- Medicare Open Enrollment Is Almost Closed: Medicare Advantage vs. Medicare
Medicare is designed to help eligible individuals pay for healthcare. One of the most important decisions to make when enrolling for the first time or making changes to your coverage during open enrollment is whether to opt for Medicare Advantage… read more…
- How Massive COLA Increase Could Actually Eat Into Your Social Security
Social Security increased by 5.9% in 2022, the biggest cost-of-living hike in four decades. And next year, it could go even higher depending on inflation. Larger payments, however, may come with a significant caveat for some beneficiaries, pushing their income beyond the thresholds that determine Medicare Part B premiums and how much of their Social Security benefits… read more…
- Top 3 Fears Americans Have About Retirement – and How to Combat Them
While many Americans idealize retirement as sitting on the beach and traveling with loved ones, the crushing reality is that many people cannot afford that life in retirement. A recent survey from the TransAmerica Institute gathered data on the top fears that Americans have about retirement. You may find that some of them are the… read more…
- Most Americans Are Behind on Retirement Savings – Are You One of Them?
When it comes to retirement savings, American workers have a lot of work to do. A recent Insured Retirement Institute survey found that workers between ages of 40 and 73 have insufficient retirement savings to cover their income needs, and they aren’t saving enough to catch up. The online survey, which polled 990 workers in March… read more…
- How to Buy Real Estate With Your IRA
An IRA, or individual retirement account, may already play an important role in your overall retirement plan. What you may not realize about this kind of tax-advantaged plan, however, is that you can use it to purchase real estate and further… read more…
- The Bucket Strategy is Helping Retirees Limit Their Losses and Keep their Cash Flowing in 2022
With the recent arrival of a bear market, the newly retired are facing a sobering reality: having to sell investments during a downturn to meet their income needs. This nightmare scenario, known as sequence risk, can shorten the lifespan of… read more…
- Is an Annuity a Good Investment?
Annuities are popular financial products that often guarantee income throughout the course of your retirement. While you may even have access to customizable features and riders, you’ll likely have to pay high fees and may also end up taking home less than you would by investing your money elsewhere. Note that those who sell annuities often… read more…
- Pensions May Actually Be Cheaper For Employers Than 401(k) Plans
With a few notable exceptions, the age of pensions is largely over in the U.S. Traditional defined benefit plans have replaced largely by defined contribution retirement vehicles like 401(k) plans. A new study from the National Institute on Retirement Security, though, seems to suggest that the end of pensions may not actually be as beneficial… read more…
- RMDs May Soon Start Even Later for Retirement Plan Savers
A new law may soon allow retirees to keep their money untouched a bit longer. The Securing a Strong Retirement Act, a bill originally pushed in 2021 but which may finally pass this year, would push the starting point for required minimum distributions (RMDs) from age 72 to 74 and 75. That means retirees could… read more…
- Want to Enjoy Retirement More? Shift Your Assets to Annuities
Most people follow a pretty standard glide path when it comes to retirement investing: focus on stocks when you’re young and shift to bonds as you get older. But a new study from David Blanchett (Prudential Financial) and Michael Finke (The American College of Financial Services) shows that there might be a better option for… read more…
- How a New Supreme Court Decision Could Help You Save For Retirement
A recent Supreme Court decision could result in improved options in your retirement plan. The court sided with Northwestern University employees who alleged the university’s retirement plans had excessively high fees and simply too many options. In a six-page opinion published last week, the nation’s highest court vacated a previous U.S. Court of Appeals ruling… read more…
- Saving for Retirement? Investment Giant Says Make These 3 Moves By Years End
With 2021 coming to a close, T. Rowe Price says there are several moves that people saving for retirement should make by the end of the year. The investment management giant says harvesting losses for tax purposes, reassessing your asset allocation and making catch-up contributions to your retirement plan are three ways to cap the year… read more…
- Boomers Face This Risk in Retirement: Here’s How To Avoid It
Baby boomers are using up their retirement savings too quickly –either because they’re underestimating how much they need or are living longer than they’d guessed they would. New research from the Center for Retirement Research at Boston College found that Boomers may be drawing down their retirement wealth faster than previous generations, because they lack… read more…
- Pension vs. Social Security: Key Differences
Most retired workers depend on multiple streams of income during their retirement. Two of the most common such income streams are Social Security and pensions. If we look at pension vs. Social Security income, we find significant differences. Retired workers need to understand the key differences between the two programs. They are funded, structured and… read more…
- How to Retire With $1 Million
Saving for retirement is an important part of financial planning for most Americans. With pensions no longer in widespread use and Social Security simply not enough to cover retiree expenses, it’s up to individuals to put aside money for their later years. But if you do it right, relaxation and recreation will become more important… read more…
- What’s the Average Rate of Return for an Annuity?
If you’re thinking about purchasing an annuity, you might be curious about the kind of returns you can expect. The rate of return plays a key role in how your portfolio grows and how much income you’ll have in retirement. It’s also important to keep in mind that fees can reduce your overall earnings. Knowing… read more…
- Boost Your Social Security Benefits in Retirement With This ‘Bridge’ Strategy
When it comes to claiming Social Security, most retirees can’t wait to start collecting those checks. A 2020 report from the Bipartisan Policy Center found that more than 70% of Social Security beneficiaries currently claim their benefits before age 64. In fact, nearly 35% and 40% of men and women, respectively, claimed their benefits at… read more…
- J.P. Morgan Says You’ll Need to Replace This Much Income in Retirement
How much of your income will you need to replace in retirement to maintain your current lifestyle? It’s a pivotal question and the answer will serve as a foundational piece of your plan for retirement. After all, you can’t set a retirement savings goal without knowing your spending needs. While experts typically recommend replacing between 70%… read more…
- Should the 45% Rule Guide Your Retirement Strategy?
Financial services giant Fidelity has a rule for retirement savings you may have heard of: Have 10 times your annual salary saved for retirement by age 67. This oft-cited guideline can help you identify a retirement savings goal, but it doesn’t fully account for how much of those savings will cover in retirement. Enter Fidelity’s… read more…
- What Income Reduces Social Security Benefits?
Earning income while receiving Social Security benefits can impact the amount you receive, but only under specific circumstances. The Social Security Administration (SSA) may reduce benefits for individuals who claim them before reaching full retirement age and continue to work. However, this reduction applies only to earned income from employment or self-employment—other sources of income,… read more…
- Why You May Want to Avoid This Guaranteed Retirement Income Product
Current investors aren’t just navigating a bear market; they’re also contending with rising interest rates that are driving down bond returns. For retirees and those approaching retirement, these challenges are even more daunting. While experts and past research have pointed… read more…
- Here’s How to Do a Roth Conversion That Minimizes Taxes
One of the costs of converting a traditional IRA to a Roth IRA is how much you will pay in taxes. In some cases, those taxes can be a heavy burden, especially if you have been diligent in building up… read more…
- Pay Fewer Taxes on Your Retirement Income With This Withdrawal Strategy
Looking to pay fewer taxes on your hard-earned retirement income and extend the life of your savings? Doing so may be easier and simpler than you expected. For retirees with assets spread across various buckets, from taxable investment accounts to… read more…
- Nearing Retirement? This New 401(k) Program Provides Hands-on Investment Management
Long-term financial planning can be difficult, and while new automatic enrollment and contribution escalation make it easier than before to save for retirement, actually reaching retirement can be even more stressful. Switching from saving mode to the active retirement phase… read more…
- How Much Does a $300,000 Annuity Pay Per Month?
When you need another stream of income for retirement, you might consider an annuity. You purchase the annuity from an insurance company and receive payments back at a later date. Before buying an annuity, you’ll want to consider how much monthly income it might generate. For example, how much does a $300,000 annuity pay per… read more…