- Good News for Retirement: Fund Fees Continue to Fall
Do not ignore fund fees. One of the great tricks of finance is how quickly seemingly-small percentages can add up. The difference between 3% and 4% mortgage rates, for example, can mean hundreds of dollars or more per month in extra interest payments. The same is true when it comes to the fees attached to… read more…
- How Retirement Account Withdrawals Affect Your Tax Bracket
How you make retirement withdrawals will affect your tax brackets. This can be a fairly complicated issue. Depending on which plans you have, your retirement withdrawals might be considered taxable income, taxable capital gains or untaxed earnings. For each taxable segment of your withdrawals, the amount that you take will determine your taxable earnings and,… read more…
- Are IRAs or Roth IRAs FDIC-Insured?
Portions of your IRA may be protected by the Federal Deposit Insurance Corporation (FDIC). That will include any depository accounts that you hold in a depository institution, such as savings accounts or certificates of deposit with a savings bank. But this protection will not apply to investments, securities or any other IRA portfolios you hold elsewhere.… read more…
- What Are Pretax Contributions?
The concept of pretax contributions might seem complicated but it essentially refers to the funds you invest into specific types of retirement accounts before income tax is withdrawn. This strategy provides immediate tax advantages by reducing your taxable income for the year and becomes quite beneficial if you’re trying to delay your potential tax liability.… read more…
- Your Credit Score Could Plummet in Retirement, But Does It Even Matter?
For most people, a credit score is something to worry about earlier in life. Debt, in general, usually peaks between ages 35 and 54. So it’s understandable that you may view retirement as a time to finally disregard those vaunted three-digit numbers. However, as The Wall Street Journal recently reported via Fidelity, your credit score… read more…
- Jobs That Offer Health Insurance After You Retire
If you’re aiming for early retirement before age 65, it’s crucial to explore your healthcare choices. Some employers extend healthcare benefits to those who retire early, making the search for health coverage more manageable. If you’re pursuing early retirement, here’s a list of jobs worth considering. A financial advisor can help you create a financial… read more…
- 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…