- I’m 62 With $425k in a Roth IRA and $2,600 per Month between Social Security and Pension. Can I Retire Now?
For many people, early retirement means 62. This is the age they can start withdrawing money from their retirement accounts and receive Social Security. For example, let’s assume an individual with $425,000 in a Roth IRA, a $1,000 monthly pension, and expect $1,600 in Social Security. Is it going to be enough? As often in… read more…
- Will the 2025 Social Security COLA Affect Future Retirees?
The 2025 Social Security cost-of-living adjustment (COLA) could influence future retirees by preserving the purchasing power of their benefits. COLA adjustments are designed to counteract inflation, ensuring that the primary insurance amount (PIA) reflects current economic conditions. For those delaying retirement, the benefits of COLA compound with delayed retirement credits, potentially leading to substantially higher… read more…
- 5 Budgeting Strategies to Help You Save More for Retirement
Saving for retirement can be challenging, but learning how to effectively budget money can make a significant difference. While you cannot change what has already been spent or saved, you do have control over your financial decisions moving forward. By focusing on the present and setting a clear plan, you can begin to make substantial… read more…
- Medicare Premiums: What You Should Expect to Pay in 2024
Medicare isn’t free. This catches many retirees by surprise. Medicare has a reputation for simplicity. You turn 65 and get access to free universal health insurance. This is true to a certain degree, and that’s one of the reasons the program is overwhelmingly popular among recipients. However, in practice, Medicare has many carve-outs and exceptions.… read more…
- How Many Hours Can You Work After You Retire?
While there’s no universal cap on post-retirement work hours, the number can impact Social Security benefits and taxes, depending on your age and earnings. Retirees under the full retirement age may see a temporary reduction in benefits if their income exceeds certain limits. Social Security recipients, in particular, need to be aware of specific earnings limits… read more…
- Can You Retire and Still Work a Job?
If you are close to retiring, you may be wondering whether you can retire and still work a job. This is commonly referred to as “working in retirement,” and you may consider this option to supplement your income, stay active, maintain a sense of purpose, or pursue a passion. However, you will also need to… read more…
- We’re 66 With $715k in 401(k)s and $2,700 Social Security Between Us. What’s Our Retirement Budget?
Making a retirement budget calls for considering not only income but also expenses. With $2,700 monthly from Social Security and $715,000 in 401(k) accounts invested and distributed conservatively, a couple may be able to expect about $61,000 in annual income. This is close to the annual expense level reported by the average retiree. However, individual… read more…
- 10 Reasons You May Want to Retire Early
Picking the right time to retire is one of the most important parts of the equation, second only to building the right savings plan. Leave work too early, and you could outrun your savings; wait too long, and you could outwork your good health. Part of this decision is what “early” means to you. Will… read more…
- Can I Collect My Spouse’s Social Security Before They Retire?
Yes, you can collect your spouse’s Social Security benefits before they retire. But there are specific conditions and limitations to consider. The primary requirement is that your spouse must be eligible for retirement benefits and have filed for them. If you are at least 62 years old, you may qualify for spousal benefits, which can… read more…
- I Left My Job 6 Months Ago. What Do I Do With My 401(k)?
After leaving a job where they contributed to a 401(k), retirement savers typically have four choices about what to do with the funds in the plan. They can roll the funds into an employer-sponsored retirement savings plan at a new job, rollover into an IRA, leave the funds where they are or cash out the… read more…
- My Dad Passed Away. How Can I Access His Retirement Funds?
When faced with the death of a parent, many find themselves asking whether they can claim their parent’s retirement funds. Accessing your father’s retirement funds can depend on various factors such as the type of retirement account he held and whether you are a named beneficiary. Typically, accounts like IRAs or 401(k)s allow for beneficiary… read more…
- How to Stay Socially Active as a Retiree
Retirement can be an exciting new chapter, offering ample opportunities to stay socially active. Engaging in community activities, joining clubs and pursuing hobbies can significantly enhance your social life. Whether it’s volunteering, participating in fitness classes or attending local events, finding ways to stay socially active in retirement is important for maintaining a fulfilling and… read more…
- Does Workers’ Compensation Affect Social Security Benefits?
Workers’ compensation, which provides financial support for employees injured on the job, can impact the amount you receive from Social Security. Specifically, if you’re receiving workers’ comp, your Social Security Disability Insurance (SSDI) benefits might be reduced to prevent your combined income from exceeding certain limits. This interaction is designed to balance the benefits you… read more…
- When to Start Saving for Retirement
Determining when to start saving for retirement can have a major impact on your financial future. Beginning early allows you to take full advantage of compound interest, which is when you earn money on both your savings and the interest you’ve already earned. Starting to save in your 20s or 30s provides a longer time… read more…
- We’re 62 With $1.1 Million in 401(k)s. Should We Convert $100,000 Per Year to Avoid RMDs?
Converting 401(k) funds into Roth accounts can reduce or eliminate the need to take Required Minimum Distributions (RMDs) that can bump you into a higher tax bracket in retirement. Voluntary Roth withdrawals, meanwhile, are tax-free, potentially giving the conversion strategy twice the appeal. Converting 401(k) funds gradually, before you’re required to take RMDs at age… read more…
- At What Age Should You Retire From the Federal Government?
Federal employees generally receive annuity-based pension funds when they retire. Depending on when you joined the government, this may be supplemented by Social Security and a private savings plan. The amount you receive from these various programs depends, among other things, on how long you worked for the government and at what age you retire. As… read more…
- I Will Claim a $3,750 Social Security Benefit. Will My Wife Automatically Get a Spousal Benefit?
Social Security spousal benefits allow a spouse to receive a portion of their partner’s benefit if certain criteria are met. If one spouse claims a monthly benefit of $3,750, the other may be eligible for a spousal benefit, which typically amounts to up to 50% of the primary earner’s benefit. However, eligibility isn’t automatic –… read more…
- Defined Benefit Plans for the Self-Employed
Unlike other retirement plans, a defined benefit plan for the self-employed promises a specific payout upon retirement, calculated based on factors like salary history and duration of employment. This plan allows for significant tax-deferred contributions, often exceeding those permitted in standard retirement accounts. Establishing a defined benefit plan requires meticulous calculations and annual contributions to… read more…
- How to Claim Spousal Social Security Benefits
If you’re married, divorced or widowed, you may be wondering how to claim spousal security benefits based on your spouse’s work record. This can be particularly beneficial if your own earnings history is lower, or you’re planning a retirement budget. To start the process, you must make sure that you meet the eligibility criteria. Here’s… read more…
- I’m 63 and Make $125k, With $900k in an IRA. Should I Do a Roth Conversion on $90k per Year to Avoid RMDs?
Converting an IRA to a Roth IRA is a popular approach to avoiding mandatory required minimum distributions (RMDs) — and the associated taxes — in your 70s and beyond. Doing it gradually can stretch out and even reduce the tax bill compared to converting it all at once. In your case, the key question is… read more…
- What Is Excess Accumulation in Qualified Retirement Plans?
Navigating the rules and regulations surrounding qualified retirement plans like 401(k)s can be complex, particularly when it comes to required minimum distributions (RMDs). When these mandatory withdrawals are not taken on time or in sufficient amounts, the funds that are not withdrawn will be considered excess accumulation and subject to tax penalties. A financial advisor… read more…
- How to Maximize Retirement Savings
Strategic planning and informed decision-making are key when it comes to how to maximize your retirement savings. By understanding the various retirement accounts available, taking advantage of employer-sponsored plans and consistently contributing to your savings, you can build a robust financial foundation for your future. Additionally, exploring tax-advantaged options and regularly reviewing your investment portfolio… read more…
- How to Make a Retirement Income Plan
When it comes to how to plan for retirement income, start by evaluating your anticipated living expenses, considering healthcare costs and taking into account the amount you’ll need for leisure activities and potential emergencies. Then, assess your expected sources of income and develop a withdrawal strategy that aligns with your lifestyle and longevity expectations. By taking… read more…
- What Is the Solo 401(k) Contribution Deadline?
A solo 401(k) plan is a powerful retirement savings tool designed specifically for self-employed individuals and business owners without employees. These plans allow for both employee and employer contributions, providing flexibility and the potential for substantial tax advantages. To fully benefit from this retirement savings vehicle, however, it’s important to be aware of solo 401(k)… read more…
- When Can My Spouse Claim Social Security Benefits?
Knowing when a spouse can claim Social Security benefits can significantly impact retirement planning. Spousal benefits allow one partner to receive a portion of the other partner’s Social Security benefits, providing financial support in retirement. By understanding the eligibility criteria, the impact of full retirement age and the effect of early or delayed claims, among… read more…