- 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. This is especially the case with pensions no longer widespread and Social Security not enough to cover retiree expenses. Therefore, it’s up to individuals to put aside money for their later years. If you do it right, relaxation and recreation will replace… 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
More than a third of retirees claim their benefits early. According to the Center for Retirement Research at Boston College (CRR), 33% of men and 35% of women claimed before age 64. While everyone’s reasons for claiming are different, the Americans who can wait beyond full retirement age (FRA) will see larger Social Security payments… 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. The SSA does… 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. Before buying an annuity, however, you’ll want to consider how much monthly income it might generate. For example, how much does a $300,000 annuity pay per month? And is it enough to live on in retirement? Some simple calculations can help… read more…
- What Is a Direct Rollover?
If you’re considering changing jobs or starting a business, make sure you don’t throw away any retirement funds you’ve built up. Whether you have worked at the same place for decades or are making a career change in your twenties, you can roll an old employer-sponsored 401(k) into a different retirement account tax-free with a… read more…
- Tontine vs. Annuity: Which Is Better?
In recent years, there has been a renewed interest in an investment scheme that fell out of favor more than 100 years ago: the tontine. But what exactly is a tontine? The simplest way to describe it is that it’s a kind of annuity, with a twist. If you outlive the other participants, you get… read more…
- This Simple Savings Mistake Could Be Costing You Over $90,000
Retirement plan participants broke record levels of savings in 2021, with higher levels of participation and contributions leading to an average 10% increase in account balances over course of the year. Yet, confronted with increasing inflation and uncontrolled healthcare costs,… read more…
- What Are Secondary Market Annuities (SMAs)?
Secondary market annuities (SMAs) allow annuity owners to sell the future payments of their annuity to a third-party company for a lump sum payment. This allows owners to receive an immediate cash payment, usually at a discounted rate, instead of waiting for future payments. The exchange is less money now or more money spread over… read more…
- New Bill Would Boost Your Social Security Checks by $2,400 Per Year
Bernie Sanders (I-VT) and Democratic lawmakers believe they have a plan to fix Social Security for the long term, and in doing so, boost benefits by $2,400 per year. Sanders and U.S. Rep. Peter DeFazio, (D-Ore.), recently introduced the Social… read more…
- A Guide to the Pro-Rata Rule and Roth IRAs
Roth Individual Retirement Accounts (IRAs) can prove a powerful tool in your retirement plan, so it may come as no surprise that Roth conversions are a popular method of bypassing Roth IRA income limits. However, many retirement savers are unaware… read more…
- Are IRA Assets Protected From Nursing Homes?
As people age, concerns about long-term care and its financial implications become increasingly significant. Understanding the relationship between individual retirement accounts (IRAs) and nursing home costs is crucial for anyone planning for their future or managing the affairs of elderly family members. While IRAs are designed to provide financial security during retirement, they can also… read more…
- Make Your Retirement Income Go Farther With this Tax-Efficient Withdrawal Strategy
Workers spend decades saving for retirement, building a nest egg they hope will sustain them when the time comes to retire. But saving your money is just one part of the puzzle that is retirement planning. A financial advisor can… read more…
- Falling Short on Your Retirement Goals? Vanguard Says This Will Help You Catch Up
America is saving at an all-time high for retirement. But the global investment firm Vanguard says that just over half are falling short on reaching recommended retirement savings goals or failing to maximize contribution limits. Here’s what the 2022 study… read more…
- When Should You Consider a Roth Conversion? Vanguard Has an Answer
Deciding between a traditional individual retirement account (IRA) and a Roth IRA can be difficult. Choosing when or if you should convert your IRA funds to a Roth account can be even more daunting. Experts commonly recommend that investors compare… read more…
- High-Net-Worth Retirement Planning Guide
For anyone who anticipates retiring one day, planning is critical. This means saving throughout your career, calculating your future Social Security benefits and anticipating your expenses in retirement. But retirement planning for high-net-worth individuals can be even more complex. These… read more…
- How Much Does a $200,000 Annuity Pay Per Month?
Annuities offer an appealing option for your retirement nest egg. Adding guaranteed retirement income to your retirement can give you financial stability. But the exact amount that you’ll get from an annuity each month will vary. For example, monthly payouts from a single premium immediate annuity can range from approximately $1,200 to nearly $2,700 per… read more…