Letter from The Editor

Our relationship with money has changed.

The pandemic accelerated a lot of those changes, but many of the forces were already set in motion over a decade ago. Investing apps and platforms, zero-commission trading, a historic bull market for stocks coming out of the Great Financial Crisis followed by record-breaking inflation, the emergence of cryptocurrencies, and the evolution of financial planning are just some of the forces that have reshaped the way we think, use, plan, save, and invest our money. Our notions about retirement have changed, as well. Younger generations are less likely to work at the same company their entire careers, collect a pension, and ease their way out of the workforce at the age of 65. We are living longer, and we need to be able to afford the lives we want to live when we stop working. For most people, retirement is not their end of work, but the end of being able to depend on a regular paycheck with benefits and a 401(k) match, if we were lucky enough to get one. While over half of working adults in the U.S. are invested in the stock market, the average 401(k) balance for baby boomers and Generation X is only around $161,000 according to Fidelity. With the cost of living rising higher every year, and questions about the staying power of Social Security, the numbers just don't add up for most people nearing retirement. There is no magic bullet solution to these problems. There are, however, some fundamental practices and approaches that younger adults and those approaching retirement, can focus on:

• Financial awareness: Do you really know what it costs to be you?
• Investing appropriately for your age: Are you too risky, or not risky enough, or well-balanced?
• Balanced portfolio: Is the 60/40 portfolio still the answer, given the shake-out in the stock market?
• Saving and budgeting in a world of rising prices: Inflation is not a bug in the system—it's a feature that we need to accept and incorporate into our personal budgets.
• Planning and caring for yourself or family members: The cost of care keeps rising, but few are prepared for those bills when they come due.
• Estate planning: If you can and want to pass along your savings to charity or the next generation, are your affairs in order?

Investopedia's is our first foray into magazine publishing. We are honored to have been a go-to resource for millions of readers for the past 23 years, but we, like you, realize that the game has changed in retirement planning and investing. Therefore, we have dedicated those pages to laying out those changes and offering solutions that can help you change with the times.

Pick up your copy at your nearest retailer or . We hope you enjoy the issue and learn from it. The first step in financial awareness is to educate yourself, so let those pages help you get on the right path.