Retirement

November 1, 2024Inflation has more or less finally been tamed. That’s the main takeaway from Social Security’s 2025 cost-of-living adjustment, announced by the Social Security Administration earlier this month.  A financial advisor can help you build an income plan for retirement and decide when to claim Social Security. Find an advisor today. Every year the SSA adjusts… read more…

October 31, 2024When faced with the decision of taking a lump sum pension payout or receiving monthly annuity payments, your course of action will depend on your individual circumstances. Key factors include your life expectancy, others sources of income and how soon you will be paid the lump sum. Speak with a financial advisor before making significant… read more…

October 30, 2024If you participate in a pension plan through your workplace, you’ll have to decide how you want to receive the payout when you retire. Pension plans typically offer two disbursement options: an annuity, which provides steady payments over time, or a lump-sum payment. Each option has its pros and cons, and the best choice will… read more…

October 30, 2024You can move your 401(k) to another company when you get a new job. In the event of a job change or termination, you typically have several options for managing your old 401(k): leave it with your previous employer, transfer it to your new employer’s plan, or roll it into an IRA. A 401(k) to… read more…

October 30, 2024Converting retirement savings held in a 401(k) to a Roth account can help you reduce or even avoid mandatory withdrawals while giving your more tax planning flexibility. Roth conversions can be particularly helpful if you expect to be in a higher tax bracket in retirement. Talk over your retirement plans with a financial advisor any… read more…

October 29, 2024Part of planning for a secure retirement is crafting a reliable income stream that can support your lifestyle once you stop working. There are a variety of investment options that can help you grow your savings and generate income throughout retirement. Each choice offers specific benefits, risks, costs and limitations. The key is to find… read more…

October 28, 2024Converting money from a tax-deferred retirement account to a Roth IRA can cause Medicare premiums for Part B and Part D to increase – in some cases dramatically – because Medicare premiums are tied to income brackets. When retirement funds are transferred to a Roth account, the converted amount is treated as income. If the… read more…

October 25, 2024Deciding between a $500,000 lump sum or $3,500 monthly annuity payments for your pension isn’t straightforward and involves weighing several personal factors. You need to consider how long you might live, which impacts how much total money you’ll get from monthly payments, alongside your retirement age to see how long your funds need to last.… read more…

October 23, 2024Lifestyle creep happens when your spending increases gradually as your income grows. It’s important to recognize the difference between necessary expenses and discretionary spending when you’re working or saving for retirement. Tracking your budget closely and setting financial goals are common strategies used to curb lifestyle creep. Regularly consulting a financial advisor and accounting for… read more…

October 23, 2024A budget by definition includes both income and expenses. The two halves of a budget are interdependent, so that if expenses go up, income must also rise. Otherwise, the budget won’t balance. Someone ready to retire at 62 with $1.6 million in an IRA and $2,800 in monthly Social Security benefits could start with an… read more…

October 21, 2024Converting retirement funds from a 401(k) into a Roth IRA offers the opportunity for tax-free growth and tax-free withdrawals in retirement, while also avoiding Required Minimum Distribution (RMD) rules. However, Roth conversion requires paying a significant tax bill up front. Often, this initial tax bill can be partially mitigated by gradually converting the 401(k) over… read more…

October 18, 2024South Carolina offers a deferred compensation program that allows public-sector employees to set aside a portion of their income to be paid out at a later date, typically during retirement. Contributions are often made pre-tax, which can lower current taxable income and provide potential tax benefits. Teachers, government workers, and other public employees can use… read more…

October 17, 2024Americans living abroad can still benefit from a Roth IRA for retirement savings, just like those in the U.S., but there are some extra considerations. Both expatriates and U.S.-based savers need earned income to contribute, but foreign income exclusions may affect eligibility for those living overseas. Expatriates should also be aware of how foreign tax… read more…

October 15, 2024In Ohio, the retirement age follows federal guidelines, typically ranging from 65 to 67 based on the year of birth for non-government employees. Teachers and state workers may have different retirement age requirements due to their specific pension plans. A financial advisor can help you with your retirement plan options and create a personalized strategy… read more…

October 13, 2024A deferred compensation plan allows eligible employees to set aside part of their salary into an account that grows tax-free until retirement. Many public employees in Missouri can use these plans, often called 457(b) plans, to supplement pensions or Social Security. A financial advisor can help you answer questions about Missouri’s deferred compensation plan, and… read more…

October 11, 2024Health savings accounts (HSAs) allow individuals with high-deductible health plans to set aside pre-tax money for medical expenses. Some may consider using HSA funds for non-traditional expenses like gym memberships. While gym memberships can improve health, only qualified medical expenses are covered. Here’s what you need to know. A financial advisor can help you assess… read more…

October 11, 2024Choosing the best retirement savings option starts with finding an account that fits your goals. Some accounts offer upfront tax benefits, while others provide tax-free growth. The right choice for your finances will depend on factors like your income, retirement lifestyle goals and withdrawal flexibility. A financial advisor can help you select an account for… read more…

October 10, 2024A health savings account (HSA) offers a tax-advantaged way to save for healthcare expenses while providing flexibility and control over how you manage your medical costs. The benefits of a health savings account include tax-free contributions, tax-deferred growth and tax-free withdrawals for qualified expenses. An HSA combines the benefits of a savings account with the… read more…

October 10, 2024Choosing the right retirement withdrawal strategy can stretch your savings throughout your retirement years. Effective withdrawal strategies provide a structured way to balance your income needs while preserving your retirement savings. A financial advisor can work with you to create a strategy for your retirement plan.  Why It’s Important to Choose a Retirement Withdrawal Strategy… read more…

October 9, 2024In the Empire State, the retirement age can vary depending on several factors, including the type of employment and the retirement system one is part of. For most individuals, the standard retirement age aligns with the federal guidelines set by the Social Security Administration, which is gradually increasing to 67 for those born in 1960… read more…

October 8, 2024Deferred compensation allows Florida employees to set part of their earnings aside for future uses. This strategy could help you manage taxes or plan retirement, as it delays a portion of your income, which can include bonuses, stock options, or other incentives. And in Florida’s tax-friendly environment, where there is no state income tax, deferred… read more…

October 7, 2024The Kentucky deferred compensation (KDC) plan allows employees to defer a portion of their income for a later date or retirement. State employees, including public school teachers, can participate in 401(k), 457 and IRA plans, which offer tax benefits by delaying income taxes on contributions until withdrawal. Participants can select from a range of investment… read more…

October 7, 2024Deferred compensation is a retirement savings plan that allows employees to set aside a portion of their income to be paid out at a future date, which is typically during retirement. The Nevada deferred compensation program is designed to help public employees save for retirement by deferring a portion of their salary into investment accounts… read more…

October 5, 2024Public employees in Illinois are part of a structured retirement system that determines when they can start receiving pension benefits. The state offers several pension systems, including those for teachers, state employees and police officers, each with its own eligibility requirements. For example, members of the Illinois Teachers’ Retirement System (TRS) and State Employees’ Retirement… read more…

October 5, 2024Deferred compensation plans allow employees to set aside part of their income to be paid later, often during retirement when they may be in a lower tax bracket. They are commonly used in Wisconsin by public sector workers. Though these plans are also available to private sector employees. A financial advisor can help you compare… read more…