- What Is the Social Security Earnings Test?
Social Security is a federal insurance program that makes provision for benefits to be provided to retired people, those who encounter disabilities and their survivors. And if you plan on claiming benefits early and continue to work, the Social Security Administration will apply an earnings test to determine how much you will get. Here’s what… read more…
- 60% of Americans Age 65 and Older Carry More Debt Than 30 Years Ago
Debt can seriously risk your retirement, and it’s on the rise. When it comes time to retire, one of the best first steps is to control your finances. Cut down on bills and household spending so that you can maximize the value of your retirement income. Ideally, this means you’ll have that much more left… read more…
- Can You Contribute to Both a Traditional and Roth IRA?
Individual retirement accounts (IRAs) are one of the most popular ways to save for retirement. Traditional IRAs provide tax deductions on your contributions, effectively reducing your current taxable income. In contrast, Roth IRAs are funded with after-tax dollars, allowing for tax-free withdrawals during retirement. The Internal Revenue Service (IRS) permits you to contribute to both… read more…
- Are Social Security Survivor Benefits Taxable?
Social Security survivor benefits are payments made to family members of a worker who has passed away. These benefits serve as a financial safety net, providing much-needed support during a trying time. Navigating the emotional stress that comes with these life changes, while trying to understand the often complex financial landscape of these benefits can… read more…
- Do You Follow the 4% Rule for Retirement Income? You May Want to Consider This Style of Portfolio
The 4% rule has long provided guidance to retirees on how to maintain a safe withdrawal rate from retirement accounts. But with today’s low bond yields and stock market volatility, this once-steady rule of thumb looks increasingly open to change. A new approach detailed by John Hancock Investment Management suggests using diversified multi-asset income portfolios.… read more…
- I’m 67 Years Old, Have $2.5 Million in Cash, $500k in an IRA and Social Security. Should I Retire Now?
With $2.5 million in cash, $500,000 in an IRA and average Social Security benefits, someone who’s 67 is likely in a pretty good spot for retirement. However, retiring comfortably involves more than financial resources. It also requires balancing income and expenses. With that in mind, it may be necessary to reduce lifestyle costs or invest… read more…
- Important Ages and Steps to Guide Your Retirement Planning
Retirement planning is a process that can take many years and, as you progress along the track, you’ll encounter opportunities, incentives and deadlines tied to specific ages. In order to avoid penalties and tap into benefits, you will often have to take certain steps by certain birthdays. And planning effectively for a secure and comfortable… read more…
- How Unretiring and Going Back to Work Impacts Your Retirement
For many retirees, reentering the workforce can provide relief from inflation and structure the week in a productive way. However, doing so presents a host of considerations, particularly concerning their Social Security benefits. Understanding the intricacies of this process is crucial to make informed decisions. Here are the key aspects of unretiring, including the impact… read more…
- I Have $1 Million in Savings and a Pension. Should I Delay Social Security and Rely on My 401(k) for 8 Years?
If you have $1 million in a 401(k) and collect a pension, you may be in a position to delay Social Security until age 70. Doing so can boost your monthly benefit by up to 24%. However, delaying Social Security will mean you’ll have to rely more heavily on your savings for several years and… read more…
- J.D. Power Ranks the Best Retirement Plan Digital Experiences for 2023
If you’re looking to build a long-term retirement account relationship with a specific financial advisor or company, you may want to check out the firm’s digital app before you move your money. That’s the upshot of the J.D. Power 2023 U.S. Retirement Plan Digital Experience Study. In fact, the report found that customers who are… read more…
- I’m 62 Years Old, Have $1 Million in Cash, $750k in an IRA and Social Security. Should I Retire Now?
With retirement nearly within your grasp, a few years more of working may seem daunting. But before you make any final decisions, you must make sure you can retire securely. Here, we have a profile with about $1.75 million in savings on top of Social Security. Can you retire now? It depends on factors specific… read more…
- Who Assumes the Risk With a Variable Annuity
A variable annuity can offer you tax-deferred growth, a wider range of investment options and guaranteed income. However, it comes with potential risks. And the success of your investment will hinge of your ability to avoid surrender charges and liquidity restrictions, and be aware of high fees and market risks. Here’s what you need to… read more…
- Who Assumes the Risk With a Fixed Annuity?
A fixed annuity is a contract between an individual and an insurance company. It is designed to provide a guaranteed stream of income over a specific period, typically during retirement. The core appeal of fixed annuities lies in their predictability – they offer a set interest rate and periodic payments, shielding investors from market fluctuations.… read more…
- What Happens If I Surrender My Deferred Annuity Early?
Deferred annuities are a popular choice among individuals seeking to secure their financial future, offering a reliable stream of income during retirement. But life is unpredictable, and sometimes circumstances change, prompting annuity holders to consider surrendering their policies prematurely. Doing so, however, may trigger surrender charges and tax penalties, and also lead to a loss… read more…
- What Are Medicare Savings Programs?
Medicare savings programs (MSPs) are federally funded programs that are administered at the state level to help lower-income individuals pay for Medicare costs. There are four programs that offer benefits to Medicare recipients but not everyone is eligible. You’ll need to be within specific guidelines for income and financial resources to qualify for help. Need… read more…
- 10 Steps to Get Ready for Retirement in 10 Years or Less
While retirement might as well have existed on another planet when you were in your 20s and 30s, being 10 years or less away from retirement can be as daunting as it is exciting. As this new reality comes to the front of your mind, the things you need to consider – from health insurance… read more…
- We’re 65, Have $1 Million Saved and $30K in Social Security Benefits. Can We Live on $70K Per Year?
Suppose you and your spouse are both 65 years old, have $1 million in savings and collect $30,000 per year in Social Security. Is that enough to fund a $70,000 per year retirement? It will depend on your personal circumstances, especially where you live, but $70,000 may be enough for some households. Whether your assets… read more…
- Pros and Cons of Working After Retirement
Retirement is a time often associated with tranquil days filled with hobbies, family and well-deserved relaxation. However, an increasing number of retirees are exploring new employment opportunities or considering an extension of their current roles. Deciding whether to work during this stage can be influenced by factors such as the need for additional income, the… read more…
- Return to Student Loan Payments Affects Long-Term Retirement Outlook, Nationwide Survey Shows
As federal student loan repayments resume following a pause during the COVID-19 pandemic, a Nationwide Insurance survey reveals two-thirds of workers believe the return of payments will derail their retirement savings. The survey spotlights broad financial pressures spanning generations. Most borrowers agree reinstating loan payments has already destabilized their finances and imperiled retirement planning. Nearly… read more…
- Just How Important Is It to Begin Planning Early for Retirement?
An unpredictable economy and unforeseen life events can create a “financial vortex” that makes it difficult to save over the long term and invest for retirement, according to a recent survey from Goldman Sachs. The list of volatile economic factors won’t surprise anyone living in today’s economy who’s experiencing higher interest rates, inflation and the… read more…
- I Have $750K in a Roth IRA and Will Receive $1,800 Monthly From Social Security. Can I Retire at 65?
Can you retire at 65 with $750,000 in a Roth IRA and $1,800 in monthly Social Security? Based on median incomes and the 10x rule, most people will need about $740,000 to finance a secure retirement. So in theory, a $750,000 Roth IRA and $1,800 in Social Security benefits will be enough for many individuals… read more…
- Does a SEP IRA Allow Catch-Up Contributions?
Catch-up contributions, which are additional sums that individuals aged 50 and above can make beyond the standard limit, serve as a significant boon for those nearing retirement. However, their applicability varies across different retirement savings options. SEP IRAs, introduced in 1978, have been a popular choice for small business owners and self-employed individuals due to… read more…
- Who Is Not Eligible for Survivor Benefits?
Survivor benefits are a type of Social Security that’s provided to families following the death of a wage earner. These payments are designed to offer financial continuity and support to the surviving dependents or beneficiaries of a deceased worker. However, not everyone can collect survivor benefits. Eligibility typically depends on several factors, including the deceased… read more…
- Understanding the Death Benefit of a Variable Annuity
Variable annuities are insurance contracts designed not only to provide regular income during retirement but also a death benefit to the policyholder’s beneficiaries. The latter ensures that a certain amount of money is distributed to your heirs when you pass away. As the average life expectancy increases and one’s retirement savings must last longer, understanding… read more…
- I Have $500k in an IRA and Will Receive $2,000 Monthly From Social Security. Can I Retire at 67?
Half a million dollars might sound like a lot of money, but if you’re approaching retirement, is it enough? If you have $500,000 in a pre-tax IRA and expect $2,000 per month from Social Security, you may have enough money to retire at age 67. A half million dollars is a relatively modest nest egg,… read more…