Retirement

June 19, 2024Facing financial hardship can be an overwhelming and stressful experience, especially when it feels like your options are limited. You may consider a 401(k) hardship withdrawal as a potential solution to your immediate financial needs if you’re younger than 59 ½. However, before making this decision, you’ll want to fully understand what a 401(k) hardship… read more…

June 19, 2024Consolidating your retirement accounts can simplify your financial planning, reduce fees and provide a clearer picture of your overall savings. By combining multiple accounts into one, you can streamline your investment strategy, make tracking your progress easier and potentially enhance your portfolio’s performance. Whether you have 401(k) plans from previous employers, IRAs or other savings… read more…

June 19, 2024Saving for retirement is important because it ensures greater financial stability and independence in your later years. As life expectancy increases, so does the need for a robust retirement fund to cover extended healthcare costs, rising living expenses and unforeseen financial challenges. Without adequate savings, you risk outliving your money, which could lead to a… read more…

June 18, 2024The Social Security Trust Funds are financial reserves established to support the Social Security program in the United States. They comprise two separate funds: the Old-Age and Survivors Insurance (OASI) Trust Fund and the Disability Insurance (DI) Trust Fund. These funds are designed to ensure the payment of retirement, survivor and disability benefits to millions… read more…

June 14, 2024For an average single person planning to stop working at 64, a $1.2 million 401(k) account and $2,800 Social Security benefit could provide enough income to make ends meet during retirement. Widely used guidelines suggest your annual income may be around $81,600, which may or may not be more than your annual expenses. Much depends… read more…

June 12, 2024The concept of semi-retirement offers a unique alternative that balances the desire for more leisure time with the benefits of continued income and engagement. Learning how to semi-retire early can open doors to a lifestyle that combines the best of both worlds: the freedom to pursue personal interests and the security of a steady, albeit… read more…

June 12, 2024Deciding when to retire is one of the most significant financial decisions you’ll make, and getting the timing right is important for the success of your nest egg. If you’re wondering “how do I know when it’s time to retire,” several key factors can guide you. Evaluating your retirement readiness involves assessing your savings, understanding… read more…

June 10, 2024Roth IRAs are not subject to rules on required minimum distributions (RMDs), and qualifying withdrawals from Roth accounts in retirement are also free of federal income taxes. You can get those advantages for funds in your traditional IRA by transferring them into a Roth account. You’ll have to pay income taxes now on funds you… read more…

June 7, 2024Saving for retirement is an important part of financial planning, and choosing the right investment vehicle can make a significant difference in your long-term financial well-being. While employer-sponsored 401(k) plans have become a popular choice for many workers, individual retirement accounts (IRAs) offer several compelling advantages that should not be overlooked. Here are three benefits… read more…

June 6, 2024The thought of your company going bankrupt is unsettling, especially if you were expected to receive a lifetime guaranteed income from a defined benefit pension plan. While bankruptcy can throw the future of a pension plan into flux, it doesn’t mean employees are automatically out in the cold thanks to the Pension Benefit Guaranty Corporation… read more…

June 6, 2024Understanding the nuances of spousal benefits is crucial to maximizing your household’s Social Security payments. For example, if you’re set to collect $3,500 per month from Social Security at full retirement age, your spouse may be eligible to receive $1,750 based on your earnings record, although this won’t happen automatically. Eligibility for spousal benefits ultimately… read more…

June 3, 2024Converting a large sum like $865,000 to a Roth IRA is a strategic move for long-term tax benefits – including tax-free retirement income and eliminating required minimum distributions (RMDs) –  but it often comes with a hefty upfront tax bill. The transition from a traditional IRA or 401(k) to a Roth IRA means paying taxes… read more…

May 31, 2024If you live in New York, you can apply for Social Security benefits online, by telephone or in person. The Social Security Administration maintains a website at SSA.gov, as well as dozens of local offices throughout the Empire State that you can call for information or schedule an appointment with. Before applying, you can use… read more…

May 31, 2024Massachusetts participates in the Social Security system a little differently than most states. Massachusetts residents who belong to public-sector retirement plans don’t pay Social Security payroll taxes. As a result, these workers don’t earn credits toward Social Security benefits for their public-sector work. Some Massachusetts public workers may still qualify for Social Security benefits through… read more…

May 31, 2024Annuities 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…

May 31, 2024Unlike 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…

May 31, 2024If 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…

May 30, 2024Pension 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…

May 30, 2024Losing 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…

May 30, 2024A 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…

May 30, 2024For 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…

May 28, 2024Whether 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…

May 28, 2024Qualified 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…

May 28, 2024Deciding 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…

May 24, 2024It’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…