- How Getting Married Impacts Your Roth IRA
Getting married does not automatically impact your Roth IRA. Your portfolio and its tax status are unaffected by your marital status. However, in some situations, getting married can make you income-ineligible for Roth contributions. Additionally, getting married can mean making different plans around your Roth IRA. Here’s what you need to know. If you and… read more…
- How to Invest in a Socially Responsible Roth IRA
Environmental, Social and Governance, or “ESG,” investing is getting bigger. According to a 2022 analysis from PricewaterhouseCoopers (PWC), “with a projected compound annual growth rate (CARG) of 12.9%, ESG assets are on pace to constitute 21.5% of total global [assets under management] in less than five years.” And, while one-fifth of all global investments seems improbably… read more…
- How Can I Reduce the Amount of My RMD Payments?
In the year that a required minimum distribution (RMD) is due from a 401(k), IRA or other pre-tax retirement account, you’re required to withdraw a certain amount and pay your taxes due to avoid a 50% penalty. But that doesn’t mean there’s nothing you can do about this, and the associated taxes. With proper planning,… read more…
- I’m 65 and Retiring Soon. How Should I Structure My $1.1 Million Portfolio?
Your financial objectives and risk tolerance will primarily dictate how you structure your portfolio. But you’ll also want to consider taxes and fees, your potential lifespan, need for long-term care and desire to leave an inheritance behind. A financial advisor can help you identify the right portfolio construction strategy for your situation. Connect with a… read more…
- What Should I Do with My Roth IRA Once I Retire?
Retirement typically means shifting your focus from diligently saving your money over the course of years and decades to managing those funds and spending them responsibly. To learn about all the options for handling your Roth IRA in retirement, talk to a financial advisor. If you have a Roth IRA, you have several options for… read more…
- How to Avoid the Early Withdrawal Penalty on Your 401(k)
The IRS has strict rules regarding when you can withdraw money from a tax-deferred retirement account like a 401(k). Doing so before age 59 ½ can trigger an early withdrawal penalty on top of income taxes. However, the IRS has designated specific situations in which a 401(k) account owner can qualify for penalty-free early withdrawals,… read more…
- 7 Steps to Consider Immediately If You’re 55 With No Retirement Savings
When you find yourself later in life without any retirement savings, you can feel like you’ve made a mistake or that the amount you need to make up is too great to make a dent. However, there is plenty you can do to help your finances get back on track and help you maximize your… read more…
- I’m 60 With $1.2 Million in a Roth IRA. How Do I Make Sure This Money Lasts the Rest of My Life?
Planning for a Roth IRA is a little different than with most other retirement assets. This tax-advantaged account generates entirely untaxed income, as long as effectively boosting the value of your withdrawals and your Social Security benefits. That changes your options compared to having a pre-tax 401(k) or other non-Roth account. For example, say that… read more…
- 8 Ways to Protect Your Retirement Income
You’ll spend decades – if not your entire career – saving for retirement. But saving enough money is only a piece of the retirement planning puzzle. Protecting your retirement income against the test of time and an ever-changing economic landscape is equally critical. Whether it’s optimizing annuitized streams of income like Social Security, planning for… read more…
- Can I Roll Over the Employer Match in My 401(k) to a Roth IRA?
If you want to roll over money from your 401(k) into a Roth IRA, there’s good news: any employer matching funds in a 401(k) can be converted along with your own contributions and investment earnings. However, you’ll owe income taxes on all the converted funds, which can be a significant issue when converting large balances.… read more…
- How Much Money the Average Person Has Saved at 50
Reaching the age of 50 marks a significant milestone in one’s financial journey. With retirement potentially just a decade or two away, many people wonder if their savings are on track compared to their peers. Understanding how much money the average person has saved at 50 can provide a helpful benchmark for evaluating your financial… read more…
- We Have $1.2M in an IRA, Plus Another $750k and Social Security. Should We Shift Assets to a Target Date Fund or an Annuity?
Annuities and target date funds are popular assets for households who are either saving for retirement or already in their golden years. How useful each may be for you depends on your financial goals and where you are on your path to retirement. For example, John and Susan are both 67 and recently retired. They… read more…
- I Am 58 With $1 Million in My 401(k). Should I Switch to Roth Contributions?
I Am 58 With $1 Million in My 401(k). Should I Switch to Roth Contributions? Whether to make the move from contributing to a tax-deferred workplace plan or switch to a Roth isn’t a question of “should” but a question of, “What works best for you?” Just a few of the considerations are: You can… read more…
- Should I Take a $200,000 Lump Sum or $915 Monthly Payments for a Pension Annuity?
Deciding between taking a lump sum or monthly payments involves assessing a number of factors, including some that are difficult to quantify. The two most important considerations may be when you will receive the lump sum and how long you will live afterward. Getting the lump sum payout sooner increases the lump sum’s value, while… read more…
- I Have $500k in a Roth IRA, and Will Receive a Combined $2,000 a Month From a Pension and Social Security. Can I Retire at 62?
Figuring out when you can afford to retire often comes down to determining whether your assets will produce enough annual income to support your lifestyle and spending needs. If you need help deciding when to retire, connect with a financial advisor and have them build you an income plan based on your unique financial situation.… read more…
- 6 Questions to Ask Before Buying an Annuity
Annuities can offer financial stability through a steady stream of income, but they can also impact your long-term financial health. Therefore, you should consider the fees that can erode your investment to the payout rates and the trustworthiness of the issuing company, which can all play a pivotal role in determining the suitability of an… read more…
- My RMDs Start Soon So I Want to Convert $900k to a Roth, but I’m Getting Conflicting Info About Having to Wait 5 Years to Use the Money
People with Roth IRAs generally have to wait five years before withdrawing earnings from their account. But the devil is in the details, and for this particular rule, getting those details can be surprisingly difficult. For starters, the IRS has three different five-year rules that apply to Roth IRAs. One of them, the conversion rule,… read more…
- How to Make Investments in Your Roth IRA
Investing in a Roth IRA account is similar to other retirement accounts as you can choose certain securities once your account is created. The beauty of a Roth IRA lies in its tax-free growth potential, which can significantly enhance your retirement savings over time. However, the key to maximizing this benefit is making informed investment… read more…
- When Does Social Security Increase?
Every year, the Social Security Administration (SSA) issues what is known as the Cost of Living Adjustment, or COLA. This is an annual increase intended to keep Social Security benefits in line with inflation. This increase is announced in October of each year and applies to all benefits starting in January of the following year. For… read more…
- Types of Annuities for Seniors to Consider
Annuities can provide steady income for as long as you live, which is one reason a senior might purchase one. These contracts with insurance companies come in many different varieties, which can help address seniors’ specific financial needs. However, their variety and complexity can make annuities confusing compared to relatively straightforward investments such as mutual… read more…
- I Waited to Take My First RMD Until April 1st. Will This Affect My Second Year’s RMD?
Unlike most personal finance questions, the answer to this one is short and simple: yes, waiting until April 1st to take your first RMD will affect the amount of your second year’s RMD. The IRS rules on required minimum distributions – RMDs – demand that anyone turning 73 in 2024 withdraw a certain minimum amount… read more…
- I’m 59 With $1.3 Million in a 401(k). Should I Convert $130,000 Per Year to a Roth to Avoid RMDs?
Converting a 401(k) into a Roth IRA can be appealing for several reasons. Not only can you make qualified withdrawals from Roth accounts tax-free, but Roth accounts are also exempt from required minimum distributions (RMDs.) That can give you more flexibility when withdrawing from your account in retirement and potentially save you money on taxes. If… read more…
- Guide to Retirement Planning for Millennials
Members of the Millennial generation face special challenges including high levels of student loan debt and inflated housing costs when it comes to planning for a secure retirement. However, by taking proactive steps now, Millennials can set themselves up for a comfortable and secure retirement. Keys include budgeting, saving and making the most of tax-advantaged… read more…
- We’re 66 With $1.4 Million in IRAs, and $4,100 Monthly From Social Security. What’s Our Retirement Budget?
Say that, as a married couple, you have $1.4 million in your IRAs and, at age 66, expect about $4,100 per month in Social Security. Based on some typical rules of thumb, you might be able to plan on about $108,000 per year of retirement income, but how much you actually need and will be… read more…
- What Is a Retirement Visa?
The allure of living abroad can promise a better climate, a lower cost of living and a higher quality of life, if you find the right country to move to in your golden years. But you can’t just pick up and move wherever you want, whenever you feel like it, without the required documentation. One… read more…