- BlackRock Says Workers Without This May Lose Out on Almost $625,000 in Retirement Savings
A recent study by BlackRock and Human Interest reveals an eye-catching gap in retirement savings between workers with access to employer-sponsored retirement plans and those without. The data shows that median-income employees lacking workplace retirement benefits saved one-eighth as much as those with employer-sponsored retirement plans. And by the time they retire, these workers could… read more…
- Should I Take a $48,000 Lump Sum or $462 Monthly Payments for a Pension Annuity?
Buyout decisions have become increasingly common for those with a pension plan. If you get this offer, the most important questions to deal with include when you would you receive the payout, and how long you expect to live. The earlier you would receive a lump sum payout, the more it will be worth to you… read more…
- Ask an Advisor: We Have $1.45M Saved, Plus $1M in Rental Properties That Make Us $5K Per Month. Can We Retire in 5 Years?
I’m 50 and my husband is 57. We paid off all debts and have $1 million in our 401(k) and IRA. We also own $1 million in rental properties that give us a $5,000 net profit monthly. We hope to keep the rental homes for another 15 years for income. We have $200,000 in savings… read more…
- SIMPLE IRA vs. Roth IRA: What’s the Difference?
A SIMPLE IRA (Savings Incentive Match Plan for Employees) is primarily designed for small businesses, allowing both employees and their employers to contribute towards retirement savings. In contrast, a Roth IRA is a type of retirement savings account into which individuals deposit after-tax income, expecting tax-free earnings and withdrawals later on. Here is how each… read more…
- You May Be Paying Too Much in Taxes on Your Social Security Benefits. Here’s How to Lower Them
Millions of Americans rely on Social Security benefits for all, or a portion, of their retirement income. Up to 85% of Social Security benefits are subject to federal income tax, depending on your total household income. However, Fidelity recently presented options for taxpayers to reduce how much they pay in taxes on Social Security benefits.… read more…
- Ask an Advisor: I Made $310,000 Last Year and Have $546,000 in Retirement Savings, But My Spouse Doesn’t Work. How Can I Save More?
I am 48 years old. I made $310,000 last year and I currently have $546,000 in my retirement plan at work. My husband is on disability and doesn’t work and does not have a 401(k) plan. I wanted to open a Roth IRA but I read that I make too much money. What options do… read more…
- I Have $2.5 Million in a Roth IRA and Will Receive $2,500 Monthly From Social Security. Can I Retire at 62?
Retiring at age 62 and filing for Social Security will reduce a person’s lifetime benefits by up to 30% compared to waiting until their full retirement age. However, a person with $2.5 million in a Roth IRA may feel more comfortable retiring at age 62, despite the impact that early retirement will have on their… read more…
- How a Roth IRA Conversion Ladder Works
A Roth conversion ladder can be a smart strategy that allows you to move funds gradually from one account (traditional IRA) to another (Roth IRA) without triggering any tax penalties. This conversion takes place over several years, and is carefully planned out in advance. In simpler terms: A Roth conversion ladder could let you bypass… read more…
- What Is a Personal Pension Plan?
A personal pension plan is a type of long-term savings scheme where individuals contribute funds that are invested to provide income upon retirement. Unlike workplace pensions, personal pensions are managed by the individual, giving them full control over their retirement savings. It’s a powerful instrument to create a financial safety net for the future, ensuring… read more…
- Heavy Credit Card Spending Can Eat Up Your 401(k) Savings, Study Shows
Credit card debt can cut your retirement savings in half. A recent study penned by J.P. Morgan Asset Management and the Employee Benefit Research Institute examined how spending and credit card debt affects overall retirement savings. Each aspect of a household’s finances affect every other, so behavior in one aspect of financial life may indicate… read more…
- Make the Most of a Roth Conversion With These Strategies from Schwab
Converting a traditional IRA to a Roth IRA can help you minimize taxes in retirement. But executing the conversion strategically is key to maximizing the benefits. A recent Schwab retirement planning report recommends three tactics to reduce your Roth conversion tax bill: max out your current bracket, spread conversions over multiple years and start planning… read more…
- What Is an Investment-Only Variable Annuity (IOVA)?
An investment-only variable annuity (IOVA) is a specialized type of annuity designed primarily for one purpose: investing. Unlike traditional annuities, which may provide lifetime income, an IOVA is primarily focused on growing your investment portfolio. Think of it as a tax-deferred investment account wrapped in an annuity structure. If you’re considering an IOVA, talk to… read more…
- I Have $1 Million in a 401(k) and Will Receive $2,500 Monthly From Social Security. Can I Retire at 65?
Do you have enough money to retire? There are many different ways to look at this, but the most common is to break it down simply: money in vs. money out. How much income can you generate from your retirement planning, and how much will you need to spend? Here, say that you have $1… read more…
- Does Your 401(k) Need to Be Protected?
When choosing among the mutual funds, target-date funds and other investments offered in a 401(k) plan, nobody sets out to select a costly investment that could affect their future. But, according to law professors Ian Ayres of Yale University and Quinn Curtis of the University of Virginia, that’s often exactly what can happen. Taking personalized… read more…
- How an Individual Retirement Annuity Works
An individual retirement annuity can provide guaranteed lifetime income, making it a potentially useful tool in retirement planning. It also comes with tax perks, similar to other retirement planning tools such as an Individual Retirement Account (IRA). However, individual retirement annuities differ from IRAs in key ways, including investing costs and flexibility in selecting investments.… read more…
- Retirement Risk Zone: What It Is and How to Navigate
The Retirement Risk Zone is the period of time that can last from five to 10 years before and after you retire. This timeframe can have a significant impact on your retirement savings. And experts say that you should pay careful attention to your retirement savings decisions when you reach this zone. Here’s what you… read more…
- What Is Unretirement?
Unretirement refers to retirees who reenter the workforce after retirement. This trend is driven by various factors, including longer life expectancies, financial considerations and a desire to engage in other forms of meaningful work or productive activities. Unretirement can take various forms, such as part-time employment, consulting, volunteering, or starting a new entrepreneurial venture. Here’s… read more…
- Can You Answer These Social Security Questions Correctly? Only 13% of People Know the Answer to a Vital Question
Americans have rarely been more wrong about Social Security. As Nationwide Financial found in a recent survey, 40% of Americans say they’re either confident or very confident in their knowledge of Social Security. In fact, twice as many people say they’re “very confident” in their knowledge of the program and its benefits today compared with… read more…
- Pros and Cons of an Immediate Annuity
An immediate annuity is the most basic type of annuity: You can buy this insurance contract with a single lump sum payment in exchange for a stream of income that is guaranteed over a specific period of time. However, when developing the strategy for your retirement plan, you should compare the advantages and disadvantages before… read more…
- Can You Retire After Working for 10 Years?
Retiring after just a decade of work might sound like a pipe dream, but with careful planning and smart financial choices, it may be within reach. Let’s explore how you can retire after 10 years of work and discuss the key factors and strategies that can help you make it happen. If you need additional… read more…
- Can You Retire After Working for 20 Years?
There’s no direct answer as to whether retiring after a 20-year career is possible or not. The factors that affect any given person’s retirement readiness is extremely personal to their situation. This includes what kinds of retirement accounts they have, how much is in them, their tax and healthcare situations, what assets or real estate… read more…
- The Federal Government Will Match Your Retirement Plan Savings By 50%. Here’s Who Qualifies.
A major change coming in 2027 could boost the retirement savings of millions of lower- and middle-income Americans. The federal government will start matching 50% of retirement account contributions up to $2,000 per year through the new Saver’s Match program. This money injects funds directly into savers’ accounts rather than simply reducing tax bills. For… read more…
- Legislation Aims to Ban This From Your Retirement Plan
Proposed legislation making its way through Congress could limit the types of investments employer-sponsored retirement plans can offer. Republicans in the House of Representatives submitted four bills that would reverse a rule permitting retirement plan fiduciaries from including environmental, social and governance (ESG) considerations when selecting investments for plan participants. Do you have questions about… read more…
- Planning Your Retirement? Don’t Forget About Home Equity
Historically, financial advice has treated homes as a source of wealth. When you buy a house – common wisdom holds – you treat it as a financial asset that can accrue value and contribute to your retirement plan. But in reality, there are many problems with this advice. Home prices are slippery and unreliable, and maintaining… read more…
- How to Calculate 401(k) Cash Out Penalties
A 401(k) is a retirement savings plan offered by your employer that lets you set aside part of your paycheck before taxes. It’s a great way to build long-term savings and enjoy tax benefits. However, withdrawing money early—before age 59½—can come with hefty penalties. So, what happens if you need to access your funds sooner?… read more…