- What Is a Trigger Rate in an Annuity?
Annuities can be a valuable tool for ensuring a steady income stream and managing financial risk, particularly during retirement. One important aspect of certain annuities is the trigger rate, which plays a significant role in determining the growth and performance of the investment. Understanding how trigger rates function within annuities is important for investors, as… read more…
- What Is a Nonqualified Retirement Plan?
Unlike 401(k)s and similar workplace retirement plans, nonqualified retirement plans are not bound by the stringent guidelines of the Employee Retirement Income Security Act (ERISA). As a result, companies may use these plans to attract and retain top-tier talent by allowing high-earning executives and other key employees to defer a significant portion of their income… read more…
- What to Do If You Want to Retire in 5 Years
If you’re aiming to retire in five years, now is the time to get your financial plan firmly in place. The specific steps you’ll need to take will depend on factors like your age, current savings, expected retirement expenses and overall financial goals. Whether retirement is just around the corner or still several years away,… read more…
- What Is a Pension Trust?
Pension trusts are specialized financial arrangements that play a pivotal role in managing and disbursing funds designated for retirement benefits. They come in two primary forms: defined benefit plans (which promise a fixed income post-retirement) and defined contribution plans (where the benefits are influenced by market performance). Understanding the elements of a pension trust can… read more…
- What Is the VA Survivors Pension?
Losing a loved one who served in the military can be an emotionally and financially challenging time for surviving spouses and children. The VA Survivors Pension can serve as a lifeline to eligible survivors by providing a tax-free monetary benefit to help them make ends meet. Surviving spouses and unmarried dependent children of wartime veterans… read more…
- How to Choose an IRA Provider
A key decision associated with retirement planning involves choosing where to open and maintain an individual retirement account (IRA). As you contemplate how to choose an IRA account, you’ll want to consider how you want to manage your account or whom you want to handle it for you. Whether you’re considering a hands-on approach, utilizing… read more…
- 12 Tips to Help You Boost Your Retirement Savings
For many, saving enough money for retirement can feel like a daunting – even insurmountable – task. But with enough knowledge and planning, a secure retirement may be possible. Whether you’re a young professional just beginning to navigate the world of savings or nearing retirement age, understanding compound interest, strategic investment and prudent financial planning… read more…
- 7 Benefits of Maxing Out Your Roth IRA
Whether you’re just starting to save, looking to optimize your existing retirement plan, or considering how to pass on your wealth, knowing which retirement strategies and financial tools are available can help you secure your financial future. Here are the benefits of maxing out your Roth IRA every year, but if you need to a… read more…
- Differences of Qualified vs. Nonqualified Retirement Plans
Qualified retirement plans, such as 401(k)s and pensions, can offer significant tax advantages and are subject to strict regulations set forth by the Internal Revenue Code (IRC) and the Employee Retirement Income Security Act (ERISA). These plans are designed to provide a broad range of employees with the opportunity to save for retirement while enjoying… read more…
- Should I Take a $400,000 Lump Sum or $2,000 Monthly Payments for My Pension?
Deciding whether to take a $400,000 lump sum or monthly pension benefit of $2,000 requires calculating the relative value of each option. Generally speaking, the sooner you can receive the lump sum, the more value it will have since you can invest it over a longer period. The monthly payment option may be more valuable… read more…
- I’m 60 With $1.5 Million in My 401(k). Should I Convert $120,000 per Year to Avoid RMDs?
It’s a wise move to plan ahead for the taxes you’ll pay on retirement income, including eventual required minimum distributions (RMDs). Instead of waiting until the RMD deadline to start thinking about tax planning, starting the process at age 60 gives you the luxury of time to weigh all of your options and adjust your… read more…
- How to Max Out Your 401(k)
Approximately 86% of 401(k) participants don’t save the maximum allowed amount in their tax-advantaged employer-sponsored retirement plans, according to a 2022 study of retirement saving by Vanguard. If you’d like to max out 401(k) savings, techniques include automating contributions, increasing contributions over time, using catch-up contributions when available, taking full advantage of any employer matches,… read more…
- The Average Retirement Budget in the U.S.
When it comes to the average retirement budget, studies report a wide range of responses. A 2022 survey by the Employee Benefit and Retirement Institute (EBRI) found that half of individuals around retirement age spend less than $2,000 per month, equal to less than $24,000 per year. The Social Security Administration, meanwhile, said 2020 median… read more…
- 7 Alternative Ways to Save for Retirement
401(k) plans are not the only way to save for retirement. If your employer is one of the many that doesn’t offer a 401(k) savings plan, there are still plenty of alternatives to save for retirement. Your non-401(k) options include both traditional and Roth individual retirement savings accounts (IRAs), as well as health savings accounts… read more…
- Should I Take a $200,000 Lump Sum or $1,850 Monthly Payments for My Pension?
If you have a pension, your employer will usually give you a choice at retirement: buyout or payments. It’s important to review this carefully. In broad terms, many make this choice based on expected lifetime returns. If you take and invest the buyout, what can you reasonably expect in portfolio returns? How will that expectation… read more…
- I’m 64 With $650k in an IRA. Should I Start Converting to a Roth to Avoid RMDs?
You can reduce the impact that taxes have in retirement by converting pre-tax savings into Roth assets. Doing so not only unlocks future tax-free growth, but also helps you minimize or avoid required minimum distributions (RMDs). However, converting a large IRA balance like $650,000 all at once would trigger a significant tax bill in the… read more…
- 6 Strategies to Protect Your Retirement Income
Retirement planning aims to ensure a steady stream of income that could sustain your lifestyle after leaving the workforce. To protect your retirement income you first need to have a clear idea of the different sources that will be available for your retirement, such as Social Security or your own personal investments. You would then implement… read more…
- I’m 65 With $800k in an IRA. Should I Convert $100,000 Per Year to a Roth to Avoid RMDs?
Converting to a Roth IRA can be tricky business. For the right household, this is an excellent way to save money on retirement taxes. A Roth portfolio generates untaxed income, letting you keep more of your portfolio and Social Security. It also has no required minimum distributions (RMDs), maximizing your financial flexibility. But remember that… read more…
- Is a Roth IRA a Qualified Retirement Plan?
The Roth IRA stands out among other types of retirement accounts due to its unique tax advantages and withdrawal rules. But is a Roth IRA a qualified retirement plan? While Roth IRAs offer significant benefits and are regulated by the IRS, they do not meet the technical definition of a qualified retirement plan, such as… read more…
- Retirement Planning Strategies for Teachers
Many teachers in the U.S. retire with pensions that provide a stable source of income during their golden years, but that doesn’t mean they can ignore retirement planning. In fact, teachers face unique retirement challenges, including the absence of Social Security benefits in some states. Education retirement planning requires a tailored strategy to optimize a… read more…
- 6 Ways to Maximize Your Social Security Survivor Benefits
Social Security survivor benefits provide essential financial support to eligible family members and help ensure stability during challenging times. Many people don’t realize that survivor benefits have different rules from regular retirement benefits. Timing your claim, coordinating with your benefits, and understanding eligibility requirements can significantly impact the amount you receive each month. Making informed… read more…
- Investment Options for Your IRA
When planning for retirement, one of the fundamental decisions you’ll face is how to invest within your individual retirement account (IRA). There are several approaches to selecting investments and managing your account. You could pick individual securities yourself, employ a robo-advisor or work with a financial advisor to construct your portfolio. From there, you can… read more…
- I’m Going to Get $2,500 per Month From Social Security. How Can I Reduce My Taxes?
Taxes can be a big concern in retirement because no matter how well you’ve saved and invested during your working years your challenge is to keep as much of it as possible. That means structuring your finances, withdrawals and income in a way that minimizes how much you fork over to the IRS. Take Social… read more…
- We’re 60, Have $1.3 Million in 401(k)s and Will Receive $5,100 Monthly From Social Security. What’s Our Retirement Budget?
At its most basic, creating a retirement budget is all about money in vs. money out. You figure out what kind of income you can reliably generate from your combined assets, then compare it against your household spending. If income surpasses spending, you’re set. If not, you need to make some adjustments. Need help creating… read more…
- I Have $640k in an IRA and Will Get $1,900 in Social Security. Can I Retire at 65?
How old are you? When it comes to evaluating your retirement options, this might be the single most important question in finance. Your age will determine how close you are to needing this money which, in turn, will change almost everything about how you evaluate your taxes, returns and other options. For example, say that… read more…