- What Is a Safe Harbor 401(k) Plan and When Should You Invest?
The Safe Harbor 401(k) is a type of retirement plan designed to provide employers with a simple way to bypass annual nondiscrimination testing. This testing is a complex process that ensures contributions to retirement plans do not heavily favor highly compensated employees. It’s also required by traditional 401(k) plans. Understanding the Safe Harbor 401(k) plan,… read more…
- Eligibility Requirements to Open a Roth IRA
Unlike traditional IRAs, Roth IRAs offer tax-free growth and tax-free withdrawals in retirement. These unique tax advantages can lead to significant savings for the investor, making it an attractive retirement savings option. However, not everyone is eligible to contribute to a Roth IRA. In 2025, single filers with modified adjusted gross incomes (MAGIs) of $165,000… read more…
- Can You Cash Out Your Pension When Leaving a Job?
Cashing out a pension after leaving a job is an option in some cases, but the process can vary depending on plan rules, vesting status and tax implications. Some pensions allow a lump-sum cash-out, offering immediate access to funds – but at the cost of potential taxes and penalties. Others require the money to remain… read more…
- How Much Does It Cost to Open a Roth IRA
As you ponder over your retirement account choices, the Roth individual retirement account might stand out as an investment opportunity. However, before you take on any account you should understand the fees and other costs that come with it. While it typically doesn’t cost anything to open a Roth IRA account other than the initial… read more…
- 403(b) Retirement Plan Withdrawal Rules and Strategies
A 403(b) plan is a tax-advantaged retirement account that is specifically for public school employees and employees of some charities. Just like with a 401(k), both you and your employer can contribute to a 403(b). And in general, you can’t access the money until you are either approaching retirement age or legally disabled, and you… read more…
- My Wife and I Have $1 Million in a 401(k) and Fully Own a $500k Home. Can I Retire in 5 Years at 60?
With $1 million in a 401(k) and no mortgage on a $500,000 home, retirement at 60 may, in fact, be possible. However, retiring before eligibility for Social Security and Medicare mean relying more on savings. So deciding to retire at 60 calls for careful planning around healthcare, taxes and more. At any age, deciding whether… read more…
- Americans Are 3x Likelier to Take a Hardship Withdrawal. But Fidelity Says Doing This Can Protect Your Retirement Savings
Americans are, in growing numbers, relying on their retirement accounts to pay the bills. More specifically, hardship withdrawals from 401(k) and related plans are up. This is shown as a result of numerous studies conducted over 2023, including a new report issued by Fidelity. To address this, Fidelity urges employers to help their employees prepare for… read more…
- It’s Official: Your Social Security Benefits Will Increase This Much in 2024
Over 70 million Americans who receive Social Security or Supplemental Security Income (SSI) benefits will see a 3.2% cost of living adjustment (COLA) in 2024, the Social Security Administration announced recently. For instance, that means the September 2023 average retiree benefit of $1,793 will increase by $57 starting in January 2024. This increase is smaller… read more…
- 401(k)s Are Investing Your Retirement Money in This Asset – What It Means
Managers of 401(k) and similar workplace retirement plans are putting an increasing amount of money in private real estate investments, including commercial real estate funds and real estate investment trusts. This news comes according to a 2023 survey from the Defined Contribution Real Estate Council. In fact, as of Dec. 31, 2022, $59.1 billion was… read more…
- We’re 67, Have $2.5 Million Saved and $40k in Social Security Benefits. Can We Live on $100k Per Year?
Picture this scenario: You and your spouse are both 67, have $2.5 million in savings and collect $40,000 in annual Social Security benefits. Is that enough to support a $100,000 lifestyle in retirement? This question is really multi-pronged. It’ll depend on when you both plan to retire, if you can you generate $100,000 per year… read more…
- I’m 65 Years Old, Have $500k in Cash, $1 Million in an IRA and Social Security. Should I Retire Now?
Someone with $1.5 million in assets on top of Social Security income may be able to maintain a comfortable retirement starting at 65 with the right circumstances. While this is can be a relatively strong retirement profile depending on your needs, location and risk tolerance, you’ll need to plan carefully and make some critical decisions… read more…
- How Much Does It Cost to Open an IRA?
An individual retirement account (IRA) is a type of savings account that offers tax benefits for retirement savings in the U.S. It can play a critical role in strategic financial planning, providing significant tax advantages and bolstering your retirement savings over time. One of the major factors in deciding to invest in an IRA is… read more…
- 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…