For the millions of people who qualify for both programs, Medicaid offers critical support for Medicare beneficiaries with limited incomes, helping to ease the financial burden of .

Knowing how these programs work together, and how recent updates may affect you, is key to understanding dual eligibility and your coverage options.

Full-Benefit vs. Partial-Benefit Dual Eligibility: What’s the Difference?

Approximately 13 million people are enrolled in both Medicare and Medicaid, according to a 2025 study in .

There are two main types of these dual-eligible beneficiaries:

— Full-benefit beneficiaries. These beneficiaries are eligible for Medicaid coverage for healthcare services that . They also receive coverage for , copays and coinsurance.

— Partial-benefit beneficiaries. These beneficiaries are eligible for Medicaid but receive restricted benefits, often to cover specific costs, which may include Medicare or premiums, deductibles and copayments.

reports that nearly three-quarters of are full-benefit enrollees who receive comprehensive Medicaid services, including long-term care, which Medicare doesn’t cover. The remaining partial-benefit enrollees receive assistance primarily for Medicare premiums and cost-sharing.

Despite representing a small portion of overall beneficiaries, dual-eligible individuals account for a disproportionate share of both Medicare and Medicaid spending, with an estimated 33% of traditional Medicare and 32% of Medicaid expenditures, KFF notes.

Side-by-side comparison of dual-eligible benefits

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How to Qualify for Medicare-Medicaid Dual Eligibility in 2026

Medicare and Medicaid eligibility are handled and determined separately. The general process for applying for both, however, involves the following steps.

Step 1: Meet Medicare eligibility and enrollment requirements

Most beneficiaries during the initial enrollment period, which starts three months before their 65th birthday and ends three months afterward.

You may also qualify to receive Medicare benefits regardless of age if:

— You have a disability that prevents you from working and you are receiving Social Security disability benefits

— You live with end-stage

— You have

When the time comes to , you can:

— Enroll online through the

— Call the SSA at 1-800-772-1213

— Visit a local Social Security office in person. The Social Security website has a “Find an Office” tool that will help you locate the nearest one.

Step 2: Apply for Medicaid and check state income and asset limits

Applying for Medicaid involves determining

and submitting an application through your state’s Medicaid office. Since each state manages its own Medicaid programs, rules and requirements vary. Use tools like the Medicaid eligibility checker on or your to see if you qualify.

Medicare beneficiaries can become eligible for Medicaid if they meet specific income and asset requirements set by their state:

— Income limits. To qualify for Medicaid, beneficiaries must have income that is below a certain level (which varies by state). Generally, individuals must have an income at or below 100% to 138% of the federal poverty level to qualify.

— Asset limits. Medicaid also considers assets, or “resources,” which may include savings, property and investments. The asset limits are typically lower than the income limits. For example, in many states, individuals must have assets below $2,000 for an individual or $3,000 for a couple, though some states may allow higher limits or exclude certain assets, such as a primary home.

— Level of need. Some Medicaid benefits, like or home- and community-based services, may require an assessment of functional limitations or .

Depending on income levels, you may qualify for that assist with Medicare expenses.

Step 3: Select your plan option (original Medicare vs. integrated D-SNP)

After being approved for Medicaid, you are automatically considered “dual eligible,” and there is not a separate third application to tie the two programs together. You can stay on original Medicare (Part A and Part B), with Medicaid helping to pay costs, or you can choose to enroll in a dual-eligible (D-SNP), a specialized type of designed exclusively for people who qualify for both Medicare and Medicaid.

Keep in mind that state-specific approaches mean that dual-eligible beneficiaries can have very different experiences depending on where they live. For instance:

— In New York: Access to integrated coverage often depends on county-level programs like , so some beneficiaries may have multiple plan choices, while others must manage Medicare and Medicaid separately.

— In California: The statewide expansion of means more dual eligibles can enroll in a single coordinated plan that manages both Medicare and Medi-Cal benefits under one insurer.

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2026 Medicare-Medicaid Rule Changes: D-SNPs, SEPs and Appeals

Navigating the Medicare and Medicaid landscape can be particularly difficult for beneficiaries who qualify for both.

“Dual-eligible beneficiaries have dealt with a highly complex system, with Medicare covering medical and pharmacy needs, while Medicaid addresses costs, like premiums, copays and long-term care,” says Eric Roberts, an associate professor at the University of Pennsylvania’s Perelman School of Medicine and a senior fellow at the Leonard Davis Institute of Health Economics. “This intricate overlap has historically created challenges in coordinating care, ensuring coverage and managing costs for a vulnerable population with significant health and financial needs.”

Recent policy , however, aim to streamline the program and make it easier for individuals to better understand how to access their benefits.

What are integrated D-SNPs and how do they work?

Under new , D-SNPs are prioritized as the preferred coverage model for people who are dually eligible. Rather than treating Medicare and Medicaid as different entities, D-SNPs bundle care coordination, combining hospital, medical and prescription drug coverage with care management, aligned provider networks and support for medical, behavioral health and long-term care needs.

Plans must now provide one ID card for both Medicare and Medicaid, conduct a single integrated health risk assessment and follow set timelines for creating individualized care plans with input from beneficiaries.

Monthly special enrollment period (SEP) rules for 2026

Depending on your eligibility, you can now switch plans monthly. In 2025, CMS ended the long-standing special enrollment period (SEP) that previously allowed dual-eligible beneficiaries to switch Medicare Advantage or plans every three months. In its place, created a monthly integrated care SEP, which, in 2026, continues to allow full-benefit beneficiaries to change plans only if they are moving into an integrated D-SNP, specifically a fully integrated, highly integrated or applicable-integrated plan. This change reflects CMS’s intent to steer enrollment toward plans that deliver truly integrated, person-centered care rather than loosely coordinated coverage.

How the unified appeals process works for dual eligibles

Under integrated care requirements, D-SNPs now must administer a unified and grievance process for members whose benefits are aligned under the same plan. This change removes the frustrating burden of figuring out whether a problem should be handled by Medicare or Medicaid.

Now, beneficiaries file a single appeal or grievance through their plan. They no longer need to submit separate appeals or work with two different agencies. The plan is responsible for coordinating the review, applying the correct Medicare and Medicaid requirements and working with the state Medicaid agency when necessary.

CMS expects the unified process to simplify dispute resolution, reduce administrative burden and make it easier for dual-eligible individuals to challenge coverage decisions without unnecessary delays or paperwork.

VBID transition to SSBCI supplemental benefits in 2026

the Medicare Advantage Value?Based Insurance Design (VBID) model in 2025. Under VBID, plans had greater flexibility to offer broad supplemental benefits, often called “wallets,” for items such as , utilities or transportation, based on criteria beyond just health status.

In 2026, many of the nonmedical supports that beneficiaries value continue through Special Supplemental Benefits for the Chronically Ill (SSBCI) but with stricter eligibility rules. Unlike VBID, SSBCI benefits generally can only be offered to enrollees who have one or more documented chronic conditions, such as , chronic heart failure or COPD, and the benefit must be expected to improve or maintain health or overall function.

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How to Maintain Your Dual-Eligible Status and Annual Renewals

Remaining dual eligible for both Medicare and Medicaid requires meeting the financial and program-specific criteria for each program. Once you’re enrolled, Medicare coverage is permanent. However, different states have different annual reenrollment or renewal requirements for Medicaid, so check with your state’s Medicaid office.

“The process ensures that beneficiaries still meet the eligibility requirements, particularly by verifying income and asset levels,” Roberts says. “The reenrollment process and timing varies by state.”

Medicaid beneficiaries are required to keep countable assets like savings, investments or secondary properties within the state’s limits.

Where to Get Free Help: SHIP, AAA and Community Resources

With recent changes reshaping the system, choosing the best plan can feel confusing and raise questions. The good news is that there is plenty of free help out there.

“There are several state-level resources available to help individuals navigate the complexities of dual eligibility,” Johnston says.

Some organizations include:

— Administration for Community Living (ACL). The is a federal agency that works to promote the well-being and of older adults and individuals with disabilities. Through partnerships with state and local organizations, the ACL ensures access to resources and services that can assist with understanding and applying for dual-eligibility programs.

— Area Agencies on Aging (AAA). Area Agencies on Aging are community-based organizations that offer support tailored to older adults. They provide a wide range of services, including assistance with Medicare and Medicaid enrollment, understanding benefits and . These agencies can be especially helpful for figuring out the eligibility requirements for dual programs.

— State Health Insurance Assistance Programs (SHIP). are free counseling programs available in every state, and they are designed to help Medicare beneficiaries understand their coverage options. SHIP counselors provide unbiased, one-on-one assistance with topics like Medicare benefits, Medicaid dual eligibility, enrollment processes and billing issues. SHIP services are particularly valuable for those who need help coordinating the benefits of both programs.

Frequently Asked Questions About Medicare-Medicaid Dual Eligibility

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Rather than rely on a paycheck, those who follow FIRE aim to fund their living expenses through investment income. For families with children, early retirement can create opportunities, such as having one parent at home. But the lifestyle also brings practical and emotional challenges to consider before taking the leap.

Preparing a Family for FIRE

affects far more than a family’s finances. It can also reshape daily routines, household responsibilities and family dynamics. “Before making the transition, couples should be very clear about how daily life will change,” said Seph Fontane Pennock, founder of FatFire.com, in an email. Couples should consider factors such as childcare, school runs and household chores.

Setting clear expectations before retiring early can help prevent misunderstandings once daily routines and responsibilities change. “If one partner continues working while the other retires, resentment can develop unless expectations are discussed openly,” Pennock said.

The level of financial detail shared with children will depend on their age and maturity. Younger children may simply need reassurance about changes to family routines, while older children can begin learning about budgeting, saving and the long-term planning behind financial independence.

[READ: ]

FIRE’s Impact on Children

One of the potential benefits of FIRE for families is the flexibility it can provide.

“Children may get more time, attention, stability and emotional availability from a parent who is no longer coming home exhausted or distracted by work,” Pennock said. “That can be especially valuable during their formative years.”

That additional flexibility may also create opportunities for families to reduce certain expenses, including . A parent may stay home and care for the children prior to their schooling years, for instance. A family could also save on daycare and after-school care costs.

FIRE and Teaching Kids About Work

For most children, seeing parents leave for work helps establish the connection between effort, responsibility and earning an income. “Kids learn by watching, so if they see you golfing every day while they’re heading to school, they might not connect the dots that you spent 20 years saving to get there,” said Josh Katz, a certified public accountant and founder of Universal Tax Professionals in Beachwood, Ohio, in an email.

Parents can help children understand that they set up a plan for the FIRE lifestyle. “Be intentional about talking about the work you did to earn that freedom, and model a ‘second act’ whether it’s volunteering, consulting or managing your investments,” Katz said. “Show them that work isn’t just about a paycheck — it’s about contribution.”

[READ: ]

Changing Finances and FIRE

Unlike traditional retirees who may stop working in their mid-60s, FIRE followers often retire in their 30s or 40s. Given this, their investments may need to support them for 50 or even 60 years.

While some retirement planning guidelines, such as the , suggest that retirees can withdraw 4% from a portfolio every year, that may not be appropriate for families pursuing FIRE.

“A parent retiring in their 30s or 40s with young children at home needs a plan built to last twice that long, which usually means a lower starting withdrawal rate and more flexibility for the years when health insurance costs, college savings and a market downturn happen to overlap,” said Jacob Bayer, a certified financial planner and founder of Jacob Bayer Wealth Management in Spring Valley, New York, in an email.

While having a parent at home when children are young can help families save on childcare costs, other expenses could arise, especially as kids get older.

“I’ve seen early retirees underestimate expenses like summer camps, sports, college savings and family health insurance,” Katz said. “Those costs don’t stop just because you stopped working.” A family will need to plan for these expenses before a parent retires or reduce other expenses to support these costs.

Frugality and FIRE Families

The commitment to saving aggressively can also influence a family’s day-to-day lifestyle. Parents may embrace minimalism and , but children may have different expectations or perspectives about money and experiences.

“Consider that your kids might not share your minimalist values, so have honest conversations early about what lifestyle you can sustain and what they can expect,” Katz said.

If there are financial changes while working toward or after achieving FIRE, parents will want to communicate that as well.

“Children should not feel that every activity, holiday or opportunity is a threat to the retirement plan,” Pennock said. “The goal of financial independence is to create freedom, not to make the family anxious about spending.”

[READ: ]

Balance for FIRE Families

The FIRE movement offers valuable lessons about saving, living on a budget and designing a life that accounts for personal goals. That said, “children learn more from what their parents model than from what they say,” Pennock said. If pursuing FIRE causes parents to sacrifice opportunities that help their children grow, or creates unnecessary anxiety around money, it may be worth evaluating what is best for the family.

For parents, achieving FIRE may be the beginning of . They can use the following years to model to their children how to best manage investments and set priorities. Children who see a healthy relationship between work and money may be in a better position to make their own financial decisions in adulthood.

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More than 9 million people have student loans that have gone into default, representing about one-fifth of all borrowers. But there’s another group of borrowers that observers are worried about. Up until now, roughly 7 million people on the Saving on a Valuable Education repayment plan have been shielded by a yearslong forbearance put in place while the plan was challenged in court. Many haven’t paid any amount on their loans in years.

With , these borrowers are set to restart payments, although for what will likely be higher bills in their new plans. Federal student loans generally go into default after nine months of nonpayment, meaning the earliest people switching from SAVE could start defaulting is likely around July 2027.

“I think it’s a real risk that defaults will continue to increase,” says Robert Farrington, founder of The College Investor. “Most of the SAVE borrowers won’t officially default until next summer at the earliest, but we’ve already seen delinquencies and defaults rising from borrowers in other plans.”

After Pandemic Relief, Defaults Are on the Rise

Defaults have risen above the high set before the COVID-19 pandemic.

When federal student loan payments were paused in March 2020 to provide economic relief, about 8.6 million borrowers were in default. That number dwindled during the break. When payments restarted in 2023, the Biden administration created an “on-ramp” to help borrowers ease back in, essentially delaying defaults another year and providing other protections. That on-ramp ended in September 2024.

The extended pause meant that June 2025 was the first month that borrowers might begin defaulting again. At that time, 5.3 million borrowers were in default.

Defaults increased over the past year, and the Education Department reported that 1.3 million borrowers defaulted between January and March of 2026, the most recent data available.

But signs indicate that more are in danger of defaulting. The Trump administration says 3.5 million people have loans that are more than 30 days delinquent, and 1.4 million of those are at risk of defaulting in the next six months.

Missed payments can severely impact your finances. The government considers your loan delinquent after one missed payment, but it doesn’t notify the national credit bureaus until you’ve been delinquent for 90 days. At that point, your credit score can be damaged.

Defaults can result in even more serious consequences, with the government potentially garnishing your wages or withholding your tax refunds or Social Security benefits. The Trump administration indicated in December that it these involuntary collection methods, although it has held off for now.

[Read: ]

SAVE Default Wave Could Come in Summer of 2027

SAVE borrowers and start monthly payments again after a federal judge approved a settlement that effectively ended SAVE. SAVE was one of a handful of repayment plans that tie payment amounts to income, and it offered the most generous terms for most borrowers.

People on the plan began receiving notices earlier this month, informing them that they have 90 days to choose a new plan and restart payments. Many borrowers are finding that their new loan bills are likely to be considerably larger than they were on SAVE.

The pandemic pause and court-ordered SAVE forbearance combined to create a set of borrowers who haven’t paid their student loans in years or even have never made a payment. While some may struggle to afford payments, others may simply be difficult for loan servicers to reach. Experts worry that many borrowers have failed to update their addresses and may not even know which servicer they have.

Borrowers who can’t make payments when they start back up this fall would be on pace to default by midsummer of next year.

“Unfortunately, I do think that defaults on federal student loans are likely to rise over the next year or two,” says Glenn Sanger-Hodgson, a consultant at Student Loan Planner. “The truth is, for a variety of reasons, the payments that borrowers are expected to make today are often higher than the payments they were previously making prior to the SAVE forbearance.”

[Read: ]

What to Do If You’re Behind on Student Loan Payments

If you’ve missed student loan payments, there are options that can help you get your loans back in good standing.

Addressing Delinquency

If your loan is past due, act immediately. You are considered delinquent after one month of nonpayment, and federal loans reported 90 days past due will negatively impact your credit score.

Contact your loan servicer right away to resolve the balance or discuss options like temporary forbearance or an income-driven repayment plan. It is much easier to manage loans before they hit the 270-day threshold for default.

Managing Loan Default

If your loan enters default, you have several options.

— Pay the full balance. While not a realistic solution for most borrowers, writing a check for the full outstanding balance is the simplest way to resolve a defaulted loan.

— Rehabilitate the loan. This is a one-time opportunity where you agree to make nine on-time “reasonable” payments based on your income. Completing this program removes the default status. Beginning July 1, 2027, borrowers will have up to two opportunities to rehabilitate a defaulted loan.

— Consolidate the loan. This involves paying off your defaulted loan with a new federal consolidation loan. Note that accrued interest will be added to the new balance, which may increase your future monthly payments. Because it’s considered a new loan, you’ll only be able to choose between the Repayment Assistance Plan and tiered standard repayment plans available to new borrowers as of July 1, 2026.

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One factor, however, receives far less attention: succession risk. Unlike an index fund, whose methodology is publicly disclosed and changes only occasionally, an actively managed fund depends on the judgment of one or more portfolio managers. Those managers may retire, resign for opportunities elsewhere, or, in some cases, pass away.

Large firms such as Fidelity Investments typically prepare for these transitions by appointing co-managers and developing successors over many years, but there is no guarantee that the next manager will match the skill of the previous one, particularly when replacing a long-tenured star. Few examples illustrate this better than the Fidelity Magellan Fund (ticker: ).

During 13-year tenure, the fund generated an extraordinary 29% annualized return. After Lynch retired in 1990, however, the fund cycled through multiple managers, including Morris Smith, who departed after about two years, and Jeffrey Vinik, whose tenure lasted just under four years.

Later, Fidelity Magellan fund managers, particularly Robert Stansky, faced criticism for “closet indexing,” or constructing portfolios that closely resembled benchmarks while continuing to charge active management fees, contributing to years of persistent underperformance.

Succession risk is now becoming relevant for another of Fidelity’s flagships, Fidelity Contrafund (). William Danoff has managed the fund since 1990 and has consistently outperformed, generating an 18.2% annualized return over the trailing 10 years compared with 15.5% for the S&P 500 and 16.4% for the Morningstar Large Growth category.

In April 2025, Fidelity appointed two co-managers ahead of Danoff’s planned retirement at the end of 2026. The transition was significant enough that Morningstar placed the fund’s Medalist rating under review. Morningstar’s Medalist ratings are forward-looking assessments of a fund’s ability to outperform peers or its benchmark, and a leadership change can materially affect that evaluation.

For buy-and-hold investors who prefer to avoid manager-specific uncertainty altogether, low-cost passive index funds remain the more predictable and consistent long-term choices.

“While it truly depends on each individual investor’s specific goals and objectives, I typically advocate for index funds in the accumulation phase, as these give great broad-market exposure with lower fees than actively managed funds,” says Wes Moss, managing partner and chief investment strategist at Capital Investment Advisors.

Here are seven of the best Fidelity mutual funds to buy today:

Fidelity 500 Index Fund ()

Fidelity has offered an since 1988, with the FXAIX share class launching in 2011. Today, it is one of the least expensive ways to track the index, charging a 0.015% expense ratio. On a $10,000 investment, that works out to just $1.50 per year in fees. The fund is also available with no transaction fees or minimum investment on Fidelity’s brokerage platform.

Beyond its low cost, FXAIX has delivered a difficult-to-beat 10-year annualized total return of 15.5%. It is also highly tax efficient because the S&P 500 itself experiences relatively little turnover, around 2% annually. That minimizes capital gains distributions compared with many actively managed funds. For long-term investors, low costs and tax efficiency can help compound returns over time.

Fidelity Total Market Index Fund ()

The S&P 500 intentionally focuses on large-cap companies that meet size, liquidity and profitability requirements, followed by a committee’s subjective review before inclusion. Investors seeking more complete exposure to the U.S. stock market may prefer FSKAX, which tracks the Dow Jones U.S. Total Stock Market Index. The fund charges the same 0.015% expense ratio as FXAIX.

FSKAX holds more than 3,700 stocks, providing exposure to thousands of mid- and small-cap companies alongside the familiar large caps. Even so, its sector allocations remain similar to the S&P 500, with technology representing the largest weighting, and many of its top holdings overlap with FXAIX. Tax efficiency also remains excellent thanks to the benchmark’s roughly 2% turnover rate.

Fidelity Extended Market Index Fund ()

Investors with sizable, unrealized gains in FXAIX may be reluctant to sell and switch into a total market fund. If the goal is broader diversification instead, pairing FXAIX with FSMAX can provide exposure to the parts of the U.S. market missing from the S&P 500. The fund tracks the Dow Jones U.S. Completion Total Stock Market Index, which mostly consists of mid- and small-cap companies excluded from the S&P 500.

One notable inclusion is FSMAX’s largest holding, Space Exploration Technologies Corp. (). SpaceX is currently not included in the S&P 500 because it does not satisfy the index’s eligibility requirements. That makes FSMAX a useful complement rather than a replacement for FXAIX. Combined, the two funds can approximate total U.S. market exposure. FSMAX charges a 0.035% expense ratio.

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Fidelity Mid Cap Index Fund ()

Some investors prefer to slice and dice their U.S. equity allocation. In addition to overweighting sectors such as or , or styles such as value or growth, investors can also tilt their portfolio toward specific company sizes. FSMDX provides targeted exposure to the middle of the market, tracking the Russell Midcap Index with a portfolio of 800 companies underrepresented in or missing from FXAIX.

Mid-cap stocks can occupy a sweet spot between growth and stability. Many have already moved beyond the higher-risk small-cap stage but still have meaningful room to expand before reaching the maturity of large-cap companies. The trade-off is slightly lower tax efficiency, as the Russell Midcap Index has an annual turnover rate of roughly 12% due to companies moving between market-cap tiers.

Fidelity Small Cap Index Fund ()

Investors looking to focus on the smallest publicly traded U.S. companies may find FSSNX appealing. The fund tracks the Russell 2000 Index, one of the most widely followed benchmarks for U.S. small-cap stocks, providing diversified exposure across approximately 2,000 companies. have historically offered higher long-term return potential, but investors should expect greater volatility.

FSSNX also has a much higher turnover rate, around 20%, as companies frequently graduate into the mid-cap universe. In addition, many small-cap companies are not yet consistently profitable, making the fund less suitable for investors seeking a strong emphasis on quality. Thanks to the extra income from securities lending, FSSNX has actually managed to beat the Russell 2000 Index slightly.

Fidelity International Index Fund ()

Home country bias is common among U.S. investors. It refers to the tendency to overweight domestic stocks relative to their actual share of the global market, often because of familiarity, tax efficiency and the strong performance of U.S. equities over the past decade. Even so, most investment professionals recommend maintaining some international exposure, and FSPSX provides one way to do that.

FSPSX tracks the MSCI EAFE Index, which represents developed markets in Europe, Australasia and the Far East. Its portfolio includes countries such as Japan, the United Kingdom, the Netherlands, France, Germany, Denmark, Switzerland and Australia. Compared to FXAIX’s technology-heavy tilt, FSPSX emphasizes the financial and industrial sectors more. The fund charges a low 0.035% expense ratio.

Fidelity Emerging Markets Index Fund ()

International investing is not limited to developed economies. Sitting opposite are , which represent countries that are still developing their financial markets and economies. Investing in emerging markets can offer faster long-term growth potential but also higher volatility, political risk and currency risk. Examples include Brazil, India, China and, depending on the index provider, South Korea.

FPADX complements FSPSX by providing exposure to over 1,200 emerging market equities, which include direct stocks and American depositary receipts. Rather than fully replicating its benchmark, the fund uses representative sampling to hold a subset of securities that closely matches the index. This is done to reduce trading costs and avoid less-liquid stocks. FPADX charges a 0.075% expense ratio.

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However, there are a handful of hidden gems that offer frugal investors a rare combination of affordability and strong fundamental performance. These investments come with all the perks of stocks trading for hundreds of dollars a share, but they won’t cost you an arm and a leg. And at under $10, these stocks have major upside potential. Bank of America analysts have sifted through the market to identify eight high-quality, low-priced stocks under $10.

*Based on July 24 closing price and Bank of America analysts’ price targets.

Itau Unibanco Holding SA ()

Itau Unibanco is a top Brazilian bank and financial services provider that accounts for a leading share of Brazil’s commercial foreign exchange market. The bank also provides financial products and services throughout Latin America, such as asset management, investment banking and insurance. Analyst Mario Pierry says Itau is facing a difficult environment in Brazil that has included slowing revenue growth and normalization of asset quality. However, Pierry says the bank has de-risked its loan book, improved its efficiency ratio and maintained a solid balance sheet. Bank of America has a “buy” rating and $10 price target for ITUB stock, which closed at $8.28 on July 24.

Banco Bradesco SA ()

Banco Bradesco is Brazil’s leading private-sector bank in several key segments, including insurance, leasing, private pension funds and asset management. In April, Bradesco successfully completed the merger of its healthcare assets with Odontoprev and executed a reverse for the new entity, BradSaude SA (SAUD3.SA). Pierry says deferred tax asset consumption, efficiency improvements and a better macroeconomic environment will help further improve Bradesco’s return on equity. The company aims to reach a 40% efficiency ratio in 2028. Bank of America has a “buy” rating and $5.20 price target for BBD stock, which closed at $3.60 on July 24.

Companhia de Saneamento Basico do Estado de Sao Paulo ()

Sabesp is a Brazilian water and sewage utility company that provides water supply and sanitation services. The company’s business involves all parts of the water lifecycle, including water planning, processing and infrastructure, as well as sewage collection, treatment and disposal. Analyst Gustavo Faria says Sabesp’s stock is attractively valued, trading at a 2026 estimated enterprise value to regulated asset base ratio of just 1.3. In addition, Faria says Sabesp is a more reliable, safer investment than Brazilian power company stocks. Bank of America has a “buy” rating and $7 price target for SBS stock, which closed at $5.61 on July 24.

Blue Owl Capital Inc. ()

Blue Owl Capital is an management firm that provides attractive financing and capital solutions to investment management firms and their portfolio companies. It manages several business development companies, including Blue Owl Capital Corp., Blue Owl Technology Income Corp. and Blue Owl Capital Corp. II. Analyst Craig Siegenthaler says Blue Owl’s fundraising is currently transitioning through a temporary lull period and sponsor activity has been muted. However, Siegenthaler says Blue Owl’s stock is significantly undervalued based on his 2028 earnings estimates. Bank of America has a “buy” rating and $17 price target for OWL stock, which closed at $9.45 on July 24.

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Grab Holdings Ltd. ()

Grab is a leading super-app in Southeast Asia, providing services such as deliveries, mobility and digital financial services to millions of customers in Singapore, Malaysia, Indonesia, Thailand, Vietnam, the Philippines, Cambodia and Myanmar. The Grab app connects millions of users, drivers and merchants, and the company generates revenue via commissions on transactions. Analyst Sachin Salgaonkar says Grab’s priority is profitable growth in both its deliveries and mobility businesses. He says the company’s super-app status creates opportunities for cross-selling, total addressable market expansion and flywheel-driven growth. Bank of America has a “buy” rating and $5.20 price target for GRAB stock, which closed at $3.31 on July 24.

Full Truck Alliance Co. Ltd. ()

Full Truck Alliance is a leading digital freight platform in China that facilitates shipments by connecting shippers with truckers. The company generates profits from freight matching businesses, including the spreads on its freight brokerage services, transaction service fees and subscription membership fees for freight listings. Analyst Fan Tso says Full Truck Alliance is positioned for accelerating earnings growth and projects roughly 20% compound annual net income growth through 2028. Tso says the company’s strong growth and attractive valuation make it an excellent investment opportunity. Bank of America has a “buy” rating and $11.30 price target for YMM stock, which closed at $9.21 on July 24.

Gerdau SA ()

Gerdau is a Brazilian steel producer that specializes in long steel products and operates throughout the Americas. The company also runs a major scrap metal recycling operation. Analyst Caio Ribeiro says steel producer earnings in the second quarter of 2026 and beyond will reflect stronger volumes, higher commodity prices and elevated profitability in North America, and he expects Gerdau to be a standout within the group. Ribeiro says Gerdau is reporting impressive results across all its divisions, a trend which he expects to continue. Bank of America has a “buy” rating and $5.50 price target for GGB stock, which closed at $4.81 on July 24.

Ultrapar Participacoes SA ()

Ultrapar Participacoes is a leading Brazilian energy, mobility and logistics infrastructure conglomerate. The company’s major subsidiaries include its Ipiranga fuel station network, its Ultragaz liquefied petroleum gas distributor and its Ultracargo independent liquid bulk storage provider. Analyst Leonardo Marcondes says a healthier Brazilian fuel distribution environment coupled with higher near-term margins will lead to improved cash generation for Ultrapar in 2026. He is bullish on Ultrapar’s deleveraged balance sheet and strong operating performance and says the company has the flexibility to prioritize shareholder returns. Bank of America has a “buy” rating and $7.40 price target for UGP stock, which closed at $6.43 on July 24.

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“Much of the pressure over the last year has revolved around headlines related to liquidity and redemption limits at some non-traded funds, a few idiosyncratic credit events like First Brands and Tricolor (bankruptcies) and uncertainty about how AI may disrupt certain software borrowers,” says Coulter Regal, product manager at VanEck, which manages the VanEck BDC Income ETF (ticker: ). He adds that lower interest rates have also weighed on the group because BDC loans are predominantly floating-rate.

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Still, Regal says those concerns have affected sentiment more than fundamentals in many cases, with credit quality across most BDCs holding up reasonably well. “The income case also remains compelling,” he says, “with many BDCs yielding double digits, an attractive level relative to other areas of the income market today.”

Publicly traded BDCs are also trading at discounts to , which Regal says may mean “much of the fear around private credit is already priced in.”

What Is a Business Development Company?

Business development companies invest in or lend to small and midsize businesses that may not have access to the same capital markets as larger corporations. Because these borrowers can be riskier, BDCs can often charge higher interest rates. Many BDC loans are floating-rate, which can generate more income when rates are higher but become a headwind when rates fall.

BDCs are diversified across many companies, but diversification only goes so far if credit quality deteriorates. The primary risk with BDCs is poor credit underwriting, says David Miyazaki, who focuses on BDCs as a portfolio manager at Confluence Investment Management.

“Rising or high levels of credit problems in loan portfolios are yellow and red flags, as they can lead to declining net asset value, lower income and ultimately, lower dividends,” he says.

Higher-quality BDCs tend to have strong management teams, disciplined underwriting and better portfolio construction, Regal says. He adds they often have “lower nonaccrual rates, dividends well covered by net investment income and a history of relatively stable NAVs across cycles.”

More vulnerable BDCs may have rising nonaccruals, heavy concentration in one sector or borrower, and distributions that look stretched relative to what the portfolio is earning, he says.

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Advantages and Risks of BDCs

The main benefit of BDCs is income. Like , BDCs generally must pay 90% of taxable income to shareholders. This is one reason their dividend yields are often much higher than traditional dividend stocks.

However, those distributions are treated as ordinary income, not , which can reduce the after-tax yield in taxable accounts. BDC exchange-traded funds can also have confusing fund fees and expenses from the underlying BDCs they hold, so investors should look at total return, not yield alone.

With that in mind, here are some of the top BDC stocks and ETFs to buy:

*30-day SEC yield is reported for these funds.

Ares Capital Corp. ()

Ares Capital is the obvious starting point for a BDC income list because it’s the largest publicly traded BDC by market capitalization. Size is king in a sector where access to capital and portfolio selection can separate durable income from yield traps.

In the first quarter of 2026, the company’s was valued at $29.5 billion. It also had net investment income of 55 cents per share, which comfortably covers its 48-cent second-quarter dividend. This, combined with over $13.6 billion in market cap and a 10.2% forward yield, makes ARCC an intriguing option.

Main Street Capital Corp. ()

Main Street Capital is the polished overachiever of this BDC group. It offers a lower yield than some of its competitors, but it pays a monthly dividend and offers exposure to lower-middle-market companies where it can provide customized debt and equity capital.

The company declared a 26.5-cent-per-share dividend for July, August and September 2026 after paying a 30-cent supplemental dividend in June. Even better is that the preliminary second-quarter results point to another NAV increase, marking its 16th consecutive quarterly increase. So MAIN stock is less about chasing the highest yield and more about .

Blackstone Secured Lending Fund ()

Blackstone gives investors the opportunity to own BDCs with the backing of one of the world’s largest alternative asset managers. It invests primarily in first-lien senior secured debt. This type of debt is usually the highest priority for a firm and paid back first.

The company kicked off 2026 with a strong quarter, despite market volatility. Its net investment income for the quarter fully covered its 77-cent-per-share dividend. Nonaccruals — loans that have not been repaid in 90 days — did rise for the quarter, so it’s not risk-free. But its combination of income, scale and senior-secured credit does differentiate it from more growth-oriented or equity-heavy BDCs.

Hercules Capital Inc. ()

Hercules Capital focuses on venture, growth and established companies backed by venture capital and private equity firms in technology and life sciences. This gives it a more distinctive angle, but also a different risk profile since venture loans can have a higher risk of default and tech-related companies tend to be more volatile.

The company’s latest numbers were strong, though. In the first quarter of 2026, Hercules reported total investment income of $141.5 million, an 18.4% increase year over year, and net investment income of 48 cents per share, which covered its base cash distribution by 120%. It also increased its assets under management by nearly 22% year over year to $6.1 billion.

FT Confluence BDC & Specialty Finance Income ETF ()

FBDC takes an active management approach to BDC investing. It invests at least 80% of assets in BDCs and other specialty finance companies selected by the fund’s subadvisor, Confluence Investment Management. Having can be beneficial in an asset class where quality can vary widely, as it does with BDCs.

FBDC focuses on companies “led by management teams with long track records of success through multiple market cycles,” Miyazaki says. It has a large allocation to internally managed BDCs, which the managers believe have offered compelling risk-adjusted returns versus externally managed peers.

FBDC also makes a monthly payout, giving investors more frequent income than some other BDC ETFs. But this is paired with a 0.95% management fee, the highest on this list.

VanEck BDC Income ETF ()

is a good idea when investing in any asset class, and BDC stocks are no exception. For BDC diversification, BIZD is a top choice. It tracks the MVISUS Business Development Companies Index, which in turn tracks the largest and most liquid BDC companies trading in the U.S.

BIZD holds 36 of these BDCs currently, with Ares Capital the largest component of the portfolio at nearly 15% of assets. You’ll also find Main Street Capital, Blackstone and Hercules Capital in the top five holdings. This makes it a solid alternative if you were already considering those stocks for your portfolio or having trouble choosing between them.

And don’t let the 9.69% expense ratio reported on many fund pages scare you; this includes acquired fund fees and expenses from the BDCs it holds. The actual management fee is only 0.4% plus 0.02% in other fees.

Virtus Private Credit Strategy ETF ()

VPC is the most diversified approach on this list, but it’s not a pure BDC ETF. Instead, it tracks the Indxx Private Credit Index, which includes U.S.-listed BDCs as well as non-BDC with significant private credit exposure. VPC has nearly 60 holdings with the top 10 representing just under one-third of its assets. It also has a 0.75% management fee, but the 30-day SEC yield is 14.9%.

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Before you surrender your weekend in bed the name of self-care, here is what health experts say about bed rotting and the alternatives they suggest that are more likely to leave you feeling refreshed come Monday morning.

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What Is Bed Rotting?

Bed rotting is a term that was born on social media that describes staying in bed for extended periods of time without excess stimulation or activity. Since the term isn’t an official diagnosis, the specifics vary. For some people, bed rotting may only last a few hours, while others talk about bed rotting for a few days. The common thread is that you’re spending that time “off,” describes Dr. Jessi Gold, and chief wellness officer for the University of Tennessee system.

“I think about it as sometimes purposeful, sometimes not, staying in your bed, staying on your couch, staying away from things that are stimulating,” says Gold. “Maybe you’re sleeping, maybe you’re reading, maybe you’re watching TV, but you’re just ‘off.'”

While bed rotting, people often choose to be intentionally unresponsive to the outside world, not picking up phone calls or texting back. Some people describe it as a way to reclaim their time for themselves, rather than needing to be responsive on or social in the outside world.

If you’re bed rotting regularly, it’s worth mentioning to a, so that you can try to determine why and whether there might be for what you’re experiencing.

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Restorative Self-Care or Avoidance? How Bed Rotting Affects Your Mental Health

If a patient talks about bed rotting, Gold says she wants to learn more about that person’s experience by asking questions like:

— How long of a time period are you bed rotting for?

— Do you know why you’re drawn to bed rotting?

— Why does it help?

— How do you feel afterwards?

— Have you tried other methods of coping with what you’re dealing with, and has anything else helped? Why does that activity feel different from bed rotting?

“My personal therapist… used to always say, ‘Was it like restorative or avoidant?’ And I find that to be a really helpful distinction,” says Gold. “Did having the time to shut off help you recover in some way? Did you feel better afterwards? Or were you doing it because you didn’t want to do something else?”

Is your bed-rotting restorative or avoidant?

Some people find bed rotting to be restorative and report having to conquer the week ahead of them after spending time alone.

“Taking a day off or even a weekend from the world and staying in bed can be rejuvenating for some,” says Dr. Andrea Papa-Molter, the chief medical officer at Advantage Behavioral Health in Laurel Springs, New Jersey. “It is a form of self-care for most people and is safe for short periods of time.”

While it’s important to practice self-care and staying in bed all day for multiple days can have negative health consequences.

“It becomes detrimental when someone avoids contact with others. This can cause feelings of isolation,” Papa-Molter says. “Humans are innately social and need interaction with other humans. in turn can cause depressive symptoms and possibly anxiety.”

It can also exacerbate existing feelings of sadness and lethargy. And if you go too long in bed, causing you to miss work, school or other obligations, that could cause you to feel even more stressed. Engaging in fewer activities can also further fuel a cycle of or .

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Bed Rotting vs. Depression

If you find yourself bed rotting for days on end or have no desire to participate in normal daily activities, you may want to talk to a loved one, medical professional or about how you are feeling. These could be signs that you are experiencing a mental health condition and could benefit from some extra support.

“If you have a history of depression, bed rotting can be a warning sign,” explains Gold. “Depression naturally makes you not want to get out of bed. If your brain is ‘off’ for too long and it starts reminding you of times you were depressed — or if it lasts longer than a couple of weeks — it’s time to pay close attention.”

Bed rotting may increase isolation in older adults

Long-term bed rotting may be particularly harmful for older adults, who may be “more vulnerable to the effects of ,” Papa-Molter adds.

“It concerns me if I see an elderly person isolated and staying in bed all day on a regular basis,” she says. It’s crucial to stay active and , as sedentary lifestyles can lead to medical issues especially in the elderly population.

Still, that doesn’t mean you have to be social and productive every day. Rest days don’t have to be harmful if they are used in moderation.

“People who are feeling so emotionally drained that they can’t engage in their usual activities need to see a mental health professional,” Cutler says. He recommends seeking additional support if you find yourself experiencing, not finding usual activities enjoyable or having any thoughts of harming yourself or others.

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Bed Rotting and Physical Health

Staying in bed for too long can have physical health consequences too. As with mental health, people can be more vulnerable to physical health consequences the longer they engage in bed rotting.

Dr. David Cutler, a family medicine physician in Santa Monica, California, says that two worrisome side effects of staying in bed too long (without sleeping) are symptoms of and/or muscle weakness.

Insomnia

If you sleep in a bed every night, your body associates your bed with rest, which can help you get into the habit of sleeping through the night. When you do other activities in bed, however, your body may struggle to make this association and have a harder time at night.

“Spending time in your bed when you’re not sleeping or having sex is known to disturb people’s sleep patterns,” Cutler says. “It can result in sleep disturbances, particularly insomnia where people then get trained to consciously — or perhaps unconsciously — lay in bed and not sleep.”

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Muscle weakness

When people are bedridden for long time periods, they can be at risk for muscle loss or weakness. These risks are particularly high for people who are hospitalized or for other health reasons need to stay in bed, but are less likely to occur if you’re bed rotting for hours to a day.

Truly bedridden patients may experience deconditioning, a decline in physical function of the body as a result of physical inactivity and muscle wasting from not using their muscles.

If you’re bed rotting for several hours to a day, you’re more likely to experience temporary muscle weakness, stiffness,and sore joints from being immobile.

Blood clotting

Being inactive for periods of time, even simply while sitting during a long flight, can increase your , which are a serious medical problem. Blood clots can travel to the heart or brain and lead to , and death.

You can participate in the spirit of bed rotting and reduce your risk for blood clots by standing up every so often and , even if it’s just within your house or room.

Bed Rotting and Personal Hygiene

Some people who engage in bed rotting may refrain from personal hygiene activities, like taking a shower. While this may leave you a little “less fresh,” it’s probably not going to hurt your health, Cutler says.

“We’ve become a very hygiene-conscious society, but there are many places where people only shower once or twice a week — so I don’t think that’s an issue,” Cutler says. “If there are areas of the body that are dirty, you can wipe them off.”

Still, going without showering for extended periods of time can leave you looking and feeling unwell, and refraining from brushing your teeth for too long can be detrimental to your oral health.

7 Rules for Bed Rotting Without Ruining Your Sleep or Mood

People who want to participate in the bed rotting trend may be able to do so with slim to no consequences. Just be sure to follow these tips:

— Set a time limit. Depending on your fatigue level, that could be a few hours to a day.

— Consider any personal medical advice. Has your doctor given you any specific exercise, movement or ? Ask yourself if a bed rot fits in with or goes against their medical advice.

— Check in with your emotions. Ask yourself if isolating in bed is what you need, or if you would benefit from social interactions. This answer may vary from person-to-person, or day-to-day.

— Check in with your mental health. Ask yourself why you are feeling drained. Can staying in bed help you recharge?

— Check in with your physical sensations. Does staying in bed feel good, or is your body in need of some or movement?

— Check in with yourself again after your bed rot. Did this activity leave you feeling recharged? Or do you feel even more anxious or stressed?

— Evaluate your mental health as a whole. Especially if you do not feel recharged, what are you feeling instead? Not feeling hopeful, not finding enjoyment in activities that previously brought you joy and thoughts of harming yourself or others are signs of depression.

Remember, having fatigue after a long day or week is normal, but if it is interfering with your work, social life or other important activities, then it is a good idea to discuss your symptoms with a doctor. It may also be helpful to talk to a who can help you learn new coping skills and get to the root cause of your bed rotting.

How Do I Stop Bed Rotting?

Spending extended periods of time in bed can inadvertently remove the things from our life that we do enjoy and feel energized by. Alternative methods of recharging, including a few , may work better and help you stop spending your time bed rotting.

“When we feel bad, we try to say no to everything. What happens is the things that go are the things we actually like to do,” says Gold. “All the stuff that’s off of our list are the things that give us energy, the things that give us meaning, the things that excite us. And all we’re left with is mandatory stuff.”

So, rather than saying a blanket “no” to everything and spending the entire day in bed, consider these alternatives:

— Reading a book

— Exercising or doing

— Having coffee or going for a walk with a friend

— Being intentional about spending time off of social media

—

But at the end of the day, only you can know what will make you feel better.

“Coping skills aren’t one-size-fits-all. We should treat coping skills more like hobbies,” says Gold. “The one you’ll actually do is the one you should do.”

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“Sometimes this transitional in-between time in the summer before freshman year can be unexpectedly awkward,” says Lindsay Tanne Howe, founder and CEO of LogicPrep, a global college admissions consultancy. “Parents are kind of feeling their children pushing away a little bit. It’s, I think, emblematic of students getting ready to fly the nest and assert their independence. It doesn’t mean that anything’s inherently wrong or bad, but it’s just a natural evolution of this process.”

Here are six ways parents can support their child’s transition from high school to college.

Finish One Chapter at a Time

Some college prep tasks — like packing and filling out forms — can wait until after high school graduation. Soon-to-be college freshmen should focus on enjoying the rest of their experience. That means ending strong academically and participating in end-of-year activities, such as prom and senior field day.

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Set Communication Expectations

Parents shouldn’t make assumptions about the amount of communication — such as how often to check in over the phone or FaceTime — they’ll have with their child in college. That should be discussed ahead of time, as should expectations around campus visits, experts say.

“There can be some variability between what the parents want and need and what the student wants and needs,” says Nina Nabors, vice provost for the Division of Healthcare Access and Quality at , a for-profit online university. “Conversations are important to gauge those expectations and need.”

With parent roles often shifting when their child heads to college, it’s also important to set “guardrails” ahead of time, says Frances Cloud, director of counseling services at in Georgia.

“Talk through what happens when one gets crossed, and be clear about what they will handle in partnership,” she wrote in an email. “I say guardrails rather than boundaries on purpose. A boundary is a line you aren’t supposed to cross. A guardrail assumes you are moving, sometimes fast, and it’s there to keep you on the road when you drift. It gives a student room to make decisions and even a few mistakes without the relationship treating every misstep as a violation.”

Have Conversations About College Life

Before , parents should discuss how college is academically and socially different than high school.

For instance, alcohol and drugs are often part of the social scene in college. Parents should have honest conversations with their child about what they may encounter and ways to stay . And if students choose to go out to house parties and other events where drugs or alcohol may be present, they should avoid leaving any beverages unattended and plan ahead on ways to stay in a group and get home.

“Help your child name one or two other trusted adults they can go to,” such as a family friend or relative, says Cloud, who is also a licensed clinical social worker. “It’s not that you aren’t capable. It’s that you are close to it. Some things are hard to bring to the person who loves you the most, and plenty of young people will hold something back not because they do not trust you but because they can’t stand the thought of disappointing you. … Say it out loud before they leave: ‘If there is something you can’t bring to me yet, I want you to have somewhere else to take it.'”

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Cloud adds that families can create a document for students to reference that lists important health and safety details, such as emergency contacts, allergies and insurance information. “It’s much easier to build that in July than to hunt for it in October.”

Experts also advise parents to discuss academic performance and the challenges of college classes.

“In a high school system, the district can look at how students are performing and build in support so everyone reaches certain milestones,” Cloud says. “In college, faculty generally assume you are already at a certain baseline. If you are not, it falls to the student to go find the resources that will help.”

Encourage Self-Advocacy and Independence

Unlike in K-12, college students have to self-advocate and learn to solve challenges that arise, such as , inability to register for a certain class or conflict with a . Developing those problem-solving skills is necessary for success in college and post-graduation life.

Students should also learn and practice essential life skills before getting to college, experts say.

“Run over the basics of laundry and cleaning, how to read insurance cards and schedule medical appointments, change bike and car tires, how to manage a budget, navigate banking, where and when to grocery shop, how to boil an egg, etc.,” Oliver Anderson, assistant vice president for student affairs and dean of students at in Utah, wrote in an email.

Allow Mistakes to Happen

Mistakes are inevitable, including in college. College students may miss an assignment or oversleep for class, for instance. But students can’t learn from those mistakes unless they take responsibility and accept any potential consequences, experts say.

“Give your student space,” Audrey Clare, director of student success at Westminster, wrote in an email. “Let them fail. Encourage them to seek resources on campus to help them fix their mistake.”

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Promote Campus Involvement

To help with the adjustment, parents can encourage their child to join , volunteer or attend events on campus, experts say.

“Take a look online and see what cocurricular opportunities there are for the student to get involved,” Anderson says. “Use this information to prompt your student or drop hints at finding activities they might get involved in. This will help them connect with other students who are looking for new friendships and meaningful relationships.”

Acknowledge Feelings of Homesickness

is a common feeling among college students, so communicating that is key, experts say.

“In the world today where everyone’s putting the highlight reel of their first semester on social media, it’s really easy to feel like something’s wrong with me or something’s wrong with my college experience,” Howe says.

“Acknowledging that inner life may not match what kind of projections they’re seeing on social media is really helpful. It’s not unusual to get a call from a student (early on) saying they’re convinced they’ve chosen the wrong university and they want to transfer. Listen, take it seriously, but don’t jump in to solve the issue immediately.”

Searching for a college? Get our of Best Colleges.

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That said, you don’t have to fly blind. A lot can be learned from visiting a school, from the specifics of a school’s offerings to intangibles like its culture and environment.

When to Schedule a Law School Visit

The timing of a visit depends on where you are in the process.

As you begin to decide to law school, summer visits to law schools may elucidate what makes each school unique and what factors matter most to you.

During a fall visit, you may be able to attend classes and speak with students for a first-hand perspective on the law school experience.

If you have already applied, a winter or spring tour can help you decide among the schools you’ve been admitted to, especially when their cost of attendance differs.

In late spring or early summer, visiting law schools that have placed you on the waitlist can inform your and help you decide how aggressively to pursue admittance.

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Why Visit Law Schools?

Visiting a law school helps in a few ways.

First, it shows interest. Admissions offices track visits and attendance at events, although they tend to care less about demonstrated interest than their undergraduate counterparts.

Of course, admissions officers understand that applicants are busy and may be unable to visit in person. This is why they host online and in-person events off campus, as well.

Second, visiting a law school can help you understand what draws you to a specific school, from its campus culture to its , programs and student activities.

These details can help you sincerely articulate your interest in a school in your or in an after submitting your application.

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Third, you may be able to meet with students or admissions officers who can provide valuable insights. Do your research ahead of time and be prepared to . Making a positive and professional impression can help you build relationships that distinguish you from other applicants.

Finally, if you have already been accepted to a law school, you may be able to schedule an in-person meeting to discuss financing options or request a reconsideration of merit-based . Sometimes it can be easier to talk through your financial pressures and the tough choices you face.

Should You Tour Every Law School You Apply To?

If you have wisely applied to a of law schools, it would be exhausting and expensive to tour each one.

If touring is impractical, you can glean plenty of information about a law school by , researching its public information on , attending virtual information sessions and law school forums, and and graduates.

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What to Look Out For

Whether you are a prospective applicant or an accepted applicant, visiting a law school can give you an incomparable feel for a place. Law school matters — for your career, your social life and your mental health.

Where you attend law school may change the course of your life. Visiting can give you a sense of the campus, the surrounding community and even the climate and local culture.

Campus tours and information sessions can be one-sided, so pay attention to other signs. Check out the libraries and facilities. Stroll around the neighborhood. Browse bulletin boards and posted activities. If school is in session, observe how students interact.

Does the school feel ? Is it integrated into a larger university or on its own? Does it seem like there’s an active life on campus, or is it more a commuter school?

Do students seem excited about their ? Are people friendly or more reserved?

Most importantly, how does it feel when you picture yourself there?

The three years it takes to earn a is a long time. Finding a place where you feel like you fit in will help you avoid the risk of when the going gets tough. It’s worth investing the time to find a law school community that makes you feel comfortable.

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Deferment and forbearance can suspend or reduce payments during a hardship, whereas income-driven repayment adjusts student loan payments to make them more manageable long-term.

“Pausing payments should be used as a bridge, not a permanent strategy,” says Anthony Sozzo, New York Medical College director of student financial planning and student activities.

When Pausing Student Loan Payments Makes Sense

A student loan payment pause can be helpful when you have a temporary financial setback, so you don’t fall behind on necessities like housing, utilities, transportation and food. This temporary setback could be a job loss, medical bill, emergency repair or another issue that you expect to resolve within a few months.

If your budget is consistently short, or you’re charging necessities to credit cards so you can make loan payments, a payment pause won’t fix the problem. Your student loan payment would still be unaffordable after the pause, so taking a break from payments would only be helpful for a short while.

“A useful way to assess the situation is to ask whether the budget would recover within a few pay cycles without relying on additional borrowing,” says Bob McKay, president and certified credit union executive at Together Credit Union. “If not, a long-term adjustment is likely more appropriate.”

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Understanding Deferment, Forbearance and Income-Driven Repayment

Deferment, forbearance and can all change your student loan payment, but deferment and forbearance are temporary, while income-driven repayment is a long-term change.

Deferment and forbearance are intended to help student loan borrowers facing hardship, giving them time to resolve financial challenges and get back to making regular payments. Getting a student loan deferment postpones federal student loan payments, though interest generally accrues on unsubsidized loans and borrowers don’t make progress toward student loan forgiveness during a deferment.

Forbearance may be used to pause or reduce payments when a borrower doesn’t qualify for deferment, and interest accrues during the pause.

“If you are going through a financial pitfall, forbearance and deferment are often your best options, but keep in mind that interest on the loans is likely to continue accruing during the pause,” says Leslie H. Tayne, finance and debt expert and founder of Tayne Law Group.

She recommends thinking of income-driven repayment as a long-term solution more than a quick fix. Income-driven repayment adjusts your student loan monthly payments based on your income and household size. It can be useful when you’ve struggled with student loan payments for months and don’t expect them to get any easier.

What a Student Loan Payment Pause Costs

Pausing student loan payments with deferment or forbearance can get you through a financial challenge, but they aren’t without drawbacks.

“Before postponing payments, borrowers should ask three questions,” says Sozzo. “Will interest accrue? Will this month count toward forgiveness? What will my payment look like when the pause ends?”

Consider these tradeoffs:

— Forbearance and most deferments don’t stop interest charges, so interest adds to your balance even when payments are paused.

— When the pause ends, your original payment comes back, which may still be unaffordable.

— The months spent in deferment or forbearance typically don’t count toward income-driven forgiveness or Public Service Loan Forgiveness.

An approved deferment or forbearance arranged with the student loan servicer shouldn’t hurt your credit, but missed payments can. If you skip payments before approval, those are missed payments. Generally, federal servicers report delinquency after a loan is 90 days past due.

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When a Lower Payment Beats a Pause

If you can’t afford the current amount long-term, changing your payment amount is likely a smarter move.

“If a borrower can afford something, income-driven repayment is often better than pausing payments because it can help them stay on track, limit interest growth and continue progress toward forgiveness,” says Sozzo.

Your payment fluctuates with your income under income-driven repayment, which may make it more manageable. Making qualifying payments allows you to continue making progress toward income-driven repayment forgiveness or .

Act Before You Miss a Payment

Don’t wait until you’ve missed a student loan payment to contact your servicer. Ask about income-driven repayment, deferment and forbearance and find out how each would affect interest, repayment and forgiveness progress.

Reaching out at the first sign of trouble may give you options you weren’t aware of, says Tayne. “The earlier you reach out, the more flexible the lender can be,” she says.

Tayne recommends continuing to make payments so a missed payment doesn’t affect your credit score, and says to avoid using credit cards or applying for a payday loan to make up the difference. “These high-interest options will likely trap you in a cycle of debt,” she warns.

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While some of its student loan program features are similar to other lenders, there are three key perks that set it apart from competitors.

Customizable Loan Terms

College Ave lets borrowers select the loan term that works best for them: either five, eight, 10 or 15 years. This allows for more flexibility in repayment and loan configuration than some competitors. Shorter terms help students keep their borrowing costs lower, while longer terms keep monthly payments more manageable.

A Scholarship Program

College Ave offers a no-essay scholarship worth $5,000 that anyone can enter, even if you don’t apply for one of its student loans. There is also a $1,000 sweepstakes that is open to U.S. citizens or permanent residents of the 50 states and D.C. Anyone can submit an entry for the scholarship or sweepstakes by sharing their contact information and the school they attend (or will attend). The winners are chosen by random drawing and the prize can be used toward school expenses.

Low Minimum Loan Amount

If you just need a small loan to help bridge the gap between federal loans and your own contributions, College Ave offers loans for as little as $1,000. This is a lower minimum loan amount than some lenders allow, which can be helpful for students who aren’t looking to finance an entire year of school.

Other Things to Know About College Ave

College Ave student loans have other features worth noting, even if they aren’t particularly unique. Borrowers are able to prequalify to see potential rates before they fully apply. Because this is a soft inquiry, it allows you to get an idea if you will be approved and a potential rate you might receive without any impact on your credit score.

College Ave also gives a 0.25 percentage point interest rate reduction when paying via autopay. Signing up in advance to have your student loan minimum payment come out of your bank account automatically not only prevents you from paying late, but it lowers your overall borrowing loan cost.

Where the lender falls short is there isn’t much transparency on its website regarding credit requirements for borrowers or cosigners. However, College Ave does note that most applicants will need a cosigner in order to get approved or qualify for the best loan rates.

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But I’ve got your back! Up ahead, we’ll cover everything you need to know so you can decide what the best option is for you.

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How to Make a Car Payment With a Credit Card

There are several ways to pay with a credit card, even if your lender doesn’t accept cards directly. Let’s take a look at each one.

Rewards Credit Cards

According to , in the first quarter of 2026, Americans were paying an average of $770 a month for a new car. For used cars, the average loan payment was $531 per month.

Rates for car loans have decreased slightly since last year, but your auto loan may still have high monthly payments. I know that makes it tempting to use a to earn all those perks. But before you start packing for Bora Bora, you should know that most lenders won’t allow a direct credit card payment on an auto loan. And even if they did, there would likely be a convenience fee.

This fee is a surcharge that a lender makes you pay for the convenience of using a credit card. The fee typically costs 2% to 3%.

You really don’t want to pay more for your car than you already are, right? But if your car dealer accepts credit cards, there’s another option to try.

Credit Card With a 0% Introductory Purchase APR

You could bypass the loan process altogether and buy a car with a . This approach allows you to make interest-free payments using your credit card. These cards have introductory periods that range from about 12 to 21 months. But you’ll need a high enough credit limit to cover the cost of a car, plus you have to find a dealer who will accept a credit card as payment for the entire price.

If you think you can pay off the loan in that time frame and you have very good credit, it’s something to consider. But again, convenience fees might pop up.

Warning: If you miss a payment, you could lose the 0% APR. The regular rate will be much higher, so this isn’t recommended unless you’re on top of your payments.

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Balance Transfer Credit Card

It’s also possible to transfer your car loan to a . Let’s say you have a $10,000 auto loan. If you have and can qualify for a balance transfer credit card, you could transfer the loan amount to a credit card.

Balance transfer credit cards offer a 0% introductory APR for a period of time, usually 12 to 21 months or so. So, this is another opportunity to make interest-free payments using your credit card. But on the downside, you might have to pay a balance transfer fee of 3% to 5%.

Cash Advance

Of all the ways to make a car payment using a credit card, this option is one of the worst. Here’s why: You often have no grace period, so your card issuer begins charging interest right away. And you’re not paying interest at your purchase APR. No, it’s at a much higher APR. Some cash advance APRs can be 25% or more.

Aside from a high APR, there’s also a 3% to 5% cash advance transaction fee. As you can see, this is a costly way to make an auto loan payment.

Money Transfers

Technically, this is an option, but there are downsides. Companies that offer this service, such as Western Union, have relationships with participating businesses. So you could fund your payment with a credit card via Western Union or a similar business.

The reason to avoid this? It could be treated as a cash advance by your credit card issuer. If this is the case, then you’re looking at transaction fees and a high APR on the amount transferred.

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Pros of Making a Car Payment With a Credit Card

If you have a high credit score and on your credit cards, you might be able to use a credit card for payment and limit damage to your credit score.

Also on the positive side, if you use a credit card that has a 0% introductory APR, you can pay off your debt without paying interest. You have to factor in transfer fees, but the interest savings could make it worthwhile. There’s also the chance of a large amount of rewards you could earn if you use the right rewards credit card.

But before you make the leap, be sure you understand the downsides because there are quite a few to keep in mind.

Cons of Making a Car Payment With a Credit Card

I’ve already mentioned convenience fees, but there are two more downsides to consider before making your auto loan payment with a credit card.

— Potential for getting into debt. If you’ve transferred your loan to a balance transfer credit card, your goal is to pay the debt off before the introductory 0% APR ends. Life is unpredictable, so if you experience a financial crisis, such as losing your job, you might have trouble making the monthly payment you need to finish paying off the balance by the end of the intro period. If you don’t, the remaining balance will be subject to your account’s standard APR. And if you miss making minimum payments, you could lose your 0% rate and end up paying compound interest at a much higher APR on your balance.

— Possible drop in credit score. You have a , which is the amount of credit you’ve used compared with the amount you have available. When your credit card balance exceeds 30% of your credit card limit, your score usually goes down. If you’re willing to survive the temporary drop, that’s fine. Just make sure you won’t need to apply for credit in the near future. Wait until your credit score improves so you won’t get hit with high interest rates on new credit.

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For example, if you have a bacterial infection, you need to take antibiotics. If health care providers need to determine whether you have a broken bone, you’ll need to have an .

Some procedures, medications and services may be more ambiguous, as medical conditions are often complex and have multiple possible treatment plans. In those cases, you’ll want to talk with your provider about getting from your insurance company so that you can be sure your medical treatment is covered.

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What Counts as “Medically Necessary” Under Medicare?

You may hear use the term “medical necessity” when talking about services covered by your plan.

“(Medical necessity) refers to care that is reasonable, appropriate and essential for your health,” says Dr. Saamer Siddiqi, a Chicago-based board-certified internal medicine hospitalist and founder and CEO of LIVEMED, a company that supports rural and community hospitals. “It’s the kind of treatment a doctor determines is needed to diagnose, treat or prevent a serious condition, rather than something done for convenience, preference or cosmetic reasons.”

For the most part, clinics, hospitals and physician groups follow treatment protocols that are in line with broadly accepted standards of medical care. “For example, prescribing statins for someone with high cholesterol will generally meet the standard of medical necessity, so will X-rays to determine if a bone is broken or surgery for repair of a ,” says Whitney Stidom, vice president of consumer enablement at eHealth, an online health insurance marketplace..

Yet whether a procedure is medically necessary also may depend on the standard of practice for health care practices in your area, as well as any state laws governing medical necessity.

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The High Cost of a Medical Necessity Claim Denial

If you have or private health insurance, it’s important to understand the idea of medical necessity, as it can determine what your health care plan will cover or not cover. Each health insurance policy will define medical necessity and their standards and procedures within the policy. How they define medical necessity will impact which procedures they cover.

When you’re part of a health plan like Medicare, medical necessity matters because claims submitted for services that do not meet the criteria of medical necessity are typically denied, meaning the full cost is passed on to the patient.

“No one wants a surprise medical bill, and it can be especially frustrating to seek medical care at a doctor’s recommendation only for the claim to be ,” Stidom says.

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Do You Need a Certificate of Medical Necessity?

Previously, Medicare required a Certificate of Medical Necessity for coverage of certain services or medical equipment and supplies.

“While the form is no longer needed, providers still need to produce orders and provide documentation that the patient meets Medicare’s coverage criteria for the equipment or service,” says Christen Bergeron, founder of the Bedford, New Hampshire-based Navigating Senior Living, which helps families understand care options.

The definition of medical necessity will depend on national coverage decisions regarding Medicare as well as your state laws. Nationally, the Centers for Medicare and Medicaid Services (CMS) uses data and research to make national coverage determinations (NCDs), which determine whether or not a procedure is covered by . When a procedure does not fall under a NCD, it’s up to the Medicare contractors to make a local coverage determination (LCD).

Does medical necessity apply to Medicare Advantage plans?

Medicare Advantage plans can set their own standards for what is medically necessary, but they must cover, at a minimum, the same health services that covers. They may also set their own requirements for prior authorization, which may mean that the plan has to approve your services before you receive them.

What about medical necessity for Medicaid?

Since states are responsible for administering Medicaid, each state has a definition of “medical necessity” outlined for their Medicaid programs. You can find your state’s definition of what is “medically necessary” within the state Medicaid policy if you’re.

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Which Procedures and Medications Are Medically Necessary?

The best way to find out if medical treatments that you need are considered medically necessary is by reading the policy documents, says Barbara Hopkins, a licensed insurance agent and Medicare consultant based in South Portland, Maine. Although they may be hard to follow, they’re an important part of understanding your coverage.

Some examples of care that are typically considered medically necessary include:

— Anesthesia for many types of surgery

— Antibiotics for an infection

— Cardiac rehabilitation

—

— screening to detect breast cancer

— Oxygen when you can’t breathe

— X-rays to determine if you have a broken bone

Procedures and Medications Often Deemed “Not Medically Necessary”

Health services that may not meet the definition of medical necessity and therefore include:

Keep in mind that there are other types of health needs that Medicare Parts A and B do not cover. They may be medically important, but they are covered within different types of Medicare coverage, like Medicare Advantage (also called Part C) plans, Hopkins says. These include:

— for prescription glasses

— and the exams to fit them

—

How to Get Pre-Approved Before Your Procedure

If you’re unsure if a medication, test or treatment is necessary for your health problem, just , “Is this really necessary for me, or is it extra?” or “Should we ask for pre-approval?” Simply asking the question can help you assess if something is valuable for your time and may help you avoid an unexpected bill.

It also can be useful to work with your health provider’s office to determine if is needed for a test, treatment or service. This involves getting prior approval for a medication or treatment to ensure that it will be covered by your plan.

“If there’s any doubt, filing a prior authorization request with the insurer can save them a lot of worry and hassle, and potentially a lot of money, too,” Stidom says.

Each insurance plan, be it for Medicare or non-Medicare plans, will have a prior authorization process. Often, a provider will write a letter to explain a person’s condition and why the specific treatment should be approved. The provider also may send lab results or medical records to further support the care they are recommending.

It may take up to a few weeks to hear if a prior authorization request is approved. Final decisions are made by considering the information in the prior authorization request, the stipulated benefits and coverage of the health insurance plan, and broadly accepted standards of medical practice.

What to Do If Your Medicare Claim Is Denied

If your Medicare claim or prior authorization for a specific medication, service or treatment is , take a deep breath.

“It’s not a horrible, scary thing if you’re denied,” Hopkins says.

A 2025 Health Affairs found that 17% of claims through Medicare Advantage were denied, but 57% of those were ultimately overturned.

“Most people stop too early, but a lot of denials get overturned once the details are laid out,” Siddiqi says. “An appeal gives you a chance to add missing records, provider letters or other evidence that shows why the care is necessary.”

“A strong, well-written letter can open the door where a simple claim might have been turned away,” Siddiqi adds.

Work with your health provider toif a claim is denied. Your provider’s office can give more details in writing about why you need a certain type of treatment and share more background about your medical situation. You can also work with your State Health Insurance Assistance Program (SHIP), which has counselors who will answer questions for free regarding Medicare or Medicare Advantage, Bergeron says.

If you or someone you care for is in need of durable medical equipment, it also can be helpful to work with health providers to find alternatives if a certain item isn’t covered. For instance, Medicare may not cover the cost of a raised toilet seat, but it will cover a bedside commode chair. Plus, if you have Medicare Advantage, it may cover some items that original Medicare won’t pay for.

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Here’s what you need to know about Medicare Part B.

What Is Medicare Part B?

Medicare Part B is the portion of Medicare that helps cover outpatient services and care, such as:

— Visits to the doctor

— Certain

— Lab and services

—

—

—

Together, Medicare , which covers inpatient hospital care, and Part B are known as “original Medicare” or “traditional Medicare.”

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Medicare Part B Eligibility

You are Part B if:

— You are a U.S. citizen or legal permanent resident who has lived in the United States for at least five continuous years.

— You are age 65 and older.

— You are , but you have received Social Security Disability benefits for 24 months.

— You haveor amyotrophic lateral sclerosis, also known as .

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Applying for Medicare Part B

You can Part B when you first become eligible, during what’s known as the initial enrollment period. This period stretches from three months before you turn 65 to the month of your birthday and three months afterward.

You can enroll in Medicare by:

— Applying online through the

— Calling 1-800-772-1213

— Visiting a local Social Security office

If you are already receiving Social Security payments — and are thus eligible for Medicare parts A and B — the government automatically enrolls you prior to your 65th birthday.

If you miss your initial enrollment window, you can sign up for Medicare during the general enrollment period (January 1 to March 31 every year) or during a special enrollment period, if you qualify.

Do you have to enroll in Medicare Part B?

Part B is optional and you can decline it, but most people choose to enroll when first eligible. If you delay signing up and do not have other creditable coverage like insurance through your job, you may face a of 10% for every year without coverage. However, if you do have what Medicare considers creditable coverage, you are eligible for a special enrollment period when that coverage ends and you won’t face late penalties. If you are 65 or older, and not yet drawing Social Security, the key determinant for enrolling in Medicare is the size of your employer. If the company has fewer than 20 employees, you should enroll during the initial enrollment period.

There are two reasons for enrolling, according to Edd Staton, a retirement expert and co-author of the book “Mission: Rescue Your Retirement”:

— Your small group insurer might be able to refuse to pay any portion of claims that Medicare would have paid.

— Whenever you do enroll in Medicare, you will be subject to a lifelong late enrollment penalty on Part B that continues to increase every year you delay.

“Also, if you are contributing to a , you cannot enroll in Medicare because to contribute pretax dollars, you cannot have health insurance other than a high-deductible health plan,” Staton explains.

If you do have employer coverage, you can sign up for Medicare without a penalty after you retire. Once you’re enrolled, keep in mind that you are no longer eligible to contribute to a health savings account.

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Medicare Part B vs. Employer Coverage: 2026 Rule of Thumb

To understand your original Medicare enrollment options, let’s walk through some scenarios.

Part B Out-of-Pocket Costs in 2026

Like most employer-based or healthcare exchange insurance plans, Medicare uses and other out-of-pocket expenses, such as copays and coinsurance, to help cover the cost. These costs fluctuate every year; below are the differences between 2025 and 2026.

How your Part B costs work

The different pieces you’re responsible for vary slightly:

— Premium ($202.90): Most people pay the standard premium, which is typically deducted from your Social Security benefit checks. If you don’t get these benefits, or they’re insufficient, Medicare will bill you.

— Deductible ($283): Under original Medicare, if the Part B deductible applies, you must pay all costs until you meet it.

— Coinsurance (20%): After you meet your deductible, Medicare begins to pay its share, typically 80%. You pay the remaining percentage of the Medicare-approved amount of the service. Keep in mind that there’s no yearly limit on what you pay out-of-pocket if you have original Medicare. To help cover those out-of-pocket costs, many sign up for a Medicare supplement plan, also known as .

Income surcharges (IRMAA) and financial assistance

Your costs may also be lower or higher depending on your income.

— Lower: You may qualify for Medicare-Medicaid or one of the for financial assistance with out-of-pocket costs. Eligibility for financial assistance programs vary by state. “The qualification process is more accessible in some states due to elevated income limits or the absence of asset requirements,” says Mary Johnson, a Medicare policy analyst with the Senior Citizens League.

— Higher: The is an additional surcharge added to your standard premium if your income exceeds certain thresholds. IRMAA is calculated using your modified adjusted gross income from two years prior. For example, your 2024 tax return determines your 2026 premiums, which means Medicare’s calculation may not reflect your current income, often catching beneficiaries by surprise. If you disagree with your IRMAA determination or your income has dropped due to a qualifying life event — retirement, reduced work, divorce or the death of a spouse — you have the right to the surcharge.

2026 IRMAA income tier table

New 2026 Coverage Highlights

Medicare coverage continues to , with changes reflecting a broader shift toward prevention, chronic disease management, strengthened cost control and whole-person care. The higher costs for beneficiaries are due to Medicare’s overall rising expenses, driven by increasing enrollment, longer life expectancy, more chronic conditions, higher and increased use of outpatient care.

Advanced primary care management

is a new Medicare Part?B care model designed to support more proactive, coordinated care for beneficiaries, especially those with chronic . Unlike traditional models that focus on episodic office visits when necessary, under APCM, providers are incentivized to manage a patient’s overall health needs. This approach includes 24/7 access to a care team, chronic care management, a personalized care plan, medication management and care coordination across providers and settings.

With this shift to more personalized, coordinated health management, the goal is to better support beneficiaries’ overall health, manage chronic conditions more effectively, catch minor issues before they escalate and help avoid unnecessary hospital or visits.

Drug price negotiation program

While the lower prices won’t take effect until 2028, this year Medicare is expanding its to include Part B physician-administered drugs for the first time. This initiative will reduce the 20% coinsurance patients typically pay for high-cost infusions and injections, such as Entyvio (for ), Xolair (for respiratory issues) and (for certain chronic medical conditions).

The aim is to make these high-cost drugs more affordable for beneficiaries while also containing overall rising costs and helping to protect the program’s long-term sustainability.

Expanded behavioral health coverage

Medicare is strengthening its coverage by making visits a permanent benefit. The in-person visit requirement, which dictates how often you must see a doctor face-to-face to maintain telehealth coverage, has been waived through 2027 to ensure access for rural and homebound patients with mental healthcare needs.

Proactive prevention is also expanding with $0 group counseling and enhanced annual wellness screenings for , anxiety and cognitive health. Medicare also increased reimbursement for key mental and behavioral health services, helping encourage more providers to accept Medicare patients and improve access to care.

Part B premium increase

In 2026, the standard Medicare Part B premium rose sharply, marking the third consecutive year that premiums have increased faster than Social Security’s cost-of-living adjustment, making affordability a challenge for many on a fixed income.

“Affording healthcare expenses, even with Medicare, is increasingly a struggle for many seniors,” Johnson says.

mandates that Part B premiums cover exactly 25% of the program’s total costs, so any significant increases in medical spending by the program translates directly into higher monthly bills for seniors.

Wasteful and inappropriate service reduction (WISeR) model

For those with original Medicare, the is a new Medicare pilot that requires for certain outpatient services in Part B if you live in Arizona, New Jersey, Ohio, Oklahoma, Texas or Washington. This model combines and clinical oversight to streamline the prior authorization process, with the goal to reduce usage of specific low-value or unnecessary services and lower overall costs and improve patient safety. This won’t change your benefits overall; it just changes how some services are approved. This also does not affect anyone enrolled in a (also known as Medicare Part C).

What Doesn’t Medicare Part B Cover?

Medicare Part B :

— Hospital insurance, which falls under the Medicare Part A coverage umbrella, including:

— Inpatient hospitalization

— stays

— Some home healthcare

—

— Prescription drug coverage, which covers

— , and , which some Medicare Advantage plans cover

— Long-term care

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“Underspending is a quiet but widespread crisis, and it carries a real irony,” said Ronnie Cox, investment director at Human Interest Advisors in San Diego in an email. “People spend their whole lives sacrificing to build freedom, then let fear stop them from enjoying it.”

In many cases, retirees can achieve a balance between and enjoying the retirement years.

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Why Underspending in Retirement Happens

For many retirees, the biggest hurdle is psychological rather than financial.

“Something I’ve observed over the years is that the habits that help people build wealth are usually the same habits that make retirement emotionally challenging,” said Rebekah J. Fero, certified financial planner and founder of Fero Financial in Port Charlotte, Florida, in an email.

Many retirees have spent decades , making thoughtful financial decisions, and consistently saving for the future. By retirement, those behaviors have become second nature. “Then retirement gets here, and suddenly they’re expected to switch form saving to spending,” Fero said.

This pattern of underspending can happen regardless of nest egg size. “Whether they’ve got $1 million or $20 million in their 401(k), most people are hesitant to spend their own money at first,” said Adam Spiegelman, certified financial planner and founder of Spiegelman Wealth Management in Alamo, California, in an email. “There’s a real psychological shift involved in going from getting a paycheck every couple weeks to relying on savings you spent decades accumulating.”

Finding the Right Balance

While retirees shouldn’t overspend, they also don’t want to become so cautious that they miss out on experiences they’ve been looking forward to enjoying for decades. “A balance comes from having a plan that gives you confidence,” Fero said. She recommends understanding where will come from, how taxes fit into the picture and how each investment supports your long-term goals.

Having a can also make it easier to budget for living expenses and experiences. For instance, if travel has always been meaningful to you, consider building an annual vacation fund into your retirement budget. If spending time with family is important, you can account for holiday gatherings or regular reunions.

“On the flip side, overspending is its own real risk, especially somewhere like the Bay Area, where I’ve seen clients with multimillion-dollar properties watch their liquid assets run down,” Spiegelman said. “Selling the primary residence to fund retirement means relocating plus a major tax hit. Either direction, underspending or overspending, comes back to the same fix.” You’ll want to plan, revisit the plan often and build in enough flexibility to adjust as life goes on.

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Give Yourself Permission to Spend

In some cases, it can be helpful to talk through your spending plans so that you can develop a healthy financial mindset. “I’ve had clients tell me at review meetings, after years of saving, that they finally upgraded to first class, bought the car or took the whole family on vacation, and I’m genuinely thrilled for them,” Spiegelman said. “Some literally ask me for ‘permission’ to spend their own money.”

Feeling comfortable about spending can become easier when retirees regularly revisit their financial plan. Evaluating investment performance, expected expenses and long-term goals with a can help you see if spending is within the plan. You can make adjustments as you look ahead and get ready for family events or activities with friends.

“The key is to stop starting with a withdrawal formula and start with the design of the income itself,” Cox said. “You help remove the anxiety by building a predictable income floor.” This can help you see that a certain amount will cover your regular expenses every month.

Don’t Wait Too Long

One of the greatest risks of underspending is waiting so long that you no longer have the stamina or health to enjoy the retirement experience you want to have.

“With clients in their 70s and 80s, the conversation becomes: ‘You’ve won the game,'” Spiegelman said. “At some point you won’t want to fly anywhere. So what’s the money for? It’s going to taxes, your kids, charity or you. We’ve already planned for long-term care and the big what-ifs. But make sure you don’t have regrets.” He suggests looking at your bucket list and talking to a financial advisor about what you’ll be able to accomplish while you’re still active.

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Retirement Spending Should Match Your Goals

If you’ve created a comprehensive retirement plan, accounted for , maintained an emergency fund and still regularly review your finances, you may be able to spend more comfortably than you realize. That could mean taking the dream vacation you’ve postponed for years, replacing aging furniture, upgrading your home or enjoying more dinners out with family and friends.

When you look at your goals, you’ll want to think about priorities and how big of an account balance you want to maintain. You might find that using the money you’ve accumulated in a way that reflects your values and lifestyle preferences allows you to more easily enjoy retirement.

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