- Retirement Strategies for Small Business Owners
Whether you just launched your small business or have been running your own shop for years, it’s no secret that the hard work never ends. This holds true for retirement planning as well, and doing so with time is crucial for success. Fortunately, there are different tax-advantaged options available, including retirement vehicles that you can… read more…
- I’m Selling My House and Netting $800k. Can I Avoid Taxes While Downsizing for Retirement?
When you sell a primary residence, the IRS allows you to exclude from your capital gains taxes the first $250,000 of profits if you file single or $500,000 of profits if you file jointly. You must include any surplus of those amounts in your taxable capital gains for the year, though. So, what if you… read more…
- The Cost of Living in a Retirement Community in Every State
Retirement living communities aim to fit needs of people age 55 and older, with amenities such as housekeeping, maintenance, organized activities and transportation to shopping, entertainment and medical appointments. Meals may also be included. Independent living communities are the most affordable level of senior housing options, but generally exclude nursing, custodial care, help with medications… read more…
- I’m 62 With $1 Million in a 401(k). Should I Convert $100,000 Per Year to a Roth IRA to Avoid RMDs?
Retirees with significant assets often have to plan around required minimum distributions (RMDs). If you already have sufficient income and don’t need the money in a pre-tax portfolio, annual RMDs can cost you significantly in otherwise-unnecessary taxes. For example, say that you have $1 million in a 401(k). The IRS could require you to withdraw… read more…
- We Are 65 With $1.9 Million in a 401(k) and IRA, and $5,200 Monthly From Social Security. What’s Our Retirement Budget?
To really build a complete retirement budget as a couple, you’ll need to take into account both potential income sources and realistic expenses. While it’s possible to come up with an estimated income or range of incomes from these figures, the expense side of the budget is equally important and potentially much more variable. Other… read more…
- The 5 Worst Retirement Mistakes to Avoid at All Costs
To do retirement right you need a disciplined savings plan, a good understanding of Social Security, a sound investment strategy and a vision of retirement that provides for adequate self-fulfillment without overspending your fixed-income budget. Behind those simple principles lies… read more…
- We’re 62 and Have $1.6 Million in Our 401(k)s. Should We Pivot to Roth Contributions?
By your early 60s, you’ll likely be paying close attention to your finances and retirement savings. This may include making crucial decisions on investment structure, risk tolerance, income needs and tax planning, among the many other moving parts of your financial life. A financial advisor can help you plan and save for retirement. Find a… read more…
- When Should I Take My First RMD?
You may not be thinking about required minimum distributions (RMDs) throughout your career, but chances are that they’ll be on your mind once you hit your 70s. RMDs are a critical part of retirement planning. A financial advisor can help you prepare for these mandatory withdrawals, which can have a significant impact on your taxes.… read more…
- This Is My First Year Taking Social Security. How Do I Reduce My Taxes on It?
As your first year of retirement progresses, it’s important to evaluate whether the financial plan you laid out to ensure your sustainable well-being is going according to plan. An appropriate plan should include tax calculations to understand how much of your income will truly be at your disposal for needs and wants. Some people may… read more…
- How to Save Money for Traveling During Retirement
Traveling during retirement is one of the main goals that a lot of people have as they think about what those years will look like. To travel the way you want, it’s important to make sure you’re saving enough money for retirement to help cover those travel costs on top of your regular retirement living… read more…
- 401(k) Rollover vs. IRA Rollover
When you change employers, you may be required to roll over your 401(k) funds from that employer to another retirement account to avoid any tax penalties. The two most popular rollover options are to roll your funds into a new 401(k) or an individual retirement account (IRA). While you might be restricted based on your… read more…
- I’m 63 With a $1.6 Million Net Worth and $4,500 in Monthly Expenses. Can I Retire Now?
With a $1.6 million net worth and $4,500 in monthly expenses, retiring at 63 is a possibility, but quite a bit of that depends on your circumstances. The income your net worth will generate depends first on how much of it is in the form of liquid assets. Your personal risk tolerance is another key… read more…
- I’m 59 With $1.3 Million in a 401(k). How Do I Make Sure This Money Lasts the Rest of My Life?
Managing your money properly in retirement is critical for ensuring that it lasts as long as you do. For example, imagine you have $1.3 million in a 401(k) before age 60. While this is a considerable amount, a 4% withdrawal rate would only generate $52,000 per year. You’d also run the risk of running out… read more…
- I’m 67 With $2 Million in an IRA. How Do I Make Sure This Money Lasts the Rest of My Life?
If you had $2 million saved in an individual retirement account (IRA) by age 67, could you make it last the rest of your life? With some wise planning and investing, stretching a $2 million nest egg over several decades is entirely possible. A sensible approach could be to focus on budgeting prudently, balancing investment… read more…
- Can a Nursing Home Take Our Assets? We Have $800,000 in Investments and Our Home Is Paid Off
Nursing home stays and long-term care can cost well over $100,000 per year. To pay for it, families often have to liquidate their assets either to raise cash or to meet Medicaid’s spend-down requirements. If you want to protect your assets against this result, long-term care insurance could be your best option. But if this type… read more…
- I’m 55 With $900,000 in an IRA. Should I Convert $100,000 Per Year to a Roth to Avoid RMDs?
At age 55 with $900,000 in a traditional individual retirement account (IRA), converting $100,000 per year to a Roth IRA could help reduce required minimum distributions (RMDs) and related taxes in retirement. Although Roth conversions create current tax liabilities, paying taxes now may result in more predictable and lower lifetime taxes. Taking an incremental Roth… read more…
- We’re in Our Early 60s with $1.4 Million in Investments. Can We Afford to Withdraw $90k Per Year in Retirement?
There are going to be many factors that help you determine if you’re ready to retire to $90k per year for as long as you’ll need it. Withdrawing too much too soon heightens the danger of depletion, so determining a safe and sustainable withdrawal rate in retirement is crucial to ensure savings last your lifetime.… read more…
- We’re in Our 70s With $200k in Savings and Social Security. How Do We Make It Last?
Retirees with relatively small nest eggs are generally more reliant on Social Security than those with more money saved up. A financial advisor can help you plan for retirement and turn your savings into a stream of income. Connect with a fiduciary advisor today. Retirees typically have to make do with what they have.… read more…
- Tax Benefits of a Simplified Employee Pension (SEP) IRA
Retirement plans, like simplified employee pension (SEP) IRAs, go hand-in-hand with attractive tax benefits. Designed for self-employed individuals and small business owners, SEP IRAs allow employers to directly contribute to their employees’ retirement accounts and their own. In return, they will receive a tax deduction. However, there are other tax benefits associated with this type… read more…
- We’re 62 Years Old With $950k in IRAs. Is It Too Late to Convert to a Roth IRA?
Fortunately, there’s no age restriction on converting a pre-tax retirement account to a Roth IRA. You can roll funds from a qualifying pre-tax account to a Roth IRA at any time. A financial advisor can help you manage your retirement savings and build an income plan for your golden years. Connect with a fiduciary advisor… read more…
- We’re Selling Our House and Netting $550k to Downsize for Retirement. How Can We Avoid Capital Gains Taxes?
Selling your home to downsize can make your retirement more financially stable, but if you have a profit on the sale you might owe capital gains taxes. Fortunately, in many cases those selling their primary residence who are single can exclude $250,000 from capital gains taxes, while married couples filing jointly can exclude $500,000. Employing… read more…
- How Do I Cover $4,000 in Monthly Living Expenses? I’m 60 With $800k in Retirement Savings, But I Won’t Collect Social Security for 5 Years
Imagine that you’re 60 years old with $800,000 in retirement savings and $4,000 in monthly living expenses. However, you want to wait until age 65 to claim Social Security, so you need to find a way to generate additional income for five more years. Whether you plan to delay Social Security or not, a financial… read more…
- I’m 65 With $1.4 Million in an IRA. How Do I Make Sure This Money Lasts the Rest of My Life?
With $1.4 million in your IRA at age 65, you have a robust nest egg that could potentially fund a secure retirement of 25 years or more. However, making sure that money lasts will require prudent planning. You’ll need to assess your income needs, balance investment risk and return, secure supplemental insured income streams, account… read more…
- We Will Make Over $300,000 Combined This Year. Can We Use a Backdoor Roth to Reduce Taxes?
High-income households can use what’s called a “backdoor Roth” to utilize a Roth IRA despite the program’s standard income restrictions. This can be an effective way to build a tax-free stream of income for your retirement, and it is a completely legal strategy. Whether this method will reduce your taxes depends heavily on your tax… read more…
- How to Hire a Retirement Advisor
A retirement advisor can help clients plan, manage and optimize their financial resources to reach retirement goals. They do so by offering expertise in areas such as investment strategies, tax planning and creating a comprehensive retirement income plan. A financial advisor can also help you create a long-term retirement plan for your specific needs. Here’s… read more…