- How a Bipartisan Plan in the Senate May Help You Save for Retirement
As the retirement industry awaits the release of the Senate’s version of the SECURE Act 2.0, a pair of senators have unveiled draft legislation aimed at making it easier for Americans to save for emergencies and access retirement accounts. Let’s… read more…
- How the Roth IRA 5-Year Rule Works With Divorce
A Roth individual retirement account can allow you to save for retirement while enjoying some tax benefits. Getting divorced can affect your savings strategy if you plan to withdraw some of your IRA money or you’re transferring money from it to your former spouse. It’s important to understand how the Roth IRA 5-year rule might… read more…
- How an IRA Is Split During Divorce
Getting divorced can raise some important financial questions, including how to handle the division of retirement assets. If you and your soon-to-be former spouse have individual retirement accounts you might be wondering how to split an IRA in divorce equitably… read more…
- Is an RMD Needed If You’re Still Working?
If you contribute to a tax-advantaged retirement account at work or a traditional IRA, Required Minimum Distributions (RMDs) are something you’ll need to factor into your financial plan. These distributions are minimum amounts you’re required to withdraw from your retirement accounts once you reach age 72. You might be wondering whether you have to take… read more…
- How Does Decumulation Strategy Work?
Because retirees do not earn regular income, they need to save, usually over decades, enough money to cover their costs in old age. A key component of retirement planning calculates your decumulation, which is the rate at which you will draw down from savings to cover your retirement costs. Let’s take a look at how… read more…
- Worried About Retiring During a Market Crash? Here’s What You Need to Know
With bonds and stocks selling off side by side, retirees may have a reason to fear their well-diversified portfolios may not prove enough for retirement. Fixed-income investments are experiencing one of the worst years in decades, and stocks have fallen roughly 17% year to date. According to investment research firm Morningstar, the 60/40 portfolio is… read more…
- How to Roll Over a Thrift Savings Plan to an IRA
The Thrift Savings Plan (TSP) is designed to help federal employees and military service members save for retirement on a tax-advantaged basis. If you decide to leave federal employment, one thing you’ll have to decide is what to do with… read more…
- What Is a 403(b) Rollover?
When planning for retirement, understanding the various options available for managing your savings is crucial. One such option is a 403(b) rollover, a process that allows individuals to transfer funds from a 403(b) retirement plan to another eligible retirement account, such as an IRA or another employer’s retirement plan. This can be an important step… read more…
- How Does a Tontine Work?
A tontine is a shared annuity where a group of investors pools money and receives regular dividends from the investment. What sets tontines apart is that as participating investors die, their share of the returns is split among the surviving investors. Tontines have been around for hundreds of years; in their early days, they were used… read more…
- Transamerica Launches Annuity With Protection From Market Losses
Transamerica has introduced a registered index-linked annuity (RILA) that lets investors customize the product to best suit their risk profile, timeline, market outlook and financial goals. Known as the Transamerica Structured Index Advantage Annuity, it enters an unusually hot market: Fourth-quarter 2021 RILA sales were 26% higher than the prior year’s level, and last year… read more…
- Your Social Security Benefits Could Rise by as Much as 8.6% in 2023
High inflation has pinched many wallets this year, but perhaps none so much as retirees’. Not only do rising healthcare costs rank as one of the most pressing concerns for Americans on a fixed income, jumping prices have put even more strain on those budgets. In 2020, life events affected retirement timing for nearly half… read more…
- Approaching Retirement? T. Rowe Price Says You Need This Much Saved Based on Your Income
Retirement is a big milestone for many, and planning for retirement can constitute a large financial goal that takes years to reach. In fact, data from the Federal Reserve indicates that the majority of Americans only have a median of $87,000 saved for retirement, which is far less than most experts recommend. Investment giant T.… read more…
- What Is Considered Earned Income for IRA Contributions?
Understanding what qualifies as earned income for IRA contributions is essential for effective retirement planning. If you’re looking to build your nest egg through an Individual Retirement Account, knowing which types of income allow you to make contributions can help maximize your savings potential. Earned income typically includes wages, salaries, tips, professional fees, bonuses and… read more…
- This New Rule Will Bring a Big Change to Your Retirement Plan Rollover
Billions of dollars are moved annually from 401(k) plans to IRAs. And starting in July, the U.S. Department of Labor (DOL) will mandate that all financial advisors and brokers comply with a higher fiduciary standard for retirement plan rollovers. Under… read more…
- Rising Interest Rates Mean Annuities Are Hot
Annuities can be a useful part of a retirement plan. They provide guaranteed retirement income, effectively replicating the monthly checks that workers with a defined benefit plan like a traditional pension plan receive. Fewer workers than ever have defined benefit… read more…
- SIMPLE IRA vs. Traditional IRA: Key Differences
Investing for retirement is critical for your long-term financial stability. But which of the several available tax-advantaged investment accounts should you choose? SIMPLE IRAs and traditional IRAs are two options. Let’s explore the details of a SIMPLE IRA and traditional IRA. If you need help sorting out the best option for your unique situation, a financial… read more…
- The IRS Is Changing How Your Beneficiaries Receive Your Retirement Funds
In an effort to streamline the regulation that governs how retirement accounts can be used, the IRS has proposed a change for 403(b) plans — a type of workplace retirement plan used mostly by public and non-profit employees. Employer-sponsored plans… read more…
- The IRS Just Boosted How Much You Can Contribute for Retirement
Healthcare ranks as one of the most pressing concerns for retirees, and with medical expenses rising every year, two out of three Americans worry about high healthcare costs in retirement. Models estimate that a retired couple at age 65 will need roughly $200,000 saved for healthcare alone–exceeding the average American’s total savings. As part of… read more…
- Can You Have More Than One HSA Account?
It is common for people to have more than one health savings account (HSA.) Changing jobs can lead to someone having multiple HSAs. Having more than one HSA offers some potential advantages, such as the opportunity to take advantage of employer matches with one HSA while enjoying expanded investment options with another HSA. However, fees… read more…
- Who Should Not Buy an Annuity?
An annuity can provide a steady stream of income for retirement. This type of insurance contract allows you to pay a premium upfront, then receive payments from the annuity company at a later date. Annuities offer some financial advantages, but… read more…
- HSA Beneficiary Rules
Health savings accounts (HSAs) allow you to save money for healthcare expenses while enjoying some tax breaks. This type of tax-advantaged account is associated with high deductible health plans (HDHPs). If you have an HSA, you can name a beneficiary to receive the money in your account should something happen to you. There are some… read more…
- What Is Pension Risk Transfer?
A pension risk transfer (PRT) occurs when a company ends its pension program. Usually in the process it tries to stop paying its existing benefits under pension programs for past and present employees. While it’s illegal for companies to unilaterally rescind pensions that employees have already earned (whether current workers or retirees), there are several… read more…
- Alternatives to the Eliminated Stretch IRA
Whether you’ve amassed a small fortune during your working career or have a five-figure IRA you’d like to pass on, one popular way to do so has been the stretch IRA. This strategy will allow you to pass your IRA onto your heirs without many of the limitations that normally apply to these accounts. However, the… read more…
- Could Target-Date Funds Imperil Your Retirement?
For years, target-date funds have been one of the go-to options for retirement investors. The appeal is clear; when you invest in a target date fund, you put your money in the hands of a manager who will adjust your… read more…
- What You Need to Know About Fidelity’s New Bitcoin Offering for Your 401(k)
Roughly 80 million U.S. investors own or have invested in digital currencies, and with a growing appetite for such alternative investments, retirement savers can now benefit from yet another way to invest. Financial firm Fidelity Investments has announced an expansion… read more…