- Americans Need the Most Help With This Piece of the Retirement Planning Puzzle
More than any other aspect of retirement planning, workers need help calculating how much to save for their golden years. That’s according to a new 401(k) survey commissioned by Charles Schwab, which also revealed $1.8 million to be America’s new magic number for retirement. However, calculating a savings goal isn’t the only part of retirement… read more…
- Are You One of Half a Million Medicare Recipients Exposed in the Data Breach? How to Protect Your Info
More than 600,000 Medicare beneficiaries are being advised to monitor their credit reports and activity after a May breach of a contractor’s network. The detailed personal information includes not only names, addresses and medical histories but also Social Security numbers, birth dates, contact information, Medicare beneficiary identifiers and health insurance claim numbers, as well as driver’s… read more…
- Just 10% of Workers to Wait Until 70 to Take Maximum Social Security Benefits
Despite the fact that delaying the start of your Social Security benefits until age 70 means a 32% increase in the amount you would receive, only 10% of non-retired Americans between the ages of 60 and 65 plan to wait for the larger payout, according to the 2023 Schroders U.S. Retirement Survey. Consider working with… read more…
- Saving 6.5% in Your 401(k) Will Earn You This Much by Retirement
The good news for retirement savers using 401(k) plans and similar workplace retirement accounts is that the improving stock market is raising account balances. The average 401(k) is up by an average of $7,250 – a gain of 9.6% – since the end of 2022, according to a Bank of America report. The report also… read more…
- What Is a Lifetime Payout Annuity?
Lifetime payout annuities can be instrumental in navigating the financial journey to secure a steady income stream during retirement. Essentially, a lifetime payout annuity is an insurance product that an investor purchases from an insurance company that pays out a portion of the portfolio for the life of the investor. The annuity is scheduled to… read more…
- Should a 70-Year-Old Buy an Annuity?
Buying an annuity at age 70 may bring a steady income, but the value depends on your lifespan and the annuity’s terms. The decision to buy an annuity at 70 is complex and hinges on an individual’s unique financial situation and retirement goals. Consider talking with a financial advisor when making any major decisions about… read more…
- What Is a Silver IRA?
A silver IRA is a self-directed individual retirement account that allows you to own silver and other precious metals in your portfolio. Investors sometimes use this type of account to hedge against inflation. There are pros and cons to consider before deciding whether this could be a good fit for your portfolio. A financial advisor… read more…
- How to Use Annuities for Income in Retirement
Your retirement plan can keep you up at night, especially if you are nervous about outliving your nest egg. But many Americans get peace of mind by adding annuities to their retirement plans. This financial product is an insurance contract that can pay you retirement income for a certain amount of years or a lifetime.… read more…
- What Is a Pension Buyout?
A pension buyout can be a tantalizing offer from your employer, one that offers either a lump sum or annuity, and in return, you relinquish your claim to future pension payments. It’s a move often employed by companies to cut down expenses and lessen long-term liabilities, turning these into immediate advantages such as reducing administrative… read more…
- What Is an Annuity Buyout?
An annuity buyout is a financial transaction where an individual or company sells their annuity, a contract for regular payments from an insurance company, to another party for a lump sum payment. This transaction typically seems enticing when a lump sum is more attractive than periodic payments provided by the annuity. These buyouts have gained… read more…
- Should I Buy an Annuity at Age 40?
Woman managing her personal finances
- The Success of Your Retirement Plan May Hinge on This Timing Factor
As you plan your retirement, make sure to consider the state of the market. While you don’t want to retire into a bear market if possible, retiring at the top of a bull market can pose the same risks, too. That’s the reminder from recent commentary offered by Morningstar’s Christine Benz. In a recent webcast on… read more…
- Americans Say They Now Need $1.8 Million to Retire. Here’s How You Can Get There
Americans believe they’ll need at least $1.8 million to retire, an increase from last year’s magic number of $1.7 million. However, not very many are confident they’ll be able to get there. These are the two top-line takeaways from this year’s 401(k) Participant Study published by Charles Schwab, the annual study that tracks important retirement… read more…
- Social Security Benefit Reduction for Early Retirement Chart
Filing for Social Security early in retirement affects how much you’ll receive in monthly benefits. Individuals can begin collecting as early as age 62, but doing so triggers a permanent reduction compared to waiting until full retirement age. The percentage of reduction depends on your birth year and how many months early you claim. Understanding… read more…
- Where Can I Retire on $2,500 a Month?
Retiring on $2,500 a month is possible in a range of situations, depending on how you manage housing, healthcare, and discretionary spending. For those asking, “Where can I retire on $2,500 a month?” the answer often comes down to aligning lifestyle choices with a fixed income. With a practical approach, this monthly budget can support… read more…
- Do You Pay Medicare Tax on Retirement Income?
If you generate retirement income from an investment portfolio, you will not pay FICA taxes such as Social Security and Medicare tax. However, you might owe a supplemental Medicare tax if you are a high earner. If you generate retirement income from working a job, running a business or otherwise earning income, you will pay the… read more…
- Where Can I Retire on $2,000 a Month?
Living on $2,000 per month is doable, but you won’t be able to live just anywhere. This is important because at the time of writing the average Social Security benefit paid is $1,976 per month. With a small retirement portfolio, you can relatively easily add a few hundred dollars to that amount, bringing your household… read more…
- Ask an Advisor: Should I Delay Social Security and Rely on My 401(k) for 8 Years? I Have $750k in Savings and a Pension
Is it a viable plan to use my 401(k) for the eight years between retirement (age 62) and the max payout age for Social Security (age 70)? I have about $750,000 and I’m planning to take about $1,700 per month. I already have a pension of about $1,500 per month. –Lynne Waiting to file for… read more…
- This Little-Known Account Can Help High Earners Accumulate Wealth
If you qualify to participate in a non-qualified deferred compensation (NQDC) plan, you may want to pay attention closely. These accounts can offer high-earners who have maxed out their traditional retirement savings options an appealing opportunity to set aside a substantial portion of their income and invest it on a tax-deferred basis. In a new… read more…
- More Than 12,000 Americans Will Turn 65 Every Day in 2024. Are You Ready for Retirement?
The U.S. population is approaching a landmark sometimes called Peak 65, the point next year when more than 12,000 people will start turning 65 each day, hitting an estimated total of 4 million for the year, according to U.S. Census Bureau figures. By the end of 2030, all Baby Boomers – those born between 1946 and… read more…
- Many Americans Are Mishandling Their Social Security. Are You One of Them?
The biggest obstacle to maximizing your Social Security benefits isn’t your life expectancy, your health or how long you work – it’s your brain. That’s the conclusion of a new study published by the National Bureau of Economic Research. Researchers found that your fear of loss and personal sense of ownership of your benefits are… read more…
- 5 Rules of Thumb for Retirement Savings
Saving for retirement can be a daunting challenge for many. The landscape is filled with many retirement plans and investment companies vying for your attention, along with complex contribution restrictions, tax rules and paperwork. Overcoming these challenges becomes achievable when you utilize proven rules of thumb to set yourself on the path toward a financially… read more…
- Spouses May Soon Need to Agree on 401(k) Withdrawals Under This Proposed Law
Congress could soon change how spouses access their retirement accounts. A pair of Democratic bills recently introduced in the House and Senate would require spouses to consent before either one can make any withdrawals from their 401(k) accounts. The bills, sponsored by Rep. Lauren Underwood, D-Illinois, and Sen. Tammy Baldwin, D-Wisconsin, seek to amend the… read more…
- How Much Should I Withdraw From My Retirement Account? Edward Jones Says Start With These Percentages
One of the most important decisions in retirement is choosing how much to withdraw from your savings. You need to take out enough to meet your spending needs, but not so much that you end up running out of money. While there’s no real consensus on a safe withdrawal rate, a recent report from Edward… read more…
- Retirement Savings Milestones
Retirement planning is a process that begins as soon as you start contemplating the financial consequences of ending work and extends for the rest of your life. While every retirement planning process is unique in the specific details, most retirement savers encounter some common milestones along the way. Looking ahead to these milestones and what… read more…