- 6 Safe Investments for Retirees to Consider
As retirement approaches and the focus often shifts from accumulating wealth to preserving it, retirees often prioritize choosing safe investments. Given market unpredictability, retirees may look for investments that offer more stability and security. Safe investments for retirees typically prioritize capital preservation and steady income over high returns. These options can include government bonds, which… read more…
- I’m 65 and Started Taking My $2,200 Social Security Check. Can I Still Do a Roth Conversion to Avoid RMDs?
You can make a Roth conversion at any age, and the money that you convert will be exempt from required minimum distribution (RMD) rules. If your only goal is to avoid required minimum distributions – for example, if you want to maximize the long-term value of your estate – this could potentially be a sound… read more…
- Social Security Benefits: Early Retirement vs. Age 70
Determining when you claim Social Security benefits will affect your quality of life in retirement. Many people have a tough time deciding between taking early retirement or waiting until age 70 to maximize their benefit payments. Working with a financial advisor can help you evaluate your options and choose the best strategy for your situation.… read more…
- What Age Should You Retire: 62 or 65?
Deciding whether to retire at 62 or 65 involves multiple factors. Retiring at 62 lets you enjoy retirement earlier, but claiming Social Security at that age reduces your monthly benefit. Retiring at 65 provides additional time to build savings but delays your retirement plans. Other important considerations include your health, financial situation and personal lifestyle… read more…
- How Long Does It Take to Cash Out an Annuity?
The time it takes to cash out an annuity depends on the type of annuity it is, the withdrawal method and the company processing the request. Lump-sum withdrawals may take a few days to several weeks, depending on administrative requirements and potential surrender charges, whereas structured payouts follow a predetermined schedule and cannot be expedited.… read more…
- 25x Retirement Rule: How to Calculate and Examples
Planning for retirement could be complex, but the 25x retirement rule can simplify it. This guideline suggests that you need to save 25 times your annual expenses to retire comfortably. It’s a straightforward calculation that gives you a clear target for your savings. Working with a financial advisor can help you develop a more comprehensive… read more…
- What Percentage of Retirees Have $4 Million?
As retirement approaches, many ask themselves how much money they will need to save for a comfortable retirement. One common benchmark is $4 million, which is considered by some as the amount needed for a worry-free retirement. However, achieving this amount is rare. According to the Federal Reserve Board, only a small fraction of retirees… read more…
- What Percentage of Retirees Have $3 Million?
If you have $3 million in retirement savings, you are among a tiny percentage of American households with a nest egg that large. When calculating what percentage of retirees have $3 million, the Employee Benefits Research Institute (EBRI) analysis found that just 0.8% of households have saved $3 million in retirement. While that may seem… read more…
- What Percentage of Retirees Have $2 Million?
Achieving a $2 million nest egg for retirement is relatively uncommon among Americans. According to the Employee Benefit Research Institute, less than 2% of households have $2 million or more saved for retirement. Factors like lifetime earnings, investment growth and inheritance play roles in achieving this level of wealth. However, building a $2 million retirement… read more…
- Should You Retire Early and Claim Social Security at 64 or 67?
Deciding whether to retire at age 64 or wait until 67 can significantly affect your social security benefits. Generally, the longer you wait, the more you will be able to collect. However, there are limits, and you will also have to consider your lifestyle, healthcare and life expectancy to determine whether you should retire early… read more…
- Social Security To End Telephone Verification: Will You Have to Go In Person?
Starting on March 31, the Social Security Administration will change how it processes requests. According to a March 18 announcement, the agency will no longer allow individuals to file for benefits or change their banking information over the telephone. Instead, they must do so either through the SSA’s web portal (called “my Social Security”) or by… read more…
- What Percentage of Retirees Have $2.5 Million?
If you have $2.5 million saved for retirement, you’re among a select group of Americans. Only 1.8% of households have $2 million in retirement accounts and just 0.8% have reached $3 million, according to an Employee Benefit Research Institute analysis of Federal Reserve data. Retirees who begin saving early, use tax-efficient retirement accounts and harness… read more…
- Complete Guide on How to Retire at Age 80
Retiring at age 80 isn’t common. But, it can be a practical choice for many people. Some work longer because they enjoy it. Others simply need more time to build financial security. With people living longer and the cost of living going up, more are rethinking what retirement looks like. If you’re planning to retire… read more…
- Guide to Rabbi Trusts: What They Are, Pros and Cons
A rabbi trust is a type of irrevocable trust that employers use to fund deferred compensation plans for key employees or executives. The money is set aside for the employee but can still be taken by creditors if the employer goes bankrupt. A financial advisor can help you decide if a rabbi trust is a… read more…
- I’m 69 With $800k in Savings. How Do I Make Sure This Money Lasts the Rest of My Life?
It takes planning to make your savings last. Retirement means living on your savings, assets and structured benefits. Many households find this notion stressful, but it doesn’t have to be. The right plan can give you a comfortable, reliable income in retirement. But that plan will require balancing risk, growth and spending, and you don’t… read more…
- I Have $920k in My 401(k). What Should I Do With It When I Retire?
Retirement is about balance. In retirement, many households generate a fixed income from personal savings and Social Security benefits. Retirees rarely have dependents or long-term saving needs (although of course estate planning is a factor), so they may be able to focus more on their monthly numbers. Allocating your income streams, planning for taxes and… read more…
- What Are the Payback Rules for a 401(k) Loan?
A 401(k) loan allows you to borrow funds directly from your retirement savings, which you then repay with interest back to your own account. While this can seem appealing since you’re essentially paying interest to yourself, strict 401(k) payback rules must be followed to maintain compliance. Given the complexities and potential long-term impact on your… read more…
- How to Build an Investment Portfolio at Age 75
At 75, investors typically focus on preserving wealth, managing withdrawals and covering healthcare costs rather than seeking high-risk growth. Stability becomes a priority to help maintain a reliable income while minimizing exposure to market fluctuations. A financial advisor can help you build an investment portfolio at age 75 that balances stability and income for a… read more…
- Airline Pilot Retirement: What to Know
You can make a lot of money as an airline pilot. According to the latest Bureau of Labor Statistics data, the median pay for a commercial airline pilot was $171,210. This puts it far above the U.S. baseline of around $75,000, and is particularly good for an industry with a large number of open positions looking… read more…
- Aged 60 to 63 With a 401(k)? Here’s How New Contribution Rules Could Impact Your Retirement Savings
The IRS now allows a narrow, specific window for accelerated catch-up contributions. Between the ages of 60 and 63, you can make additional catch-up contributions to tax advantaged retirement accounts. Per the SECURE 2.0 Act, at ages 60, 61, 62 and 63, individuals with an employer-sponsored retirement plan may contribute an additional $11,250 per year… read more…
- I’m Going to Earn $3,400 per Month in Social Security. How Can I Reduce My Taxes on It?
Many people don’t owe federal income taxes on their Social Security retirement benefits. However, with $3,400 in monthly benefits, you could be one of the many people who do have to pay taxes on this income. From zero to 85% of your benefit income may be taxed as ordinary income, depending on your filing status… read more…
- I’m Starting IRA Withdrawals at Age 65. Will They Count Toward My RMDs Later?
Withdrawals from an IRA that start before required minimum distributions (RMDs) are due can reduce the amount of your future RMDs, although not on a dollar-by-dollar basis. RMDs are calculated based on the balance in your retirement account, not on previous withdrawals. However, by reducing the balance in your account, early withdrawals can reduce the… read more…
- How Much Money Do You Need to Retire at Age 30?
Retiring at 30 may seem impossible. But with smart planning and strict saving habits, it can be done. The idea of early retirement has grown popular, especially through the Financial Independence, Retire Early (FIRE) movement, which focuses on saving aggressively and making wise investments. To figure out how much you need, consider your current savings,… read more…
- How Much Do You Need to Retire at Age 50?
Retiring at 50 offers freedom and time to pursue personal interests, but it requires careful financial planning. Key factors include lifestyle needs, long-term savings, healthcare costs, inflation and market changes that could affect retirement funds. Working with a financial advisor can help you create a strategy to manage savings, investments and expenses for a secure… read more…
- How Much Do You Need to Retire at Age 62?
Since 62 is the earliest age to claim Social Security retirement benefits, it appeals to those looking to leave the workforce sooner. However, retiring at this age means planning for potentially 25 to 30 years of financial security. Determining how much you need to retire at 62 depends on several factors, including your expected expenses,… read more…