Money Crashers

The beneficiary listed on your 401k, IRA, and life insurance policy receives those assets regardless of what your will says. An ex-spouse, a deceased parent, or a forgotten name can inherit funds your will directs elsewhere. Review every beneficiary designation after any major life event: marriage, divorce, death, or a new child.

Most employer-provided life insurance covers one to two times your annual salary. The guideline is 10-12 times your income to replace earnings and cover debts, childcare, and future expenses for dependents. Supplement your employer coverage with a personal term policy you own, one that doesn’t disappear if you change jobs.

Federal student loan autopay now cuts your interest rate by a full percentage point, up from a quarter point, but only if you’re enrolled by September 30. Log in to your servicer this week and turn it on. Ten minutes buys you the lower rate through June 2028.

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Raising your deductible from $500 to $1,000 or higher cuts your annual premium, sometimes by 15-30%. If your emergency fund can absorb the higher deductible, you’re self-insuring the gap and pocketing the savings every year you don’t file a claim. Ask your insurer to quote two or three deductible levels at renewal.

A market downturn early in retirement, when you’re actively withdrawing from your portfolio, does far more damage than the same downturn mid-career. Selling shares at depressed prices to fund living expenses permanently reduces the portfolio’s ability to recover. Keep one to two years of expenses in cash or short-term bonds so you’re never forced to sell in a down market.