- 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. 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 for a lifetime.… read more…
- What Is a Pension Buyout?
A pension buyout is an offer from your employer to take either a lump sum or an annuity in exchange for giving up future pension payments. Companies often use these programs to reduce expenses and lower long-term liabilities, gaining immediate benefits like cutting administrative costs tied to running pension plans. While the arrangement can be… 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 can seem appealing when a lump sum is more useful than the periodic payments provided by the annuity. LIMRA’s U.S. Individual Annuity… 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…
- 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…
- What Is the Interest Rate on a 401(k) Loan?
If you borrow from your 401k account, your employer’s retirement account plan documents will determine how much interest you’ll pay on the loan. Adding 1% to the prime rate is a common approach to setting this rate. It usually will be lower than the interest charged on a personal loan, credit card cash advance or… read more…
- How to Catch Up on Retirement Savings
Accelerating your retirement savings is a good idea. One of the biggest problems with retirement advice is that it’s usually prophylactic. That is, the most common advice when it comes to building a nest egg is “start early.” And to be fair, that’s true. By far the best way to build a strong retirement portfolio… read more…
- Investment Strategies for Your Retirement Plan
In a perfect world, we could point you to a single set of assets that would maximize safety, growth and cash flow all in one neat basket. Unfortunately, unless you’re lucky enough to have a generous pension fund, that asset class doesn’t exist, as virtually all investments offer some form of tradeoff. Below we detail… read more…
- Retirement Plans for Young Adults
Young adults have many priorities, from advancing their careers to planning for a family, which often leads to saving for retirement being placed on the back burner. However, being a young adult offers a significant advantage when it comes to building wealth for retirement due to the advantage of time. The power of compound interest… read more…
- Pros and Cons of Adding a Fixed Annuity to Your Retirement Portfolio
Fixed income annuities can be funded either with a single lump-sum payment or through a series of contributions made over time. In return, they provide retirees with a guaranteed stream of income that doesn’t fluctuate with the market. This steady payout can complement Social Security or pensions, offering predictable cash flow for life or a… read more…
- Don’t Forget to Build This Into Your Retirement and Estate Plans
Most people will, sooner or later, want – or need – to surrender control of their finances. One of the lesser-known aspects of retirement planning is lining up someone known as an agent or fiduciary. This is someone who can take control of your finances if you experience cognitive decline or are otherwise incapacitated. This… read more…