rating on ACI stock and modestly increased his price target to $29 from $28. The analyst is bullish on Albertsons as the company “accelerates growth through AI-powered digital sales, expanding loyalty ecosystem, and high-margin retail media platform.”
    Feinseth highlighted that Albertsons is transforming from a traditional grocery operator into a data‑driven, digitally integrated food and wellness platform. This change is being fueled by the company’s e-commerce expansion, loyalty integration, and rapidly expanding Albertsons Media Collective advertising network, which Feinseth believes is well-positioned to become one of its most profitable long-term growth engines.
    The top-rated analyst pointed out that ACI’s For U loyalty program is driving both digital engagement and spending growth. In fact, For U membership increased more than 13% year-over-year in Q2 FY25, reaching over 48 million active participants. The growing member base boosts ACI’s business as members transact more frequently, spend more, and are increasingly using cross-channel rewards, noted Feinseth.
    Additionally, Feinseth highlighted that Albertsons is enhancing shareholder returns through ongoing dividend increases and share repurchases, including the recently announced additional $750 million accelerated share repurchase authorization. He expects ACI stock to deliver a total return of close to 50%, including dividends.
    Feinseth ranks No. 296 among more than 10,000 analysts tracked by TipRanks. His ratings have been profitable 62% of the time, delivering an average return of 14.2%.

    Williams Companies

    Finally, let’s look at energy infrastructure provider Williams Companies (WMB). On October 28, Williams announced a quarterly cash dividend of 50 cents per share, payable on December 29, 2025, and reflecting a 5.3% year-over-year increase. At an annualized dividend of $2 per share, WMB stock offers a 3.5% yield.
    Ahead of Williams’ Q3 results scheduled after the market closes on November 3, RBC Capital analyst Elvira Scotto reiterated a buy rating on WMB stock with a price forecast of $75. In a preview on the Q3 results of the companies in the U.S. midstream space, Scotto stated that Williams and Targa Resources (TRGP) are her favored names into the earnings.
    Scotto noted that the secular tailwind for natural gas due to rising power demand for electrification and artificial intelligence (AI)/data center growth is driving the need for more energy infrastructure. The 5-star analyst believes that among the stocks within her coverage, “WMB is best positioned to benefit given its gas transmission asset footprint and its Power Innovation projects.”
    Furthermore, Scotto expects WMB to deliver a CAGR (compound annual growth rate) of about 10% in its EBITDA (earnings before interest, taxes, depreciation, and amortization) from 2025 through 2030. The analyst looks forward to additional information on WMB’s recently announced Power Innovation projects and any new projects. Scotto expects an uptick in Q3 2025 numbers on a quarter-over-quarter basis across all business segments, with Transmission, Gulf, and Power driving the biggest absolute increase.
    Scotto views WMB’s February analyst day as the next catalyst for the stock. The analyst expects WMB to increase its EBITDA growth target from the range of 5% to 7% to high single digits or more.
    Scotto ranks No. 270 among more than 10,000 analysts tracked by TipRanks. Her ratings have been successful 64% of the time, delivering an average return of 13.7%. More

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    These inherited IRA mistakes could reduce your windfall, advisors say. How to avoid them

    If you’re a non-spouse heir, the rules for inherited IRAs are complicated, and mistakes can be costly, experts say.
    Many accounts must be emptied within 10 years, and some heirs must start taking required minimum distributions in 2025 to avoid an IRS penalty.
    Inherited IRA planning is important amid the “great wealth transfer,” with more than $100 trillion expected to change hands through 2048, according to Cerulli Associates.   

    Juanma Hache | Moment | Getty Images

    While many investors welcome a windfall, the rules for inherited individual retirement accounts are complicated — and mistakes can be costly.   
    Since 2020, certain inherited accounts are subject to the “10-year rule,” and heirs must empty the balance by the 10th year after the original account owner’s death.  

    Plus, some non-spouse beneficiaries, commonly adult children, must begin taking required minimum distributions, or RMDs, in 2025 over the 10-year period, or face a hefty IRS penalty. 
    Inherited IRA planning is important amid the “great wealth transfer,” with more than $100 trillion expected to change hands through 2048, according to a December report from Cerulli Associates.   

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    Here are three of the biggest inherited IRA mistakes and how to avoid them, according to financial advisors.

    1. Not knowing the IRS rules

    For non-spouse heirs, “the [inherited IRA] rules can get complex fast, and it’s critical to know your options,” said certified financial planner Brett Koeppel, founder of Eudaimonia Wealth in Buffalo, New York.
    The “10-year rule” and new RMD requirement for 2025 apply to most non-spouse beneficiaries, such as adult children, if the original IRA owner reached RMD age before their death.

    If you fail to take inherited IRA RMDs for 2025, you could be subject to a 25% IRS penalty on the amount you should have withdrawn. However, you could reduce that fee to 10% by disbursing the correct amount within two years and filing Form 5329. In some cases, the IRS may waive the penalty entirely.

    2. Not planning for ‘significant taxes’

    If you inherit a pretax IRA, you can expect to pay regular income taxes on withdrawals, which may require tax planning during the 10-year drawdown, experts say.
    Some heirs aim to take only their RMD for the first nine years and a lump sum in year 10. But this could mean “significant taxes in that final year of distribution,” said CFP John Nowak, founder of Alo Financial Planning in Mount Prospect, Illinois. He is also a certified public accountant.
    Instead, you should run multi-year tax projections to decide the best withdrawal amounts for each year, experts say. For example, it might make sense to accelerate distributions during temporary lower-income years.

    3. Keeping the same investments

    Another common mistake is failing to change inherited IRA assets, according to CFP Jamie Bosse, a senior advisor at CGN Advisors in Manhattan, Kansas.
    Ideally, the investments should match your risk tolerance, goals and timeline. “It’s your money now and should be allocated according to your needs,” she said.
    However, when choosing investments, you need to weigh your tax liability, yearly RMD and income needs, said Nowak with Alo Financial Planning.
    For example, holding certificates of deposit in your IRA with a maturity date beyond your RMD window could be “difficult or costly to distribute,” he said. More

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    Layoffs are mounting, making it a ‘challenging time to be unemployed,’ expert says. Here are 4 money moves to make

    Amazon, UPS, General Motors and Paramount are among the companies that have recently announced layoffs.
    After a job loss, people need to figure out how to supplement their income, find new health insurance and keep paying their bills.
    “Now is a particularly challenging time to be unemployed,” said Michele Evermore, senior fellow at the National Academy of Social Insurance.

    A UPS truck at the Palace Imports warehouse in Linden, New Jersey, US, on Wednesday, Aug. 27, 2025.
    Michael Nagle | Bloomberg | Getty Images

    After a wave of big companies announcing steep job cuts, many laid-off workers may face a financially difficult and uncertain period ahead.
    Amazon said on Tuesday that it would eliminate around 14,000 corporate positions, and the United Parcel Service, or UPS, said it had reduced its operational workforce by 34,000 jobs this year. On Wednesday, General Motors laid off roughly 1,700 workers, and Paramount terminated 1,000 people. The Trump administration has also threatened to fire thousands of federal workers during the shutdown, but those efforts have been blocked so far in the courts. 

    “Now is a particularly challenging time to be unemployed,” said Michele Evermore, senior fellow at the National Academy of Social Insurance.
    The Bureau of Labor Statistics didn’t publish its monthly jobs report in October because of the government shutdown. But analysts have been worried about the state of the employment market for months.

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    1. ‘Immediately file’ for unemployment

    Despite the government shutdown, which began on Oct.1, states still have access to their state unemployment trust fund to pay out benefits, said Andrew Stettner, the director of economy and jobs at The Century Foundation.

    “Eventually they will run out of federal funds to pay the staff that process the benefits, but we’ve not heard of that happening yet,” Stettner said.
    As a result, those who’ve lost their job should “immediately file” for unemployment insurance, Evermore said. Before you do so, you’ll want to gather the following information: your pay over the last 18 months, names of previous employers during that period and their addresses, your Social Security number, state-issued identification and any documentation from your last company.
    If you live in one state and work in another, you’ll want to apply for the jobless benefits in the state where you worked, experts say. On a DOL-sponsored website, you can find the contact information for state unemployment agencies.

    A sign is displayed at the U.S. Department of Labor Frances Perkins Building on June, 2025 in Washington, DC.
    Kevin Carter | Getty Images

    State agencies should pay benefits within three weeks of your application, but delays have become more common since the pandemic, Evermore said.
    “It’s probably going to get worse as layoffs increase,” she added.
    Maximum unemployment benefit amounts vary by state. For example, California’s maximum weekly benefit is $450; in Florida, the cap is $275, Evermore said. In most states, claimants can get benefits for 26 weeks, she added — although the benefits last for just 12 weeks in some states, such as Florida.

    2. Find new health insurance

    For many workers, losing their jobs also means losing their health insurance.
    Your first step is to find out when your workplace insurance officially expires, said Christine Eibner, a senior economist at Rand Corporation. Some companies provide additional months of coverage under their plan after a layoff.
    Once your coverage lapses, you may be offered the chance to continue it under COBRA, shorthand for the Consolidated Omnibus Budget Reconciliation Act, said Caitlin Donovan, a spokeswoman for the Patient Advocate Foundation.
    The option is “cost-prohibitive” for many people, Donovan said, because it requires them to pay the full premium, including the portion their company was previously paying. But if you can afford the price tag, it’ll cause the least disruption to your coverage. COBRA is usually available for between 18 months to 36 months, according to the Department of Labor.

    Now is a particularly challenging time to be unemployed.

    Michele Evermore
    senior fellow at the National Academy of Social Insurance

    Other options for getting new health insurance include enrolling in a spouse’s plan or seeking subsidized coverage on the Affordable Care Act Marketplace or through Medicaid, Eibner said. Those who’ve lost their employer health benefits typically have 60 days to sign up for an ACA Marketplace plan, Eibner added. (Open enrollment on the marketplace for 2026 starts on Nov. 1 in most states.)
    At the heart of the current stalemate in Washington is whether or not to extend Covid-era enhanced tax credits for ACA marketplace enrollees. Those enhanced subsidies make health insurance premiums cheaper for tens of millions of Americans. Without that aid being extended, many people will see higher prices for marketplace coverage in 2026.
    “However, the tax credits aren’t going away completely,” Eibner said. “They are just reverting to the original levels put into place under the Affordable Care Act.”
    Medicaid is the cheapest health-care option and may actually cost you close to nothing, experts said. Eligibility is based in part on your current income, which may allow many newly unemployed workers to qualify — although jobless benefits may have an impact.

    3. Check on your workplace retirement account

    If your company offered a retirement account, you’ll need to decide what to do with that nest egg now.
    You may be able to simply leave the money in the account, even though you won’t be able to contribute to it anymore or benefit from any employer match.
    “This is a great option, especially if the funds in the account are strong and if the employee needs time to focus on other things,” said Dana Levit, a certified financial planner and the owner of Paragon Financial Advisors in the Boston area.
    An exception: If you have less than $5,000 in your workplace retirement account, your employer may require that you move the funds.
    You may also be able to transfer your funds without taxation or penalties to another qualified retirement plan, including a 401(k) at your next company if that’s allowed, or to an individual retirement account, Levit said. If your former employer isn’t forcing a transfer, there’s no need to rush into this decision.
    While cashing out your 401(k) is another option, it’s not a desirable one, Levit said: “The distribution is taxable as ordinary income,” and “depending on the employee’s age, there could also be penalties for an ‘early withdrawal.'”

    Laid-off workers who have an outstanding loan from their 401(k) may face an extra headache, Levit said.
    “401(k) loans are typically due in full at termination,” she said. “If they are not repaid, the outstanding loan will be considered a taxable distribution subject to ordinary income taxes and potentially penalties.”
    But it’s worth talking to your plan administrator and learning what your options are, Levit added: “Some have flexibility about continuing payments even after termination.”

    4. Stay on top of student loans, other debt

    People who’ve lost a job and are worried about their student loan bill have options, too. You can enroll in an income-driven repayment plan that sets your monthly payment based on your earnings and submit proof that you’ve lost your job; while unemployment benefits will count as income, you’re likely to get a low payment and some may not owe anything under their plan’s terms.
    The U.S. Department of Education also offers an Unemployment Deferment, in which you can possibly pause your payments for up to three years after a job loss. Some student loans will still accrue interest during the payment pause, while others will not.

    During a period of joblessness, you should ask other lenders “for a break,” said Ted Rossman, a senior industry analyst at Bankrate.
    “Many lenders have hardship programs that allow you to skip a payment or rearrange a due date,” Rossman said. “Lenders are often willing to work with you, especially if it’s something temporary like a government shutdown, job loss or natural disaster.”
    If you can manage it, making at least the minimum payments on all of your debts will avoid the start of any collection activity and possible risks to your credit, Rossman added.
    On top of taking care of your finances, it’s also important to tend to your mental health after a job loss, Evermore said. That might mean sharing what you’re going through with others, including family, friends and a therapist.
    “Unemployment is one of the most stressful things that can happen to a person, so be mindful of the fact that you are not alone,” Evermore said. “There are people who want to help you through this challenging time.” More

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    in Investing

    Impactive Capital sees a structural shift creating upside for this wastewater company

    Onuma Inthapong | E+ | Getty Images

    Company: Advanced Drainage Systems (WMS)
    Business: Advanced Drainage Systems is a manufacturer of stormwater and onsite wastewater solutions. The company and its subsidiary, Infiltrator Water Technologies, provide stormwater drainage and onsite wastewater products used in a wide variety of markets and applications, including commercial, residential, infrastructure and agriculture, while delivering customer service. Its pipe segment manufactures and markets thermoplastic corrugated pipe throughout the United States. Its infiltrator segment is a provider of plastic leachfield chambers and systems, septic tanks and accessories, primarily for use in residential applications. Its international segment manufactures and markets products in regions outside the United States, with a strategy focused on its owned facilities in Canada and those markets serviced through its joint ventures in Mexico and South America. Its Allied Products segment manufactures a range of products which are complementary to their pipe products.
    Stock Market Value: : $11.98 billion ($144.10 per share)

    Stock chart icon

    Advanced Drainage Systems stock year to date

    Activist: Impactive Capital

    Ownership: 2.14%
    Average Cost: n/a
    Activist Commentary: Impactive Capital is an activist hedge fund founded in 2018 by Lauren Taylor Wolfe and Christian Alejandro Asmar. Impactive Capital is an active ESG investor that launched with a $250 million investment from CalSTRS and now has approximately $3 billion. In just seven years, they have made quite a name for themselves as AESG investors. Wolfe and Asmar realized that there was an opportunity to use tools, notably on the social and environmental side, to drive returns. Impactive focuses on positive systemic change to help build more competitive, sustainable businesses for the long run. Impactive will use traditional operational, financial and strategic tools that activists use, but will also implement ESG change that they believe is material to the business and drives profitability of the company and shareholder value. Impactive looks for high quality businesses that are usually complex and mispriced, where they can underwrite a minimum of a high teens or low 20% internal rate of return over a three- to five-year holding period, and have active engagement with management to set up multiple ways to win.
    What’s happening
    On Oct. 21, Impactive said they had taken a position in Advanced Drainage Systems.
    Behind the scenes
    Advanced Drainage Systems is the market share leader in plastic stormwater and onsite septic wastewater management solutions. The company is a pioneer in the development and manufacturing of plastic drainage products, primarily utilizing high-density polyethylene (HDPE) and polypropylene. Recycled materials made up 46% of WMS’ purchased inputs in fiscal year 2025, making it one of the largest recyclers in North America. The company has three primary business lines: (i) Pipe – storm and drainage pipe, 56% of FY25 revenue; (ii) Allied Products – complementary products to its pipe offerings like storm chambers, structures and fittings, 26%; and (iii) Infiltrator – chambers, tanks and advanced wastewater treatment solutions, 18%. Between its three segments, the company has a $15 billion addressable market and is the clear industry leader with 75% to 95% market share across its segments.

    There is a lot to like about WMS, as it is an extremely high-quality and well-run company with a long history of compounding growth and secular tailwinds. As a result, WMS has an impressive track record, having grown earnings per share almost 10x since its initial public offering, and has a 28% EPS compound annual growth rate with returns on invested capital consistently above 20%. Management is also very focused on shareholder value and are great capital allocators, increasing dividends and launching buybacks in most years where it does not see a compelling M&A opportunity.
    Despite this, the company’s share price performance has been lackluster over the past 1- and 3-year periods, underperforming the Russell 2000, and its stock has re-rated down to a P/E multiple in the low-to-mid 20s. The reason for this is twofold: investor fears regarding the cyclicality of construction spending and margin compression. However, Impactive Capital believes that both concerns appear to be overblown or misplaced and that management has built this business to protect its top line from market cyclicality and make margin expansion structural, not cyclical.
    As to the cyclicality of construction spending, construction spending is down 3% year to date as higher interest rates and affordability concerns have dampened residential and non-residential construction spending, setting this up to be the worst year for construction in the past two decades aside from the global financial crisis. But company revenue has not been declining and is not expected to decline for several reasons.
    First, plastic pipes have been stealing market share from concrete and steel. Only about 20% of the market in 2010, plastic now exceeds 40% due to it being 20% cheaper than alternatives and offering superior performance.
    Second, with the 2019 acquisition of Infiltrator and the upcoming acquisition of National Diversified Sales, WMS has increased its exposure to the residential repair and remodel end-market, adding resiliency to its revenue streams. This should also make WMS a natural beneficiary of the reversion in existing home sales, which are currently at a 15-year low.
    Third, billion-dollar storm events have quintupled since the 1980s, necessitating increased investment in resiliency and more complex stormwater infrastructure. The company also has a wide moat, enabled by its high brand loyalty from contractors, its vertical integration and excellent distribution network.
    As for margin concerns, there are fears that weakness in construction will lead to margin compression. However, this is something else that management has taken a lot of steps and adopted many initiatives to avoid. Over the past six years, the company has been diversifying its business toward its higher-margin Allied Product and Infiltrator offerings, both of which have adjusted operating margins in the mid-50s, whereas pipe is around 30%.
    Additionally, one of its largest input costs are oil and resin, and WMS has a unique way to mitigate these costs. The company toggles between recycled and virgin resins depending on the price of oil. So, when oil spikes, they use recycled resin, and when it drops, they switch to virgin resin and capture better margins. WMS is the only one of its competitors who can do this at scale. Moreover, when construction is weak, oil and resin prices tend to decline. So, loss to the top line can be made up on the bottom line as the decline in resin prices is more than enough to offset end-market weaknesses (i.e., construction spending is down about 3% YTD, resin prices are down 15% to 20%). As a result, pipe and Allied Products adjusted EBITDA margins have expanded by about 8 percentage points since 2020, but some fear that this will eventually normalize.
    However, Impactive believes that this shift is structural, not cyclical and WMS will not only avoid margin compression but could see gross margin expand by 100 bps over the next 12-24 months; something that is not factored into forward consensus estimates.
    As a result of this confluence of factors, Impactive models that WMS will return to mid-teens EPS growth and projects a base case three-year total return and IRR of 69% and 19%, respectively, and an upside case of 146% and 34%, respectively.
    Ken Squire is the founder and president of 13D Monitor, an institutional research service on shareholder activism, and the founder and portfolio manager of the 13D Activist Fund, a mutual fund that invests in a portfolio of activist investments. More