- New Study Finds That Planning for Retirement Is Linked to Overall Well-Being
The fact that Americans are living longer has made the usual approach to financial planning incomplete, according to a new study of approximately 1,200 people and 10 focus groups by MIT AgeLab and Transamerica. The traditional three-part plan of education, work and retirement and aiming to ensure that people have enough to live comfortably in… read more…
- Can a 457(b) Retirement Plan Roll Over to an IRA?
A 457(b) rollover allows funds from a 457(b) retirement plan to be transferred into an IRA, offering continued tax-deferred growth and a wider range of investment options. Whether you’ve left an employer or are preparing for retirement, rolling over a 457(b) can simplify account management and provide more flexibility in how you invest. However, the… read more…
- What Is an Indirect Rollover?
When it comes to managing your retirement savings, an indirect rollover is one of the tools available to you. This financial transaction involves you – the account holder – personally receiving and moving funds from one retirement account to another within a specific timeframe. However, it’s crucial to understand the tax implications of this maneuver… read more…
- Understanding Bonus Annuities and Their Benefits
Bonus Annuities are a compelling investment option offered by insurance companies, which frequently provide an upfront bonus or first-year interest rate bonus, on your initial investment. These bonuses can typically range from 1% to 10% of your initial investment and hinge on the specifics outlined in the annuity contract. It could be important to speak… read more…
- Maxing Out Your Income: Data Suggests Changing Jobs to Retire Sooner
Right now is among the best times ever to get a new job. That’s the result of the latest wage growth data from the Atlanta Federal Reserve. In it, they find that the last 12 months have been among the strongest ever for people who change jobs, with the wage benefits of changing jobs roughly… read more…
- What a Retirement Lifestyle With $7 Million Looks Like
Imagine retiring with $7 million in your 401(k) or IRA. What kind of lifestyle might that size nest egg support? Picture owning a luxurious home in a high-end neighborhood, driving top-notch vehicles, regularly vacationing in exotic locations and availing best-in-class healthcare without worrying about rising costs. When planning a $7 million retirement, it’s important to… read more…
- Research Shows How Your Healthcare Plan Should Account for HSAs
Employers have embraced high-deductible health plans (HDHPs) so enthusiastically that today half of workers with employer health coverage get it from these plans. HDHPs aim to make consumers more cost-conscious, but they potentially could encourage some workers to save money by skipping beneficial preventive health services. The IRS tried to address that concern by making… read more…
- How to Move Your 401(k) to Gold Without a Penalty
Moving a 401(k) to a gold IRA, as a rollover, can be a strategic way to diversify your retirement savings, yet it’s a procedure that requires careful navigation. This is something that might benefit you if you want to do something different with the money in your 401(k), but investing in gold has its own… read more…
- What Is an Annual Reset of a Fixed Index Annuity?
A fixed index annuity (FIA) or equity indexed annuity is an insurance contract that combines principal protection with potential market-linked returns. If the chosen market index that’s linked to the annuity performs well over the course of the year, the annuity holder enjoys a portion of those gains as interest. An annual reset is the mechanism… read more…
- How Much Should You Save and Withdraw for Retirement?
One of the most important questions to answer as you plan your retirement is how much money you need. The answer depends on a lot of factors, from your potential longevity to your lifestyle to how much you’ll be getting from Social Security. However, according to Fidelity, there are four key guidelines that retirement planning… read more…
- What a Retirement Lifestyle With $20 Million Looks Like
Imagine awakening to the gentle sound of waves washing up on a pristine beach, steps away from your luxury villa. You enjoy a gourmet breakfast while planning your day, debating between taking a tranquil boat trip or enjoying a private tour of a renowned local museum. All of these are made possible because you’ve amassed… read more…
- What Are the IRA Rollover Limits?
Understanding the limits imposed by the Internal Revenue Service (IRS) on IRA rollovers can be a crucial aspect of financial planning if you rely heavily on IRA funds for retirement. An IRA rollover limit refers to the maximum amount of money that one can transfer from a 401(k) or other employer-sponsored retirement plan into an… read more…
- Report Shows Rising Retirement Account Balances: Are You Keeping Up?
Americans, it seems, are getting more financially secure – at least on the retirement front. For the third quarter in a row, retirement account balances increased for households across the country, according to a new analysis from Fidelity Investments. Need help saving and planning for retirement? Speak with a fiduciary financial advisor today. The company… read more…
- Social Security Update for September: What You Need to Know
If you receive Social Security payments, whether you’re in retirement or have a disability, the Social Security Administration (SSA) calculates your benefits as a monthly sum. Each aspect of the program, both Social Security and Supplemental Security Income (SSI), then issues those payments once per month to all beneficiaries. Understanding what the Social Security landscape… read more…
- Can You Retire at 62 With $400,000 in a 401(k)?
It’s certainly possible to retire early on $400,000, but it won’t be easy. If you have the option of working and saving for a few more years, it will likely give you a significantly more comfortable retirement. By waiting until at least age 67, you can collect more in lifetime Social Security benefits and your retirement… read more…
- RMD Penalty Waiver Letter Sample
Required minimum distributions (RMDs) are the mandatory withdrawals that you take from your tax-deferred retirement accounts each year. The IRS requires these distributions to occur, even during rocky periods of life, and levies a penalty if you don’t withdraw the prescribed amount each year. Fortunately, if you fail to take an RMD, you can avoid… read more…
- Good News for People Who Make $145K: IRS Delays New Catch-Up Contribution Rule Until 2026
The IRS recently announced some welcome news for higher-income workers with 401(k)s and similar retirement plans. The agency delayed implementing a new rule that would have required catch-up contributions made by people earning over $145,000 to be directed into an after-tax Roth account. The rule change was originally set to start in 2024, but will… read more…
- There Are More 401(k) and IRA Millionaires Than Ever in 2023: Here’s How You Can Get There
Financial services firm Fidelity revealed in a recent study that nearly 80,000 of its retirement account investors achieved millionaire status during the second quarter, for 10% more 401(k) clients and 13% more IRA clients holding balances worth $1 million or more. Planning for retirement on your own can be difficult. Talk to a financial advisor… read more…
- IRA Rollovers and Transfers: Reportable vs. ‘Non-Reportable’
An IRA transfer refers to the movement of tax-deferred money that is not required to be reported to the IRS on your tax return. This typically occurs when you complete a direct trustee-to-trustee, or account-to-account, transfer between two similar types of retirement accounts. This type of IRA transfer is sometimes referred to as a “non-reportable… read more…
- How Long Will You Live? Most People Don’t Account for This Retirement Data
While no one has a definitive answer to the question “How long will you live?”, coming up with an educated, realistic estimate goes a long way toward building a retirement plan that assures income security. Unfortunately, most U.S. adults lack what a new survey calls “longevity literacy,” a deficiency that can be a major retirement planning… read more…
- Does Retirement Income Count as Income for Social Security?
Deciding when to take Social Security benefits is one of the most important questions to answer in planning your retirement strategy. Second to that is understanding what might increase—or reduce—your benefit amount. Does retirement income count as income for Social Security? No, but working while claiming benefits could shrink the amount that you’re able to… read more…
- Where Can I Retire on $3,000 a Month?
You can retire comfortably on $3,000 a month in retirement income by choosing to retire in a place with a cost of living that matches your financial resources. Housing cost is the key factor. It’s both the largest component of a retiree’s budget and it’s the household cost that varies the most according to geography.… read more…
- Five Signs You Might Run Out of Money in Retirement and How to Prevent It
It’s the worst-case scenario of retirement. You have worked, saved and built up the nest egg. You haven’t got a care in the world until one day you notice it… the money seems to be getting a little bit tighter. The bank accounts seem to be a little weaker than they should be. The bills… read more…
- How to Prepare for Disruptors to the Retirement Savings Industry in 2024 and Beyond
Do not count on your 401(k) plan alone. This weakness of many retirement portfolios is just one of the findings from a recent report on the state of retirement in America released by investment firm Principal. Called The Future of Retirement, this research looks at how retirement will change by the year 2030, as Generation… read more…
- 401(k) Contribution Limits Projected to Rise Again in 2024: How to Plan Ahead
401(k) contribution limits should continue their upward climb in 2024, according to a recent projection by Mercer. However, easing inflation now means lower forecasts for 401(k) and other retirement plan contribution limits for next year. After rising substantially from $20,500 in 2022 to $22,500 for 2023, Mercer projects the annual cap to go up just… read more…