- 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…
- 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…