- 10 Ways to Properly Plan for Retirement
Planning for retirement can be a daunting task. You have to figure out how much to save, determine the right ways to save that money and then make sure you’re consistent while constantly making adjustments to your approach over time. If you’re not experienced in investing and managing finances then you might not know where… read more…
- Is It Better to Take Annuity Payments Monthly or Once Per Year?
A lot of retirees use annuities to simplify their income stream in retirement but that doesn’t mean annuities are simple. Beyond choosing what kind of annuity to purchase – immediate vs. deferred and fixed, indexed or variable, you’ll also need to consider how to receive your annuity payments. You can receive a lump sum from… read more…
- I’m 59 With a $1.4 Million Net Worth and $5k in Monthly Expenses. Can I Retire Now?
When thinking about whether you’re financially prepared to retire or not, you’ll want to think about it in a certain way. You have a lifestyle that you would like to maintain, and a portfolio that can safely generate a specific amount of income each year. Once your costs and means overlap, you can afford to… read more…
- Differences of Immediate vs. Deferred Annuities
The guaranteed income of an annuity makes this a valuable retirement product for many households. While there are many different kinds of annuity, two of the broadest categories are immediate vs. deferred contracts. With an immediate annuity, you buy the contract in one lump sum and begin receiving payments right away. A deferred annuity, on… read more…
- I Want to Roll Over $720k to a Roth IRA. How Do I Avoid Paying Taxes?
Taxes are a valid concern if you want to roll over $720,000 from your retirement fund into a Roth IRA. While you won’t pay any taxes if the assets you’re rolling over are held in another Roth account, there’s typically no way to completely avoid paying taxes when rolling pre-tax money into a Roth IRA.… read more…
- I’m 65 Years Old With $1.2 Million in an IRA. I’m Taking Social Security – Is It Too Late to Convert to a Roth IRA?
Imagine you’re 65 with $1.2 million in an IRA and a lingering question: should you convert your account into a Roth IRA? The answer may depend on how you go about it. A Roth conversion can provide some sizable advantages, including tax-free withdrawals and freedom from mandated distributions – but that doesn’t mean it’s always… read more…
- I Will Make $200k This Year. How Can I Use a Backdoor Roth to Avoid Taxes in Retirement?
If you’re a relatively high earner, you might be locked out of making Roth IRA contributions due to the account’s associated income caps. In that case, you can instead consider a conversion, otherwise known as a “backdoor Roth.” The advantage to doing this is that you will avoid all income taxes on withdrawals from the… read more…
- We’re 63, Have $1.5 Million in IRAs and Will Receive $4,500 Monthly From Social Security. What’s Our Retirement Budget?
As you make your retirement budget, it’s important to keep two issues in mind. First, understand your needs — what budget will you need to pay your bills, and what budget will you want to afford your lifestyle? And second, understand your capacity — what income can your portfolio comfortably and reliably generate for you? … read more…
- Which of These Retirement Savings Trends Fit Your Financial Situation?
Despite recent years of inflationary spikes and stock market volatility, most Americans haven’t cut their retirement savings rate. They also don’t plan to sell assets or investments and are taking action to get professional advice to plan their retirement. If you need help saving and planning for retirement, consider working with a financial advisor. Those… read more…
- Pros and Cons of Tax-Deferred Annuities
The major advantages to a tax-deferred annuity are accumulation and security. By putting off taxes until retirement, your annuity portfolio can use that money to maximize its returns. And then, in retirement, you receive a guaranteed income for life. The major disadvantages are returns and inflation, as these products tend to generate much lower rates… read more…
- I’m a 48-Year-Old Divorcee With $550K in an IRA and $110K in My 401(k). Can I Retire in 10 Years?
Planning for an early retirement requires wrestling with complex variables, including healthcare costs, portfolio returns and withdrawal rates. As a 48-year-old divorcee with a $550,000 IRA and $110,000 in a 401(k), it may be possible to retire in 10 years. Making reasonable assumptions, these assets could potentially generate enough income to maintain an adequate living… read more…
- I’m 55 With a $2 Million Net Worth and $6k in Monthly Expenses. Can I Retire Now?
Retiring early raises a series of questions around both income and spending. You will need to manage your portfolio for longer-term drawdowns, an early end to new earnings, and a long wait for Social Security to kick in. You will need to manage your spending around new needs, particularly health insurance, long-term care insurance and… read more…
- I’m Almost 60 and Have $1 Million in My IRA. Should I Switch to Roth Contributions?
Should you switch from pre-tax IRA contributions to Roth contributions? Imagine that you’re steadily contributing to a traditional IRA. This provides you with an annual tax deduction. However, contributing to a tax-deferred account comes at the cost of having to pay taxes on all of the money you withdraw in retirement. Switching to a Roth… read more…
- What Should I Do With My IRA Once I Retire?
When you retire, you make the final shift from the era of wealth accumulation to wealth management. This is a big deal. Managing your IRA in retirement is an important project. You want to strike the balance between a newfound need for security, since you can no longer wait out downturns and replace losses, and… read more…
- Is $2.5 Million Enough to Retire at 60?
With careful planning, $2.5 million can fund a comfortable retirement starting at age 60. But as with any major life transition, retirees must weigh a complex set of variables from taxes to healthcare to ensure their nest egg lasts decades. Though everyone’s situation differs, this level of savings can provide most the flexibility to retire… read more…
- I Have $640k in a 401(k). How Do I Avoid Paying Taxes When Converting to a Roth IRA?
Converting a 401(k) to a Roth IRA can potentially provide valuable long-term benefits, but it also triggers a tax bill that you’ll need to plan for. While the taxes on a Roth conversion can’t be avoided, savers can reduce the burden through several strategies like gradual conversions and timing adjustments. Those nearing retirement can weigh… read more…
- This Proposed Roth IRA Rollover Legislation Could Revolutionize Roth Retirement Savings Accounts
Workers with their own personal Roth IRAs would be able to roll those accounts into a workplace Roth 401(k) and some similar accounts under legislation recently introduced in the House of Representatives by two of its members. These other accounts types could include 403(b)s and 457(b)s. If signed into law, this proposal could change the… read more…
- I’m 62 and Retiring Soon. How Should I Structure My Portfolio?
For many people, retiring feels like crossing a finish line. You have spent your working years building wealth, and now it’s time to manage and spend that money. By and large, this is true – your financial perspective will change significantly once you no longer have a normal stream of income. However, it’s important to… read more…
- I’m 65 Years Old With $750k in an IRA. I’m Taking Social Security – Is It Too Late for a Roth Conversion?
If you’re 65 years old and collecting Social Security, you may wonder if it’s too late to convert your $750,000 traditional IRA into a Roth IRA. The short answer is no – there are no legal restrictions to Roth conversion based on age or income. Practically, however, the decision involves carefully weighing tax implications, healthcare… read more…
- Types of Annuities to Consider for Retirement
Annuities can provide retirees with a guaranteed stream of income, but choosing the right type is key to making the most of these products. Making the selection requires learning about the major features of the types of annuities most popular for retirement planning. It’s also essential to get an understanding your own needs for financial… read more…
- I’m 60 With $1.2 Million in an IRA. Should I Convert $120,000 Per Year to a Roth to Avoid RMDs?
If you’re 60 years old with $1.2 million saved for retirement in a traditional IRA, you may be starting to think about required minimum distributions (RMDs) and the hefty annual tax bill they can create once you turn 73. Converting a portion of your IRA to a Roth IRA each year can help you reduce… read more…
- I Have to Take RMDs, But Don’t Need the Money Yet. What Can I Do With It?
While many retirement accounts offer tax-sheltered ways to save and invest, the IRS mandates accountholders start withdrawing money at a certain point. This takes the form of required minimum distributions (RMDs). Required minimum distributions currently start at age 73 for many retirement accounts. It’s not uncommon to reach an age when the IRS requires you… read more…
- Study Shows Major Differences in How People and Their Employers View Their Retirement Readiness
The bosses who sponsor retirement investment plans think their employees are well prepared for retirement. However, many of those workers don’t feel the same way. This difference in opinion could cause a disparity on the decision-making side of employee retirement account management. Do you have questions about building a retirement plan? Speak with a financial… read more…
- What Is Rule 72(t) and How Does It Work?
Accessing your retirement funds before age 59½ typically comes with a hefty 10% early withdrawal penalty. However, Rule 72(t) offers a potential exception that many retirement savers don’t fully understand. This IRS provision, formally known as Section 72(t) of the Internal Revenue Code, provides a pathway to penalty-free early withdrawals from retirement accounts under specific… read more…
- The Equivalent of One-Third of My Monthly Retirement Contributions Gets Eaten Up by Fees. Am I Getting Ripped Off?
Paying fees is part of being an investor, as everything from mutual fund investing to a personal financial advisor can cost you. However, it’s also important to periodically review the fees you’re paying to ensure you’re not doing any long-term harm to your returns. For instance, depending on the size of your 401(k) or IRA,… read more…