- HSA vs. 401(k): What’s the Difference?
Health savings accounts (HSAs) and 401(k) accounts are both savings vehicles that offer substantial tax benefits for people planning for retirement. Beyond that, there are significant differences between the two. HSAs are narrowly focused on paying for costs related to… read more…
- Thrift Savings Plans vs. 401(k) Plans
Thrift savings plans (TSPs) and 401(k) accounts are two vehicles used to save and invest for retirement. Both operate similarly in many ways, including tax advantages, caps on contributions and requirements for minimum withdrawals in retirement. However, TSPs are only… read more…
- HSA vs. HMO: What’s the Difference?
A health savings account (HSA) and a health maintenance organization (HMO) are both intended to help people cover the costs of medical care. However, they take very different approaches. HSAs are tax-advantaged savings accounts that allow people to pay for healthcare using pre-tax dollars. HMOs are health insurance plans that limit policyholders to using healthcare… read more…
- Using a 401(k) vs. Stock Picking
Contributing to a 401(k) retirement account and investing in individual stocks outside a retirement account represent two drastically different approaches. A 401(k) account is part of many employer-sponsored retirement plans. They offer immediate tax savings and, sometimes, employer matching of… read more…
- You Need to Know This About Phased Retirement
There are several types of retirement just as there are various times to retire. Choosing the right time to retire can be challenging, as it often means balancing your desire to leave work behind with your financial ability to do… read more…
- Social Security Disability Income Limits
For some, it’s degenerative; for others, everything changes in a split second. In either case, the consequences are lasting. And in either case, you find yourself in need of financial aid because a disability makes it impossible to continue working.… read more…
- Social Security vs. 401(k)
When planning for retirement, it’s important to consider what income streams you’ll have to cover living expenses. For many people, Social Security is a key part of the income puzzle though it may be accompanied by a 401(k) plan. If… read more…
- Only a Sliver of Retirees Can Cover This Overlooked Expense
Long-term care is a wide-ranging and often-overlooked component of retirement planning. It runs the gamut from occasional help with cooking and cleaning to around-the-clock care provided in a nursing home setting. While analysis from the Center for Retirement Research at Boston College shows that nearly one in five retirees won’t need any long-term services and supports,… read more…
- Pandemic Offers This Silver Lining For Retirement Savers
From doctors visits to business meetings, the COVID-19 pandemic has shifted so many of our everyday interactions from in person to online. One silver lining of this dramatic change has been increased engagement when it comes to people learning about their retirement savings. Transamerica, an investment solutions, retirement and insurance company, has seen a significant… read more…
- Guide to Set Retirement Goals By Age
Too many Americans are unprepared for retirement, according to a PwC analysis. Around a quarter of U.S. adults have no savings at all for retirement, and only 36% are on track. Fortunately, several major brokerages offer age-based benchmarks that folks would be wise to consider as part of their retirement planning. Fidelity Investments, J.P. Morgan and… read more…
- SECURE 2.0 Act: What It Means for Your Retirement
The 2019 Setting Every Community Up for Retirement Enhancement (SECURE) Act brought key changes to laws governing retirement plans. Among other things, the Act eliminated the age cutoff for traditional IRA contributions and increased the age for required minimum distributions… read more…
- Two Popular Retirement Products Are Frankensteining Into One: Want In?
Nationwide thinks that its new product can change retirement planning for the majority of Americans who do not have access to traditional pension plans. The financial services company is working with Capital Group (the home of American Funds) and Annexus Retirement Solutions to offer a hybrid product: a new target date fund packaged with an annuity to provide retirement… read more…
- The Largest Social Security Boost in 40 Years Still Isn’t Enough to Offset Monster Inflation
The Social Security Administration said on October 13 that Social Security and Supplemental Social Security payments will be going up by 5.9% in 2022. Advocates for older Americans, however, caution that this won’t be enough to keep up with the inflation that… read more…
- Has This State Found the Solution to America’s Long-Term Care Problem?
Has Washington State found the solution to the difficulty retirees face in covering their long-term care costs? Starting Jan. 1, 2022, most employees in the state will begin paying a mandatory payroll tax to fund a statewide long-term care insurance program similar to Social Security. Known as the WA Cares Fund, the plan will begin… read more…
- How the Windfall Elimination Provision in Social Security Works
Throughout your career, it’s likely that a portion of your income has gone toward Social Security benefits each pay period. The purpose? When the time comes to retire, you are able to draw monthly benefits from this program. This provides… read more…
- LGBTQ Retirees Are Missing Out on This Big Social Security Benefit
Though recent years have seen tremendous strides in areas of social and financial equality for LGBTQ Americans, the history of marginlization that the community faced has left many older LGBTQ people struggling with financial security, according to a new study from the Illinois chapter of the American Association of Retired People and SAGE Publications. “This… read more…
- For Some, COVID-19 Means an Early Retirement
COVID-19 has impacted Americans in many different ways. And while some workers say that the pandemic has caused them to delay retirement, a study from Northwestern Mutual shows that younger people want to retire earlier. If you are planning to retire early, a financial advisor could help you create a financial plan to reach your goals.… read more…
- Worried About Losing Your Old 401(k)s? ‘Portability’ Measures Can Help
In addition to introducing two bills in September to remove savings roadblocks and ensure gig workers and part-timers have access to tax-advantaged plans, Democrats have introduced the Portable Retirement and Investment Account (PRIA) Act of 2021 to allow Americans to take along their retirement funds more easily throughout their careers. And in a move not… read more…
- You May Soon Be Able to Insure Against Social Security Going Bust – But Should You?
You may be able to profit off your pessimism about the health and durability of Social Security. That may be welcome news for young and middle-age adults who are particularly bearish about the future of Social Security. The Nationwide Retirement Institute’s 2021 Social Security Survey found that 71% of people worry the 86-year-old program will run out of… read more…
- U.S. Drops in Global Retirement Rankings: These Countries Do It Better
The U.S. has plenty to improve upon when it comes retirement. While Iceland is rated as the top country for retirement security for the third year in a row, the U.S. dropped to No. 17 in the 2021 Global Retirement Index… read more…
- These Digital Tools Can Help Close the Retirement Gap
It’s fairly common knowledge that many Americans are facing a retirement savings gap. In 2015, the gap between what they needed to have saved and what they’ve actually saved was $28 trillion. But it gets worse: the World Economic Forum now says that the gap is expected to grow to a whopping $137 trillion by… read more…
- What Is an Annuity Period?
Annuities can be an attractive investment option for retirement planning. However, they are a bit more complex than your average investment. In fact, it isn’t simply a matter of picking a stock and buying shares. Annuities are contracts with insurance companies where you pay a premium now in return for a payout later. That means… read more…
- Target Date Fund Popularity Is Through the Roof, But Beware
Investors taking the easy road may be shooting themselves in the foot — and in droves. Conventional wisdom dictates that as investors get closer to retirement, they should periodically rebalance their portfolio to reduce risk. The idea is simple enough: shift your focus from growth to income as you near retirement. This act, known as… read more…
- Your Retirement Account Could Get an Infusion of Cash Under This Plan
A provision of the $3.5 trillion Democratic budget may boost the retirement savings of moderate- and low-income workers. A proposal advanced by the House Ways and Means Committee on Thursday would make the Saver’s Credit refundable for those who don’t owe any taxes. If the provision becomes law, eligible workers would receive the annual tax… read more…
- Don’t Get Scared Into This Social Security Mistake
The Social Security Board of Trustees announced last month the trust fund partially responsible for paying out benefits is set to run out of money by 2033, likely leading some retirees to worry that their monthly benefits could run out before they pass. A study conducted by the Retirement Research Center at Boston College, though,… read more…