retirement

When Nancy Pelosi first ran for Congress, she was one of 14 candidates, the front-runner and a target.

At the time, Pelosi was little known to San Francisco voters. But she was already a fixture in national politics. She was a major Democratic fundraiser, who helped lure the party’s 1984 national convention to her adopted home town. She served as head of California’s Democratic Party and hosted a salon that was a must-stop for any politician passing through.

She was the chosen successor of Rep. Sala Burton, a short-timer who took over the House seat held for decades by her late husband, Philip, and who delivered a personal benediction from her deathbed.

But at age 49, Pelosi had never held public office — she was too busy raising five kids, on top of all that political moving and shaking — and opponents made light of role as hostess. “The party girl for the party,” they dubbed her, a taunt that blared from billboards around town.

She obviously showed them.

Pelosi not only made history, becoming the nation’s first female speaker of the House. She became the party’s spine and its sinew, holding together the Democrat’s many warring factions and standing firm at times the more timorous were prepared to back down.

The Affordable Care Act — President Obama’s signature achievement — would never have passed if Pelosi had not insisted on pressing on when many, including some in the White House, wished to surrender.

She played a significant role in twice helping rescue the country from economic collapse — the first time in 2009 amid the Great Recession, then in 2020 during the shutdown caused by the COVID-19 pandemic — mustering recalcitrant Democrats to ensure House passage.

“She will go down in history as one of the most important speakers,” James Thurber, a congressional expert at Washington’s American University, said. “She knew the rules, she knew the process, she knew the personalities of the key players, and she knew how to work the system.”

Pelosi’s announcement Thursday that she will not seek reelection — at age 85, after 38 years in Congress — came as no surprise. She saw firsthand the ravages that consumed her friend and former neighbor, Dianne Feinstein. (Pelosi’s eldest daughter, Nancy, was a last caretaker for the late senator.)

She was not about to repeat that final, sad act.

Pelosi, who was first elected in 1987, once said she never expected to serve in Congress more than 10 years. She recalled seeing a geriatric House member hobbling on a cane and telling a colleague, “It’s never going to be me. I’m not staying around that long.”

(She never used a cane, but did give up her trademark stiletto heels for a time after suffering a fall last December and undergoing hip replacement surgery.)

Pelosi had intended to retire sooner, anticipating Hillary Clinton would be elected president in 2016 and seeing that as a logical, and fitting, end point to her trailblazing political career. “I have things to do. Books to write; places to go; grandchildren, first and foremost, to love,” she said in a 2018 interview.

However, she was determined to stymie President Trump in his first term and stuck around, emerging as one of his chief nemeses. After Joe Biden was elected, Pelosi finally yielded the speaker’s gavel in November 2022.

But she remained a substantive figure, still wielding enormous power behind the scenes. Among other quiet maneuvers, she was instrumental in helping ease aside Biden after his disastrous debate performance sent Democrats into a panic. He was a personal friend, and long-ago guest at her political salon, but Pelosi anticipated a down-ticket disaster if Biden remained the party’s nominee. So, in her estimation, he had to go.

It was the kind of ruthlessness that gave Pelosi great pride; she boasted of a reptilian cold-bloodedness and, indeed, though she shared the liberal leanings of her hometown, Pelosi was no ideologue. That’s what made her a superb deal-maker and legislative tactician, along with the personal touch she brought to her leadership.

“She had a will of steel, but she also had a lot of grace and warmth,” said Thurber, “and that’s not always the case with speakers.”

History-making aside, Pelosi left an enduring mark on San Francisco, the place she moved to from Baltimore as a young mother with her husband, Paul, a financier and real estate investor. She brought home billions of dollars for earthquake safety, re-purposing old military facilities — the former Presidio Army base is a spectacular park — funding AIDS research and treatment, expanding public transit and countless other programs.

Her work in the 1980s and 1990s on AIDS funding was crucial in helping move discussion of the disease from the shadows — where it was viewed as a plague that mainly struck gay men and drug users — to a pressing national concern.

In the process, she become a San Francisco institution, as venerated as the Golden Gate Bridge and beloved as the city’s tangy sourdough bread.

“She’s an icon,” said Aaron Peskin, a former San Francisco County supervisor and 2024 candidate for mayor. “She walks into a room, people left, right and center, old, young, white, Black, Chinese stand on their feet. She’s one of the greatest speakers we have ever had and this town understands that.”

Pelosi grew up in Baltimore in a political family. He father, Tommy D’Alesandro, was a Democratic New Deal congressman, who went on to serve three terms as mayor. “Little Nancy” stuffed envelopes — as her own children would — passed out ballots and often traveled by her father’s side to campaign events. (D’Alesandro went on to serve three terms as mayor; Pelosi’s brother, Tommy III, held the job for a single term.)

David Axelrod, who saw Pelosi up close while serving as a top aide in the Obama White House, said he once asked her what she learned growing up in such a political household. “She didn’t skip a beat,” Axelrod said. “She said, ‘I learned how to count.’ ”

Meaning when to call the roll on a key legislative vote and when to cut her losses in the face of inevitable defeat.

Pelosi is still so popular in San Francisco she could well have eked out yet another reelection victory in 2026, despite facing the first serious challenge since that first run for Congress. But the campaign would have been brutal and potentially quite ugly.

More than just about anyone, Pelosi knows how to read a political situation with dispassion, detachment and cold-eyed calculation.

She knew it was time.

Investigators are working to determine cause of the blaze that broke out at facility in Tuzla in northeastern Bosnia.

A fire at a retirement home in northeastern Bosnia has killed at least 11 people and injured about 30 others, officials said.

It remained unclear what caused the blaze, which engulfed the seventh floor of the building in Tuzla, about 80km (50 miles) northeast of Sarajevo, after it broke out on Tuesday evening.

The fire, which took about an hour to bring under control, sent flames and smoke pouring out of the building into the night sky.

Bosnian media reported that higher floors in the complex were occupied by elderly people who could not move on their own or were ill.

“I had gone to bed when I heard a cracking sound. I don’t know if it was the windows in my room breaking,” resident Ruza Kajic told national broadcaster BHRT on Wednesday.

“I live on the third floor,” she said. “I looked out the window and saw burning material falling from above. I ran out into the hallway. On the upper floors, there are bedridden people.”

Admir Vojnic, who lives near the retirement home, also told the Reuters news agency that he saw “huge flames and smoke, and elderly and helpless people standing outside” the building.

Investigators were still working to determine the cause of the fire and identify those killed in the blaze, prosecutor spokesperson Admir Arnautovic told reporters.

“The identification of the bodies will take place during the day,” Arnautovic said.

Meanwhile, the retirement home’s director said he had offered his resignation.

“It’s the only human thing to do, the least I can do in this tragedy. My heart goes out to the families of the victims,” Mirsad Bakalovic told the Fena news agency.

“Last night was a truly difficult event, a tragedy not only for the city of Tuzla, but for all of Bosnia.”

Officials from across government in Bosnia and Herzegovina offered their condolences and help to the Tuzla authorities.

“We feel the pain and are always ready to help,” Savo Minic, the prime minister of the country’s autonomous Serb Republic, wrote on X.

Nov. 5 (UPI) — At least 11 people were killed and 30 injured in a blaze at a high-rise retirement home in Bosnia and Herzegovina.

Authorities said the fire broke out Tuesday evening at about 8.45 p.m. (2 p.m. EST) on the seventh floor of the facility in Tuzla, the country’s fourth largest city 70 miles northeast of the capital, Sarajevo.

Police said firefighters, police officers, medics, residents and staff at the home were among 20 people taken to the hospital.

Several people received treatment for carbon monoxide poisoning, with three in intensive care, said a spokesman for Tuzla University clinical center.

Images circulating online show the top floor of the building engulfed in flames.

Nermin Niksic, prime minister of the Federation of Bosnia and Herzegovina under the country’s bipartite system of government, called the blaze “a disaster of enormous proportions.”

Tuzla is located in FBiH, one of two administrative entities portioning the country between Bosnian Muslims and Catholic Croats in the north and Bosnian-Serbs in central and southern areas born out of the 1995 U.S.-brokered Dayton accords that ended the Bosnian War.

The prime minister of the Srpska entity, Savo Minic, head of the country’s Serb region, said Tuesday night that his government stood ready to assist Tuzla in any way it could following the retirement home fire.

“The Government of the Republic of Srpska stands ready to assist the citizens of Tuzla with any kind of help following tonight’s tragedy. We feel the pain and are always ready to help. Our most sincere condolences to the families,” he said in a post on X.

Authorities said an investigation into the cause of the blaze was underway.

Carson was also at Liverpool when the Reds won the Champions League, FA Cup and Super Cup, while he made more than 100 appearances for Derby County and West Brom.

But it was at City where he enjoyed glittering success, including the Treble of Premier League, FA Cup and Champions League in 2023, after spending two seasons initially on loan from Derby in 2019.

Carson became a cult hero among fans, having played only 117 minutes in total as third-choice keeper behind Ederson and Stefan Ortega for much of his time at the club.

His last competitive appearance was as a late substitute in a Champions League last-16 second-leg draw with Sporting in March 2022.

Manchester City defender Manuel Akanji, currently on loan at Inter Milan, called Carson an “absolute legend” in response to his announcement, while “The Goat” was how former team-mate Fernandinho reacted.

Norwegian striker Erling Haaland was among the other City players – past and present – to comment, writing: “Miss you pal, all the best.”

Derby, where Carson spent six years, posted on Instagram: “Wishing all the best to Scott Carson. Congratulations on a magnificent career, Scott.”

It was Scarratt’s only game time of the campaign, but she says she feels that her contribution on the sidelines and around the camp was just as crucial as her more obvious involvement in four previous World Cups.

“I genuinely really enjoyed the whole tournament, obviously I am a rugby player and therefore want to play rugby, but this tournament was slightly different and my role was not probably never going to be front and centre of playing,” she said.

“I always have tried to be the team player, but for such a long period of my career I was always starting, therefore I think it is a lot harder to show it.

“But it has always been quite important to me to be able to show the strength of a team is the entire team, no matter what role you have within that.”

Left out of the matchday squad, Scarratt frequently carried the water bottles for the Red Roses as they closed in on victory.

She had the role for the final in front of 81,885 fans as England successfully saw off Canada to win the World Cup once more.

“I was very conscious of keeping an eye on the clock and doing my job, but there was a point with about 30 seconds to go when I was on the radio,” she remembered.

“I looked up to the coaches boxes and probably said a few expletives along with ‘we’re world champions’.

“That feeling in that stadium, it was unbelievable. I never thought I would experience something like that, because I didn’t see it happening in our game.

“To be at home, to be successful in front of that many people – I was very glassy eyed at the end… and probably also because I knew it was going to be the end [for me] as well.”

In the aftermath of England’s victory, it was reported that R360 – a proposed new global series involving top players – had contacted England stars to recruit them as figurehead signings for the inaugural 2026 edition., external

The Rugby Football Union, in coordination with other leading nations, subsequently banned any R360 players from representing their national sides.

“I don’t know if I should be offended, but I definitely wasn’t approached to play in it!” Scarratt joked.

“Potentially for the women’s game, it is slightly different to the men’s – we are constantly looking for investment and financial support.

“It is going to be an interesting time with players deciding whether international stuff or the lure of potential money [is the right choice for them]. I’d love there to be a place for it all.”

Scarratt will continue her involvement in the game as an assistant coach for Loughborough Lightning, a television pundit, a podcast presenter and working with the RFU on the development of young talent.

Have you ever been envious of someone because they have a health savings account (HSA)? If not, it may be because you haven’t heard how an HSA can supercharge your retirement planning.

Here’s how it works, and why more people are investing in their HSAs with an eye toward the future.

Image source: Getty Images.

What is an HSA?

An HSA is a tax-advantaged savings account, available only to those with high-deductible health plans. The account is designed to cover qualified medical expenses; these include prescriptions, copays, mental healthcare, dental and vision services, and some over-the-counter purchases. It can even be used for certain insurance premiums, like those for COBRA or Medicare.

If your high-deductible health plan covers only you, you can contribute $4,300 annually to an HSA. If it covers your family, your contribution limit is $8,550. Plus, if you’re 55 or older, you can add a catch-up contribution of $1,000.

A pretax way of saving

Like most employer-sponsored retirement plans, contributions to an HSA are pretax, meaning you don’t pay taxes on the income. Interest and investment earnings grow tax-free, and withdrawals to cover qualified medical expenses are also tax-free.

Here are a few of the finer details regarding HSAs and taxes:

• Qualified medical expenses: Withdrawals for qualified medical expenses are always tax-free, no matter how old you are.
• Under age 65: If you’re under age 65, withdrawals from your HSA for nonqualified medical expenses are taxed as ordinary income. You may also be subject to a 20% penalty on the amount withdrawn.
• 65 and older: If you’re 65 or older and make a withdrawal for something other than a qualified medical expense, the 20% penalty no longer applies, although you will pay ordinary income tax on the withdrawal.

Again, withdrawals for qualified medical expenses at any age are tax-free.

Use it now or use it later

HSAs are nothing if not flexible. Owning an HSA means determining how you want to manage the funds. You can use it solely to cover current medical expenses, or you can save it for later.

Unlike funds in a flexible spending account (FSA), the money left in your HSA can be rolled over from year to year. Imagine you begin contributing to an HSA this year and spend the next 20 years contributing $5,000 annually. At the end of those 20 years, there will be $100,000 in the account.

However, there’s a way to make the account worth far more than $100,000. Like other HSA owners, you could invest the money. Most HSA providers allow you to invest your HSA funds just as you would a 401(k) or IRA, giving your account the potential to grow dramatically.

Let it grow

Let’s say your high-deductible healthcare plan covers your family, and you contribute $8,550 to an HSA each year. You spend the first $3,550 on medical expenses and pay for any additional expenses out of pocket.

You invest the remaining $5,000, earning an average annual return of 7%. Instead of being worth $100,000 after 20 years, your account could be worth almost $205,000, more than twice as much.

Cover retirement-related expenses

Although you can’t contribute any more money to your HSA after you’ve enrolled in Medicare, you can spend your retirement years using funds from the account to cover essential medical expenses. Here are some examples:

• Medicare Part A premiums (though most people get Part A for free)
• Medicare Part B premiums
• Medicare Advantage premiums
• Premiums for Medicare Part D prescription coverage
• Long-term care insurance premiums
• Deductibles and copayments for medical products and services

Alternatively, you have the option of spending HSA money after reaching age 65 on nonmedical expenses with no penalty. You’ll pay taxes at your ordinary tax rate for any such withdrawals (just as with most retirement plans), but you get some extra flexibility to decide where the money will be most helpful.

It’s tough to find much about HSAs to dislike. In fact, they may be attractive enough to tempt you to enroll in a high-deductible health plan.

The scary thing about retirement is that it’s hard to know exactly how much money you’ll need to cover your costs until that period of life begins. Sure, you can estimate a budget based on certain assumptions, like where you’ll live and how you’ll spend your days. But nailing down an exact budget is pretty difficult.

Meanwhile, one of the most tricky retirement expenses to estimate is none other than healthcare. That’s because the cost there will hinge on factors like:

• How long you live
• What health issues you end up experiencing
• What Medicare plan you choose

Image source: Getty Images.

Still, it’s important to have a basic handle on what healthcare might cost you down the line. And recent data reveals that a good chunk of Americans are clueless in that regard.

Do you know what you might spend on healthcare in retirement?

In a recent report, Fidelity found that the typical 65-year-old today can expect to spend $172,500 on healthcare costs during retirement. But it also found that 20% of Americans have never thought about what healthcare might cost them down the line.

There are two reasons it’s important to plan for healthcare costs in retirement. First, it’s one expense that’s non-negotiable.

You can downsize your home if the costs of maintaining it are too high. And you can move to a state that’s cheaper if it helps you stretch your income and Social Security benefits. But you can’t not pay for healthcare. If you need a certain medication to function, you may not have a choice about taking it.

Secondly, healthcare has, for many years, outpaced broad inflation. When Fidelity first started estimating healthcare costs for retirement back in 2002, it found that the typical senior would spend $80,000 throughout their senior years. In the past two decades and change, that projection has more than doubled. And chances are, it’ll continue to climb.

Have a plan for tackling healthcare expenses

There are steps you can take to make healthcare in retirement more affordable, like going to your scheduled physicals and screening appointments to get ahead of potential issues and choosing the right Medicare plan. But there may be only so much you can do to keep your costs down.

That’s why it’s so important to save well for healthcare specifically. And while you could always boost your IRA or 401(k) plan contributions, you may want to allocate funds in a separate account specifically for healthcare.

In that regard, a health savings account, or HSA, is a great option to look at. The nice thing about HSAs is that they’re triple tax-advantaged, which means:

• Contributions go in tax-free
• Investment gains are tax-free
• Withdrawals are tax-free when used to cover qualifying healthcare expenses

Plus, HSAs are extremely flexible. You can withdraw your money at any time, and your money will never expire.

Also, if you end up in the enviable position of having lower healthcare costs in retirement than expected, your HSA won’t go to waste. When you’re under age 65, HSA withdrawals for non-medical expenses incur a steep penalty. But that penalty is waived once you turn 65, at which point an HSA can function like a traditional IRA or 401(k) plan.

Between Medicare premiums, deductibles, copays, and other expenses, you may find that healthcare in retirement costs more than expected. Read up on healthcare costs so you’re not caught off guard once your career comes to an end. Better yet, make sure you’re saving for your future healthcare needs so you never have to be in a position where you have to skimp on care because of the price tag attached to it.

U.S. credit card balances have surged in the past several years, from $787 billion in Q2 2021 to $1.2 trillion in Q2 2025. Though the pace of increases has slowed in 2025, average credit card interest rates still hover around 25%, leading to balances that swell faster than many can pay them down.

Image source: Getty Images.

Debt can happen at any age

There’s never a good time to get caught up in high-interest debt, but the situation is particularly critical when that debt prevents you from investing for retirement. Regardless of your current age, the last thing you want to do is give up aspects of your retirement because you can’t afford them.

Due to soaring inflation, retirees outspend their annual incomes by more than $4,000, according to data from the Bureau of Labor Statistics. With limited options to bridge that financial gap, more are turning to credit cards to cover everyday expenses. In fact, 41% of households headed by someone between the ages of 65 and 74 carry credit card debt. Few of these households likely expected to depend on credit cards as they planned for retirement.

But it’s not just those who’ve reached retirement age who depend on credit cards. Experian offers this overview of average credit card debt by age:

What credit card debt means to retirement

Let’s say you’re 55, part of Generation X, and owe $9,600 in credit card debt. If your cards carry an average annual percentage rate (APR) of 25% and you make monthly credit card payments totaling $300, it will take you 54 months to pay the cards off. Worse, you’ll spend $6,384 on interest.

Now, imagine that your credit card debt didn’t exist, and you invested that $6,384 instead. Assuming an average annual return of 7%, it would be worth $12,558 in 10 years, $17,614 in 15 years, and $24,704 in 20 years. That’s assuming you never contribute another penny to the investment. It may not be a fortune, but any money invested can be combined with Social Security and other sources of income to help you in retirement.

Whether you’re an experienced or beginner investor, freeing up the money currently spent on monthly credit card payments is one of the surest ways to bolster your retirement savings.

The trick is to get your credit card debt under control. Here are three ideas to get you started.

1. Look into a consolidation loan

Consider a personal loan with a lower interest rate than you’re paying on your credit cards (ideally, much lower). Use that loan to pay off your credit cards and then make regular monthly payments until the loan is paid off in full.

Again, let’s say you owe $9,600 in credit card debt. The personal loan you land has an APR of 11%. By making the same monthly payment of $300, the loan will be paid off in 39 months rather than the 54 months it would have taken to pay down the credit cards. Better yet, you’ll spend $1,815 in interest, saving you $4,569.

2. Take advantage of a pay-down option

Snowball and avalanche methods are two of the most popular ways to pay off existing debt. Here’s how they work:

• Snowball method: Prioritize paying off your smallest debt first while continuing to make minimum payments on your other debts. Once the smallest debt is paid off, move to the next smallest balance, adding the money you were putting toward the first debt to pay down the second debt at a faster clip. Once the second smallest debt is paid off, move on to the third smallest, and so on. With each debt you pay off, you have more money available to pay toward the next one, creating a snowball effect.
• Avalanche method: Prioritize paying off the debt with the highest interest rate (regardless of balance). Once the debt with the highest rate is paid off, move to the debt with the next highest interest rate, and so on. Like the snowball method, each debt you pay off gives you more money for the next debt.

3. Consider a debt management plan

Debt management plans (DMPs) consolidate your credit card debt into a single monthly payment. Typically offered through certified credit counseling agencies, DMP counselors work on your behalf to:

• Help you determine how much you can afford to pay each month.
• Negotiate with your creditors to adjust your repayment terms.
• Accept your monthly payment and distribute it to your creditors.

While DMPs may be an effective way to climb out of debt, they can initially hurt your credit score, so be sure you understand the pros and cons before entering a DMP agreement.

Credit card debt is not insurmountable, but it does take effort to conquer. The sooner you do that, the sooner you can make progress toward your ideal retirement. Whether that’s fishing every day, visiting your grandkids, or retiring to a beach in a foreign country, it’s your dream to build.

You probably think of the money in your retirement accounts as yours, but if you have traditional IRAs or 401(k)s, it’s not that straightforward. You owe the IRS a cut of your savings, and at a certain point, it forces you to start taking required minimum distributions (RMDs). These are mandatory annual withdrawals that you must pay taxes on.

If you’re new to RMDs, they can seem a little intimidating. Failing to withdraw the required amount results in a steep 25% tax penalty on the amount you should’ve withdrawn, so it’s important to know how to calculate yours correctly. Let’s look at the example of a retirement account with a $500,000 balance.

Image source: Getty Images.

Three situations where you don’t have to take an RMD

You won’t have to take an RMD from your retirement account if any of the following are true:

• You’re under age 73: RMDs begin in the year you turn 73. If you turn 73 in 2025, you technically have until April 1, 2026 to take your first RMD. In all subsequent years, you must take RMDs no later than Dec. 31 of that year.
• It’s a Roth account: You fund Roth accounts with after-tax dollars, so you can enjoy tax-free withdrawals in retirement. Because of this, the government has no incentive to force you to take money out each year.
• The account is associated with your current employer: If you’re still working, you can delay RMDs from your current employer’s retirement plan until the year after the year you retire. However, you still have to take RMDs from old 401(k)s and traditional IRAs,if you have any.

If none of these things apply to you, then you will need to take an RMD. Fortunately, they’re not too difficult to calculate.

How to calculate your RMD on a $500,000 account

You calculate your RMD using the balance as of Dec. 31 of the previous year — Dec. 31, 2024 for your 2025 RMD. If you don’t know what your balance was at that time, you may need to look it up or speak to your plan administrator.

Once you know the amount, all you need to do is divide that by the distribution period next to your age in the IRS’ Uniform Lifetime Table. The result is your RMD.

So, for example, if you had $500,000 in your 401(k) as of Dec. 31, 2024 and you turned 73 in 2025, your RMD would be $500,000 divided by 27.4 — the distribution period for 73-year-olds. That comes out to about $18,248.

You’re free to take out more than this if you’d like. But this is the minimum amount you must withdraw in order to avoid the 25% penalty.

What if you don’t want to take your RMD?

Avoiding mandatory withdrawals generally isn’t worth it. The 25% penalty will likely cost you more than what you would’ve paid in income taxes if you’d just taken the RMD as scheduled.

That said, sometimes you may not want to deal with the extra taxes an RMD can bring. In that case, consider making a qualifying charitable distribution (QCD). This is where you ask your plan administrator to send an amount equal to your RMD or a portion of it to a qualifying tax-exempt organization.

The money must go directly to the charity. If the plan administrator distributes it to you first, it does not count, even if you give it all away to charitable causes. Done properly, the IRS won’t tax you on this retirement account withdrawal, and it’ll consider your RMD satisfied for the year.

The maximum QCD you can make in 2025 is $108,000. This should be more than enough for most people.

You may have already spent an amount equal to your RMD on living expenses this year. In that case, you’re in the clear until next year. Check with your plan administrator if you’re unsure how much you’ve already withdrawn from your accounts in 2025. If you come up a little short, be sure to make some more withdrawals in the next few weeks.

High school basketball in Southern California will be without one of its finest coaches this season.

Stephen Singleton, who guided Eastvale Roosevelt to state and Southern Section Open Division championships last season, announced his retirement from coaching on Thursday after 10 years at Roosevelt and 25 years in the business. He will continue as a teacher.

Singleton intends to spend more time coaching his young son.

He also won a state Division I title in 2017 with Roosevelt and won a state Division II title coaching briefly at Dominguez in Compton in 2001.

He was The Times’ coach of the year for the 2024-25 season.

With official basketball practice starting soon, Roosevelt intends to open the position to all candidates, but there’s two assistants who are teachers at the school that could possibly ease the transition if they are interested in the head coaching position.

Retirement can be incredibly expensive, and with many Americans’ finances stretched thin right now, it can be tough to save anything at all for the future.

Investing in the stock market is one of the most effective ways to grow your savings, and you don’t need a lot of cash to get started. In fact, it’s possible to retire with $1 million or more with just $10 per day. Here’s how.

Building long-term wealth in the stock market

Investing doesn’t have to mean spending countless hours researching and building a portfolio full of individual stocks. Contributing to your 401(k) or IRA can be a more approachable way to invest, and you can earn far more with this strategy than stashing your spare cash in a savings account.

Image source: Getty Images.

While investing can seem daunting and risky, it’s safer than you might think. Mutual funds and index funds can carry less risk than many other types of investments, and depending on where you buy, they can also be more protected against market volatility.

Whether you’re investing in a 401(k), IRA, or other type of retirement account, consistency is key. These types of investments thrive over decades thanks to compound earnings, as you earn gains on your entire account balance rather than just the amount you’ve invested.

Over time, compound earnings can have a snowball effect on your savings. The more you earn on your investments, the greater your account balance will grow, and you’ll earn even more. By giving your money as much time as possible to build, you can accumulate $1 million or more while barely lifting a finger.

Turning $10 per day into $1 million or more

Exactly how much you can earn in the stock market will depend on where you invest, but historically, the market itself has earned an average rate of return of around 10% per year over the last 50 years.

That’s not to say you’ll necessarily earn 10% returns every single year. Some years, you’ll earn much higher-than-average returns — like in 2024, for example, when the S&P 500 earned total returns of more than 23%. Other years, though, you’ll earn lower or even negative returns. Over decades, those ups and downs have historically averaged out to roughly 10% per year.

Let’s say your investments are in line with the market’s long-term performance, earning returns of 10% per year, on average. If you were to invest $10 per day — or around $300 per month — here’s approximately how much you could accumulate over time.

Data source: Author’s calculations via investor.gov.

In this scenario, it would take just over 35 years to reach the $1 million mark. But if you have even a few extra years to invest or can afford to contribute more than $10 per day, you can earn exponentially more in total.

For example, say that you can afford to invest $15 per day, or roughly $450 per month. If you’re still earning an average annual return of 10%, those contributions would add up to more than $2.3 million after 40 years.

No matter how much you can contribute each day or month, getting started investing as early as possible is key. The more consistently you invest, the easier it will be to retire a millionaire.

As you think about and plan for retirement, you may be wondering how to get to a nest egg of $1 million. (Note, though, that the precise amount you will need for retirement might be more or less than that.) Let’s see how you can grow your wealth — whether you start with $100,000 or $0 or some other sum.

There are multiple ways you can achieve your financial goals. I’ll review a few here. Even if you’re very late to retirement planning, you may be able to significantly improve your financial condition.

Image source: Getty Images.

I mentioned $100,000 because lots of people feel that they’re behind in saving for retirement, but many might have saved that much by now. If you have less than that, take heart — you’re not alone. Check out these numbers from the 2024 EBRI/Greenwald Research Retirement Confidence Survey.

Source: 2024 EBRI/Greenwald Research Retirement Confidence Survey. *Excluding the value of a primary home.

See? Fully 47% of workers had less than $100,000 socked away, and 29% had less than $25,000.

1. Index funds for the win!

For most of us, simple low-fee index funds that own shares in a variety of stocks can be all we need to amass significant wealth. An index fund tracks a particular index of securities, aiming to deliver roughly the same return (less fees) by owning roughly the same securities. So an S&P 500 index fund would aim to deliver roughly the same results as the index — which has averaged annual gains of close to 10% over many decades, though that includes up years and down years and isn’t guaranteed to be up when you need the money.

To do some math, here’s how your money would grow over time at 8%. The table below assumes you start with $0:

Calculations by author.

As long as you’re not retiring soon, you may be able to get to that $1 million goal. Remember, too, that you can speed up the process if you can sock away more money regularly, especially in your early years, giving those dollars more time to grow. And if you’re starting with $100,000, you’ve got a great head start!

Here are three index funds to consider:

• Vanguard S&P 500 ETF (NYSEMKT: VOO): This fund has a very low annual fee and includes the shares of 500 of the biggest companies in America, which together make up around 80% of the entire U.S. market.
• Vanguard Total Stock Market ETF (NYSEMKT: VTI): This ETF has a wider scope, aiming to own shares of all U.S. stocks, including the small and medium-sized ones that don’t make it into the S&P 500.
• Vanguard Total World Stock ETF (NYSEMKT: VT): This ETF aims to encompass just about all the stocks in the world.

2. Dividend stocks

While index funds can be all you need, you may want to consider dividend-paying stocks for your portfolio, too, as they have beaten other types of stocks.

Data source: Ned Davis Research and Hartford Funds.

If you have, say, $300,000 invested in dividend payers with an overall dividend yield of 4%, that would generate $12,000 annually — about $1,000 per month. That’s very handy income in retirement, and it doesn’t require you to sell any shares, either. Better still, healthy and growing dividend payers tend to increase their payouts over time, which can help you keep up with inflation.

3. Growth stocks

If you want to aim for much higher average annual growth rates for your portfolio, you might add some growth stocks to it. Just know that this introduces more risk — because while many growth stocks will deliver phenomenal returns, others will flame out. Growth stocks tend to grow faster than other stocks, but when circumstances change, they can fall harder.

You might try to manage the risk by spreading your dollars across a bunch of them. The Motley Fool investing philosophy suggests buying into around 25 or more companies and aiming to hang on to your shares for at least five years. Investing is best used as a long-term money-making effort. 

Those are three approaches to building your wealth as you aim for a million dollars or more. You don’t have to choose just one of them, either. You might engage in them all, to some degree.