- Ask an Advisor: I’m a Retired Teacher With a State Pension, Social Security and $550k in Savings. Should I Pay Off My $120k Mortgage?
I am trying to decide if I should pay off my house worth about $750,000. I owe around $120,000 on an adjustable-rate mortgage (ARM). On the other hand, my 4.5% interest rate just ended and I know the interest will continue to rise in this economy. My mortgage is $1,450 per month, having risen $400… read more…
- Six Tools to Help You Plan for Retirement
Preparing financially for retirement takes diligent tracking of savings, investments and benefit projections over decades. Thankfully, the right tools exist to help chart progress toward various retirement goals. Many of these tools are available for low cost or no cost. Free tools and calculators from companies like SmartAsset, JPMorgan, Schwab and Fidelity offer good examples.… read more…
- How to Catch Up on Retirement Savings in Your 40s
If you are in your 40s and behind on your retirement savings, you are not alone. While saving early will give you more time to grow your nest egg, it’s never too late to start. Let’s break down what you can do to catch up on your retirement savings in your 40s. If you’re falling… read more…
- How to Calculate Your Retirement Cost of Living
When it comes to retirement, understanding the potential cost of living is important for effective financial planning. Without a clear idea of these costs, you can run the risk of outliving your savings or compromising your lifestyle. Here’s what you need to know to calculate your retirement cost of living. A financial advisor can help… read more…
- Contribution Limits for a One-Participant 401(k)
A one-participant 401(k) or solo 401(k) is an attractive retirement savings option for self-employed workers or business owners. While they’re similar to the standard 401(k) plans often offered at larger workplaces, one-participant 401(k)s allow solo business owners to exceed the contribution limits that other plans are subject to. Consider speaking with a financial advisor if… read more…
- Do 401(k) Contributions Reduce Your AGI?
When it comes to saving for retirement, 401(k) plans are a popular choice for many American workplaces. Contributing to a 401(k) not only helps you save for retirement but offers the added bonus of reducing your adjusted gross income and lowering your tax liability for the year. A financial advisor can help you determine how… read more…
- I Have Enough in My Retirement Accounts. Can I Use Rule 72(t) to Retire Early?
Tapping into your retirement savings before age 59.5 typically triggers a 10% early withdrawal penalty in addition to the income taxes you’ll owe. Using Internal Revenue Service Rule 72(t) can help you generate income from your nest egg in your 50s or earlier without paying that penalty. If you use it, you’ll still have to… read more…
- Ask an Advisor: I’m a 54-Year-Old Nurse With $1 Million in Assets and a $7k Monthly Pension. Can I Retire Now?
I’m 54 with 26 years of service as a nurse. We go by the rule of 80 (your age plus years of service = 80) on our retirement plan. It will cover my health insurance. My pension will be around $7,000 per month minus taxes. I have a combined $750,000 in a 403(b) and Roth… 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?
Ultimately, whether you have enough to retire depends on your costs and your income. If you can live on a tight budget with the right circumstances, $2,000 a month from a pension and Social Security, combined with the right strategy with $500,000 in your Roth IRA may be enough to sustain you throughout your retirement.… read more…
- High Cost of Living Surpasses Retirement Preparedness as Top Financial Concern, Study Says
A recent survey of employers from the Employee Benefit Research Institute (EBRI) uncovered a major shift taking place among American companies and their workers. Instead of putting retirement readiness at the top of their list of financial concerns, they’re increasingly becoming more worried about cost of living. This shouldn’t come as a total surprise, considering… read more…
- Ask an Advisor: I’m 70 With $1.4 Million in IRAs. Should I Convert $160k Per Year into a Roth to Save on RMDs Later?
I am 70 and I have $1.4 million in traditional IRAs. Is it best to do $160,000 in Roth conversions for the next 1-3 years to reduce my high RMDs in about 5-10 years? That would put me in the 24% tax bracket and $330 Medicare premium rate. Please give me advice. – Dennis I do… read more…
- Investing With Your IRA: ETFs vs. Mutual Funds
Investing for retirement requires careful planning and informed decision-making. An individual retirement account (IRA) is a powerful tool for retirement savings, offering tax advantages that can significantly enhance your future financial stability. IRAs allow individuals to direct pre-tax income, up to specific annual limits, toward investments such as individual stocks, bonds and mutual funds, which… read more…
- This New Federal Proposal Could Give You a 5% Match on Your Retirement Contributions
Low- and middle-income workers who aren’t covered by a workplace retirement savings plan would get access to the federal Thrift Savings Plan, under a bipartisan bill introduced in the U.S. Senate recently. “Americans who work hard their entire lives deserve to retire with dignity,” Sen. John Hickenlooper, D-CO, said in a statement. “This bill helps… read more…
- Rules for Cashing Out Your IRA After Age 70
Cashing out an IRA after age 70 involves specific rules that depend on the type of IRA and the account holder’s age. Traditional IRA owners must begin taking required minimum distributions (RMDs) starting at age 73, while Roth IRAs don’t require RMDs during the original owner’s lifetime. The IRS taxes withdrawals as ordinary income unless… read more…
- How Much High-Income Earners Have Saved for Retirement
If you’ve got more money, you’ve got more retirement options. High-income earners have substantial resources at their disposal, presenting the potential for massive gains and crushing losses. However, practical strategies and careful financial decisions can help you retire as a multi-millionaire. High-income earners often have different retirement needs than others. Here’s how much high-income earners… read more…
- How the IRA Aggregation Rule Works
Individual retirement accounts (IRAs) are a popular and common way for Americans to save for retirement. However, not everyone is aware of a crucial component of IRA regulations called the “aggregation rule.” Essentially, if you have multiple IRAs, this rule treats them as a single IRA for tax purposes. This can be especially important to… read more…
- I’m 65 With an IRA Worth $250k and a $75k Mortgage. Should I Withdraw From My Investment to Pay Off My Debt Before Retiring?
Do you prioritize debt or investments? This is a common questions in personal finance, with debt positioned as investment’s evil twin. While your investments grow and make you steadily wealthier, growing debt can make you steadily poorer. You want to hold investments for as long as possible. You want to pay off debt as quickly… read more…
- I Have $250k in an IRA and Will Receive $3,000 Monthly From Social Security. Can I Retire in 5 Years at 70?
If you’re in your mid-60s and still working, it may be time to start seriously planning for retirement. That doesn’t mean you need to leave work immediately, but retirement is likely on the horizon. Imagine you’re 65 years old, you have $250,000 in an IRA and expect to receive $3,000 per month from Social Security.… read more…
- What Types of Fees Do You Pay With a Roth IRA?
A Roth IRA, or Individual Retirement Account, is a widely used tool for retirement savings. However, like other financial products, it can come with a variety of costs. These can range from transaction fees and account maintenance charges to early withdrawal penalties and fund expense ratios. Understanding these fees, and figuring out how to navigate… read more…
- Save More in Your 401(k) or IRA in 2024: IRS Announces New Contribution Limits Up to $23,000
Contribution limits for 401(k)s, IRAs and other retirement accounts are going up in 2024. The IRS, which regulates annual contribution limits on qualified and tax-advantaged retirement accounts, announced the 2024 contribution limits for various plans on Wednesday. A contribution limit demarcates the amount an employee can contribute to their respective retirement plan in a given… read more…
- What Is the Average Monthly Retirement Income in Every State?
The average retirement income varies widely across the U.S. In the state with the highest retirement income, the average retired household brings in more than twice as much as retirees in the state with the lowest retirement income. Differences stem from local variations in wages and salaries, cost of living, tax rules, the incidence of… read more…
- 8 Reasons Annuities Might Be a Bad Investment for You
You pay $1 million upfront and receive $5,000 a month after retiring. Simple, right? Unfortunately, annuities are rife with complexities that can prevent a clear understanding of their benefits and potential pitfalls. This insurance product is often considered a safe investment, but annuities have their own risks. Here’s why they might be a bad investment… read more…
- Solo 401(k) Contribution Limits
A solo 401(k) is a tax-advantaged retirement account designed for self-employed individuals and small business owners with no other employees. If you’re wondering how much you can contribute to a solo 401(k), the answer is up to $70,000 in 2025 (plus a catch-up $7,500 contribution if you’re 50 or older or $11,250 if you’re aged… read more…
- How to Account for Inflation in Retirement Planning
Retirement planning is a critical process that can help secure your financial future. And understanding economic factors, like inflation, is essential. While inflation impacts all consumers, it can significantly affect retirees’ purchasing power or what a given amount of money can buy. Retirees may struggle to maintain their financial stability when their purchasing power is… read more…
- How to Open a 401(k) for Yourself Without an Employer
Looking for a flexible retirement plan that meets your self-employment needs? A Solo 401(k) account can allow you to contribute both as an employee and employer, therefore increasing your potential savings to help make your retirement sustainable. If you need help deciding on a retirement plan, a financial advisor can walk you through the benefits… read more…