- 4 Times Advisors Should Use Custom Indexing, According to Vanguard
Direct indexing is a hot strategy for financial advisors looking to differentiate themselves to potential clients – but what is it and when does it make sense for clients? The idea behind indexing, of course, isn’t new. Vanguard Group founder… read more…
- Social Security Payments Could Be This Much by 2030: How to Plan Accordingly
Increases in Social Security payments, which are linked to a key measure of inflation, are expected to rise significantly for the rest of this decade. By looking at historical data on annual hikes in Social Security payments, the average monthly… read more…
- Rule of 55 vs. 72(t): Retirement Plan Withdrawals
Deciding when to time your retirement plan withdrawals matters for determining how long your money will last and what you’ll pay in taxes for those distributions. If you have a 401(k) at work, you might follow the Rule of 55… read more…
- 401(k) Plan Participants Say They Need to Save This Much to Retire
If $1 million was once the consensus target for retirement savings in the U.S., that appears to be changing. A recent Schwab Retirement Plan Services survey found that 401(k) plan participants across the country now believe they must save $1.9… read more…
- Is the Bull Market Coming to an End? What Retirement Savers Should Do to Prepare
In 2022 the S&P 500 had its worst annual first-half in five decades. With the tailwinds that buoyed global economies during the pandemic recovery gone, those who are saving for retirement should take several steps to weather the drop-off… read more…
- How to Retire With $2 Million
For years, financial experts have suggested a target retirement savings goal of $1 million. But when you consider things like inflation, the rising cost of healthcare and longer life expectancies, that amount of money may not go as far as… read more…
- There’s a New Way to Convert Your 401(k) into a Pension-like Stream of Income
Creating reliable streams of retirement income is one of the most important elements of a person’s financial plan. A retirement industry giant says it now has a new way for retirees to meet this vital challenge. Fidelity Investments plans to… read more…
- Democrats Want to End This Lucrative Retirement Account Loophole
Congressional Democrats want to slam shut a tax loophole known as the “backdoor” Roth IRA. In one of several proposed changes that target the retirement accounts of wealthy Americans, Democrats on the House Ways and Means Committee want to prohibit people… read more…
- Congress Could Change Your Retirement Plans. Here’s What You Need to Know
The House of Representatives and Senate are working along similar lines to reform laws governing retirement plans like 401(k)s and traditional IRAs. Initiatives in both bodies raise the age cap for retired minimum distributions (RMDs). And they both let employers treat… read more…
- New Bill Would Eliminate Taxes on Social Security Benefits
Social Security is one of the cornerstone programs of the American Social Safety net — even if it doesn’t always completely cover a person’s retirement expenses, it gives everyone something to build off of when planning for their golden years.… read more…
- Annuity vs. Perpetuity
Annuities and perpetuities are insurance products that make payments on a fixed schedule. An annuity makes these payments over a fixed period of time and then ends. A perpetuity makes these payments indefinitely. Here’s what you need to know about… read more…
- Social Security Benefits for Divorced Spouses
Social Security benefits can be an important part of your financial plan for retirement, whether you’re single, married, widowed or divorced. If you were married previously, it’s helpful to understand how claiming a Social Security benefit for divorced spouse status… read more…
- Can I Retire at Age 55?
Retiring at 55 sounds like a dream to many, but reaching a goal like that requires some extra planning ahead of time. While normal retirement age for most is usually 65 or older, early retirement could give you more time… read more…
- Converting an IRA to Roth After Age 60
Retirement savers who convert pre-tax retirement accounts such as IRAs to after-tax Roth IRAs after reaching age 60 can keep growing funds tax-free and then make withdrawals in retirement without paying taxes. They avoid early withdrawal penalties and also don’t… read more…
- This Retirement Provider Becomes Latest to Offer Guaranteed Lifetime Income Stream
Yet another financial services firm has rolled out a new way to add a guaranteed lifetime income stream to your retirement portfolio. TIAA last week announced the launch of its Secure Income Account, which allows private-sector companies to provide employees… read more…
- Are Target-Date Funds Hampering Your Retirement? Try This Instead
Target-date funds may be cramping your retirement. Between July 29 and Aug. 2, lawyers representing current and past participants in six separate retirement plans filed suit against their employers and plan fiduciaries, charging that the BlackRock target-date funds in the… read more…
- Unretiring? Don’t Make These 3 Social Security Mistakes
Retired Americans are feeling the pressure of returning to work due to rising prices and the COVID-19 pandemic. But reentering the workforce while earning Social Security benefits could have consequences. We’ll take a look at the obstacles retirement-age Americans are… read more…
- Here’s How Retirees Can Turn $6,000 Into a $150,000 Retirement Bonus
With an average retirement balance of just $202,000, baby boomers could find themselves pinched for retirement income, according to a new survey from the Transamerica Center for Retirement Studies. Using the 4% rule for retirement withdrawals, that balance would produce… read more…
- Georgetown Identifies 6 Themes of a ‘No Normal’ Retirement
The AgingWell Hub at Georgetown University recently released a study that helps readers imagine how different retirement journeys might look. The idea is that there is “no normal” retirement and that each path will be different. The study lays out… read more…
- Vanguard Says This Modest Change Helps Investors Save Enough Retirement Income
Periodically increasing the amount you put toward retirement can help improve the chances that you’ll have enough retirement income later in life. Vanguard recently released data that analyzes whether retirement plan participants are saving enough to replace their income in retirement.… read more…
- Does Vanguard Owe You Money? It’s Paying Investors Millions
Some investors will be getting a bit of money back soon, the result of a big settlement between financial firm Vanguard and the Massachusetts Secretary of State. The $6.25 million settlement has to do with allegations that the firm failed… read more…
- IRA Investors Put Their Money Into This Low-Cost Asset. Should You?
Investors with individual retirement accounts (IRAs) are selecting low-cost mutual fund options. The Investment Company Institute (ICI) says 45% of individual retirement account assets are held in mutual funds. That adds up roughly to $6.2 trillion. Overall, in 2021, IRA mutual… read more…
- How Much Retirement Income You’ll Have After Paying Medical Expenses
Retirees face sizable out-of-pocket costs for premiums, copays and uncovered services. One way to gauge this burden is to look at how much these medical costs eat into their Social Security benefits and other income. Here’s a look at how… read more…
- Inflation Reduction Act: 5 Ways Retirees Can Save on Healthcare
The recently passed Inflation Reduction Act contains five new healthcare benefits for retirees. Because Congressional Democrats in the Senate passed the Inflation Reduction Act through the reconciliation process, its healthcare provisions apply only to Medicare, Medicaid and other government programs. Consider… read more…
- This Move Can Save You Big on RMD Taxes
Stocks and bonds have both taken a beating this year, but that can create an opportunity to save big on taxes for retirees who don’t need their required minimum distributions (RMDs) to live on. In other words, there’s a simple… read more…