- 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…
- Can I Reinvest My Required Minimum Distribution?
As you approach retirement, understanding the nuances of your financial obligations becomes increasingly important. One such obligation is the Required Minimum Distribution (RMD), a mandate that requires individuals to withdraw a certain amount from their retirement accounts annually, starting at age 73. But what if you don’t need these funds for immediate expenses? Can you… read more…
- Getting a Mortgage With Only Social Security Income
Retiring on a fixed income does not preclude you from getting a home loan. You may not qualify for a larger mortgage that requires more earned income. Still, you can get a home loan with Social Security alone. However, not having regular income from a job or retirement accounts will make securing a mortgage more… read more…
- Can Your Spouse Empty a 401(k) Without Your Consent? Senators Call on Government to Investigate
Saving for retirement is one of the most pressing concerns for many Americans, and how to safeguard those funds is an equally important consideration. Private employer-sponsored defined contribution plans have become the primary retirement account vehicle, with more than 90% of eligible workers contributing to a retirement plan this past year. However, unlike the traditional… read more…
- Your 401(k) Could Soon Get a $10,000 Catch-up Boost
The SECURE 2.0 Act is a follow up to the 2019 bill that made changes to the way Americans save for retirement. It was passed by Congress in December 2022. There are various important provisions in this retirement legislation, but one… read more…
- Best Retirement Planning Books to Buy in 2025
We’re living in the golden age of information. The proliferation of smartphones and WiFi has meant the answer to seemingly any financial question rests at your fingertips. While the internet provides endless opportunities for increasing financial literacy, books remain one… read more…
- Investing in Cryptocurrency With a Self-Directed IRA
Cryptocurrency can add diversification to your portfolio. Your brokerage may allow you to trade digital currencies through a taxable account but you could also use a self-directed IRA to invest in crypto for retirement. A self-directed IRA doesn’t follow the same rules as a traditional or Roth IRA. If you’re considering a self-directed IRA for… read more…
- Secure 2.0 Act: How Your RMDs Might Be Impacted
The Securing a Strong Retirement Act of 2022, dubbed SECURE 2.0 Act, will replace the current age for required minimum distributions (RMDs) with a sliding scale that would enable anybody who turns 74 after December 31, 2032 to delay RMDs… read more…
- New Bill May Allow Penalty-Free 401(k) Withdrawals for This Retirement Expense
When planning for the future, health care ranks as one of the highest concerns for both savers and retirees alike. Not only are health care costs rising by more than 5% every year, but rampant inflation and volatile market performances have also added extra pressure to retirement savings, making many older Americans wonder if they… read more…
- How to Calculate Your High-3 for Federal Retirement
The high-3 retirement calculation helps determine pension benefits for federal employees under the Federal Employees Retirement System (FERS) or Civil Service Retirement System (CSRS). The high-3 average reflects the average salary from the highest-paid 36 consecutive months. This period isn’t always the final three years of employment This figure plays a key role in estimating… read more…
- Five Retirement Risks to Avoid
While 79% of Americans told Fidelity Investments in 2022 that they are confident about their retirement planning, 71% also said that they are concerned about the impact of inflation on reaching their retirement goals. Uncertainty can make people feel anxious about… read more…
- The IRS May Make Your Roth IRA More Valuable With This RMD Rule Change
The Internal Revenue Service has proposed rule changes that could significantly impact how beneficiaries will manage inherited retirement accounts. The proposed regulations, which were published last month, caught some in the financial services industry by surprise, as they offer a new interpretation of the SECURE Act and change the rules governing the required minimum distributions… read more…
- The Most Common Annuity Riders, and How They Work
Annuities are insurance products designed to provide you with a guaranteed stream of income, while an annuity rider can be added to an existing annuity contract to expand or enhance its benefits. There are different categories of annuity riders you might choose to add, depending on your financial needs. Understanding the different types of riders… read more…
- JPMorgan Launches New Retirement Tool to Help You Generate Income
There’s more to retirement planning than just saving your money. Wealth accumulation is a vital component of a successful plan, but it’s only half of the calculus. How you withdraw your hard-earned savings over the course of retirement is nearly equally as important. JPMorgan Asset Management announced the launch of a new tool to help… read more…
- Can I Retire at 60 With $300,000?
While it is possible to retire at 60 with just $300,000, you’ll need to accept a modest standard of living. To understand what a 60-year-old with $300,000 might face, consider their income before and after Social Security, along with post-retirement expenses. Your own prospects in this kind of situation will vary, but by doing the… read more…
- Can You Have More Than One 401(k)?
Wondering if you can have more than one 401(k)? The answer is yes, but with some qualifications. You can contribute to multiple 401(k) plans if you work for different employers. You may also do so if your employer offers both traditional and Roth options. However, the IRS sets combined contribution limits across all your 401(k)… read more…
- How to Retire at 52: Step-by-Step Plan
Many Americans dream of early retirement. It’s even the basis for movements like FIRE, which stands for Financial Independence, Retire Early. But if you want to retire as soon as 52, you need a solid strategy to help you get there. Retiring in your 50s leaves you with less time than the average worker, making it… read more…
- What Is a Registered Index-Linked Annuity (RILA)?
A registered index-linked annuity (RILA) is a specific type of annuity that’s designed to provide income while managing risk. A RILA tracks the movement of a stock market index in order to produce positive returns, while simultaneously giving the annuitant the ability to establish a maximum risk threshold. This version of an annuity could be… read more…
- How Long Will $600,000 Last in Retirement?
One of the biggest worries associated with retirement planning is ensuring you’ve saved enough money. Some people aim to save $1 million or more. Others target $500,000 to $600,000 instead. But just how long will $600,000 last in retirement? And is it enough? Asking those kinds of questions can help you shape your retirement savings… read more…
- T. Rowe Price Has Identified Two Types of Retirees. Which Type Are You?
T. Rowe Price has identified two types of retirees and launched a retirement tool to serve their financial needs. The global investment management firm divides retirees into two categories: savers and spenders. Let’s break down how they are defined, which… read more…
- 7 Tips for Withdrawing From Retirement Accounts in a Down Market
You’ve spent a lifetime accumulating funds for a smooth retirement. You’ve thought ahead and assumed a decent yield for your investments, calculating exactly how much you’ll need to retire comfortably. What if your retirement years coincide with a down market? Selling your investments at depressed prices creates a two-fold problem for retirees. When prices fall,… read more…
- Here’s Why Crypto May Threaten Your 401(k)
Given Bitcoin’s meteoric rise and enduring popularity, many investors might be interested in investing in cryptocurrencies as part of their portfolios. Nowadays, retirement savers can even take advantage of tax-leveraged accounts like self-directed IRAs and invest in cryptocurrencies and other alternative investments. However, the U.S. Department of Labor (DOL) recently released a report recommending against… read more…
- How to Retire at 55 and Live Off Your Dividends
Retiring at 55 and living off dividends requires careful planning, strategic investing, and a strong focus on income-generating assets. Early retirement dividend investing involves building a portfolio of reliable dividend-paying stocks, funds or other income-producing investments that can sustain a comfortable lifestyle without relying on traditional employment. Factors such as dividend yield, payout consistency, and… read more…