Strengthen Your 2026 Financial Plan and Optimize TSP and 403(b) Accounts for Heirs

NerdWallet's Smart Money Podcast

NerdWallet Personal Finance

Business, Investing, Education, How To

4.3 • 893 Ratings

🗓️ 11 December 2025

⏱️ 25 minutes

🔗️ Recording | iTunes | RSS

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Summary

Learn how to prepare your money for 2026 and invest retirement savings you hope to leave to your family. How do Americans feel about their money heading into 2026? How should you invest retirement accounts you don’t plan to spend so your family can benefit later? The Nerds discuss how to invest a seven‑figure nest egg in workplace retirement plans to help you understand how to balance risk, taxes and legacy goals. But first, senior news writer Anna Helhoski joins hosts Sean Pyles and Elizabeth Ayoola to discuss NerdWallet’s 2026 consumer outlook survey, including how confident people feel about their financial security, which potential money setbacks are weighing on them, and what big financial moves and risks they’re planning to take in the new year. Then, credit writer Amanda Barroso and investing writer Taryn Phaneuf join Elizabeth to discuss how a retired military listener and their soon‑to‑be-retired spouse might invest $1.2 million they’ve saved in a TSP and 403b and hope to leave to their children and grandchildren. They review how TSPs and 403bs work and when it might make sense to roll them into IRAs, how to think about asset allocation when you have a long time horizon but may still face surprise retirement costs like long‑term care, and the rules around required minimum distributions and the 10‑year payout window for inherited retirement accounts. They also explore high‑level estate planning choices such as using trusts and keeping beneficiaries up to date, pros and cons of Roth conversions for heirs (including the Roth IRA five‑year rule), and how to balance leaving a legacy with using some money to create meaningful experiences with family during your lifetime. Consumer Outlook Survey https://www.nerdwallet.com/finance/studies/2026-consumer-outlook-report The Roth IRA 5-Year Rule: What to Know https://www.nerdwallet.com/retirement/learn/roth-ira-5-year-rule Want us to review your budget? Fill out this form — completely anonymously if you want — and we might feature your budget in a future segment! https://docs.google.com/forms/d/e/1FAIpQLScK53yAufsc4v5UpghhVfxtk2MoyooHzlSIRBnRxUPl3hKBig/viewform?usp=header In their conversation, the Nerds discuss: 2026 financial outlook, economic outlook 2026, rising prices 2026, inflation 2026, emergency fund savings, how much emergency fund should I have, save 1000 emergency fund, pay off high interest debt, avalanche vs snowball debt payoff, debt consolidation options, nonprofit credit counseling, crypto investing risks, invest in AI stocks, start a business 2026, buying a home in 2026, financial anxiety, Gen Z finances, women and money stress, stock market crash preparation, and TSP investment strategy. To send the Nerds your money questions, call or text the Nerd hotline at 901-730-6373 or email podcast@nerdwallet.com. Like what you hear? Please leave us a review and tell a friend. Learn more about your ad choices. Visit megaphone.fm/adchoices

Transcript

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0:00.0	If you're looking into a crystal ball wondering what's up for 2026, good luck with that.
0:05.2	We've got something better.
0:06.5	Actual research on what Americans are expecting to happen with their finances next year.
0:16.0	Welcome to Nerd Wallet's Smart Money Podcast, where you send us your money questions and we answer them with the help of our genius nerds. I'm Sean Piles. And I'm Elizabeth Ayola. Later this episode, we'll be
0:26.7	answering a listener's question about maximizing investments in a retirement plan. But first of all,
0:32.9	our weekly money news roundup, where we break down the latest in the world of finance to help you
0:37.9	be smarter with your money. Today, we're talking about how Americans are feeling heading into
0:42.9	2026. We want to know how they're feeling financially, emotionally, and everything in between.
0:49.5	Our news colleague, Anna Hilhouski, is back to talk about the results of NerdWallet's
0:53.7	2026 Consumer Outlook Survey that show a complicated picture of the year to come.
0:58.7	After a year of one economic curveball after another, the outlook for 2026 is indeed complicated.
1:06.0	But I do want to start with the bright side of things.
1:08.7	Nerwold's new report found that 63% of Americans
1:11.8	expect that 2026 will be financially better for them than 2025, and most say they also feel
1:18.1	sure they can cope with a variety of potential financial pitfalls in the new year. But the
1:23.6	findings, as you might expect, aren't all sunshine and rainbows. While most Americans
1:28.2	are feeling good about their financial security, one-third still aren't certain they'll be
1:32.8	able to financially withstand economic and personal money setbacks next year.
1:37.3	People do tend to want a fresh start with a new year, so that optimism you mentioned isn't
1:41.6	totally surprising, but there's anxiety in there too.
1:44.5	The survey showed that more than a third of Americans feel optimistic and or confident, but nearly
1:50.2	one third also feel anxious and stressed. So without delving into gender stereotypes too much,
	...

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