- How Deferred Compensation Works in Ohio
In Ohio, state and local government employees may have access to the Ohio Deferred Compensation program, a voluntary supplemental retirement plan. This program operates alongside other retirement benefits, such as pensions. Participants can choose from various investment options and decide how much they want to contribute, up to certain limits set by the Internal Revenue… read more…
- How Deferred Compensation Works for Retirement
Deferred compensation allows individuals to delay receiving part of their income until a future date, often during retirement. This strategy is appealing for retirement savings and tax management, as the income is typically taxed at a lower rate when withdrawn. There are two types: qualified deferred compensation plans and non-qualified deferred compensation (NQDC) plans, each… read more…
- What Is the Retirement Age in Florida?
The retirement age in Florida, specifically for those enrolled in the Florida Retirement System (FRS) for public-sector workers, depends on the employee’s age and years of service. Early retirement is possible, but it comes with a reduction in benefits. For most members of the FRS Pension Plan, the normal retirement age is 62 or 65,… read more…
- How to Create a Financial Plan for Retirement
Creating a financial plan for retirement involves preparing for two stages of life: the saving/accumulation stage, and the retirement spending stage. You need a plan that will allow you to build wealth over your working life so that you have enough on hand to retire comfortably when the time comes. You also need a plan… read more…
- How Deferred Compensation Works in New York City
Deferred compensation in New York City offers public employees an opportunity to plan for their financial future. The New York City Deferred Compensation Plan is a voluntary program that allows city employees to set aside a portion of their salary for retirement, thereby reducing their taxable income in the present. Participants can choose between a… read more…
- How a 409a Deferred Compensation Plan Works
A 409a deferred compensation plan is a non-qualified arrangement that allows employees to defer a portion of their income to a future date. This plan is often used by high-income earners to reduce taxable income in the short term. Unlike qualified plans such as 401(k)s, 409a plans have flexible contribution limits and payout schedules but… read more…
- How to Catch Up on Retirement Savings in Your 50s
If you’re in your 50s and feel like you’re behind on saving for retirement, you’re not alone. Many people suspect that they may not have saved enough to comfortably retire even after the date of their planned retirement is not far off. There’s time to make up ground, however. You can still catch up on… read more…
- Early Retirement Tax Strategies to Know
Early retirement tax strategies are crucial for ensuring that your hard-earned savings last throughout your retirement years. By strategically managing your investments and withdrawals, you can minimize tax liabilities and maximize your retirement income. This involves understanding the nuances of tax-advantaged accounts, such as IRAs and 401(k)s and how early withdrawals might trigger penalties. Additionally,… read more…
- Who Is Eligible for Social Security Survivor Benefits?
When a loved one passes away, Social Security survivor benefits offer a form of financial support to those left behind. Eligibility for these benefits primarily depends on the deceased person’s work history and the relationship between the survivor and the deceased. Immediate family members—including spouses, children and sometimes parents—may qualify to receive these benefits under… read more…
- How Much You Need to Save to Retire By 2050
The year 2050 is still decades away, but it’s not too early to start planning for a mid-century retirement. As life expectancy increases and the cost of living continues to rise, setting a realistic savings target becomes more important than ever. Factors such as inflation, healthcare costs and potential changes in Social Security benefits all… read more…
- How to Avoid Paying Taxes on Pensions
Retirement should be a time of financial peace, yet many retirees find themselves surprised by the tax implications of their pension income. Understanding how to legally minimize taxes on your pension can significantly impact your retirement lifestyle and financial security. While pensions are typically taxable, several legitimate strategies may help reduce your tax burden without… read more…
- Understanding the Flooring Approach for Retirement Income Planning
The flooring approach is a retirement strategy that uses guaranteed income sources, like Social Security, pensions, or annuities, to cover essential expenses. This creates a stable “floor” of income for basic needs. When using this strategy, it’s important to identify your essential expenses and choose the right income sources. A financial advisor can help you… read more…
- 7 Tips for Choosing a Medicare Part D Drug Plan
Medicare Part D provides prescription drug coverage for those enrolled in Medicare and can significantly help in the management of healthcare costs during retirement. However, plans are available from many private insurance companies, and each plan differs in terms of costs, coverage and restrictions. This can make picking a plan feel overwhelming. To make the… read more…
- How to Catch Up on Retirement Savings in Your 60s
If you are in your 60s and feel like you have not saved enough for retirement, you are not alone. Many people in this age group realize they may need to catch up on their retirement savings to ensure they can enjoy their golden years comfortably. While it may seem daunting, there are several strategies… read more…
- What Are the General Guidelines for Saving for Retirement?
Saving for retirement is one of the most important financial goals you’ll ever set, and knowing how much to save can feel overwhelming. Whether you’re nearing retirement age or planning ahead, understanding general retirement savings guidelines can help you prepare for a financially secure future. It’s important to determine how much you’ll need for retirement,… read more…
- 10 Ways to Avoid Being Bored in Retirement
Retirement is intended as a well-deserved break after decades of hard work. However, the reality is that many retirees can experience unexpected bouts of boredom. Without the daily structure and social interactions a career provides, it’s easy to feel adrift. Instead, there are ways to keep your retirement years vibrant and fulfilling. Whether you’re looking… read more…
- 7 Jobs That Still Offer a Pension for Retirement
While pensions have become less common in the private sector, there are still jobs that provide this valuable benefit. Government, public-sector and unionized employers are all likely to offer pensions to their employees. It can be worthwhile to consider whether working in one of those fields could be a viable way to provide for a… read more…
- How to Create Retirement Savings Benchmarks for Your Goals
Creating retirement savings benchmarks can ensure financial security in your golden years. Setting clear retirement goals can help you enjoy a financially secure and fulfilling retirement with peace of mind and a sense of purpose. These benchmarks act as milestones, helping you evaluate whether you are on track to meet your objectives. After assessing your… read more…
- Can You Collect Social Security While Still Working?
As you approach retirement age, the question of whether you can collect Social Security while still working often arises. Understanding how employment affects your Social Security benefits is crucial for making informed financial decisions. The good news is that it is indeed possible to receive Social Security benefits while continuing to work, but there are… read more…
- 8 Retirement Savings Strategies for High-Income Earners
High-income earners can optimize their retirement savings by using strategies like maximizing contributions to retirement accounts, making backdoor Roth conversions and managing investments strategically. These approaches can provide tax advantages and help grow wealth to meet long-term financial goals. If you want to build your nest egg, a financial advisor could help you identify investment… read more…
- How to Use Your 401(k) to Invest in Real Estate
Most 401(k) plans invest in mutual funds, stocks, bonds, and other financial instruments, but you can also use these funds to invest in real estate. Real estate investing can diversify your retirement savings and potentially boost returns. To invest in real estate with a 401(k), you need to follow specific rules and choose the right… read more…
- What Percentage of Income Should You Save for Retirement?
Saving for retirement is a major focus during your working years. You want to make sure you have enough money during your golden years, but also enjoy the present. Determining what percentage of your income to save for retirement can help you set some guardrails to accomplishing both. The general recommendation is to save about… read more…
- How Much Social Security Does a Nonworking Spouse Get?
Many families are concerned about Social Security for a nonworking spouse. When one spouse has not worked or has a limited work history, questions about eligibility for benefits often arise. The Social Security Administration offers spousal benefits based on the working spouse’s earnings record, providing financial support in retirement even for those who have not… read more…
- 6 Places That Offer Free Estate Planning for Veterans
Estate planning is important for managing and distributing assets, especially for veterans who have unique benefits like pensions, VA benefits and healthcare coverage to consider. Veterans can access free estate planning services, including wills, through various organizations, so they don’t have to handle this task alone or pay for professional help. If you need help… read more…
- How Spousal Survivor Benefits Work for a Pension
Pension plans often include spousal survivor benefits, which allow surviving spouses to receive part of the pension payments after the pension holder’s death. These benefits can play a key role in long-term financial planning for married couples, as they provide continued income for surviving spouses. You should know how these benefits work if you or… read more…