- I’m 69 With $1 Million in an IRA. Is It Too Late for a Roth Conversion?
Legally, it’s never too late to make a Roth conversion. You can do this at any time in life, in any amount, so long as you have funds in a qualifying account. Financially, however, the later you are in life the more likely it is that you will pay more in taxes on a Roth… read more…
- How to Use Buffered ETF Strategies for Retirement Planning
Buffered ETFs are a newer investment option designed to minimize risk in retirement portfolios. They protect against market downturns while still capturing gains, making them ideal for retirees who want to safeguard their savings against volatility. This strategy helps in planning for retirement by balancing risk and growth potential. A financial advisor can specifically assist… read more…
- Should I Take a $115,000 Lump Sum or Opt for $820 Monthly Annuity Payments?
If you are facing the choice between a large lump sum or monthly payments, you’ll likely want to consider several key factors before making a decision. One concern is when you will receive the money, since getting $115,000 up front will allow you to invest it sooner and earn money from it over a longer… read more…
- What’s a Realistic Retirement Budget? I’m 58 With $665k Saved, Making $95,000 Annually.
A retirement budget balances your expected income in retirement with your expected living expenses and taxes. Financial planners may use some rules of thumb to generate estimates of how much you are likely to receive in income and use to pay your costs after getting a good understanding of your goals, habits and circumstances. In… read more…
- With $715k in a Roth IRA and $3,400 Monthly Between My Pension and Social Security, Can I Retire at 64?
Retirement becomes financially feasible when projected income exceeds projected expenses. Retiring at age 64 with $715,000 in a Roth IRA and $3,400 monthly in combined pension and Social Security benefits could be realistic based on typical investment returns and retiree expenses. However, this may not be true for everyone. Your current age, life expectancy, lifestyle… read more…
- I’m 69 With $760k in a 401(k). Should I Convert 25% per Year to a Roth IRA to Avoid RMDs and Taxes?
Converting 401(k) savings to a Roth IRA can free you from having to take mandatory withdrawals at age 73 and beyond. Because Roth withdrawals are tax-free, any voluntary withdrawals you take won’t be subject to income taxes. However, Roth conversion comes with a significant current tax bill. So, whether a staggered conversion over the next… read more…
- Can an Employer Contribute to an Employee’s Personal Roth IRA?
Employers can’t contribute directly to an employee’s personal Roth IRA, but they can still help with retirement savings in other ways. The SECURE 2.0 Act allows employers to contribute to SIMPLE IRAs and SEP IRAs that are set up as Roth accounts. This can provide employees with the benefits of Roth savings, including tax-free withdrawals… read more…
- How Long Does It Take to Withdraw From Your 401(k)?
Generally, you should only make 401(k) withdrawals as you enter retirement, but there are certain situations in which you may do so earlier in life. Generally, withdrawing money from a 401(k) can take two to three business days for a direct transfer and roughly a week for a check, but the context in which you… read more…
- 8 Strategies to Help You Plan for an Early Retirement
Planning for an early retirement demands a well-thought-out strategy to secure financial stability and comfort. Key early retirement strategies include establishing disciplined saving and investment practices that focus on building your wealth over time. You might also consider maximizing your contributions up to retirement accounts limits, diversifying your investment portfolio to spread risk and budgeting… read more…
- I’m 63 With $1.4 Million in My 401(k) and Have Started Social Security. Is It Too Late for a Roth Conversion?
Procedurally, it’s never too late to make a Roth conversion. The IRS allows you to move this money at any time, so long as you have funds in a qualifying pre-tax account. In many cases, the closer you are to retirement the more likely it is that a Roth conversion could cost you big. This… read more…
- I’m Going to Get $2,600 a Month From Social Security. How Can I Reduce My Taxes on It?
Retired people who get monthly Social Security payments may owe income tax on a portion of the benefits depending on their income and filing status. The amount of benefits exposed to taxes is determined based on income and filing status, and may range from 0 to 85%. The taxes applied to your $2,600 monthly benefit… read more…
- I’m 58 and Retiring Soon. How Should I Structure My $890k Portfolio?
Retiring early means approaching your portfolio differently. In your working life, you will likely focus on growing your wealth as quickly as possible. The earlier you want to retire, the sooner you will need this portfolio ready and the more you will need in it. You will have less time for this money to grow,… read more…
- I’m 67 With $900k in My 401(k), $200k in Cash and $2,400 Social Security Benefit. What’s My Retirement Budget?
From one perspective, by age 67 your retirement budget is largely set in stone. The accumulation phase of your working life is over, and whatever set of savings and benefits that you have is… well, what you have. Looking at things that way, when it’s time to set your budget the next thing to do… read more…
- I Withdrew $60k from My Retirement Plan This Year But It Increased My Medicare Premiums. Is This Permanent?
For retirees, there are generally two big surprises when it comes to Medicare. The first is that Medicare is not actually free. The retirement program is America’s closest thing to universal health insurance, and it does cover everyone over 65 regardless of health or pre-existing conditions. However, Medicare also has different costs based on your… read more…
- I’m 60 With $930k in My IRA and Have Started Social Security. Is It Too Late for a Roth Conversion?
There is no legal or regulatory age restriction on Roth conversions, so it’s not too late in that sense. Generally speaking, a Roth conversion may make more sense for a younger saver. However, there are a number of other considerations that may be more important to keep in mind. For instance, unless you are likely… read more…
- I Have $1.3 Million Saved and Will Collect $2,800 per Month in Social Security. Can I Retire at 62?
Although one could argue that the cultural retirement age is 65, and Social Security retirement age is 67, many households want to cross the finish line a little bit early. But 62 is the earliest you can begin to take Social Security. It’s also not that far in advance of the normal retirement age, so… read more…
- I’m 58 With $1.7 Million in My 401(k). Should I Start Converting 10% per Year to a Roth IRA Now to Avoid RMDs and Taxes?
Transferring retirement savings from a 401(k) or similar tax-deferred account to a Roth IRA can help keep you from having to make taxable withdrawals by the time your reach your mid 70s. This can reduce your tax burden after retiring, but it won’t necessarily save on taxes overall. That’s because any funds converted to a… read more…
- What’s a Realistic Retirement Budget? I’m 48 With $430k Saved, Making $95,000 Annually
When it comes to estimating your retirement income, a popular rule of thumb is that you’ll usually need about 80% of your working income to maintain the same standard of living. This comes from a number of factors, including the fact that you won’t need to set aside money for retirement anymore. This number is… read more…
- Social Security Fairness Act Adds an Average $360 Benefit for Some: Will You Be Getting a Bigger Social Security Check?
If you are a current or former public sector employee or a survivor, spouse or ex-spouse of someone like that, you may receive more from Social Security as a result of new federal legislation. The Social Security Fairness Act repeals two federal laws that for decades have reduced or eliminated Social Security benefits for some… read more…
- Do 401(k) Withdrawals Before I Turn 73 Count Toward My RMDs?
If you have a tax-deferred retirement savings account such as a 401(k), taking earlier or larger withdrawals than required won’t directly reduce future mandated distributions. However, since pulling money out now will likely reduce the future balance of your 401(k), it could indirectly reduce the size of the compulsory distributions. That’s because these obligatory withdrawals… read more…
- 12 Annuity Terms Every Investor Should Know
Annuities can be a good option for investors seeking steady income during retirement. To get started, it’s important to learn some basic annuity terms. These 12 key terms will help you understand how annuities work and whether they fit your retirement plan. A financial advisor can also help you evaluate an annuity contract for your… read more…
- I’m 58 With $1.4 Million in My 401(k). Should I Convert $140k per Year to Avoid RMDs and Taxes in Retirement?
Transferring funds from a 401(k) to a Roth IRA can help a retirement saver control the timing and, potentially, the amount of their future tax liability. In general, if your applicable income tax rate is likely to be higher after retirement, a Roth conversion can make sense. That’s because Roth accounts aren’t subject to mandatory… read more…
- Inherited IRA vs. Spousal IRA
Inherited IRAs and spousal IRAs are two different types of accounts that you can use for retirement planning. An inherited IRA is created when someone inherits that account, often from a non-spouse. A spousal IRA allows working spouses to contribute to the account for non-working or low-earning spouses. A financial advisor can help you understand… read more…
- 7 Mistakes That Can Mess Up Your Social Security Benefits
Social Security payments are a key part of most retirement plans, but many people reduce their benefits by claiming too early, misunderstanding spousal benefits or misjudging how work income affects payments. A financial advisor can help you understand the rules and choose the right time to claim so that you can maximize your benefits. Here… read more…
- Safe Harbor 401(k) vs. Traditional 401(k)
When it comes to saving for retirement, 401(k) plans are a popular choice for both employers and employees. However, not all 401(k) plans are the same. Employers can choose between a traditional 401(k) plan and a Safe Harbor 401(k) plan, each offering unique features and benefits. Whether you’re an employer or employee, it’s important to… read more…