- 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…
- How Much Can a Retired Person Earn Without Paying Taxes?
How much a retired person can earn without paying taxes depends on several factors, including the type of income, total earnings and filing status. Social Security benefits may not be taxable at all below certain income thresholds and standard deductions can offset a portion of other income. For 2025, a single filer age 65 or… read more…
- Are You Entitled to Some of the Extra $2.3 Billion TIAA Will Pay in Annuity Interest?
Annuities have long formed part of the retirement arsenal, and the Teachers Insurance and Annuity Association of America (TIAA) is demonstrating why. TIAA has announced its aim to boost retirement savings for several million of its annuity subscribers, giving back during these volatile times to ensure a smooth retirement experience. TIAA’s latest move comes on… read more…
- How Does a Roth In-Plan Conversion Work?
A Roth in-plan conversion allows employees to shift pre-tax retirement savings within an employer-sponsored plan, such as a 401(k), into a designated Roth account. This process triggers immediate taxation on the converted amount, but future qualified withdrawals become tax-free. Many workplace retirement plans offer this option, though rules vary by employer. Converting pre-tax funds to… read more…
- Understanding the Roth IRA 5-Year Rule
The Roth IRA 5-year rule determines when withdrawals of earnings or converted funds can be taken without taxes or penalties. For earnings, the rule requires that at least five tax years have passed since the first contribution. For converted funds, the clock starts on each conversion, and early withdrawals may incur penalties if accessed too… read more…
- How Much Do You Pay in Roth Conversion Taxes?
Calculating Roth conversion tax involves determining the income tax owed on the amount converted from a traditional IRA or 401(k) to a Roth IRA. Since conversions are taxed as ordinary income, the tax liability depends on the individual’s federal and state tax brackets. For example, if a person converts $50,000 and falls into the 24%… read more…
- How to Retire at 61: Step-by-Step Plan
Retiring at 61 means stepping away from work before reaching full Social Security retirement age, which can affect income streams, healthcare access and tax considerations. Those aiming to retire at 61 often rely on a mix of personal savings, investment income and possibly part-time work. Planning around Medicare eligibility, which begins at 65, and understanding… read more…
- New Bill Aims to Ban Russian Assets from Your Retirement Plan
As the Russia-Ukraine conflict continues to rage and cease-fire talks have come to a temporary impasse, a new senate bill says “nyet” to Russian stocks in your 401(k). This is part of a concerted effort of Western economic sanctions against Russia to punish the country and hamstring its war effort. The Russian government and major firms… read more…
- How to Convert a Traditional IRA to a Roth IRA
If you have retirement money in a traditional individual retirement account (IRA), you will have to pay taxes on it when you retire and start taking distributions. A traditional IRA is funded with pre-tax dollars. However, if your money is invested in securities in a Roth IRA, that account is funded with after-tax dollars, and… read more…
- Your Retirement Portfolio Needs More International Exposure
For most Americans, investing for retirement is a long-term practice that occurs over the course of many decades. It requires looking beyond the daily ups and downs of the stock market, remaining disciplined in the face of economic volatility and adopting a long-term focus — and possibly one that looks beyond U.S. borders. While U.S.… read more…
- How Much Does a $100,000 Annuity Pay Per Month?
How much a $100,000 annuity pays per month depends on several factors, including the type of annuity, the age at which payments begin and whether payments are guaranteed for life or a set period. For example, a $100,000 immediate annuity purchased at age 65 might pay around $500 to $700 per month for life. Rates… read more…
- What Is the Minimum Social Security Benefit for 2025?
Social Security benefits can play an important part in your retirement plan. Understanding how those benefits are calculated can help you to determine when to take Social Security and how much you might receive. The minimum Social Security benefit calculation… read more…
- Guaranteed Minimum Income Benefit (GMIB)
Variable annuities offer retirement savers a chance for higher returns than they are likely to get from fixed annuities. But, because variable annuity returns are based on underlying investments in the markets, returns may also be lower. To avoid the risk of running out of money in retirement due to a market downturn, a variable… read more…
- What to Do With HSA Excess Contributions
Health savings accounts allow you to save money for healthcare-related expenses on a tax-advantaged basis. Similar to individual retirement accounts (IRAs), the IRS limits annual contribution limits to an HSA. Contributing more than the limit creates an HSA excess contribution. In that scenario, there are two things you can do to correct excess contributions to… read more…
- How to Get a Social Security Bonus
Social Security is an important part of the retirement income puzzle for many people. Even if retirement is still decades away, it’s important to understand what you can do to maximize those benefits once the time comes. Employing some simple… read more…
- Supreme Court Won’t Hear Suit Challenging State-Run IRA
A state-run retirement plan for private workers in California will carry on after the U.S. Supreme Court declined to hear a lawsuit challenging the initiative, perhaps paving the way for more programs like it in other states. The nation’s highest court on Monday denied a petition filed by the Howard Jarvis Taxpayers Association seeking to… read more…
- What Is a Tax-Free Retirement Account (TFRA)?
A tax-free retirement account or TFRA normally refers to permanent cash-value insurance policies that offer risk protection and tax benefits to individuals. A TFRA retirement account is not a qualified plan, so it doesn’t follow the same rules as a… read more…
- Investment Giant T. Rowe Price Says Take These 3 Steps Before Changing Jobs
With three out of four full-time employees planning to quit their jobs over the next 12 months, the Great Resignation is far from over. If you too are considering changing jobs, you might be wondering what to do with your retirement savings plan when you leave your current employer. Global investment management firm T. Rowe… read more…
- How to Retire at 58: Step-by-Step Plan
Retire at 58, and you may be looking at a retirement that lasts four decades or more. Planning for that span of time means accounting for inflation and healthcare costs before Medicare. You’ll also face a delay in Social Security benefits. Meanwhile, consider how early withdrawals from retirement accounts are taxed and whether your savings… read more…
- How to Retire at 70: Step-by-Step Plan
While many people dream of retiring as soon as possible, others love their jobs and want to work as long as possible. Older workers who want to retire at 70 have multiple advantages over others who retire earlier. If you’re still working past the traditional retirement age or are considering it, there are a handful… read more…
- This Annuity Strategy Lets You Have Your Cake and Eat It Too
Annuities can provide guaranteed income for retirement. You may choose to receive income upfront, with an immediate annuity or put it off until a later date with a deferred annuity. You could also combine those options into a split annuity strategy. This approach can help you enjoy immediate and future income but it’s important to… read more…
- How to Retire at 64: Step-by-Step Plan
In many Americans’ minds, the traditional retirement age is 65. But often people want to wrap up their career sooner than that. According to a 2021 report from Natixis Investment Managers, younger generations plan to retire earlier. Members of Generation Y… read more…
- Questions to Ask a Financial Advisor About Retirement
Planning for retirement can be overwhelming, because it involves figuring out a plan for your money that is supposed to have last you for a long period of time, and often involves sorting things out now for a point time… read more…
- Spooked by the Russia-Ukraine Crisis? Don’t Do This With Your Retirement Portfolio
In recent months, investors have contended with the emergence of the Omicron variant, central bank policy tightening and persistent inflation. Now, Russia has invaded Ukraine, igniting a geopolitical crisis that is shaking global financial markets. The three major stock market indexes – the Dow Jones Industrial Average, the S&P 500 and the Nasdaq Composite –… read more…
- Is a Roth IRA Worth It?
Retirement savers fund Roth IRAs with after-tax dollars but can later withdraw earnings free from income taxes. One Roth IRA benefit compared to other retirement accounts is that savers don’t have to start withdrawing funds at age 72. Roth IRA owners have limited access to earnings on contributions until age 59.5, however. And their overall… read more…