- Can Social Security Be Grossed Up?
If you’re a retiree who depends on Social Security, in some cases you can gross up your Social Security income on financial paperwork. You would do this to make your income more accurately represent the equivalent amount of earned income when it comes to qualifying for loans or other financial programs. This depends entirely on the… read more…
- Does Rebalancing Your 401(k) Cost Money?
When you first opened your account, you hopefully thought long and hard about how to allocate your money, putting a certain percentage towards riskier stocks and other money towards safer investments like bonds. But have you thought about rebalancing since… read more…
- American Seniors Must Prepare For Mental Health Costs in Retirement
As you get older, healthcare becomes increasingly important — between preventative care and trips to the doctor to fix the aches and pains that come with age, having a good health insurance plan is key to both personal health and financial health. While the focus is often on physical health and the care that accompanies… read more…
- Average HSA Balance By Age
Health savings accounts or HSAs help offset your out-of-pocket healthcare costs when you have a high-deductible health plan (HDHP). HSAs offer tax advantages that make them useful for covering medical costs in retirement. Taking a look at the average HSA balances by age can help you see how you stack up. While it’s wise to… read more…
- This Type of Senior Is Struggling to Afford Retirement
Amid an economic environment marked by inflation, single seniors are having a harder time in retirement compared to married seniors, a new survey has found. The results of the American Advisors Group survey suggest unmarried seniors have less money than they thought they would have in retirement, expressed a desire to increase their monthly cash… read more…
- Here’s How Catch-Up Contributions Can Grow Your 401(k) Over Time
Catch-up contributions were first introduced in 2002 as a way for people to save more money for retirement starting at age 50. While the government initially permitted savers to contribute an extra $1,000 to their 401(k), the limits on catch-up contributions have gradually increased in the years since. In 2022, savers can contribute an extra… read more…
- How to Invest a Lump Sum Pension Payout
A pension plan promises to pay a defined benefit for the length of an employee’s retirement. Depending on your financial circumstances, you may consider taking a lump sum instead of a lifetime monthly payment. Let’s take a closer look at… read more…
- Social Security Disability Rules After Age 50
Workers of any age who become disabled may be able to qualify for monthly cash payments from the federal government. However, people older than 50 may find it easier to be declared disabled and eligible for Supplemental Security Income (SSI) benefits. SSI is similar to but separate from regular Social Security benefits, which are based… read more…
- Do I Need a Financial Advisor for My 401(k)?
With the demise of company pensions, 401(k) plans have become the de facto retirement plan for the majority of American workers. These company retirement plans make it easy for employees to save for the future through payroll deductions. However, most… read more…
- How Much Should I Have in My 401(k) at 50?
Most Americans have less in their retirement accounts than they’d like, and much less than the rules say they should have. If that describes you, you’re not alone. Now, most financial advisors recommend that you have between five and six times your annual income in a 401(k) account or other retirement savings account by age 50.… read more…
- How Much Interest Does $3 Million Pay?
Living off the interest of $3 million dollars depends on how the money is invested and how much risk you’re willing to take. A portfolio held entirely in high-yield savings might generate under $120,000 per year, while higher-yielding assets like dividend stocks, REITs or annuities could produce significantly more. Each option carries trade-offs in liquidity,… read more…
- Is Social Security Taxed After Age 70?
Millions of older Americans live solely on a Social Security check. And while other Americans rely mostly on workplace retirement plans like a 401(k) or an individual retirement account (IRA), these monthly benefits from the government can make or break your… read more…
- You Could Be Doing More to Limit Taxes in Retirement
A common approach to retirement income relies on withdrawing money from taxable accounts first, followed by 401(k)s and IRAs, and lastly, Roth accounts. Conventional wisdom holds that withdrawing money from taxable accounts first allows a retiree’s 401(k) assets to continue growing tax-deferred while also preserving Roth assets to potentially leave to heirs. A financial advisor… read more…
- 403(b) Loans: Can You Borrow From Your Account?
When an unexpected expense comes up, you might consider borrowing from your retirement account. Most qualified retirement plans, including 401(k) and 403(b) accounts, allow employees to borrow from their savings. These loans must be repaid with interest. Borrowing from a retirement account is a big decision, though, potentially impacting your long-term financial outlook. Consider both… read more…
- How Much to Put in a Roth IRA per Month
Setting aside money regularly is one of the surest ways to save for retirement–especially when you take advantage of tax savings over time. Though some retirement accounts are tax-deferred, one popular option that isn’t tax-deferred is a Roth IRA. However, to make the most of a Roth IRA, you need to know how it works… read more…
- IRS May Close This RMD Loophole
Most Americans have at least heard of a 401(k) plan, but there is another tax-advantaged workplace retirement plan out there — the 403(b). A 403(b) operates similarly to a 401(k), but is generally only available to public sector employees and some non-profit workers — including teachers, university employees and religious leaders. While in many ways… read more…
- Is It Better to Take Your RMD Monthly or Annually?
After a certain age, you must begin to take minimum withdrawals from your tax-advantaged retirement accounts. The exact amount of this required minimum distribution or RMD is determined by a number of factors, including your age and the amount you… read more…
- Average Retirement Savings for Married Couples By Age
According to a recent study from the career experts Zety, 40% of respondents fear retirement more than death. And almost nine in 10 responded that their biggest retirement fear is not having enough income, with many wondering how much a couple needs to retire. For married couples, planning retirement for two people can be complicated. How much they’ll… read more…
- Can You Lose Your 401(k)?
Employer-sponsored retirement plans are one of the best ways for working Americans to build wealth. They offer tax advantages, allow your money to grow over time and many employers even match your contributions. But the job market is changing and… read more…
- HSA Investment Strategy: Guide
With an HSA investment strategy, account holders can grow health care savings through mutual funds, ETFs or similar investments. While HSAs are commonly used for short-term medical expenses, the option to invest contributions allows for long-term compounding and potential tax-free growth. Choosing when and how to invest depends on individual healthcare needs, risk tolerance and… read more…
- Average Retirement Savings for Baby Boomers
The Baby Boomer generation is reaching retirement age in record numbers. With more Boomers retiring on a daily basis, it helps to understand how prepared they are to leave their jobs for good. In this article, we’ll discuss the average retirement savings for Baby Boomers, and provide tips for how to boost retirement income. Regardless… read more…
- Here’s a New Way to Generate Lifetime Income for Retirement
Many adults approaching retirement age have little to no retirement savings. In fact, the U.S. Government Accountability Office said that almost 50% of households headed by someone aged 55 and older had no retirement savings in 2016. And as the retirement age for Social Security rises, and inflation hits wallets across the country, it’s understandable that many… read more…
- How Your Employer Can Protect $150K of Your Retirement Savings
Borrowing money from your 401(k) can seem like a fast, efficient and low-cost alternative to taking out a personal loan or a line of credit. Since you’re both the borrower and lender, repaying a 401(k) loan means you earn interest from yourself. But 401(k) loans come with a considerable risk: the possibility of a costly… read more…
- Brokerage Account vs. Roth IRA
Brokerage accounts and individual retirement accounts (IRAs) offer two very different ways to invest. A Roth IRA, for example, can offer the advantage of tax-free distributions in retirement while a brokerage account doesn’t cap annual contributions. You might choose to open one account or both, depending on your needs. Understanding the differences between a brokerage… read more…
- Benefits of Using an HSA for Retirement
There is a variety of tools that can help you save for retirement. While many of us know about 401(k)s and IRAs, not as many may be familiar with health savings accounts (HSAs). These are savings accounts designed for people with high-deductible health plans. Funds from an HSA account can cover qualified medical expenses and… read more…