- Lower Taxes and Make Cash by Giving This Income-Generating Fund to Charity
Many investors want to increase their charitable giving but hold off because they need the income their portfolios generate. One way to get the best of both worlds is to give to a pooled income fund. These funds provide an… read more…
- Understanding How Auto-IRA Plans Work
If your workplace doesn’t offer a retirement savings plan, such as a 401(k), you may be left wondering how you can adequately invest for the future. Thankfully, many states are now sponsoring auto-IRA plans in an effort to bridge the retirement plan coverage gap that exists for many employees. Let’s take a look at what an… read more…
- The Real Reason Index Funds Belong in Your Retirement Portfolio (It’s Not Because They’re Cheap)
John Bogle, the father of index investing and founder of the Vanguard Group, revolutionized the investment industry when his company rolled out the world’s first index mutual fund in 1976. Since then, these passive investment vehicles have steadily grown in popularity, largely due to their consistent returns and low expenses compared to actively managed funds.… read more…
- How to Rebalance Your 401(k)
A 401(k) can be a fundamental part of your retirement savings plan. Knowing when – and how – to rebalance 401(k) assets is important for managing risk and achieving your investment goals. Rebalancing simply means selling securities periodically to stay aligned with your preferred asset allocation. This is something that may be done for you… read more…
- Should You Max Out Your 401(k)?
Living comfortably in retirement is a crucial part of the traditional American Dream. But many Americans struggle to save enough before they leave the workforce. According to a 2021 survey from the Insured Retirement Institute, 51% of older workers don’t… read more…
- Cashing Out Your 401(k): What You Need to Know
You know the goal of your 401(k) plan is to save. But while you’ve been working hard to contribute part of your salary, life may get in the way. It may be dozens of unexpected medical bills or your house… read more…
- What Is the Average 401(k) Match?
Saving for retirement comes with its struggles. However, you may already know the rates that retirement guides recommend to you. For example, save 15% of your income per year. Or have such-and-such percentage saved by age 35. But maximizing your 401(k) savings takes a little more than contributing as you can. One opportunity waiting for… read more…
- Free Money Is Out There – Here’s How to Claim Retirement Funds That Belong to You
There’s good news for folks out there who like free money: the Employee Benefits Security Administration (EBSA) has more than $2.4 billion in unclaimed retirement funds — and there’s a chance that some of if might belong to you. The EBSA is responsible for monitoring and ensuring the integrity of private employee benefit plans including… read more…
- How to Pay for Long-Term Care
The costs of long-term care for older adults can be significant, and federal Medicare health insurance benefits do not cover most of these costs. Most people who incur costs for long-term care cover them with a combination of personal savings, long-term care insurance and Medicaid, among other sources. Consider working with a financial advisor as… read more…
- 403(b) vs. IRA: Key Differences
In the process of saving for retirement, you’re likely to come across both 403(b) and IRA account options. While both of these can offer you similar benefits, there are some very important differences to note between the two accounts. Here’s a… read more…
- The Big Social Security Conundrum: How to Adjust Benefits for Inflation
As debate continues over how to best adjust Social Security benefits for inflation, a leading voice in retirement research says the answer may not be so straightforward. Since 1975, Social Security’s cost-of-living adjustments (COLA) have been based on the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W), an index that tracks the… read more…
- The Actual Million Dollar Question: Will Rising Mortgage Limits Help You in Retirement?
The federal government is reportedly set to enter uncharted waters in 2022 when it begins buying mortgages of nearly $1 million. The Federal Housing Finance Agency will raise the conforming loan limit for single-family home mortgages purchased by Fannie Mae and Freddie Mac to approximately $650,000 in most parts of the country and nearly $1… read more…
- The Biggest Pension Fund Is Taking on More Risk: Is Your Pension Next?
The board of California Public Employees Retirement System (known as CalPERS) approved an investment policy change on November 15 to use borrowed money and alternative assets to reach its investment-return target. Valued at $495 billion with two million members, CalPERS is the largest pension fund in the nation. And this move could become more mainstream as other… read more…
- New Research Shows Why You Should Rethink This Popular Retirement Strategy
Is the 4% Rule no longer a viable strategy for withdrawing retirement savings? That’s the question Morningstar researchers asked when they reexamined this well-known rule of thumb. Developed in the 1990s, the 4% Rule stipulates that a retiree should withdraw 4% of their savings in their first year of retirement and adjust subsequent withdrawals for… read more…
- If the Windfall Elimination Provision Reduces Your Social Security, You May Be in Luck
A decades-old provision that limits the Social Security benefits of nearly 2 million public-sector retirees and workers could be headed to the chopping block. Legislation recently introduced by U.S. Rep. Kevin Brady (R-Texas) aims to nix the windfall elimination provision (WEP) and replace it with a new formula for calculating the Social Security benefits of certain… read more…
- How to Choose Your Annuity Payout Option
As an owner of an annuity, you have multiple options when it’s time to start withdrawing from it. Your decision can drastically affect the level of income you and your beneficiaries receive from your annuity. To help decide which route is best, there are a handful of pros and cons of you’ll want to review… read more…
- What Is a Long-Term Care Facility?
The average individual turning 65 has nearly a 70% chance of needing long-term care in some capacity as he or she ages, according to the Administration for Community Living (ACL) and the Administration on Aging (AoA). That, combined with higher rates of longevity, means you or someone you know will likely use a skilled nursing… read more…
- Profit-Sharing Plan vs. 401(k)
Two of the most widely used employer-sponsored retirement plans are 401(k)s and profit-sharing plans. Both of these are tax-advantaged retirement plans, meaning that the IRS taxes contributions to these plans differently, if at all. Here’s how each of these plans work.… read more…
- Qualified Default Investment Alternative (QDIA)
A qualified default investment alternative (QDIA) is the default investment for defined contribution employer-sponsored retirement plans. If an employee contributes to a defined contribution retirement plan, like a 401(k), and does not specify how they want their money invested, it is automatically invested in the plan’s QDIA. A financial advisor could help you create or adjust… read more…
- Reverse Mortgages: What You Need to Know
A reverse mortgage is a financial instrument that allows seniors who are 62 and older to borrow against the value of their homes. Maybe their family home has been where they raised their children, but they are now empty-nesters and… read more…
- MSA vs. HSA: What’s the Difference?
Medicare savings accounts (MSAs) and health savings accounts (HSAs) both give consumers tax-advantaged ways to fund the costs of healthcare. MSAs are only for people enrolled in high-deductible Medicare plans. HSAs are restricted to people in high-deductible private insurance plans.… read more…
- What Is a Continuing Care Retirement Community?
Most seniors would prefer to stay in the comfort of their own homes. But at a certain point, it just might not be feasible. The average person 65 and older has almost a 70% chance of requiring long-term care, according to the Administration for Community Living (ACL) and the Administration on Aging (AoA). So, it’s… read more…
- Skilled Nursing Facility: Services and Costs
A skilled nursing facility gives an individual access to round-the-clock, specialized healthcare along with assistance and activities for daily living. These facilities have trained medical professionals to provide in-patient treatment and rehabilitation. A financial advisor could help you create a financial plan for your healthcare goals and needs. Here’s a breakdown of services, costs and insurance. What Is a… read more…
- Custodial Care Services, Costs and Insurance
Many people turn to long-term care (LTC) for a disability or chronic health condition. Sometimes the need for this happens suddenly after a medical emergency, like a stroke, or progressively with age. Either way, facilities like continuing care retirement communities (CCRC) are designed for these groups. Approximately 70% of adults who reach age 65 will… read more…
- Biden’s Build Back Better Could End These Retirement Loopholes
With the passage of the $1.2 trillion bipartisan infrastructure bill, all eyes in Washington have now turned to the $1.85 trillion Build Back Better bill. With both bills combined, Congress would invest more than $3 trillion in infrastructure, education, climate and social programs. The Democrats have scaled-back the Build Back Better bill significantly down from… read more…