- Indexed Universal Life (IUL) vs. Annuity
It can be difficult to choose between an indexed universal life (IUL) insurance policy and an annuity. Both of these products have the potential to provide financial security and help you achieve your long-term goals, but the right one will depend on your unique financial situation. We’ll explore the key features of IUL and annuities… read more…
- How Long Will $200,000 Last in Retirement?
Understanding the longevity of your retirement savings requires a comprehensive approach that considers inflation, healthcare costs and potential market fluctuations. Whether you started saving later in life or recently took a hit in your 401(k), a $200,000 retirement goal can be sufficient to last during your golden years. Read on to explore the crucial factors… read more…
- 9 Ways to Reduce Taxes on Your Retirement Accounts
Having multiple streams of income for retirement can help you feel more financially secure. Minimizing the amount of taxes you pay can help you preserve more of your savings.There are actually a few ways to avoid taxes on your retirement accounts. Getting familiar with how different types of retirement income are taxed can help with… read more…
- Worried About a Recession? Use These Strategies From Fidelity to Protect Your Retirement Savings
Many financial professionals are worried about an imminent recession. It has become such a watchword in financial circles, in fact, that most Americans believe a recession has already begun. A financial advisor can help you plan for economic uncertainty and protect your portfolio from recession. While that isn’t true, there are reasons for guarded concern. Between… read more…
- Federal Tax Rates for Different Types of Retirement Income
Federal taxes on retirement income vary depending on the type of income you receive and your overall tax situation. Sources such as Social Security benefits, traditional IRA or 401(k) withdrawals, pensions and investment earnings may each be taxed differently. Some retirement income is fully taxable, while other sources may be partially taxed or tax-free. Understanding… read more…
- Americans’ Magic Number for Retirement Rises to $1.27 Million
Americans believe they will need $1.27 million to retire comfortably, according to the latest set of findings from Northwestern Mutual’s 2023 Planning & Progress Study. That number continues to increase, up from $1.25 million reported last year. High-net-worth individuals – those with more than $1 million in investable assets – believe they’ll need $3 million to retire comfortably. Consider… read more…
- Here’s How Much the Average Person Lost in Retirement Savings in 2022. How Do You Compare?
Still, most workers saving in 401(k)s and other employer-sponsored plans stayed the course, despite being hit by increased living expenses that resulted from high inflation. “Most people did not make drastic, knee-jerk reactions to their investments,” Rob Austin, head of research at Alight Solutions, said in a statement. “Only 3% of people stopped contributing, and… read more…
- New RMD Rules Let You Turn Charitable Donations Into Retirement Income for Life
Investors who chafe at having to take required minimum distributions (RMDs) each year have a new tool to help them reduce the tax bite of these withdrawals – and provide retirement income for life. A financial advisor can help you… read more…
- Earn Over $145k? You May Have to Pay Taxes on Your Catch-Up Contributions
Catch-up contributions are about to change. Starting in 2024, some workers who make catch-up contributions to employer-sponsored retirement plans, like a 401(k), will have to put this money in a Roth account. This means that they cannot deduct these contributions from… read more…
- Does Your Employer Know If You Take a 401(k) Loan?
Your employer technically will always know when you borrow money from your 401(k). One of the tricky parts about managing a 401(k) loan is that, even though this money belongs to you, your employer can set terms and conditions around taking… read more…
- How Much You Can Borrow From Your 401(k)
If you contribute to a 401(k) retirement account, you may be able to take a loan from the plan. The maximum amount you can borrow is limited to the lower of $50,000 or up to 50% of your vested account… read more…
- How Much Your 401(k) Grows If You Stop Contributing
It can be satisfying to watch your 401(k) plan balance grow over time as you contribute to it. But what happens when those contributions stop? The amount your account will grow depends on how much money you have in it… read more…
- How to Open a 401(k) Without an Employer
Employer-sponsored 401(k) plans are a popular way for workers to save for retirement, but they’re not the only way. If you’re self-employed or your employer doesn’t offer a 401(k), there are retirement savings vehicles out there that will work for… read more…
- Treasury Bonds vs. TIPS Ladders vs. Annuities: Which Strategy Is Best For Retirement Income?
Generating enough income in retirement to meet your spending needs is crucial. While Social Security provides inflation-protected retirement income, it’s simply not enough for many retirees. If you need help planning for retirement, consider working with a financial advisor. John Rekenthaler,… read more…
- Can Your 401(k) Lose Money?
Investing in a 401(k) account offers the potential for long-term growth and financial security. However, it’s crucial to understand that this retirement savings vehicle is not immune to losses. Your 401(k) is investing in the stock market, so it’s possible… read more…
- Report Says “Financial Jargon” Has 34% of Americans Doubting Retirement Plans
Financial jargon is so confusing that 34% of Americans say they “don’t know where to start” when it comes to retirement planning, according to a new survey from Unbiased.com. In fact, the analysis found that the majority of adults say… read more…
- These 3 Moves Could Significantly Boost Your Retirement Income
BlackRock, one of the world’s largest financial firms, says three key moves can sharply boost retirement income. Most people focus on building up their savings when they make retirement plans. However, by also focusing on the drawdown phase, the duration… read more…
- Fixed-Index Annuities Can Help You Secure Your Retirement – If You Use Them Correctly
Annuities can help solve the biggest challenge of retirement. When you save up for retirement, the two largest risks are intertwined. First, you risk not being able to pay your bills if you don’t properly calculate your annual spending. Second, you… read more…
- Is $4 Million Enough to Retire at 40?
Retiring at 40 may sound like a dream come true, but even with $4 million in your bank account, it’s important to have a plan for the future. You’ll need to plan out the next half of your life with… read more…
- What Taxes Expats Pay in the U.S.
From sunny Caribbean beaches to charming European villages, the expatriate lifestyle offers numerous settings for relaxation, adventure and a refreshing switch from typical American living. However, understanding your tax obligations is essential as a U.S. citizen or permanent resident living… read more…
- When to Downsize: Financial Planning Guide
In a world where bigger often seems better, downsizing offers a refreshing alternative. While the concept traditionally revolves around transitioning to a smaller home to save money, downsizing extends beyond mere living arrangements. It involves simplifying various aspects of life,… read more…
- Attention High Earners: You’re Not Taking Retirement Seriously Enough
Retirement can last 30 years or longer, which requires more assets than many people may realize in order to keep up with increases in the future cost of living. The study we detail throughout this article that was conducted by the Center for Retirement Research at Boston College found that high-earning households are the most likely… read more…
- More Workers Plan to Retire on Less Money by Claiming Social Security Early
Hammered by inflation, recession fears and doubts about the future of Social Security, an increasing number of working Americans say they plan to claim their Social Security benefits early while staying on the job. Here are the factors driving this… read more…
- 2024 Social Security Cost-of-Living Adjustment Will Be Smaller, Says Report
The good news is that inflation is dropping, with the average annual cost of living falling from 4.9% in April to 4% in May, according to the latest data from the U.S. Department of Labor. The bad news is that… read more…
- The Fed Is Pausing Its Interest Rate Hikes. What That Means for Your Retirement and Savings Plans
The Federal Reserve is pressing pause on its series of interest rate hikes designed to tame inflation – for now at least. The Federal Reserve Open Market Committee announced Wednesday that it would leave the federal funds rate unchanged, forgoing… read more…